Dupage Policy Journal

Illinois lost more than 130,000 manufacturing sector jobs in 2019, and in DuPage County alone that amounts to 956 jobs. This was before the novel coronavirus hit but, according to the Illinois Policy Institute (IPI), this was still the nation's third worst decline in payrolls for the manufacturing industry – behind only Idaho and South Dakota.

Opponents of the progressive tax measure set to be voted on in the November ballot warn that should the tax be passed it will inevitably further job loss across the state and in DuPage County.

The state’s unemployment rate was at its lowest level in history in 2019, but not necessarily for a positive reason. Instead, Illinois residents were giving up on their job searches, or leaving the state. And things don’t look like they’re getting better, according to the IPI.

Now with the COVID-19 crisis, experts predict a 30 percent unemployment rate. For DuPage County, that means 131,853 individuals could lose their jobs. 

A growing chorus is arguing the state is in a mess economically and if Gov. J.B. Pritzker’s “fair tax” is approved by voters in the November election it’s likely to get even messier. 

Pritzker spoke of his progressive income tax in his state of the state address earlier this year and touted it as one that would affect the state’s top income earners and cut taxes for 97 percent of residents. However, a typical middle income family living in DuPage County can expect to pay a bill of $3,500, according to the IPI. 

A progressive tax could also mean that DuPage loses even more jobs than it already sustained. Before the COVID-19 pandemic, the institute estimated that job losses in the county attributed to Pritzker’s “fair tax” plan could exceed 39,000 jobs, and 286,000 jobs statewide.

Already, the county has seen an estimated 4,671 jobs lost due to the pandemic, in a three-day period (March 16-18) alone.

The Illinois Business Alliance called on Pritzker to take the graduated income tax proposal off the ballot, saying this is not the right time.

"There's a time and a place to debate a graduated income tax but now is not that time," Jared Carl, president of the Illinois Business Alliance, said in a news release. "People throughout the state are distraught and they don't know how the pandemic will affect their jobs and their livelihoods. Some businesses have been forced to close because of mandates from the state, while others that remain open face difficult decisions: Should we shut our doors? Keep employees at home? Can we afford to have zero income while the state practices social distancing? 

"Adding the prospect of higher taxes to their plate is unthinkable right now. What Illinoisans need right now – including the business community – is stability and relief, not a potential tax increase."

The IBA notes that it’s “universally accepted that businesses would pay higher taxes under Pritzker’s proposal,” and that would put even more pressure on the state’s economy and the businesses in DuPage County and beyond. Critics say that’s probably not the best move for a state that’s already facing economic issues.

Last week, state Rep. David McSweeney (R-Barrington Hills) also requested the measure be taken off the ballot as the nation deals with the COVID-19 pandemic. 

“We're in the middle of a national crisis and Illinois families are hurting. @GovPritzker - Please work with the General Assembly to immediately take your progressive tax hike off the ballot. Another tax increase would destroy many small businesses and hurt our citizens! #twill," McSweeney tweeted.