We told you here two days ago that Illinois lawmakers were seriously considering tax increases of 75% on individual income and 49% on corporations. Well, good news for the residents of the land that might more closely resemble its nickname (Prairie State) in the coming years as those increases were lowered to 67% and 30%, respectively.
Governor Pat Quinn is expected to sign the legislation to help stem an ever-growing budget deficit. The state anticipates it will raise an additional $6.5 billion in revenue in 2011. But do those projections take into account the companies and the families that will be fleeing for points near (Indiana) and far?
We hinted earlier that Indiana would need to be ready to roll out the welcome mat for those defectors. A brief conversation with someone from the Indiana Economic Development Corporation (and public comments from Mitch Roob) confirmed that an aggressive marketing plan is in the works along with additional personnel in Northwest Indiana and focused efforts in Terre Haute, Evansville, etc.
The Tax Foundation reports the moves (if part of the 2011 evaluation) would drop the Illinois tax climate from No. 23 to No. 36. Indiana, by the way, is a solid No. 10.
Here’s the Tax Foundation brief on the impacts of the spend, spend, tax and spend some more plan in Illinois.