The democratic leadership
The democratic leadership and the Governor appear to have come to an agreement on a plan to raise taxes in Illinois, although this morning it appears deliberation on the details is still going on between Governor Quinn, Senate President Cullerton and House Speaker Madigan.
It appears the tax increases may be as follows:
-
Personal Income Taxes will go from 3% to 5.25%. (1.5% of this is temporary and so the rate would revert to 3.75% in 2015 unless the legislature acts otherwise in 2015).
-
Corporate Income Taxes will go from 7.3% to 10.9% (making IL the highest corporate tax rate in the U.S.)
-
Add another $1.00 to a pack of cigarettes
The increase in the personal income tax rate is estimated to bring in $6.2 billion annually. The corporate tax increase is estimated to generate an additional $1 billion per year, and the cigarette tax will add $377 million. Go to www.ifca.com to see a comparison of how Illinois would rank among neighboring states in tax burden if this passes.
The money will be divided among education and human services, paying off the massive budget deficit, paying the state’s outstanding bills, paying for state pensions, sending some, but not all, property tax owners a rebate check of $325 each year. The plan also includes borrowing another $12.2 billion, which they plan to pay back in 14 years.
The proposal does not include any major cuts to state spending, only an agreement that they would limit growth in state government spending to no more than 1% each year.
Lawmakers may vote on this today. The 96th General Assembly is scheduled to officially adjourn on Tuesday before the new General Assembly is sworn in on Wednesday, January 12. If you wish to express your views about this tax proposal you can contact legislators at their Springfield office today.