Braun Slams State Income Tax Hike

CHICAGO (WBBM/CBS) — Mayoral candidate Carol Moseley Braun is blasting the Illinois General Assembly’s approval of a massive income tax hike.

As WBBM Newsradio 780’s Lisa Fielding reports, Braun said raising the state income tax from 3 percent to 5 percent was shortsighted.

LISTEN: Newsradio 780’s Lisa Fielding reports

“We want our money back,” Braun said.

Braun says one major problem is that the extra 2 percent in tax revenue isn’t going to Illinois cities.

“Not only are they increasing taxes, but they’re keeping what has historically been Chicago’s share to help pay for their failure to control spending at the state level,” Braun said.

Braun says that will mean the city will miss out on $280 million of what is called a local distributor’s share, used to pay for police and fire pensions, and day-to-day operations.

Braun also criticized the lack of property tax relief, and blasted lawmakers for their decision not raise the cigarette tax.

Gov. Pat Quinn defended the tax hike, saying the state was facing a crisis and “we had to take decisive action.”

The tax hike raises the personal income tax from 3 to 5 percent for four years. Then the rate drops to 3.75 percent. In 2025, it would drop again to 3.25 percent.

The hike will also boost the corporate income tax rate by nearly 50 percent, from 4.8 percent to 7 percent. In 2015, it would drop to 5.25 percent and in 2025 would drop again to the current rate of 4.8 percent.

In addition to the corporate income tax, many businesses in Illinois pay a “Personal Property Replacement Tax” of 2.5 percent of income, bumping their corporate tax rate to 9.5 percent.

The tax hike bill also would limit spending increases to 2 percent a year.

If officials spend above those limits, the tax increase will automatically be canceled.

  • mark zatz

    Well, we all know who not to vote for in the next elections. I have been a Democrat all my life but this tax hike by DEMOCRATS was the last straw. industries already looking to do business in indiana and Wisconsin. These two states are thrilled. not only will thwy get more income but they will be able to put more people to work. it’s so easy to raise the taxes but it’s too hard for politicians to sit down and do some real thinking and find a way to reverse the state deficit. Well, you politicians worked very hard the last few days. it’s time to do what you do best.. TAKE ANOTHER VACCATION…THIS TIME MAKE IT PERMENANT. IN THE NEXT ELECTION YOU WILL ALL FEEL THE WRATH OF YOUR MISDEEDS

    • OK.........

      I’m not sure whether to scold you for voting dem, or congratulate you seeing the error of your ways. I hope you’re more honest then the people that you’ve voted for in the past and REALLY mean what you say.

    • J

      Mark, you probably should’ve kept the idiotic fact that you voted Dem in the first place to yourself. And, typically Democrat, check a few of your facts. WI has an income tax rate of 7.75% and a corp tax rate in the 8% range. That two year corp tax break that dork WI gov is toting has “yet” to be passed in their Legislature. If you or any corporation are dumb enough to take WI’s bait then good luck to you. Yeah, it’s cheaper to live in IN but good luck getting to work on I-65 when it’s flooded and or gets blasted with lake effect snow every other day.

  • Allen Crewnshaw

    Where were the local politicians in the days before the state tax hike was approved? They should have been working in a proactive manner, instead of being so reactive now…after the fact! This doesn’t bode well for Chicago getting a quality, action-oriented Mayor does it.

  • Dan

    How about the fact that Carol released her dismal tax return AFTER the other black contenders stepped out of the race. Chico & Rahmbo will skewer her in debates, she will not win, and will probably get some cushy appointment by Obama after the election.

    Watch and see….It was probaly planned that way from the start

  • Keepin' It Real

    Hey, Carol, maybe you and the rest of the dumb donkey leeches of Crook County should’ve not voted for Quinn then. But your “gubment” checks wouldn’t keep rolling in then….

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