The monthly report for December is out from Illinois’ Commission on Government Forecasting and Accountability.
It includes a comparison of state revenues for the fiscal year-to-date (which started July 1) to the same six-month period for the previous year.
The only good news is a nice jump in revenue from the corporate income tax, which increased by 80% thanks to the recent corporate income tax increase and growing corporate profitability. Corporate income taxes, however, are not a huge revenue source. That increase amounts to $473 million.
Personal income tax revenue increased by 27%. Interestingly, that’s a bit less than the increase in the tax rate which went up 32% at the start of the fiscal year.
The bad news is sales tax revenue, which has stayed pretty flat, increasing just 1%.
Overall, total state revenue sources increased by $2.7 billion year-to-date, or 20%. That’s a nice bump but mostly just reflects higher tax rates.
-Mark Glennon is founder and Executive Editor of Wirepoints. Opinions expressed are his own.