The state in crisis: Tax hike of about 32 percent passes the House
Sunday, after hours of debate, the Illinois House just passed a tax hike of about 32 percent.
This will raise personal income taxes from 3.75 percent to 4.95 percent.
Some lawmakers say this will generate about $4.453 billion annually, and is needed for a balanced budget.
Corporate income taxes are also being affected. Their taxes will go up from 5.25 percent a year to 7 percent, and generate about $514 million annually.
The bill passed 72 - 45.
The revenue bill needs to be approved by the Senate before heading to the governors desk.
House Speaker Michael Madigan sent out a statement on the bill saying:
Today, Democrats and Republicans stood together to take a crucial step toward reaching a compromise that ends the budget crisis by passing a fully funded state budget in a bipartisan way. While none could say this was an easy decision, it was the right decision; it’s clear that a budget package that cuts billions of dollars in state spending and also provides new revenue is the only path forward. I’m grateful legislators worked together to provide for our schools, protect medical care for the frail elderly, services for survivors of domestic abuse and others in great need.
There is more work to be done, and we will continue working with Republicans to ensure the issues still on the table are fully resolved.
Governor Bruce Rauner released this statement on the House passing SB9
When I took office, I promised the taxpayers of Illinois that I would fight every day to take this state in a new direction after decades of failed leadership from both parties. Today, Springfield has decided to give the people of Illinois the largest tax hike in history and continue out of balance budgets with no real reform.
Under Speaker Madigan’s direction, legislators chose to double down on higher taxes while protecting the special interests and refusing to reform the status quo. It’s a repeat of the failed policies that created this financial crisis and caused jobs and taxpayers to flee.
I will veto Mike Madigan’s permanent 32 percent tax hike. Illinois families don’t deserve to have more of the hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs. Illinois families deserve more jobs, property tax relief and term limits. But tonight they got more of the same.
For two and a half years we have been working to find common ground on a balanced budget. As recently as two days ago we believed that was possible.
The legislature could have passed a no reform budget like this one two years ago. Instead, they allowed Mike Madigan to play his political games, passed phony budgets, racked up our debt and inflicted pain on the most vulnerable. All of this to force a permanent, 32 percent tax increase on Illinois families
Moving forward, this vote shows that if the legislature is willing to pass the largest tax hike in state history with no reforms, then we must engage citizens and redouble our efforts to change the state.