Taxes in Illinois going up unless you have family income under $61,000

4 comments March 17th, 2009

Gov. Pat Quinn gives his budget speech Wednesday, March 18. To close a budget gap he estimates at $11.5 billion, Quinn will call for a variety of tax and fee increases.

Here’s a condensation of what he’s scheduled to propose, as reported by Associated Press:

  -An increase in the 3 percent personal income tax rate. The new rate would be 4.5 percent, generating $2.8 billion.
-Tripling the personal exemption, shielding up to $6,000 in income from being taxed. That means a family of four with an income of $60,900 would pay less in taxes next year.
-A hike in the corporate income tax from 4.8 percent to 7.2 percent, bringing in $350 million more.
-Keep $287 million from the higher taxes that would normally go to local government.
-Increase the $79 fee for license plates by $20, generating $180 million.
-Increase the $10 fee for driver’s license by an additional $10, generating $20 million.
-Raise the 98 cent cigarette tax to $1 a pack over two years. Would generate $276 million in the second year.
-Offer a sales tax “holiday” on back-to-school items for 10 days in August, costing as much as $50 million that would be paid for by reducing the amount retailers get to keep in payment for collecting the tax.
-End several tax breaks for businesses, generating $100 million.
-Take $200 million out of various special-purpose funds supported by user fees.
-Divert $150 million from the road fund to help pay for a statewide construction program.