Deal could force Quinn to break campaign promise
Springfield, IL -
Illinois Gov. Pat Quinn and Democratic leaders are pressing forward with a plan to raise the state's personal income tax by 75% over the next four years.
The proposed plan would increase the personal income tax rate from 3% to 5.25% for the next four years, which means someone who owes $1,000 in taxes at the current rate would pay $1,833 at the new rate. Many in the gay community already pay more in taxes as deductions afforded others are not applicable.
Corporate tax rates would also jump from 4.8% to 8.4%. An additional $1 per pack cigarette tax increase is also part of the package.
With the 102% cigarette tax hike, a smoker in Cook County would see the price of a package of cigarettes go to well over $10, prompting many smokers to go to adjoining states and counties with lower tax rates. A recent study indicated members of the LGBT community are on average twice as likely to smoke as straight counterparts.
Illinois faces a $15 billion deficit and currently owes providers and vendors more than $8 billion. $3.7 billion is owed to pension contributions. Illinois and California share the lowest U.S. state credit rating from Moody's Investors Service.
The propose hiked as presented by the Democratic leadership is bigger-than-promised by Quinn, who had campaigned on a 4% income tax rate. Demands by the Black Caucus, led by Sen. James Meeks (D-Chicago), a known gay adversary, to increase spending for education and to provide property tax relief to homeowners lead to an even larger budget shortfall and the higher tax rate proposal.
"To me, that's kind of a bait and switch," said Senate Minority Leader Christine Radogno (R- Lemont). "It's wrong, and it's wrong to do it in a lame-duck session."
States are required by Federal law to balance their budgets each year.
The proposed plan would increase the personal income tax rate from 3% to 5.25% for the next four years, which means someone who owes $1,000 in taxes at the current rate would pay $1,833 at the new rate. Many in the gay community already pay more in taxes as deductions afforded others are not applicable.
Corporate tax rates would also jump from 4.8% to 8.4%. An additional $1 per pack cigarette tax increase is also part of the package.
With the 102% cigarette tax hike, a smoker in Cook County would see the price of a package of cigarettes go to well over $10, prompting many smokers to go to adjoining states and counties with lower tax rates. A recent study indicated members of the LGBT community are on average twice as likely to smoke as straight counterparts.
Illinois faces a $15 billion deficit and currently owes providers and vendors more than $8 billion. $3.7 billion is owed to pension contributions. Illinois and California share the lowest U.S. state credit rating from Moody's Investors Service.
The propose hiked as presented by the Democratic leadership is bigger-than-promised by Quinn, who had campaigned on a 4% income tax rate. Demands by the Black Caucus, led by Sen. James Meeks (D-Chicago), a known gay adversary, to increase spending for education and to provide property tax relief to homeowners lead to an even larger budget shortfall and the higher tax rate proposal.
"To me, that's kind of a bait and switch," said Senate Minority Leader Christine Radogno (R- Lemont). "It's wrong, and it's wrong to do it in a lame-duck session."
States are required by Federal law to balance their budgets each year.
