Tax Battle Of The States: Illinois Vs. Tennessee

Of course, not every Illinoisan would pay this exorbitantly high top rate . . . but more than half of Illinois’ small businesses would. This is because many small businesses are subject to individual income tax – so while the Democrat legislature talks up a higher tax on “the rich,” in reality they are punishing the small businesses that are the economic drivers of the state and the nation. It’s little wonder, then, that between 1992 and 2014 Illinois lost nearly $42 billion in net adjusted gross income (AGI), with nearly a quarter of that staggering total going to income-tax-free Florida. With the odds stacked against Illinois, the state should probably not embrace a tax hike that will drive it even further into the red. The nation’s eyes may be on the presidential-nomination antics, but our true future depends on smart decisions made at the state level, and our willingness to learn from the triumphs of Tennessee – and the ills of Illinois.

Original: Forbes Real Time