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Illinois Democrats plan to raise
the state income tax by 67 percent in January, Governor Pat Quinn's budget
director recently told Bloomberg Businessweek.
“We fully expect that we’re going to pass a tax
increase in January. We expect it is going to be substantial,” Quinn budget
director David Vaught told
the national business publication.
Vaught said an increase from the
current 3 percent to 5 percent is likely. It would cost taxpayers $6 billion and
would be the largest tax hike in Illinois history.
In 2009, Democrats in the
Illinois Senate approved a similarly-sized tax increase, but the House has not
acted on that increase. It's unclear from Vaught's remarks if he was referring
to that increase – which could yet be passed by the House – or if he was
referring to a new proposal. Although Governor Quinn sought to distance himself from the 67% tax hike shortly after Vaught's remarks became public, the Governor has consistently supported income tax increases, while making the exact rate a moving target. In 2009 he proposed a 50% tax hike, while he has more recently suggested a 33% hike.
However, Vaught pointed out in the interview that Quinn did testify before a House Committee in favor of the Senate Democrat's 67% income tax increase after it passed the Senate in 2009.
Senate Republicans have
consistently said raising taxes would hurt consumers and could have a deadly
effect on job-creation at a time when Illinois is already suffering from some of
the highest unemployment rates in the nation. Republicans also point out that
any tax increase, without core reforms to state government, will only offer
temporary relief and lead to even more tax hikes in the
future.
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