Ill. governor may seek 50 percent income tax hike

[Robbien]

Illinois Gov. Pat Quinn acknowledged Friday that he will propose an income tax increase next week when he presents his plan for closing a massive budget deficit, but he would not confirm a report that he wants to raise the tax by 50 percent, to 4.5 percent.

While some residents would face a higher tax burden under his proposal, Quinn said, many others would actually see their tax bills go down. That's because he plans to seek a much larger personal exemption, shielding more income from being taxed.

. . .

He firmly rejected the idea of raising gasoline taxes, an idea floated by Democratic lawmakers but one that Quinn said would be unfair to the poor. "We're not gonna raise the gas tax," Quinn said.

The Chicago Tribune, citing unnamed sources, reported Friday that Quinn may propose raising the personal income tax rate to 4.5 percent, up from 3 percent. The corporate rate of 4.8 percent would jump to 7.2 percent.

The personal exemption of $2,000 - that is, the amount of income exempt from taxes - would climb to $6,000, the newspaper reported.

http://www.forbes.com/feeds/ap/2009/03/13/ap6166254.html



Well, what else would one expect to happen when our state keeps privatizing so many revenue producing assets.

[Critters2]

1. Wouldn't bother me. I paid higher taxes in Iowa than in Illinois,

and I survived.

[stevebreeze]

2. The headline is also a lie

For many people this would be a tax CUT, since the standard deduction would go up. Though were it my plan the deduction would go up to at least $10k per person. This would be a more accurate reflection of what it takes to pay the bills in IL.

[nickinSTL]

3. According to the tax calculator...

I'd be paying about $350 more in taxes.

While in theory I'm all in favor of paying taxes to support governmental functions, I'm really struggling financially, so I'm less than thrilled with losing more of what I make.

Oh, and here's the link to the tax calculator on the Illinois budget site:
http://www.budget.illinois.gov/taxcalculator.htm

[olkaz]

5. I'm actually hoping the increases are just buying time

And paying off all the businesses that have been waiting to be paid by a deadbeat administration.

I'm hoping Quinn does everything he can to reduce the budget once we get through this. Also hoping to get some gambling money coming in, no reason to lose millions with people going to St. Louis and Indiana to gamble, especially in this climate.

I think we come out of this much stronger, while the initial hit (omfg higher taxes) might sting.

[JoDog]

6. I'll pay more too.

Since I'm single without kids, most of the "people making less won't pay more" promises don't apply to me. Once again, people who have chosen not to spawn get punished.

[Critters2]

8. Yep. The government paying people to procreate. Again. nt

[Peregrine Took]

4. Its long overdue. Pat Quinn had the cojones to put it through.

Good on you, Pat.

[mucifer]

7. I'm very impressed with Gov. Quinn. He is sacrificing his political future to do

what is best for our state. This is very unusual.

[SemiCharmedQuark]

9. We're due for a tax increase.

Taxes suck, but are necessary.