Democratic lawmakers use lame-duck session to pass a number of items
Springfield, IL -
Illinois Democrats on Wednesday approved major personal and corporate income tax hikes, the largest in the state's history, without a single Republican vote in favor.
Democratic lawmakers were racing to pass the tax hikes before Republican lawmakers, who are opposed to hiking taxes, will be seated later Wednesday.
Democrats relied on the votes of some lame-duck lawmakers to push through the tax increase, which was the same opportunity used to pass Illinois' historic civil unions legislation in December and a death penalty ban on Tuesday.
During the late night session, Illinois House and Senate voted to raise the personal income tax-rate by 67% and the business income tax rate by 46%.
The personal income tax would temporarily raise to 5%, from 3% and corporate income taxes would temporarily raise to 7%, from 4.8%.
The increase means individuals making $50,000 a year would pay roughly $1,000 more in state income tax. Many in the gay community already pay more in taxes as deductions afforded others are not applicable.
The tax hike now heads to Governor Pat Quinn, who supports the measure. The increase is bigger-than-promised Quinn, who had campaigned on a 4% income tax rate.
The House postponed a vote to increase the cigarette tax by $1 per pack.
Illinois faces a $13 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.
Democratic lawmakers were racing to pass the tax hikes before Republican lawmakers, who are opposed to hiking taxes, will be seated later Wednesday.
Democrats relied on the votes of some lame-duck lawmakers to push through the tax increase, which was the same opportunity used to pass Illinois' historic civil unions legislation in December and a death penalty ban on Tuesday.
During the late night session, Illinois House and Senate voted to raise the personal income tax-rate by 67% and the business income tax rate by 46%.
The personal income tax would temporarily raise to 5%, from 3% and corporate income taxes would temporarily raise to 7%, from 4.8%.
The increase means individuals making $50,000 a year would pay roughly $1,000 more in state income tax. Many in the gay community already pay more in taxes as deductions afforded others are not applicable.
The tax hike now heads to Governor Pat Quinn, who supports the measure. The increase is bigger-than-promised Quinn, who had campaigned on a 4% income tax rate.
The House postponed a vote to increase the cigarette tax by $1 per pack.
Illinois faces a $13 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.
