Illinois Chamber Releases Independent Analysis of Progressive Tax Hike: Findings include...

Illinois Chamber

The authors of the study were granted complete independence to provide an objective analysis of the effects of the proposed Income Tax Hike Amendment.

"This independent study concludes what many of us already knew: this is the worst possible time for a $3.4 billion tax hike on Illinois families and businesses," said Illinois Chamber of Commerce President and CEO Todd Maisch. "The pandemic has already crushed small business owners, manufacturers and farmers, and this independent study proves that the Tax Hike Amendment would be the last straw for many more."

"Our report shows that the graduated income tax would be a devastating hit to Illinois' already struggling economy. And, job losses would disproportionately affect women and minorities," said Ariel R. Belasen, Ph.D., Professor at SIUE and independent study co-author.

The key findings of the independent analysis include:

Job losses would disproportionately affect women and minorities: Women and minorities are likely to be disproportionately affected by the job losses because three of the four sectors of the economy that the economic model indicates will be hardest hit by the tax increase. Hospitals, Restaurants, and Individual and Family Services - tend to employ relatively more workers from these demographic groups.
- According to the Bureau of Labor Statistics (BLS):
- Hospitals disproportionally employ women (74.9% of jobs in sector vs. 47% of all jobs across all sectors);
- Restaurants disproportionally employ Hispanic or Latino workers (26.8% vs. 17.6% of all jobs across all sectors); and
- The Individual and Family Services sector disproportionately employs women (78.3%) and African Americans (20.7% vs. 12.3% of all jobs across all sectors).

Reduction in GDP: Approval of the proposed Constitutional Amendment will cause up to a $1.8billion reduction in the income of Illinois residents annually, as measured by thestate's gross domestic product (GDP).
Higher corporate taxes will be passed on to consumers: The corporate tax rate will increase from 9.5% to 10.49% (an increase of10%), the second highest in the country. Studies show that some portion of revenues arising from an increase in the corporate tax rate ($332 million) would be passed on to suppliers and customers, increasing prices on goods and services, and potentially suppressing worker wages.
Out-migration of thousands of high-income households: Some of the job losses will result from reduced spending on food and services arising from an increase in the rate of out-migration by Illinois residents seeking to escape the relatively heavy tax burden that the state imposes on its residents. Based on the most-recent empirical studies by economists, we estimate that increased out-migration will lead to a reduction in household spending by taxpayers in the affected income brackets of up to 0.8%.
No material income tax relief: The average annual tax relief per filer in the lower income brackets is small, and might be less than a single-family meal at a fast food restaurant for many filers.

For a copy of the Analysis go to: https://files.constantcontact.com/61a72ae3201/676543c2-0c78-4532-ba9a-bffea9d0160a.pdf

Chamber Sun Times op-ed on progressive tax
New York's Democratic governor has figured out that "soaking the rich" is a losing proposition for all taxpayers.
Illinois Chamber President and CEO Todd Maisch penned an op-ed in yesterday's Chicago Sun-Times included below discussing why Gov. Pritzker should learn from New York's mistakes. The Chamber will continue fighting for our small businesses in the media and here in Springfield in every way possible. You can read the op-ed Gov. Cuomo knows a "fair tax" would hurt New York. Why can't Gov. Pritzker figure it out? here.


Illinois Chamber Releases Independent Analysis of Progressive Tax Hike: Findings include... Illinois Chamber The authors of the study were granted complete independence to provide an objective analysis of the effects of the proposed Income Tax Hike Amendment. "This independent study concludes what many of us already knew: this is the worst possible time for a $3.4 billion tax hike on Illinois families and businesses," said Illinois Chamber of Commerce President and CEO Todd Maisch. "The pandemic has already crushed small business owners, manufacturers and farmers, and this independent study proves that the Tax Hike Amendment would be the last straw for many more." "Our report shows that the graduated income tax would be a devastating hit to Illinois' already struggling economy. And, job losses would disproportionately affect women and minorities," said Ariel R. Belasen, Ph.D., Professor at SIUE and independent study co-author. The key findings of the independent analysis include: Job losses would disproportionately affect women and minorities: Women and minorities are likely to be disproportionately affected by the job losses because three of the four sectors of the economy that the economic model indicates will be hardest hit by the tax increase. Hospitals, Restaurants, and Individual and Family Services - tend to employ relatively more workers from these demographic groups. According to the Bureau of Labor Statistics (BLS): Hospitals disproportionally employ women (74.9% of jobs in sector vs. 47% of all jobs across all sectors); Restaurants disproportionally employ Hispanic or Latino workers (26.8% vs. 17.6% of all jobs across all sectors); and The Individual and Family Services sector disproportionately employs women (78.3%) and African Americans (20.7% vs. 12.3% of all jobs across all sectors). Reduction in GDP: Approval of the proposed Constitutional Amendment will cause up to a $1.8billion reduction in the income of Illinois residents annually, as measured by thestate's gross domestic product (GDP). Higher corporate taxes will be passed on to consumers: The corporate tax rate will increase from 9.5% to 10.49% (an increase of10%), the second highest in the country. Studies show that some portion of revenues arising from an increase in the corporate tax rate ($332 million) would be passed on to suppliers and customers, increasing prices on goods and services, and potentially suppressing worker wages. Out-migration of thousands of high-income households: Some of the job losses will result from reduced spending on food and services arising from an increase in the rate of out-migration by Illinois residents seeking to escape the relatively heavy tax burden that the state imposes on its residents. Based on the most-recent empirical studies by economists, we estimate that increased out-migration will lead to a reduction in household spending by taxpayers in the affected income brackets of up to 0.8%. No material income tax relief: The average annual tax relief per filer in the lower income brackets is small, and might be less than a single-family meal at a fast food restaurant for many filers. For a copy of the Analysis go to: https://files.constantcontact.com/61a72ae3201/676543c2-0c78-4532-ba9a-bffea9d0160a.pdf Chamber Sun Times op-ed on progressive tax New York's Democratic governor has figured out that "soaking the rich" is a losing proposition for all taxpayers. Illinois Chamber President and CEO Todd Maisch penned an op-ed in yesterday's Chicago Sun-Times included below discussing why Gov. Pritzker should learn from New York's mistakes. The Chamber will continue fighting for our small businesses in the media and here in Springfield in every way possible. You can read the op-ed Gov. Cuomo knows a "fair tax" would hurt New York. Why can't Gov. Pritzker figure it out? here.
Chamber Connection - August 14, 2020