West Cook News

A new report shows what’s a devastating impact of the potential Tax Hike Amendment if passed by voters in November.

According to the Illinois Chamber, an independent valuation via Berkley Research Group, along with Ariel Belasen, a professor at Southern Illinois University Edwardsville showed that if the income tax hike passes, it could potentially reduce the state’s economy by $2 billion and boost consumer costs by $332 million. It would also result in out-migration that could lead to lower spending in each household and more job losses in industries like healthcare, food, and family services that typically hire more women and minorities, according to the release.

“This independent study concludes what many of us already knew: this is the worst possible time for a $3.4 billion tax hike on Illinois families and businesses,” Illinois Chamber of Commerce President and CEO Todd Maisch said. “The pandemic has already crushed small business owners, manufacturers and farmers, and this independent study proves that the Tax Hike Amendment would be the last straw for many more.”

Ultimately, the report determined that minorities and women would be the ones most adversely impacted by job losses as industries like hospitals, restaurants, and family services employ them disproportionately compared to their counterparts. 

“Our report shows that the graduated income tax would be a devastating hit to Illinois’ already struggling economy,” Belasen, a study co-author, added. "Job losses would disproportionately affect women and minorities."

The passage of the amendment would also lead to a $1.8 billion decline in Illinois residents’ yearly income. Consumers would also bare the grunt of higher corporate taxes should the amendment pass this November.