You can’t cut your way to prosperity. That’s the message the Center for Tax and Budget Accountability is bringing through a new study of tax policy and small business.
“If Illinois were to completely eliminate its state income tax for businesses, that would decrease the national burden by 0.07 percent,” says Ralph Martire, the center’s executive director. “We’re talking nothing.”
Martire says the nine states with no income tax enjoy 6 percent unemployment. The nine highest average 6.1 percent.
He’s pushing for a progressive income tax, which would take a constitutional amendment approved by voters – after the legislature approves, which State Sen. Toi Hutchinson (D-Olympia Fields), joining Martire for a statehouse news conference, calls a “heavy lift” for legislators.
“It’s an election year,” Hutchinson says, “and I’m not naïve. But the truth is: our tax code is old and antiquated and built for an economy that does not exist.”