UPDATE: Illinois Income Tax Hike News

UPDATE: Illinois Income Tax Hike News

The latest developments from Springfield on the income tax hike proposal.

by Brian Costin

UPDATE: The income tax hike proposal has passed the House on a vote of 60-57, 60 votes were needed. The vote was passed in the Senate by a vote of 30-29.

With the hurried lame duck session coming to a close in less than 24 hours, here’s a compilation of the latest news circulating in Springfield.

  • The tax hike bill can be found on the General Assembly website. The bill, SB 2505, is known as the Taxpayer Accountability and Budget Stabilization Act. Click here to read the latest version.
  • The original proposal from Gov. Quinn, Speaker Madigan, and Senate President Cullerton to increase personal income taxes, from 3% to 5.25%, and the corporate income tax, from 4.8% to 8.4%, by 75% is not gaining traction.
  • The Illinois Policy Institute and others warned the tax hike proposal would force Illinois businesses to pay the highest corporate income taxes in the United States, and some of the highest rates in the world.
  • Many legislators are reporting heavy calling volume to their offices. Including State Rep. Mike Boland, D-East Moline who said“I’ve had hundreds of calls both to my office down here and district office and even my home,” he said. “And I’ve only had one call that was for a tax increase.”
  • With blowback from constituents weakening support for the original proposal, the Capitol Fax blog reported last night Democratic State Representative Frank Mautino believes a scaled back deal has been struck to reduce the tax increase to 5% for personal income and to 7% for businesses.
  • Meanwhile, The United Republican Fund of Illinois is vowing a primary challenge to any GOP incumbent who votes in favor of an income tax hike.
  • The Senate Executive Committee is meeting this afternoon, and on the agenda is discussion of amendments to the SB 2505 income tax hike bill.
  • The Daily Herald is reporting, “An Illinois House committee Tuesday approved a 66 percent increase of the state income tax rate — from 3 percent to 5 percent, setting up further debate by the full House and Senate later today and tonight.”
  • The deadline to pass legislation is Wednesday at noon, but a vote may happen this evening.
  • The income tax hike proposal has passed the House on a vote of 60-57, 60 votes were needed.
  • From Capitol Fax:
    Democrats voting No: Crespo, D’Amico, Farnham, Franks, J Gordon, Mell, McAsey, Osterman, Phelps, Sente. No Republicans voted for it.
  • Proposal now goes to Senate for debate & approval.

Stay tuned for more updates…

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