U of I Flash Index shows economic growth slow, steady

Posted on February 4, 2019
Fred Giertz, an economics professor at the University of Illinois at Urbana-Champaign, authors the Flash Index, which remains above one hundred — the break-even point between economic growth and contraction for the state. (Photo Pixabay)

By Dave Dahl

SPRINGFIELD – If Illinoisans buy into changing the state’s income tax system from flat to progressive – in which higher earners pay at a higher rate – it won’t be quick.

University of Illinois economics professor Fred Giertz reminds is of that.

“We are talking about a two-year window” for a progressive income tax could pass the General Assembly and get onto the ballot, then – if voters approve – for the legislature to set up the entire new system of taxation. “The state is going to have some challenges in the meantime, because the last administration left a large deficit, and that’s going to continue, and probably even grow, with new Democratic programs.”

Giertz authors the Flash index, a monthly indicator of Illinois’ economic growth, considering consumer spending, personal income, and corporate earnings. The index slipped from 105.5 to 105.4 over the first month of the New Year. 100 is the break-even point between growth and contraction.

Dave Dahl can be reached at [email protected]

 

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