The Problem
Illinois families should be wary of plans to hike taxes at the state level that would all but wipe out the benefits of the bipartisan tax compromise between President Barack Obama and Congressional Republicans.

In federal legislation that extended the Bush-era tax cuts, and also included a payroll tax cut, a four-member family making $80,000 would save $800 in 2011 federal taxes over what they would have paid next year if 2010’s tax laws were simply carried forward and indexed for inflation.

Yet Illinois’s governor is pushing a 33 percent hike to the state income tax for 2011, taking an extra $720 away from that same family. Governor Quinn’s budget director called for a 66 percent increase last fall, which would snatch $1,440—almost double the federal savings. Democratic state leaders are even considering a 75 percent increase, burdening a family of four with an additional $1,620 in state income taxes.

Our Solution
Reject calls to increase Illinois’s state income tax.

Why This Works
Sending less to DC only to pay more in taxes to Springfield defeats the important, bipartisan effort to encourage productive behavior and economic growth via the Tax Code.

As President Obama has said of the tax hike threat faced by the middle class, “It would be a grave injustice to let taxes increase for these Americans right now. And it would deal a serious blow to our economic recovery.”

Governor Quinn and legislative leaders would do well to take a page from President Obama’s post-election playbook and not raise taxes on the hard working people of Illinois.