Think Tank Solutions
The conservative Illinois Policy Institute has released its own “State of the State” analysis of Illinois’ economic ills, with some proposed solutions. “Since the decade began, Illinois has experienced the greatest population loss of any state in the nation,” writes the organization’s chief economist, Orphe Divounguy. “This period of decline has had detrimental effects on the economy.”
To no one’s surprise, IPI says Gov. JB Pritzker’s idea of making the state’s income tax progressive is the wrong way to go. “States with a progressive tax see disparities between the wealthy and the poor increasing, rather than shrinking. Their economies, jobs and wages grow slower than in the 17 states without a progressive tax.”
The solution, says IPI, requires pension reform and a cap on spending. Pension reform would require a constitutional amendment that would protect benefits workers have already earned “while allowing for changes to the growth of future benefits.” The spending cap, tying growth in state spending to growth in the state’s economy, would also require an amendment to the state’s constitution. For more detail, see the full report at illinoispolicy.org.