Taxes in Illinois going up unless you have family income under $61,000
March 17th, 2009 at 10:34pm Chuck Sweeny
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.
Entry Filed under: Quinn taxes
4 Comments Add your own
1. FRED FELTZ | March 18th, 2009 at 4:33 am
SURE GLAD HE IS ONLY IN CHARGE FOR A SHORT TIME BECAUSE WITH INCREASES LIKE THIS HE WILL WASTE HIS MONEY TO RUN FOR OFFICE AGAIN WE NEED TELL ABOUT HOW MANY PEOPLE IN THE STATE DON’T HAVE JOBS.
AND WITH ALL THESE TAXES IS ANY MONEY TO HELP SCHOOL SO US OVER TAXED TAX PAYS GET ANY HELP FROM OUR RESTATE TAXES ON THE SCHOOL SIDE AND WE THOUGHT THE LAST GUY WAS BAD
2. dave | March 18th, 2009 at 5:40 am
Let me see Obamas programs are going to make more people want their entitlements thus less families earning over 61k. Illinois which already is taxed to deal, will now charge businesses mroe taxes, thus sending them elsewhere. Taxing drivers license and plates I don’t have as much of a problem with but should be capped for like 10 years.
Raising taxes on cigarettes is a tax on the poor, The Dems always say, the poor should not be taxed. No I don’t smoke, but plain and simple 80% of smokers make less then 30k. Sales tax holiday is ok, but why make the retailers pay more, Dumb, the prices will go up, thus eliminating any gain.
Great, more user fees, again just another tax, similar to our road tax here of 1 cent. Do you see it helping our streets, just more pocket change to scalp.
Divertin 150 million from the road fund (this means, give Chicago more down state money to take care of constructrion projects there).
I don’t know about you but can we afford this? Where is the cuts, when the economy is down, tax cuts give incentives. People do need a few breaks. Take for instanse my mom, she gets $900 a month soc sec, $100 a month retirement. 12K a year. She has to take care of her home, buy her food, keep her car running, pay her car ins, home ins, supplement and paay her $2700 propertay tax payment. Yes she makes is something few know… pay your bills andto drive you have to be insured.
Help people don’t tax people, before long Chicago will be unemployed supported by the rest of us here in Obamanois.
3. Steve-o | March 18th, 2009 at 9:01 am
The answer is is spending cuts. Does the government realize that if there answer to budget shortages it always to raise taxes the day will come when they get 100% of our paycheck? I just quit smoking because of the $10 a carton increase last week. (what’s up with this anyway everything I have seen said $6 increase April first). Divert money from the road repair funds GREAT IDEA ILL already has the worst roads I have ever seen they are all falling apart. The Fed. gov is trying to give people a break because of the bad economy and the state wants to increase everything. I think its sad that even with a “good job” I am flat broke on payday after paying bills. It looks like retirement is a thing of the past (I know Ill never be able to.) I see the comments about moving to another state I wonder about moving to another country. The government takes in an insane amount of tax money where dose it all go???? STOP WASTEFUL GOVERNMENT SPENDING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
4. echo4charlie | March 20th, 2009 at 7:21 am
Was this the intention of our recent (and exceedingly generous-ha) tax break? To make sure more money was then available for state income tax?
Maybe………….
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