Between 2007 and 2016, Illinois’ personal income growth crawled at a pace of only 0.8 percent per year, tying with Nevada for the lowest income growth in the country. Senate Republicans pointed to the sluggish growth as a prime example of why the state needs structural reforms to entice job creators to expand or settle in Illinois. Republican legislators continue to fight for these reforms that will expand the Illinois’ fiscal assets and bring economic stability and security back to the state.
While Illinois trails behind the likes of even low-growth states such as Connecticut and Mississippi, the average U.S. state has doubled Illinois’ income growth rate. In fact, its neighboring state of Indiana has grown at more than two times the pace of the Land of Lincoln. Hundreds of thousands of Illinois income-earners continue to leave to seek out more competitive states for opportunities.
Despite Illinois’ struggle to draw new residents and businesses to the state, and entice their current population to stay, the General Assembly recently proposed significant income tax hikes that may further stifle income tax growth and secure its spot as the worst in the nation. Republican lawmakers and the Governor have consistently stressed that if the state is going to advance an income tax increase, then reforms—such as significant property tax relief—are necessary to provide Illinois residents with meaningful relief in other areas.