Income Tax Hike
Republican candidate for governor Bruce Rauner on Thursday offered a plan to revamp the state’s tax system, and voiced support for raising the minimum wage, coupled with business reforms.
Illinois Comptroller Judy Baar Topinka is warning of “a $2 billion collapse” next year when the state’s temporary income tax increase begins to roll back.
Illinois lawmakers continued to grapple Wednesday with a new state budget, as Republicans ripped majority Democrats for spending beyond their means with a plan even Democrats acknowledge leaves “big unanswered questions” about the state’s finances.
Having given up on extending Illinois’ temporary income tax increase — at least for now — the Illinois Legislature is moving forward with a scaled-back budget that could lead to layoffs, further delays in paying the state’s bills and a post-election vote to make the tax hike permanent or generate some other source of revenue.
House Speaker Michael Madigan emerged from a Memorial Day caucus meeting and told reporters that he was dropping the idea of making the 5 percent income tax permanent — and crafting a budget blueprint that holds the line on spending but is not the “doomsday” plan the House overwhelmingly rejected on Friday.
“He’s basically taking this position of opposing the governor’s budget, without offering anything – ANYTHING – in its place,” Vallas said.
Illinois Gov. Pat Quinn tried Monday to persuade House Democrats to extend the state’s temporary income tax increase to avoid what he says would be “savage” budget cuts, but emerged from a roughly three-hour meeting with lawmakers still well short of the votes he needs for approval.
House Speaker Michael Madigan said Wednesday that his chamber’s effort to pass a budget without first securing all the needed revenue would aid a push to make an income tax hike permanent, but his colleagues in the Senate were not happy with the unusual move.
Gov. Pat Quinn’s offer to give cities a bigger cut of income tax revenues to help with pension debts without raising property taxes met with a lukewarm reception from the Emanuel administration.
Paul Vallas hit the campaign trail as Gov. Pat Quinn’s running mate on Wednesday, going on the attack against Republican gubernatorial challenger Bruce Rauner for wanting to reduce the state’s income tax, saying it would have a “devastating” impact on schools.
The day after Illinois Gov. Pat Quinn called for making Illinois’ temporary income tax increase permanent, a proposal to impose an additional tax on millionaires was sent to the House floor Thursday.
Gov. Pat Quinn outlined his case Wednesday for making Illinois’ temporary income tax increase permanent, predicting “extreme and radical” budget cuts to schools and services without additional revenue.
Gov. Pat Quinn is expected to propose making Illinois’ temporary income tax increase permanent in order to avoid massive budget cuts when he presents his election year budget address Wednesday, according to lawmakers briefed on his plans.
More than three weeks ahead of the governor’s budget address, a government watchdog group has issued its own plan for bringing state finances back to good health.
The drop in revenue reflects an expected decrease in the state’s income tax. The temporary hike is scheduled to drop from its current 5 percent to 3.75 percent next January.
State Sens. Bill Brady and Kirk Dillard, businessman Bruce Rauner and Treasurer Dan Rutherford faced off in a debate that focused heavily on Illinois’ struggling economy and how to improve its business climate.
With a 2011 state income tax increase set to expire at the end of the calendar year, the governor and Illinois lawmakers are facing a huge drop in state revenue, which would affect many social service groups that rely on the state for funding.
A lobbying group for Illinois’ small business owners says it’s time for major reforms from state government to improve the state’s deteriorating business climate.
Marking the first anniversary of the income tax hike approved by Gov. Pat Quinn and the Democrat-controlled legislature, Republican lawmakers hammered Democrats over the tax increase, saying people don’t like it and it’s not working.
The long-term forecast for the Illinois budget looks gloomy, with less state money available and government services facing cuts, Gov. Pat Quinn’s office said Tuesday.