Illinois voters will decide next month whether to enact a progressive income tax, paving the way for a new top rate of 7.99%. The Tax Foundation ranks states by tax competitiveness, and its latest analysis is bad news for Illinois Gov. But its proposed slate of new individual income tax rates, along with a corporate tax hike tied to the same ballot measure, would drop the state’s rank overall to 47th. Although nearby Iowa and Missouri have progressive income taxes, they’ve slashed their top rates in recent years rather than jacking them up as Illinois Democrats intend. Kentucky lawmakers in 2018 replaced their progressive income tax with a flat rate of 5%.

Source: Wall Street Journal October 12, 2020 22:30 UTC