CHICAGO, Dec. 16, 2010 /PRNewswire/ -- Governor Pat Quinn's income tax hike plan would result in a $1,353 personal income hit for each Illinois household or the loss of over 107,000 private sector jobs, according to a new study from the nonpartisan Illinois Policy Institute.
The study provides statewide and county-by-county income and job loss estimates associated with Governor Quinn's tax plans.
Consequences of Governor Quinn's 33 Percent State Income Tax Hike Include:
- The average household's tax bill will increase by $596.
- Illinois's economy will suffer a reduction in personal income of $6.5 billion over the next 3 to 5 years.
- The associated economic cost ranges from $1,353 less personal income for all households; or, the loss of 107,684 private sector jobs.
The study is based on an empirical analysis showing that higher state taxes and spending crowd-out the private sector--which reduces income and job creation in the long-run. The drop in personal income will hit Illinois taxpayers by 1) reducing income for everyone; or 2) destroying jobs for a few.
"Slashing household incomes and killing jobs will hurt efforts to turn Illinois's economy around," said Institute CEO John Tillman. "The better option would be to shelve the tax increases and allow the private sector to focus on getting back to work increasing incomes and creating new jobs."
The study is part of the Illinois Policy Institute's series of reports designed to educate the public about Governor Quinn's tax hikes. Visit www.illinoispolicy.org to see the rest of the series, including:
- Tax Hike Calculator to show how much Governor Quinn's plan would take from family budgets;
- Fact Finder on how Illinois's tax system places significant burdens on families and businesses compared to other states;
- Fact Finder on how higher taxes chase away people, jobs, and wealth; and
- Policy Brief on how President Obama's tax cuts will be erased by Governor Quinn's tax hikes.
The Illinois Policy Institute is a nonpartisan research and education organization dedicated to making our state a beacon for liberty and prosperity for all citizens. Visit us at www.illinoispolicy.org.
SOURCE Illinois Policy Institute