Business Climate Comparison

Ev Evertsen wrote the following addressing the tax situation in Illinois:

How Business Friendly is Illinois and Why are People / Businesses Leaving?

To fully understand what is ‘behind the numbers’ you really need to read what is at this link: http://taxfoundation.org/article/tax-foundation-location-matters-methodology

http://taxfoundation.org/location-matters/

Illinois ranks in the bottom third of states for all seven mature firm types, even though the state consistently offers one of the more generous withholding tax credits in the nation.

For many firms, especially those with long time horizons, a competitive, structurally sound tax system is significantly more important than the availability of incentives.

This study’s snapshot date of April 1, 2014 precedes partial sunsets of temporary individual and corporate income tax increases. The individual income tax is now 3.75 percent as of January 1, 2015, while the corporate income tax declined to 7.75 percent. This corporate income tax rate combines both the traditional corporate income tax and a second tax on the same base, known as the “personal property replacement tax” for the repealed tax for which it was intended as a revenue replacement.

The state’s high income tax rates at the study’s snapshot date lead to an above-average corporate income tax burden for all mature firm types. Corporate headquarters, call centers, retail stores, and capital-intensive manufacturing operations also experience a high combined state and local sales tax rate.

With an effective tax rate of 26.9 percent, the burden on mature call centers in Illinois is among the highest in the nation despite the state’s favorable benefits-received sourcing rule.

However, much of the advantage of benefits sourcing is eliminated because the firm is subject to a throw-out rule for service receipts attributable to a state where the taxpayer is not taxable.

The state’s throwback rule also works to the detriment of research and development (R&D) facilities, with the mature firm facing a 14.5 percent effective tax rate, which is high for that firm type and ranks 42nd nationwide. These rules effectively expose 100 percent of the firm’s income to in-state taxation.

(NOTE:  To get details behind the numbers, go to the link listed.)

Tax structures vary from State to State and County to County.

Now let’s take a look at the State debt:

http://taxfoundation.org/blog/where-does-your-state-stand-state-local-debt-capita

State DebtNext, let’s see how Workmen’s Comp Insce. rates compare to surrounding states:
https://www.insurancejournal.com/research/research/success/workers-compensation-premiums-ranked-by-state/

Workers Compensatin rankings.

Workers Compensation rankings.

Let’s take a look at business climate:
http://taxfoundation.org/article/2015-state-business-tax-climate-index
Bus Climate Rankings

Does the State have Right To Work Laws?
Rt to Work yes or no

Let’s look at Prevailing wages.

Iowa has no prevailing wage law and Indiana has repealed theirs. WI and MN have caps on when the law applies.

IL, MO and MI have no caps.

Prevailing wage comparison.

Prevailing wage comparison.


Comments

Business Climate Comparison — 7 Comments

  1. What about political corruption, welfare, sanctuary cites and crime ?

    The trajectory for the businesses and residents of Illinois is clearly on a very steep downslope, with the exception of real estate agents/sales.

    But we all know why that is now, don’t we ?

  2. Nationally, 14.10% of the residents in the Country receive Food Stamps (SNAP).

    In the State of Illinois that percentage is currently 15.68%.

    In case anyone is interested, the current population of the U.S.A. is said to be 321,723,942.

    Of this total, 160,123,816 residents receive some form of government benefit (handout).

    We are on the cusp of having more ‘takers’ than ‘givers’.

    Do understand, there are some people who receive SSI, SS, Medicare, Farm subsidies etc. who are ‘takers’ AND ‘givers’.

    http://www.usdebtclock.org/#

  3. Why does McHenry county with one of the highest property taxes in the nation have such a high debt per capita?

    Even more than Cook county?

    Is it because of the republican politicians here who claim to be fiscally conservative but aren’t?

    Or they claim to be business oriented but not in McHenry where another business Oberweiss owned by a republican are leaving?

    So glad he did not win his election.

    He might quit like your beloved Sarah Palin.

  4. When Cal posted the item above, a ‘box’ was dropped.

    The ‘box’ contained the Debt per capita rankings for the State.

    What Karma is looking at is the property tax comparison.

    Cal did label the box correctly: “Average property tax bill in northeastern Illinois counties.”

    Here is the state debt comparison:

    Now let’s take a look at the State debt ranking:

    http://taxfoundation.org/blog/where-does-your-state-stand-state-local-debt-capita

    Illinois 6

    Michigan 27

    Missouri 28

    Minnesota 28

    Wisconsin 30

    Indiana 31

    Iowa 40

    To clarify for Karma, the numbers are rankings, with 6 being a bad number and 40 a lot better.

    I have supplied this information to give the readers information.

    Unlike some I am not throwing stones or criticizing anyone.

    The problems in Illinois, can be corrected via Constitutional amendment (as Mark has succinctly stated over and over) and electing more conservative State Legislators.

    Our State fiscal problems were created by the voters and can only be fixed by the voters.

  5. I will be retiring soon, and I will take all my Illinois earned wealth to low tax Florida.

    Thank you for the Interstate Commerce clause.

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