Research Brief: The Earth isn’t Flat, and Neither is Illinois’— or any other state’s — Income Tax

April 19, 2022

Research Brief: The Earth isn’t Flat, and Neither is Illinois’— or any other state’s — Income Tax

Authors

The authors of this Policy Spotlight found that achieving a “fair” state income tax system is more complicated than the debate between a flat tax rate and a graduated rate. The Policy Spotlight illustrates that switching from a flat to a graduated tax rate system will not automatically promote progressivity, and shows that even a flat tax system can allow tax burdens to rise with income. The report comes as Illinois and other states look to different plans for expanding their Earned Income Tax Credits (EITC), which supplement the earnings of low-wage workers. The authors note that the EITC is an important driver in the variance between rates taxpayers actually pay in states with flat income tax rates. 

This Research Brief offers key takeaways. The full report is available here. The report is co-published by the University of Illinois Chicago’s Government Finance Research Center and the University of Illinois System’s Institute of Government and Public Affairs.


Download

(.PDF 522.26 KB)

Research Area: none

Policy Initiative: none

Share: