Saturday, March 21, 2009

WSJ Article on Illinois Tax Increases

The WSJ recently wrote an opinion piece on the Illinois tax increases which I wrote about here called "The Taxing Illini". From the article:
This is a state that does almost everything wrong economically. It is not a right-to-work state and is thus heavily unionized, repelling new business investment. It has the fifth highest minimum wage among the states, the fifth most trial-lawyer friendly legal code, the sixth highest workers' compensation costs, and the 11th highest property taxes. It has one of the highest inheritance taxes, at 16%, so retirees flee to states with no death tax, such as Florida and Arizona. A rare Illinois advantage has been its relatively low income-tax rate, but that will shrink or vanish under Mr. Quinn's increase.

The sad part about this article is that they failed to mention that Illinois has pretty much the highest sales tax rate of any state in the country, and in Cook County the rate is higher than 10% with relatively few exemptions. I guess they just ran out of bad things to say about the state, or figured that the "slaughter rule" was in effect, kind of like in that recent WBC game featuring the USA team.

Cross posted at Chicago Boyz

1 comment:

Joe said...

I grew up in Chicago, and though I have been away since I graduated from high school (lived in Silicon Valley and on the east coast), I have wanted to eventually return. The bulk of my family is there, and I love the town.

In the last year or two, I'd say that desire has greatly diminished, for many of the same reasons I'd not like to return to California - high taxes, intrusive government, unfriendly business environment (especially to entrepreneurs and technology startups).

It's a shame, really. If the city and state could get their acts together, there are a lot of reasons they could be very economically successful. But they seem intent on driving any type of achievers out of the region.