Illinois’ tax burden on businesses exceeds Midwest neighbors

Local News

ILLINOIS — According to a national report done by the Anderson Economic Group, Illinois is ranked 30  for the amount of taxes business pay.

The state has gone down two spots since the previous year’s study, but experts say, compared to our Midwest neighbors we still have a ways to go.

The study, based on figures from 2015, show Illinois’ businesses pay 9.4% of their profits to local and state governments.

Meanwhile, Indiana, Missouri and Ohio have some of the lowest tax burdens for companies in the country. There, they only pay around 7 % of profits in taxes.

Recent job loss has put more pressure on the government to find ways to attract and keep business in Illinois.

Governor Rauner has emphasized a need to decrease taxes in order to stay competitive while other lawmakers argue adding taxes is the only way to recover from the budget deficit.

Most recently, a bill proposed in the Senate would allow the government to tax a business’ payroll. If passed, Illinois will be one of the few states to do this. 

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