Illinois cut 2012 education spending by a greater percentage than any other state. Our state tax rate was just increased by 66%. Chicago has the highest sales tax in the country. Property taxes went up by about $300 per homeowner. The Institute on Taxation and Economic Policy named us one of the ten “Most Regressive State Tax Systems,” with the third-highest “Taxes on the Poor.”
Citizens of Illinois are led to believe that cutbacks and taxes on residents are required to fix all this. But a look at corporate 10-Ks submitted to the SEC reveals that there’s another side to the issue. If just 20 large Illinois companies had paid state taxes at the required statutory rate over the past three years, an additional $7.5 billion would have come back to the state, or about half of our current deficit. These twenty corporations, with a total of $157 billion in 2008-2010 net income, paid only $3.5 billion in total state taxes.
That’s a 2.2% tax rate.
Illinois CEOs claim that the state is unfriendly to business. Perhaps Illinois should forget about making friends and do a better job of corporate tax collecting.