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FLASHBACK 2011: Illinois Braces for Tax Increases
WSJ ^ | January 13, 2011 | DOUGLAS BELKIN, LAUREN ETTER and ILAN BRAT

Posted on 11/16/2012 9:41:29 AM PST by Eagle of Liberty

Facing one of the biggest budget shortfalls of any state, Illinois took the risky step of jacking up income and corporate taxes even as its economy struggles to shake off the recession.

In a deal hammered out by the state's Democratic leadership, the lame-duck legislature pushed through a 67% increase in the state income tax and a 45% increase in the corporate tax.

The new income-tax rate would add about $1,040 to the tax bill of a family of four earning $60,000 a year, and the new corporate rate would move the state into the top 10 among corporate taxers nationally.

Skeptics worried the increase has the potential of chasing both businesses and residents out of the state, and Democrats face the possibility of losing political support in 2012.

In some respects, the move wasn't a surprise: Democratic Gov. Pat Quinn defeated a weak Republican candidate in November after pledging repeatedly to raise taxes. And the state's fiscal crisis had become increasingly untenable after years of using short-term borrowing to close budget gaps and short-changing its pension liabilities.

"The state was careening toward bankruptcy, fiscal insolvency," said Mr. Quinn, who pledged to the sign the bill. "We're in a period now of reform and recovery."

Republicans blasted the vote. "The General Assembly has found a way to maintain its runaway spending in the short term without addressing the fiscal crisis facing our state," said newly sworn-in state Comptroller Judy Baar Topinka.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Miscellaneous
KEYWORDS: fiscalcliff; obama
Posted as a reminder of what will most likely be proposed for the country.
1 posted on 11/16/2012 9:41:34 AM PST by Eagle of Liberty
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To: Eagle of Liberty

When does this go into effect?


2 posted on 11/16/2012 9:48:14 AM PST by nikos1121
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To: Eagle of Liberty
The new income-tax rate would add about $1,040 to the tax bill of a family of four earning $60,000 a year,...

Holy cow! Boy, when Democrats get done at the state and federal level there will be NOTHING left. We will all be selling apples to each other.

3 posted on 11/16/2012 9:55:58 AM PST by Obadiah (Americans said, "Give us Barabbas!")
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To: Obadiah

“We will all be selling apples to each other.”

How many apples can you give me for my chicken?


4 posted on 11/16/2012 10:08:11 AM PST by buffaloguy
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To: nikos1121

It was effective 1/1/2011.


5 posted on 11/16/2012 10:12:16 AM PST by Richard from IL
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To: Eagle of Liberty

This article was from January 2011, we have already been hit with it!


6 posted on 11/16/2012 10:13:31 AM PST by blondee123 (DICTATORSHIP HAS ARRIVED! Nov. 6, 2012)
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To: blondee123
This article was from January 2011, we have already been hit with it!

I know.....trying to point out what we ALL may be soon facing.
7 posted on 11/16/2012 10:21:40 AM PST by Eagle of Liberty (Be the Enemy Within the Enemy Within...)
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