Taxes in Illinois are the highest in the U.S., according to a new study, but experts add it depends on who you are and how much you earn.
A recent study by Money Geek found residents in the Land of Lincoln shoulder the highest tax burden among all 50 states, giving it an E grade.
Using as their base a married couple with one dependent, both bringing in the median national income of $82,852, and who own a $349,400 home, the study shows Illinois residents pay nearly $14,000 in state taxes every year, or 16.8% of their income.
Carol Portman, president of the Taxpayers’ Federation of Illinois, says because of the flat tax, the state tends not to perform well when looking at the middle class.
“Part of this is definitely attributable to that,” she told the Illinois Radio Network. “If you look at someone making $300,000 to $400,000 a year, I’m guessing Illinois would not fare as poorly — those folks would do better.”
Illinois’ flat tax is part of the state’s constitution.
“Generally speaking, middle class folks pay more in Illinois than they would in another state because the states that have a graduated structure tend to really hammer the high-end folks who make more and provide a lower tax on the middle-income folks, but Illinoisans did not want that,” Portman said.
But that’s not the only contributing factor.
Sales tax rates in the state are high, Portman points out, as are property taxes.
More here.
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