Illinois companies, small businesses and professionals faced an annual reminder last month on Tax Day that never seems to get easier to swallow: Doing business in Illinois is expensive and it’s getting worse. Recent calls to make a 67 percent hike in the personal income tax rate permanent are clear evidence of Illinois’ dismal downward spiral.
The good news is that it doesn’t have to be this way. As Midwestern states, Illinois and Indiana share similar industries. Our locations are similar and the geographies are mostly interchangeable. But by following a different fiscal road map, Indiana avoided the Illinois mentality of tax-spend-and-then-tax-some-more that restricts growth and undermines job creation.
In Indiana, we’ve built a state that works by letting the true drivers of our Hoosier economy — employers — keep more of what they earn. Last month, our corporate income tax was officially placed on a reduction schedule, falling to 4.9 percent when fully implemented, giving Indiana one of the lowest corporate tax rates in the nation. By comparison, the Illinois corporate tax rate is one of the nation’s highest at 9.5 percent.