Our friends at Reboot Illinois, a news website dedicated to improving the state of our state, put together a detailed infographic on Illinois taxes in light of news that the temporary income tax hike passed in 2011 could become permanent. State Rep. Lou Lang, D-Skokie, has proposed a bill that would extend the increases indefinitely.
Can legislators afford to roll back the tax hikes as planned? The answer is, pension reform notwithstanding, no.
In 2012, the state collected almost $20 billion dollars in personal and corporate income tax revenue, a 79 percent increase from 2010. Still, the state’s backlog of unpaid bills increased by 60 percent and its unfunded pension liabilities went up by 13 percent over the same time period.
State Senator Matt Murphy (R-Palatine) stands against the proposition.
"I am strongly opposed to making the tax increase permanent, the Democrats need to keep their promise to the working families of Illinois that they will start giving back the one paycheck a year they took in increased taxes," Murphy said.
Economists have said making the tax hike permanent is likely necessary as a step to restore Illinois' finances. Most of the state's new tax revenue last fiscal year went to the woefully underfunded state pension system.
Want to know more? Visit Reboot Illinois for the full package on taxes.
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