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HB2375 makes Illinois 67% income tax increase permanent

Illinois temporarily raised its income tax from 3 to 5 percent in 2011 and has put nearly all of our new tax dollars into its failing pension system. Next year the state will spend almost as much on its five pension systems as it does on education.

HB2375 was introduced February 20th in the General Assembly in Springfield by Representative Lou Lang, D-Skokie, to make that income tax increase permanent. The tax was scheduled to be reduced in 2015.

Workers would be required to pay 3% more of their salaries toward their pensions and their retirement age would be raised to 67 for all five pensions systems, but there would be no decreases in the pension benefits.

“We need a pension plan that will not end up in the courts,” he said. “It’s a plan that doesn’t take anyone’s benefits away.”

State Sen. Kirk Dillard (R-Hinsdale) pointed out that the income tax increase was sold by Democrats as a temporary way to pay off state bills, fix Illinois’ structural deficit, and generally fix the state’s fiscal problems.

He said that extending the tax would not only be a betrayal of the Illinois taxpayers, but emphasized the additional 2011 tax revenues have not been used as promised to pay down Illinois’ overwhelming debt – billions to be paid to state vendors, Medicaid, etc. and $95B in pension debt.

“Raising more revenue in order to throw money at the issue isn’t going to address the systemic problems associated with the state’s retirement systems, and a recent poll taken by the Paul Simon Public Policy Institute shows that a majority of Illinois voters do not support an indefinite extension of the income tax increase,” said Dillard.

The poll was 63% against making the over $7B increase in taxes permanent!

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13 Comments

  1. I look forward to paying someone elses fat 25 year pension while i can work ten years longer than them and get zero. I’m sure the “raising the age to 67″ will start now for new hires only, like the teachers deal, so nothing really changes for the next 25 years. And they get to pay in a whopping 3% more?

  2. Pensions were robbed by politicians over many years to pay for their special pork projects while their pension funds stayed intact. Don’t blame the employees who contributed towards their retirement go after the elected officials who used it as free money. At this point austerity will not work to rebuild the state’s financial dilemma we need revenue.

    • Ted Biondo

      Steverino, many of the employees contributed nothing to their TRS retirement systems throughout the state.

  3. Can anyone truely say they are surprised? I knew the moment Democrats tried to sell this tax as “temporary” that they would, in time, make it permanent.

    Thats what Democrats do…tax and spend!

  4. Should we have expected any less from the Chicago Democrats who run this State? I’m only surprised that they don’t try to triple the current increase, and make that the permanent tax rate.

  5. “Can anyone truely say they are surprised? I knew the moment Democrats tried to sell this tax as “temporary” that they would, in time, make it permanent. ”

    Were the bush tax cuts sold to us as temporary?

    • Ted Biondo

      Yes joe, the Bush tax cuts had a 10 year sunset clause from the beginning.

  6. Shocked, I tell you, just shocked!!! Who would think that the democrats would raise the taxes right after the election when they said they woudln’t, but they raised them only temporarily and now they want to make it permanent.

    Joe,

    The Bush tax cuts were temporary so that they could get passed a democrat filibuster. Bush wanted those rates permanent, as they shoudl have been.

    SNuss,

    They will do that in 2015, after the elections, if they get the chance.

  7. Both sides play the same game. You can’t get upset when the dems do it because the republicans do the exact same thing. You should get pissed that both sides are gaming the system. Divide and conquer. We are being played and the sad part is we spend so much time arguing among ourselves that these people get away with it. End of the day their no difference between a democrat and a republican. They just prey on different suckers.

  8. Carl Benassi

    I can’t believe that Ted Biondo has the guts to comment on anything. He worked for a company that was involved in many court cases involving managers’ massive efforts to defraud the Government (taxpayers) by bidding low then jacking up costs on military projects. He also was paid wages and collects a pension that was, and is, heavily funded by taxpayer money. I would only be impressed if Mr. Biondo volunteered to take a 22% cut in his own pension in order to save taxpayers money.

  9. roscoeguys

    Certainly, anyone who has lived in this state the past 30 years was not surprised that the “temporary” tax increase should be made permanent. It’s their modus operandi!! And always passed in a lame duck session after an election.

    Senator Dillard is right that “additional 2011 tax revenues have not been used as promised to pay down Illinois’ overwhelming debt – billions to be paid to state vendors, Medicaid, etc. and $95B in pension debt.” Joe is right that we are patsies. Dumb suckers. And we keep reelecting the dorks who do this to us.

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