Illinois Democrats In Senate Pass 33% Hike Of Personal And Corporate Income Taxes
by Tyler Durden
ZeroHedge.com
May 23, 2017
Senate Democrats in Illinois, with a final vote of 32-26, have just passed a new budget proposal that includes a massive personal and corporate income tax hike and an expansion of the state’s sales tax, after saying they are no longer willing to wait for a broader deal with Republicans.
As the Chicago Tribune noted earlier this morning, the Democrats’ budget proposal includes a ~33% hike in both the the personal and corporate income tax rates and an expansion of the state’s share of sales tax revenue. In all, the package would cost Illinois taxpayers an incremental $5 billion.
Democrats spent the weekend tweaking the spending plan, and unveiled an updated proposal late Monday. It calls for spending $37.3 billion after raising about $5 billion through the tax hikes; a floor vote is expected Tuesday, said Sen. Heather Steans, a Chicago Democrat and key budget negotiator.
The blueprint relies on the passage of companion legislation that would raise the personal income tax rate from 3.75 percent to 4.95 percent, which is just below the 5 percent rate in place before Rauner took office. The corporate income tax rate would be hiked from 5.25 percent to 7 percent.
Meanwhile, the state’s share of the 6.25 percent sales tax would be extended to various services not currently covered, such as dry cleaning. The proposal also calls for ending three corporate tax breaks, including requiring companies that drill on the outer continental shelf and do business in Illinois to pay income taxes.
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