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Orphe Divounguy: Illinois Policy Institute

The Annie Frey Show
November 27, 2019 - 2:29 pm

Chief Economist at Illinois Policy Orphe Divounguy joined the show to discuss the importance of helping small businesses in Illinois, especially since the high property and income tax put on these businesses.

“These bad policies are making the business climate even less competitive,” he said.

Small business analysis finds from Illinois Policy:

  • Businesses with fewer than 50 employees created the vast majority of net new jobs in Illinois in 2018, according to data from the Bureau of Labor Statistics.
  • Small businesses accounted for 61% of jobs growth, meaning small businesses are the primary driver of Illinois’ recovery since the Great Recession.
  • More than 77% of businesses in Illinois are small businesses employing less than 50 employees. Illinois holds a greater share of small businesses than the national average.
  • The state’s high tax environment has created one of the least friendly business tax climates when compared to neighboring states, primarily driven by high property taxes, unemployment insurance, and corporate taxes.
  • Taxes were one of the main reasons for Illinois’ ranking as the least friendly state for small businesses in 2018.
  • Research shows an increase in the top marginal tax rate is associated with a decrease in both hiring by business owners and wages for employees.

To read the full analysis, CLICK HERE.