To our friends in Chicago, we feel for you. Income taxes in Illinois could soon be going up by as much as 50 percent to combat deficits in a difficult state budget.
Gov. Pat Quinn is reportedly considering raising taxes to deal with a growing budget deficit. Quinn has been hinting about the problems in the state budget this year for some time. He gives his first address on the subject next Wednesday, and there is word that income taxes will go up as 50 percent. The Chicago Tribune reports that Quinn wants to raise the state income tax to 4.5 percent from 3 percent.Illinoisans have had a lower income tax rate than other states for some time. This would be the first increase in 20 years.
In addition, some business tax breaks would be eliminated, and Quinn promises to tighten state government spending.
Quinn will balance the increase by raising the standard tax exemption up to $6,000 per person from $2,000, to help low- and middle-income families.
The income tax increase could bring in nearly $4 billion. The budget deficit is expected to be more than $9 billion by the summer of 2010.
State lawmakers are also talking about raising gasoline taxes to pay for road and bridge construction. Fees on driver’s licenses and license plate stickers may also go up.
(CBS Broadcasting/Matzav.com Newscenter}
