Some Think Income Tax Hike Was Right Move

SPRINGFIELD, Ill. (WBBM/CBS) — They’re out there, but they’re not very loud – people who actually think Illinois lawmakers are doing the right thing by raising income taxes.

As WBBM Newsradio 780’s Dave Dahl reports, Don Moss of United Cerebral Palsy says the state cannot just cut its way out of its budget crisis.

LISTEN: Newsradio 780’s Dave Dahl reports

“If you were to cut back on all the foolish spending the state does, it still would not meet the needs to protect its most vulnerable citizens,” Moss said.

In the planning stages, the tax hike was not universally unpopular.

In April of last year, an estimated 15,000 people gathered on the streets outside the statehouse to demand an income tax hike.

Crying “Raise our taxes!” and “Show some guts!”, demonstrators voiced their opposition to cuts in state spending, particularly in education. It was one of the largest rallies in the history of the Illinois State Capitol.

Paul Caprio, the director of conservative political action committee Family-Pac, says the tax hike only proves that labor unions are really in charge in Illinois.

“Pat Quinn may be the indentured servant of these public employee unions, and unable to lift a finger to get this state back on a course of fiscal sanity,” Caprio said.

Under the new law, the state’s personal income tax rate has gone up from 3 percent to 5 percent. In real numbers, if your gross income is $50,000 a year, your state income taxes will rise from $1,500 to $2,500 a year.

The hike boosted the corporate income tax rate by nearly 50 percent, from 4.8 percent to 7 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.

Backers hope the tax hike will help plug a $15 billion budget hole.

Caprio is already looking for ways to vote out the legislators who voted in the late-night, last-minute tax increase.

  • Bill Slater

    With WI and IN tax structures lower then IL, look for a business (and possibly population) drain. I recently talked with someone whose family-owned business is exploring the pros and cons of relocation out of IL – fewer working IL citizens if this happens.

  • J. Nelson

    Those 15,000 marchers were all Teachers Union members. Everyone in the State is suffering. Union members are a different class of people. The protected class. My husband’s wages have been affected, my childrens’ jobs and wages have been affected. Now the State is taking another $1200 from me, when my budget is already strained to the max. I can’t even pay my bills. Thank you Illinois House and Senate members. Now I am free to be even more miserable than before. Buy, hey, the State will be okay for another few years. Yeah, thanks.

  • Bernard


    WI has a state income tax that START at 4.6% and goes to 7.75%. IN is lower at a flat 3.4% … but

    IN has a corporate tax rate of 8.5% (ours is going to 7%). WI is at 7.9%.

    Yes our rates are going up here, but they’re still lower than adjoining states.

  • chitowntony

    Hard to believe people are for this tax increase.

    What about the last increase that was only supposed to be for 3 years???????

  • Jim

    Yeah unions, state workers, and people with state contract interests love increasing the tax and not fixing the root cause. Illinois continues to build a mansion on a crumbling foundation, but sooner or later that foundation falls apart and that giant mansion is worthless. Quinn and the Democrats keep building and building without fixing the true problem. Illinois needs REFORM, not taxes. These politicians are spineless and need to grow a pair. Additionally, the total corporate tax rate is now at 9.5% as there is also a new 2.5% tax that they snuck in there also. On the 15,000 person march topic, I was working that day so I could not attend an anti-tax rally. I apoligize for actually having a job that is non-unionized so I do not get paid for lobbying. Unions run Illinois, Quinn is a liar, and Quinn is running a pay-to-play administration paying ~ $85k/yr for the required vote to increase the tax.

    • wake up people!!!!

      PERFECTLY STATED !!!!! I’d like to know what the “pro-tax idiots” think about the pay to play deal…………………………..similar to how Washington is run!!!

  • Bernard

    I’m in favor of the tax increase. And I do NOT work for a union or the state, nor do I have any state contract. I’m a small businessman. Yes, I’d like to see waste cut, but we have a crisis. We, the public at large, have allowed unbridled spending. That’s a “credit card” bill we now have to pay. IF more people took an active interest in gov’t affairs, waste would be cut. But most people would rather watch TV programs than stay current on what their elected representatives are doing.

  • Ted

    We need to pay for our state government, that is our obligation and a tax increase is probably necessary at this point. I am really angry because there was no corresponding effort to restructure state spending. The pension program has got to go. Private industry switched from defined benefit programs to 401Ks. The pension system must be brought into line. Public sector employees and teaches should be on social security, Medicare and a 401k like the rest of us. I would really like to put all state senators and representatives on exactly the same program.

  • Stash

    I’m no fan of the Repubs,but the Demos are the sneaky culprits,they point the finger from their one arm to the otherside saying their the bad guys and with the other arm they pick your pocket or stab you in the back,yet so many people don’t see that and keep putting them back in office.

  • Anthony

    This article is pure propoganda. I wouldn’t be surprised if the entire article was written by some outside union and handed to CBS to post online.


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