A recent study by the Tax Foundation, an independent organization, reveals that Illinois now holds the second-highest corporate tax rate in the United States as of January 1, 2024. This places Illinois behind only Minnesota, which has a 9.8% rate, in terms of corporate tax rates. Illinois’ rate stands at 9.5%, a rise from its previous third-place ranking. In contrast, six states, including Texas, Nevada, Washington, Wyoming, South Dakota, and Ohio, impose no corporate income tax at all. Among the states that do levy this tax, North Carolina boasts the lowest rate at 2.5%.

Ted Dabrowski, President of Wirepoints, expressed concern regarding the implications of this ranking for Illinois, commonly known as the Land of Lincoln. Speaking to The Center Square, Dabrowski articulated worries about the adverse impacts on the state’s businesses, economy, and job creation, attributing these challenges to the high costs imposed on companies in Illinois. He noted that the state’s economic performance is lagging compared to most of the country.

The report also points out the significant difference between Illinois’ flat corporate tax rate and those of neighboring states, such as Iowa, which has a much lower rate of 5.5%.

Dabrowski criticized Illinois’ leadership for their apparent indifference to the state’s economic challenges, citing the departure of major companies like Boeing, Caterpillar, and Citadel as evidence. He argued that the current administration’s focus on increasing spending and maintaining high tax rates is detrimental to the state’s economic health.

Furthermore, Dabrowski linked the state’s high tax rates to the exodus of over 200,000 residents in the past three years. He cautioned that without a change in leadership and policy direction, Illinois could continue to see a decline in both its population and economic prosperity, potentially leading to a more challenging and impoverished state.