October 29, 2013 By Mark Glennon
The Fiscal Futures Project is sponsored by the Institute for Government and Public Affairs at the University of Illinois and sponsored by the MacArthur Foundation. It recently issued three new research papers looking at the income tax increases of 2011 and subsequent effects on Illinois’ budget when they sunset in 2015, linked here.
Among the conclusions:
— Illinois’ economy has been in worse condition than our Midwestern peers since January 2011. This can be attributed to many factors, including the income tax increase.
— “Even if the 2011 tax increases are made permanent, Illinois will still face a budget gap of more than $7 billion by 2025. Making the tax increases permanent will not be a silver bullet for Illinois’ chronic fiscal condition. Much of this is due to debt.”
— “No one policy option is a clear solution…. Illinois must make aggressive changes in multiple areas, or will face fiscal imbalances for many years to come.”