Half Again

Half again, 50% increase. That's quite a hit.

I realize many states' income tax rates are quite higher than Illinois. I found the latest published rates for 2008. Rhode Island requires 25% of federal liability. Whew.

Others that are higher: California at 9.3% top rate, Iowa 8.98%, Minnesota 7.85%, New Jersey 8.97% which is less than New York, Oregon 9.0%, DC 8.5%, and Vermont 9.5%.

There are states that only tax interest and dividends like Tennessee but have no earned income tax. Their sales tax rate is 7%.

Here are the states with no individual income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

So maybe a 50% increase is expected for the great state of Illinois, home of Abe and Rod. The 4.5% proposed is not bad compared to New Jersey or Vermont; however, it makes Indiana's 3.4% look pretty good.

Indiana is one of the few states that was running in the black before last summer. How could they do that well with such a small income tax rate? Plus a sales tax rate of 6%.

Want to be a Hoosier?

'til later