* A new study by the Anderson Economic Group ranks Illinois 20th nationally in its business tax burden, “defined as the share of pretax operating margin that a firm has to pay out in combined state and local taxes,” according to Greg Hinz…
By that standard, businesses in Illinois paid 9.6 percent of their pretax profit in state and local taxes in calendar 2011, more than the average of 8 percent paid by the 10 lowest tax states but less than the average 14 percent by the 10 highest states.
The actual range among the states was from 5.1 percent in Delaware to 25.2 percent in Alaska, where the number is skewed by that state’s dependence on taxes levied on natural resources like petroleum, which tend to be high.
Perhaps more significant, Illinois ranks relatively well among other Midwestern states, even after jacking up its income tax at the beginning of 2011. Iowa is lower at 8.5 percent, and Missouri just below at 9.2 percent. But higher are Minnesota (10 percent), Indiana (10.6 percent), Ohio (11.1 percent), Gov. Scott Walker’s Wisconsin (11.3 percent) and Michigan (13.3 percent).
Down in Texas, whose Gov. Rick Perry recently came up here ona rather bellicose corporate raiding mission, the total tax burden is a little lower than ours. But at 9.2 percent — compared with 9.6 percent in Illinois — the difference is what a good Texan might call a lil’ itty-bitty.
Wanna bet that the Tribune editorial board, Bruce Rauner, Ty Fahner, the Illinois Policy Institute and the other folks screaming about how Illinois is about to die a self-inflicted tax death completely ignore this study?
* But that’s not to say we don’t have some very real problems here. For example…
For every hundred dollars in payroll, Texas employers pay 39 cents for workers’ compensation insurance; their Illinois counterparts pay $1.10.
Few big companies actually pay the full tax rate, but workers’ comp is another story. It has to be addressed… again.