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Analyst: Illinois Sales Tax Collections Flat Despite Income Tax Rollback

Flickr user Daniel Borman / "Money, Money, Money" (CC BY 2.0)

Illinois government has been collecting a lot less money since an income tax rollback took effect at the beginning of last year. Officials warned that problems in the broader economy could make things even worse. 

Jim Muschinske, a non-partisan budget analyst, says Illinois sales tax collections have been mostly flat. 

That’s surprising, because with the tax cut, people ought to have more money to spend. The thing is — they’re just not spending it.

“When the consumer starts to fade, bad things typically follow."

Muschinske says when you combine slower spending with the epic drop in gas prices, Illinois is expected to lose $230 million in sales taxes. That makes solving the state's fiscal disaster that much harder.