Chamber’s pride in tax rate misplaced
February 16, 1988
NIU might withdraw from the State Chamber of Commerce because the chamber failed to support a state tax increase. An increase is needed desperately to save the future of public higher education in Illinois. The chamber has, in effect, turned its back on education.
State Chamber of Commerce President Lester Brann Jr. said Governor Thompson should rearrange appropriations instead of raising taxes. That would make sense if there were appropriations that could be rearranged. But there simply are not enough dollars in the state’s piggy bank to go around.
Brann said the chamber doesn’t support a tax increase because the current tax rate is very favorable compared with other states and is a big attraction for businesses to locate in Illinois. He’s right—it is a favorable tax rate. It’s the seventh lowest in the nation.
That’s in a state that ranks in the top five states in the nation in per capita income, even after taking into consideration the thousands upon thousands of poor people living in Illinois. That’s even after taking into consideration that 33 percent of school-aged children in Illinois live at or below the poverty level.
Translated, that means theres an enormous amount of money out there waiting to be used for something worthwhile. Individuals and businesses have benefitted from Illinois’ “favorable” tax rates for many years. It’s time for them to give something back.
The leaders of the State Chamber of Commerce ought to be able to figure out that even with a relatively hefty tax increase, Illinois still will compare favorably with the tax rates of other states. True, Illinois won’t have the seventh lowest tax rate in the nation anymore, but that doesn’t mean the tax rate will suddenly be so high that it will prohibit businesses from locating here.
If people want services, they have to pay for them. The quality of a service received will, sooner or later, reflect the price paid for it. The State Chamber of Commerce must recognize that without a quality education system, businesses won’t want to locate in Illinois even if it drops to the very lowest tax rate ranking.