Illinois Lawmakers Propose 75 Percent Income Tax Hike

[WestVirginiaRebel]

cbslocal.com:

SPRINGFIELD, Ill. (CBS) – Gov. Pat Quinn and the leaders of both houses of the Illinois General Assembly have agreed on raising the state income tax.

If the bill passes, the plan would raise the personal income tax rate from the current 3 percent to 5.25 percent. That’s a 75 percent increase. In real dollars, that would mean if you currently owe $1,000 in taxes, next year you would owe $1,750.

The increase is for four years. After that, the personal income tax would go down to 3.75 percent.

The Democratic leaders in the Illinois General Assembly believe this income tax increase, a corporate tax hike, and a $1-per-pack tax increase on cigarettes would erase the state’s $15 billion budget deficit.

The permanent portion of the increase would be used several ways. Some would be devoted to schools and some to repaying an $8.5 billion loan that would be used to pay overdue bills, state Senate President John Cullerton said.

Another chunk would go to property tax relief in the form of annual $325 checks, he said. The checks would replace the property tax exemption that homeowners can now claim on their income taxes.

“I want to emphasize that it is just an outline that we’re working with, and that we’re talking to our members about,” said Cullerton spokeswoman Rikeesha Phelon. “But we’re looking at, possibly, a quarter of a percent that would possibly go for permanent property tax relief. We’re looking at .5 percent of that going toward paying unpaid bills.”

Cullerton said House Speaker Michael Madigan and Gov. Pat Quinn fully support the tax proposal, although Quinn once promised to veto any increase of that size.
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And they wonder why they're broke.

[Valin]

Great news for Wisconsin, Iowa, Kentucky, Indiana, Missouri.

[Geee]

Great news for Wisconsin, Iowa, Kentucky, Indiana, Missouri.

 

 

I posted an article about this and another article about them passing a tax on internet business this morning. The internet businesses have already said they are leaving. My thoughts were exactly what you are saying Valin. Wisconsin will benefit from a new Republican governor who is already trying to pass business incentives, as will the other states you mentioned.