Daily Archives: January 8, 2011

Illinois Considers Rasing the Personal Income Tax by 75%

California is asking voter to keep their existing taxes and raise others taxes.Illinois is moving to raising to personal income by 75%. From WBBM-AM Newsradio 780:

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.

Well isn’t this something Illinois and California are running to raise taxes meanwhile NY Governor Andrew Cuomo is cutting taxes like NJ Governor Chris Christie.  It looks New York and New Jersey are making the changes that keep business from fleeing. California and Illinois are embracing taxes  while jobs continue fleeing to Texas, Colorado, North Carolina and Virginia. Wonderful.

read it all.