States are in the process of recovery following the devastating economic impact of COVID-19. But, Illinois' economy is lagging behind. Many Republican elected officials and candidates believe that the current high taxes and rigid regulations are the cause.
As of August, Illinois is 1.4% behind the nation in job recovery following the economic downturn in March 2020, according to Illinois Policy. The state is still missing 89,000 jobs and has the third-highest unemployment rate in the nation at 4.4%.
Candidate for the Illinois House 112th District Jen Korte voiced her opinion on Tuesday in a Facebook post.
“New economic numbers are showing that Illinois' unemployment rate is the third highest in the nation and the highest in the Midwest. The high taxes and burdensome regulations (that have made doing business in Illinois harder) are now causing our economic recovery to lag behind neighboring states. The people of the 112th District deserve a representative in Springfield who will fight to cut taxes and limit regulations so our businesses and families can stay in Illinois. We deserve better than the disastrous economic policies of our current administration.”
With policy decisions that have exacerbated the threat of recession, Illinois will be put in a difficult position as the flexibility of the state’s budget is minimal due to pension obligations and a $1.8 billion unemployment trust fund deficit, Illinois Policy reports.
Since the start of COVID-19, Illinois has spent nearly $5 billion fighting the negative economic implications of lockdowns, according to Realms of Discordia. That amount was a part of Congress' State and Local Recovery Fund Relief Package approved by the Biden administration. The money was intended to stabilize state budgets and finance operating costs to maintain public service costs.
Data from Tax Foundation shows that as of July 1, Illinois has a combined state and local tax rate of 8.73%, ranking eighth in the nation. The state tax rate is 6.25%, and the average local tax rate is 2.48%, which maxes out at 5.25%.
According to the Bureau of Economic Statistics, in 2020, Madison County ranked sixth in Illinois for real GDP at $12.9, down 2.7% from 2019.
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