GIVE ME MY MONEY BACK!
CAN WE FIRE THEM ALL NOW! The votes are in, and we will pay the new 5% state tax for individuals, and 7% state tax, for business owners, in the upcoming year. Are they all crazy? THIS IS THE LARGEST INCREASE IN HISTORY. While I understand the state in a serious crisis, and owe billions of dollars, don’t they realize the public is in a crisis of their own? We have also gone through a “recession” and are feeling the pinch. We just made adjustments to our spending, we did not ask for a raise. Why can’t they cut spending, and stop paying huge salaries to useless family members, and city worker’s on the payroll for pretend jobs?
We did not vote to pay for all those beautiful, very expensive parks. We did not vote to sell the parking meters. We did not vote to sell the toll ways. And we certainly did not vote to raise taxes. Will this cause businesses to leave Illinois, and put us in a bigger hole? Did they think of that? We will have the 3rd highest business tax in the country!
Why don’t we get a vote on something that affects us so greatly? This is an increase for the state, and the City of Chicago, is not even getting their share of the pie. When will these politicians figure out how to do things the right way. Had they increased the taxes gradually over the years, we would not need to take such a huge hit all at once. Had they spent our money more wisely, they would not be in this mess. Can we just fire them all, and start over?
READ DETAILS BELOW.
Rejecting pleas that Illinois is headed down a destructive path, the Illinois House has approved one of the largest tax hikes in state history, boosting the individual income tax from 3% to 5%, and the corporate rate from 4.8% to 7%.
The vote was a party-line 60-57 — the bare majority needed for passage. The tax hikes are slightly lower than in an earlier version of the bill floated on Friday.
The action by the lame-duck House sent the bill to the Senate, which is expected to approve it and send it to Gov. Pat Quinn for his signature before the new Legislature takes office at noon on Wednesday.
Democrats, led by Majority Leader Barbara Flynn Currie, D-Chicago, argued that the increase is needed to dig the state out of a budget hole of as much as $15 billion. “It’s D-Day for everyone,” she declared. “We are in crisis.”
Without the money, not only will Illinois’ ability to borrow be jeopardized but an uncontrollable cascade of financial woes could break out through the state, she and other Democrats warned.
Much of the proceeds would be used to issue bonds to pay overdue state bills. As a result, if the bill is followed in future years, the individual rate will drop to 4% in four years and 3.5% in 2024, with the corporate levy dropping in similar fashion.
But Republicans focused on the fact that, though the bill also includes spending caps, state spending would still rise at least from $36.8 billion in fiscal 2012 to $39.1 billion in fiscal 2015. They unanimously voted no.
“We’ll be right back where we are now,” said Rep. David Reis, R-Willow Hill.
The corporate hike, combined with the corporate personal property replacement tax, would give Illinois the third highest levy on employers in the country, said Rep. Ed Sullivan, R- Mundelein.
“Only in Illinois would we say we are going to fix our problems by spending our way out of debt,” he continued. “We’re going to come back (eventually) in 10 times worse shape.”
Business groups particularly complained about a clause in the bill that would prevent companies from carrying forward recent losses against current taxes. The carry-loss provision would be suspended for four years, after which such offsets again would be allowed.
Earlier, the House did reject an increase in the cigarette tax. Proceeds from that levy were targeted to increase aid to education, and without that money it’s not immediately clear what will happen to schools.
The House is yet to vote on a companion bill to allow the borrowing, for overdue pension payments and other bills. Such a measure will require a 60% vote — meaning that at least a few Republicans will have to vote yes if it is to pass.