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Illinois jacks up income tax; still broke.

January 12, 2011

After years of reckless spending and delusional pension bookkeeping, Illinois politicians sent their taxpayers the tab this morning, reports the Chicago Tribune:

Under the bill that went to Quinn, the current 3 percent personal income tax rate would go to 5 percent until 2015, when it would drop to 3.75 percent. To gain more support among lawmakers, the plan would further lower the tax rate in 2025 to 3.25 percent.

For businesses, the current 4.8 percent corporate rate would go to 7 percent until 2015, when it would drop to 5.25 percent. [ed: it's really worse: the true rate goes from 7.3% to 9.5% for 2011)

The plan calls for the corporate rate to fall in 2025 to the current 4.8 percent.

The tax increases, which would take effect retroactively to Jan. 1, would raise an estimated $6.5 billion over a full-year period.

But this is being coupled with spending cuts to restore the state to solvency, right?

Sen. Emil Jones III, D-Chicago, said black senators received a promise from Quinn that he would designate $250 million more to education over each of the next four years.

Poor Illinois, stuck with a corrupt bipartisan ruling class and without a clue.

Tags: Illinois.state tax policy.

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