Moody’s and WalletHub Paint the Real Picture

"Everything is too damned expensive," Governor Pritzker said during his budget address last month. But instead of taking responsibility for Illinois' struggling economy, continued outmigration, and high tax burden, the governor once again pointed fingers at Washington, D.C.

Illinois families know these problems didn't suddenly appear in 2025. After years of one-party rule and policies under Governor Pritzker, families are being taxed out of the state and economic growth continues to lag behind the rest of the country. Recent reports from Moody's Analytics and WalletHub help explain why.

Moody's Analytics Illinois Economic Forecast

Key Excerpts:

• "Illinois' economy will underperform the Midwest and the U.S. in the coming year."
  
• "Below-average population trends and deep-rooted fiscal problems such as mounting pension obligations and a shrinking tax base represent the biggest hurdles to stronger economic performance."
  
• "Persistent out-migration will weigh on the strength of employment and income gains."
  
• "The state's performance has been weaker than that of the region and the nation."

WalletHub Report

• According to a recent WalletHub report, Illinois ranks No. 1 in the nation for the highest tax burden.
  
• Illinois' overall state and local tax rates are 53% higher than the U.S. average.
  
• Illinois residents face one of the highest combined state and local tax burdens in the country.
  
• As a result, taxpayers in Illinois pay a larger share of their income in taxes than residents in most other states, putting additional pressure on families already struggling with rising costs of living.

Together, these reports paint a clear picture of Illinois' weak economic outlook. High taxes, slow economic growth, and ongoing outmigration are warning signs that the state is moving in the wrong direction.

While Governor Pritzker continues to blame Washington, the reality is that years of overspending and tax hikes in Springfield have left Illinois families paying the price.

House Republicans are fighting to change that by putting forward policies that improve affordability and restore fiscal stability, including legislation like Representative Dan Ugaste's HB 9, which would provide property tax relief for Illinois homeowners and Representative Ryan Spain's HB 1383 to provide tax relief on tipped income.