Income Tax Increase
The Chicago Democrat cut $250 million for renovations to the state Capitol from the $35.7 billion spending plan, saying the state can’t afford to move forward with improvements this year. He also said he has directed state agencies to make additional cuts, including selling half the state’s 21 airplanes.
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.
Municipalities statewide have pushed for legislative help for underfunded pensions. Mayors say costs have risen, pension obligations are crowding out spending for other services and raising property taxes may be the answer. Quinn’s against raising property taxes.
Illinois House Republicans – and even some House Democrats – want to roll back the state’s corporate income tax increase, but there’s no serious talk of also rolling back the personal income tax hike.
The chief executive of Caterpillar says other states are trying to lure the heavy equipment maker out of Illinois.
Economic development groups in northwest Indiana are taking steps to recruit businesses from Illinois including an advertising campaign highlighting the area’s transportation infrastructure, proximity to Chicago, work force and facilities.
Lawmakers left two big pieces of unfinished business when they went home after voting to raise income taxes. One would make Ill. a less expensive place to do business, and the other would get billions of dollars into charities and companies struggling to survive.
The oldest non-partisan government research organization in the state says the proposed Illinois income tax increase will not help lower the state’s $15 billion deficit.
Illinois Democrats in Springfield are closing in on an income tax increase.