Skip to comments.FLASHBACK 2011: Illinois Braces for Tax Increases
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 ...
When does this go into effect?
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.
“We will all be selling apples to each other.”
How many apples can you give me for my chicken?
It was effective 1/1/2011.
This article was from January 2011, we have already been hit with it!