Illinois and Utah Move in Opposite Directions over Tax Reform
Here are the major differences (and one similarity) between tax reforms currently being proposed in Illinois and Utah.
Illinois–Reform is being pushed by the education community, not by top lawmakers.
Utah–Reform was proposed by the outgoing governor and recommended by a state government commission.
Illinois–Tax reform aims to increase tax revenues.
Utah–Tax reform aims to be tax-revenue neutral.
Illinois–Personal income tax rate would increase from 3 percent to 5 percent for households earning $50,000 or more.
Utah–Personal income tax rate would drop from a high of 7 percent to a flat 4.9 percent for everyone.
Illinois–State sales tax would be increased for certain consumer services, exceeding 9 percent in several localities.
Utah–State sales tax rate would be rolled back one percentage point to 3.75 percent.
Illinois–State corporate tax rate would be increased from 4.8 percent to 8 percent.
Utah–State corporate income tax would be abolished.
Illinois–Local property taxes would initially decrease, but there is no assurance they wouldn’t soon start to rise again.
Utah–Local property taxes could increase.
Illinois–Reform would broaden the state sales tax base.
Utah–Reform would broaden the state sales tax base.