Posted on 01/06/2011 9:36:54 PM PST by Steelers6
SPRINGFIELD — Gov. Quinn struck a deal with the Legislature’s ruling Democrats Thursday to raise the state income tax by 75 percent and boost the tax on cigarettes by $1 a pack — while a push to abolish the death penalty scored a historic legislative victory.
The cornerstone of a dramatic day, the revenue agreement reached by Quinn, House Speaker Michael Madigan (D-Chicago) and Senate President John Cullerton (D-Chicago) would impose a temporary increase in the state tax on workers’ paychecks from 3 percent to 5 ¼-percent.
The money from that, the cigarette tax hike and a corresponding increase in the corporate income tax from 4.8 percent to 8.4 percent would erase the state’s expected $15 billion deficit.
It also would generate a $700 million-plus windfall for schools and fund annual $325 rebate checks to property owners beginning in 2011, two key concessions fought for by leading black lawmakers, including Rep. Will Davis (D-Homewood).
“I think it’s the right time to do it because we are in desperate need of paying our bills,” Cullerton told reporters. “We’d have all our bills (paid) – all those people owed money -- $8 billion will go back into the economy. People will be paid on time. Our credit rating will be dramatically improved. We will then have a balanced budget with virtually no growth for the next four years,” he said.
The deal, which was first disclosed Thursday by the Chicago Sun-Times, would limit future growth of state government during the next three years by imposing a moratorium on new programs and a 1-percent cap on new spending in each of those years, Cullerton said.
The package will be heard first in the House. The measure could surface as soon as Friday and must pass both legislative chambers by Wednesday when the lame-duck session ends.
“The governor is working on a plan with the Senate president and the speaker of the House to build a framework that will allow the state to pay its bills, stabilize the budget and strengthen the Illinois economy,” Quinn spokeswoman Ashley Cross said.
Republicans have vowed to oppose the plan and, earlier, needled Quinn for misleading voters in his successful gubernatorial campaign when he advocated a smaller, 1-percentage point increase in the individual income tax.
“I often said during the election that I gave Gov. Quinn credit for running on what he believes in, which is a 1-percent increase. This is more than double that,” said Sen. Christine Radogno (R-Lemont). “To me, that’s kind of a bait and switch. And I think it’s wrong.”
Meanwhile, on the day’s other major issue, the House took two tries and ultimately passed an abolition of the death penalty, marking the first time either the House or Senate moved to end executions since the death penalty was re-imposed in 1977.
The measure, which passed 60-54 and now moves to the Senate, sparked an emotional debate that weighed the rights of the 20 wrongly convicted, exonerated Death Row inmates against the victims of horrific crimes.
“We’ve seen this Legislature and the state struggle for the right answers for a long time now. We’ve paid dearly for it. We’re at a cross roads now and ready to change it,” said Rep. Karen Yarbrough (D-Maywood), the bill’s chief House sponsor.
One of the “yes” votes was Rep. Susana Mendoza (D-Chicago), a past advocate for death-penalty expansion who reversed her position after meeting with some exonerated ex-death row inmates.
“I have come to realize in order to ensure justice is served in death to an evil cancer in society, we must accept the possibility of executing an innocent person. I’m not OK with that, and none of us should be OK with that,” said Mendoza, who is running for city clerk.
But Rep. Jim Durkin (R-Western Springs), a former prosecutor, predicted there would be a public outcry the next time a horrific crime is committed and prosecutors no longer have the ability to pursue a death sentence.
“It’s important we have that option available not only for law enforcement but also for the families,” he said.
Late Thursday, Cullerton declined to predict whether the Senate would pass the abolition but said he personally intended to vote for it. Its lead Senate sponsor, Sen. Kwame Raoul (D-Chicago), he has the votes to pass it.
Contributing: Stephen Di Benedetto
“...impose a temporary increase in the state tax on workers’ paychecks from 3 percent to 5 ¼-percent.”
Nothing is temporary in the world of death and taxes.
Illinois ... what suckers.
Plus they are adding five more casino’s in IL. O’Hare airport will apparently have gambling as well. Casino’s and cigarette taxes hit their base pretty hard.
Hey, I’m willing to bet that increase is temporary. It will be replaced by the NEXT tax hike.
So try not to be so cynical..............
So they're increasing one tax in order to refund money paid from another tax ??? Why don't they just let everyone pay $325 less on their next property tax bill ? Then they wouldn't have to raise the income tax as much....
75%? Oh, that’ll make people happy. /s
Illinois is about to lead the country in the exodus of its citizens.
I first thought this was one of those satire articles, then I realized it was Illinois.
even with the 75% increase, the illinois income tax rate is only about half the california rate ... iirc you guys pay pretty close to 10%
These Democrats never learn. The have just voted in economic doom for their state and they are euphoric and giddy at what a marvelous and awesome thing they have just done to “save” their state. Of course no mention about why they have spent themselves into this corner, or why they have not cut out other wasteful and corrupt spending programs.
No, like the Federal Government in Washington, they keep repeating the same insane behavior. Only this time it will be different. This time they will have finally reached the magic limit where they have finally spent enough money to make the difference. Unlike all those decades past where the reason their give away programs never work is because they just did not throw enough money at it!
Looks like they finally got it right..........(Girl friend in a coma.)
My wife and I have seriously considered moving for the past couple of years. Housing cost is low and that's good for a buyer but I'd also be a seller of my own house here in Illinois, which is paid for.
We have agreed to start looking a little more seriously.
For those who advocate just "packing up and leaving" it is not that easy to do, especially when you are leaving children and grand children and in our case, even great grand children.
Then there's that problem of who the hell wants to buy a house in Illinois. Mine is in central Illinois, nowhere near the cess pool of Chicago but it's still in Illinois.
Two years ago, the rats pushed for an income tax increase from 3% to 4% and tried to sell it as only a 1% increase. It failed then but they've out done themselves this time.
At the same time our then governor was pushing hard to raise the tax on trucking companies within the state. A group of owners met with him to remind him that their particular business was highly mobile and that if he raised their taxes, they promised to move to a border state with business friendly laws. He very quickly back peddled on that plan.
I assume that rat's next target will be retirees income which is not taxed at state level now. However, my retirement income is a minority of my total income.
It's becoming harder and harder to stay and my wife and I are looking in Missouri at real estate. Missouri also has the advantage of concealed carry, while it's still a felony in Illinois to think about guns.
God help us here in Illinois. Only here do dumbass politicians believe that taxing $8 billion dollars away from people puts money back into the economy .....
God help us here in Illinois. Only here do dumbass politicians believe that taxing $8 billion dollars away from people puts money back into the economy .....
I've seen recent pictures of her - a once beautiful woman turned into a sow. Liberalism does that.
It will happen to NYT Maurene Doud too.
Do these dumb bunnies think that corporations won’t be packing up and blowing out of Illinois?
It is a win for other states.
I like how they get out their pocket calculators and start figuring what a great deal this will be,
And Indiana, Iowa, Missouri, Kentucky and Michigan, all border states.
So will Indiana. Mitch Daniels is probably doing splits and high kicks about now. Not to mention that the State legislature has turned Red this last election.
We're looking in Texas. I just re-calced my state income tax, those dirty bastards are taking another $300/mo. out of my pocket with this tax hike.
One of these idiots needs to tell me exactly how taking $300/mo. out of my pocket and doubling the corporate tax rate in Illinois is going to "boost" the economy here.
Here's what'll boost the economy: A whole bunch of us showing up on the steps of State Legislature in Springfield and having a tar and feather party. Set the example for any other state considering the same thing.
Between "ObamaCare" raising my health insurance premiums $250/mo. starting this year and now this, I'm down $550/mo. straight out of my pocket and we've already been told there aren't going to be any raises again this year.
Yep, ObamaCare and Illinois raising the state income tax is sure boosting the economy now isn't it?
Yes, come to MO! The more conservatives here, the better.
I tried to convince my parents to move here a number of years ago, but they wouldn’t because of the income tax on pensions. Now my dad seems to be morphing into a lefty, so it’s probably too late anyway... :(
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