Amy Korte, Executive Vice President & Austin Berg, Vice President of Marketing | https://www.illinoispolicy.org/our-story/?team-filter=staff#team
Amy Korte, Executive Vice President & Austin Berg, Vice President of Marketing | https://www.illinoispolicy.org/our-story/?team-filter=staff#team
The annual tax burden for Illinois residents continues to rise, with each household paying an average of $13,099 in various taxes, including property and sales taxes. This figure represents approximately 16.5% of a family's income. The allocation of tax revenue is a topical issue, as it does not always equate to an improvement in public services, according to Lauren Zuar, a policy researcher at the Illinois Policy Institute.
Zuar expressed concerns about the state’s fiscal management, highlighting that much of the tax revenue is absorbed by debt and government pensions, rather than directly enhancing public services. "Illinoisans’ high taxes aren’t equal to the services they receive. Hard-earned tax dollars are getting eaten up by spending on debt and government pensions. That prevents spending on other services people expect and need," Zuar stated. The research anticipates that without substantial reform, future tax hikes are inevitable.
The distribution of tax revenue in Illinois outlines a significant portion directed towards state obligations:
- Pensions and government services command $1,115 per person, accounting for 28% of the overall allocation. Despite these contributions, Illinois faces a $144 billion shortfall in pension funding.
- More than $1,000 of each return supports education, including K-12 and university funding. Alarmingly, only one-third of Illinois students achieve grade-level reading proficiency.
- Human services receive $855 per return to fund behavioral health, early childhood, and family services.
- Health care allocation stands at $665 per share for Medicaid and state health programs.
- Public safety expenditures are set at $187 per return.
- Economic growth initiatives receive the smallest allocation, at $28 per return, earmarked for job creation and business development.
- Environmental, cultural, and miscellaneous costs receive a nominal $10 per return.
In conclusion, Zuar reiterated the urgency for reform, cautioning that "without serious reform, Illinois taxpayers are at risk of future hikes and that’s not something they can afford."
More information can be accessed at illin.is/taxday2025.
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