With Illinois, which on Saturday morning entered its third fiscal year without a budget, facing a catastrophic downgrade, late on Sunday evening the Illinois House approved the most controversial element of a budget package, a tax hike which will increase the income tax rate by 32% from 3.75% to 4.95%, and the corporate income tax rate from 5.25% to 7%, to try and end a historic budget impasse.The bill passed 72-45. The House also approved a $36 billion spending plan minutes later on a 81-34 vote. According to the Sun Times,it cleared an initial hurdle on Friday with 23 Republicans voting “yes.”
“While no one could say this was an easy decision, it was the right decision,” House Speaker Mike Madigan said after the spending bill vote. “There is more work to be done.” Dems said they would work with Republicans on other resolution of other issues on table.
The proposed tax increase will now head back to the Illinois Senate, which approved a revenue bill on May 23 with all Democratic votes as part of its “grand bargain” package. But Governor Bruce Rauner has said he’ll only support an income tax hike if it’s limited to four years and paired with a four-year property tax freeze. He’s also still seeking changes in workers’ compensation and pensions.
Commenting on the just passed House bill, Rauner said he’ll veto the revenue bill.
“I will veto Mike Madigan’s permanent 32% 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,” Rauner said.
“Illinois families deserve more jobs, property tax relief and term limits. But tonight they got more of the same." He also said in an emailed statement 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."
Some commentators promptly countered that Rauner's veto will likely be overriden.
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8 comments:
PR and now IL - is this just the beginning?
WOW!
Unfortunately the people of Illinois probably need to pay 32% more taxes in order to satisfy their financial obligations as a State Government. It is terrible, but probably true. Doesn't surprise me at all.
The State made promises (pensions alone) that far exceed the income it rakes from the poor people who still live in that pathetic state. Chicago alone has probably bankrupted the state.
Want more bad news?
Based on what I have read in non-MSM sources of financial and economic news reporting . . . every State Government is in similar situation. Made financial promises the cannot uphold. The pensions alone will bankrupt these States. The Federal Government is MUCH worse off financially, but don't try to tell that news to your neighbor. He / She will accuse you of being a conspiracy theorists. He / She will promptly provide you with a square foot of tin foil in jest.
Heck, my head is so filled with terrible (but true) information I probably need a square yard of tin foil.
Thank you
What do Illinois families deserve?
What they are getting now.
THEIR leaders, the ones they VOTED for, spent the money of "we, the people" with no regard for fiscal restraint and no regard for the point where we "pay the piper". They promised EVERYTHING for a vote. And it worked!!!!!
Politicians. Spit the taste out of your mouth now.
Its happening EVERYWHERE in the USA -- unfunded this or that --- and it's coming to a town near you (maybe YOURS) soon.
And you just can't stop cheering.
Do you give someone a high-five after he slaps your wife? Do you buy the guy who just robbed you a drink, because he promises to give your money to the poor??
32% tax increase??? WTF?!
Ready to start the hanging yet??
This could easily happen to Delaware and Maryland.
Plug the leaks before pouring in more fuel.
11:59 with Democrat leadership your spot on!
I don't understand 2 things. First of all (and this includes Maryland) you never hear about spending CUTS. How do you stop a drug addict. You take it away from them. They go through with-draw but turn out fine in the end. Second.....The US Supreme Court has already ruled that an entity that is going bankrupt my cancel or restructure union pay, pensions, salaries, and benefits to keep "the boat afloat". Is the state not such an entity covered by this ruling? Any lawyers out there. What say you?
Small fries at McDonalds went from dollar menu ($1) to $1.39 and no one was on here complaining. 39% increase.
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