studies place Illinois in the bottom half of states when it comes to
business tax climate and job growth.
to the most recent edition of the State Business Tax Climate Index
released by the nonpartisan Tax Foundation, Illinois’ business tax climate
dropped two places since last October and is considered by the organization to
be the 31st best tax climate in the nation.
determine an overall ranking, the Index considers more than 100 tax variables
in five important areas of taxation including corporate, individual income,
sales, property and unemployment insurance tax. A state receives a less
favorable ranking for overly burdensome, complex tax codes and high rates. The
Index also noted a state’s ranking could change dramatically from year-to-year
due not only to its own policies, but in recognition of tax-related
modifications or reforms that are made in other states.
Tax Foundation noted that “evidence shows that states with the best tax systems
will be the most competitive at attracting new businesses and most effective at
generating economic and employment growth.” While also conceding that “taxes
are but one factor in business decision making,” the report noted that compared
to reforms in other policy areas that employers pay close attention to, such as
healthcare, transportation infrastructure and education, which can take many
years to execute, changes to a state’s tax code can be made quickly, and
rapidly and dramatically improve that state’s business climate.
the state’s business climate is critical if Illinois hopes to improve its job
growth ranking. A report published by Arizona State University placed the
state 45th in the nation in job growth using U.S. Bureau of Labor
Statistics. This is a drop from the state’s 2013 ranking of 39th in