Revenues Improve Thanks to Taxes on Unemployment Benefits

Revenues Improve Thanks to Taxes on Unemployment Benefits

CHICAGO (AP) – Taxes unemployed Illinoisans have paid on their unemployment benefits helped the state see improved revenues this far into the COVID-19 pandemic, according to the state’s forecasting commission.

Part of the process for crafting the state’s annual spending plan is determining what the revenue estimate is. The Illinois Commission on Government Forecasting and Accountability (COGFA) met Tuesday in Springfield to provide their latest estimates.

COGFA Revenue Manager Jim Muschinske said when the pandemic hit, they anticipated major losses. With the latest data, the worst didn’t happen and the recovery has been swift.

“Depending on the sector we’re talking about, it may look like a V, it may look like U, it may look like a Nike swoosh, depending on what sector we’re looking at,” Muschinske said.

Consumers beat expectations on economic activity despite the governor’s pandemic restrictions, he added.

But, as with other economic downturns, he expects Illinois to lag the nation in recovering.