Wednesday, January 12, 2011

Ill. lawmakers pass 66 percent income tax increase

If it wasn't for my two 12 year olds in school, I'd be out of here. Expect what little business in this state that still exists to leave en-masse.
Democrats in the Illinois Legislature on Wednesday approved a 66 percent income-tax increase in a desperate and politically risky effort to end the state’s crippling budget crisis.

The increase now goes to Democratic Gov. Pat Quinn, who supports the plan to temporarily raise the personal tax rate to 5 percent, a two-thirds increase from the current 3 percent rate. Corporate taxes also would climb as part of the effort to close a budget hole that could hit $15 billion this year.

The higher taxes will generate about $6.8 billion a year, Quinn’s office said — a major increase by any measure. In percentage terms, 66 percent might be the biggest increase any state has adopted while grappling with recent economic woes.

It will be coupled with strict 2 percent limits on spending growth. If officials violate those limits, the tax increase will automatically be canceled. The plan’s supporters warned that rising pension and health care costs probably will eat up all the spending allowed by the caps, forcing cuts in other areas of government.
UPDATE: Kids don't care! We moved in 7 years ago, we sure as he!! can move out, and we're gonna! Next door into Indiana.... here we come.

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