Rauner Vetoes Madigan’s Income Tax Increase, Senate Overrides

CHICAGO (CBS) — Gov. Bruce Rauner said he has vetoed a budget package, which includes a 32 percent increase in the state’s income tax, early Tuesday afternoon.

Rauner made the announcement on Twitter, saying, “I just vetoed Speaker Madigan’s 32% permanent income tax increase.”

Rauner’s vetoes came just a couple of hours after the Illinois Senate voted 36 to 18 to raise the state income tax from 3.75 percent to 4.95 percent. Only two Democrats voted against the budget; one Republican crossed party lines to support it.

Despite senators voting to approve the budget, many of them also acknowledge that it still leaves major reforms to be tackled.

“Right now, in this moment, in this time, on this day, the choice is simple. Either we live to fight another day, or we watch the state crash,” said Sen. Toi Hutchinson.

The vetoes came as no surprise.

Moments after the Illinois House passed the spending plan, Gov. Rauner said he would veto the legislation.

The House passed both a tax hike and spending bill late Sunday evening.

“Under Speaker Madigan’s direction, legislators chose to double down on higher taxes while protecting the special interests and refusing to reform the status quo,” Rauner said in a statement. “It’s a repeat of the failed policies that created this financial crisis and caused jobs and taxpayers to flee.”

“I will veto Mike Madigan’s permanent 32 percent tax hike. Illinois families don’t deserve to have more of the hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs.”

Within the hour, the Illinois Senate voted to override Rauner’s vetoes.

The House is now making plans to be back in full season by Thursday, providing adequate time to round up all of its members.

This is the first full-year budget that has been passed by the legislator in three years, therefore bringing an end to the longest stretch for any state to be without a budget since the Great Depression

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