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Illinois Take Note: Tax Cuts in Wisconsin Haven’t Created Jobs

We recently covered how huge tax cuts in Kansas have hurt its economy. Now, there’s evidence from just north of the border. In Wisconsin, recent large tax cuts have failed to improve job growth. In fact, job growth slowed markedly in the state after the tax cuts were enacted. According to the Wisconsin Budget Project:

Large-Tax-Cuts-Havent-Spurred-Job-Growth

[T]ax cuts haven’t led to job growth in Wisconsin. The rate of private sector job growth in Wisconsin has fallen significantly below that of other states since the fall of 2011…Wisconsin simply isn’t keeping up in terms of job creation.

Why is Wisconsin’s experience important to us in Illinois? Because those who advocate allowing current income tax rates to expire at the end of 2014 say that doing so will spur economic growth here. Based on other states’ experiences, we know this is simply not true.

The looming revenue collapse (about $2 billion in fiscal year 2015, which begins in July, and likely at least $5 billion a year thereafter) means massive cuts to nearly all areas of the state budget. The revenue collapse will not only hurt kids, families, and individuals, but also will lead to further credit downgrades and will imperil our state’s economy.

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