Impact of President Obama's tax plan on Illinois and how the planned tax hike or tax increase will impact Illinois's economy.

1. THE EFFECTS OF THE OBAMA TAX PLAN
Illinois
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
–4,000
in Illinois, most notably in the number of jobs and
change in personal income. –8,000
–12,000
Among the results, from 2011 to 2020, the state
–16,000
of Illinois would:
• Lose, on average, 30,083 jobs annually. –20,000
• Lose, per household, $13,097 in total
–24,000
disposable personal income.
• See total individual income taxes increase by –28,000
$25,356 million. –32,000
–36,000
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –40,000
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–38,000
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$3,145.7
2011 2015 2020
$0 $3,200
–$200 $2,800
–$400
$2,400
–$600
$2,000
–$800
$1,600
–$1,000
$1,200
–$1,200
$800
–$1,400
–$1,600 $400
–$1,800 $0
2011 2015 2020
–$1,657.83
Chart IL • Obama Tax Plan by State heritage.org

2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in Illinois
8
Average Annual Change in Total 10
Employment, 2011 to 2020, by 16
Congressional District
6
Jobs Lost: 800–1,399 3
Jobs Lost: 1,400–1,599 14 13
Jobs Lost: 1,600–1,799 2
Jobs Lost: 1,800–2,320
11
State: 30,083 jobs lost annually
on average
17
15
18
19
12
Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S.
Department of Labor, Bureau of Labor Statistics.
Map IL • Obama Tax Plan by State heritage.org