Today is tax freedom day. Theoretically, that means that all the money we’ve earned so far this year has gone to taxes, and from now on we keep it all – though in reality, we pay some tax and keep the rest all year.
Nevertheless, this date is too late for Illinois taxpayers, says U.S. Rep. Randall M. Hultgren (R-Winfield). “Illinois tax freedom day is now later than Minnesota’s or Wisconsin’s. This means the people of Illinois now work more of their year to pay various levels of government than [in] any other state in the Midwest,” he said. Illinois is tied for the fifth-latest tax freedom day in the nation, along with Maryland and Wyoming. Last year, Illinois was ninth and in 2010 Illinois was 14th. The moving of the date and the ranking can be attributed partly to the increase in the state income tax.
The Tax Foundation, which computes tax freedom day, takes into account all federal, state and local taxes collected in a state, divided by the population. Illinois has always had a relatively late tax freedom day due to the state having high incomes, and therefore high federal income tax collections from Illinois residents.