Temporary Hike Costing Average Taxpayer $1,100 This Year
The temporary income tax hike Illinois lawmakers are considering extending is costing the typical taxpayer about $1,100 more this year, according to calculations by the Governor's Office of Management and
The 67 percent increase on individuals approved in 2011 is producing about $6.6 billion in additional revenue for the state this year. Democrats promised when they raised the individual rate from 3 percent to 5 percent that it would roll back to 3.75 percent in January 2015. Now Gov. Pat Quinn and legislative
Democrats want to make the 5 percent rate permanent.
Here is a look at the increase by the numbers:
Number of Illinois taxpayers: 5.99 million
Average taxable income: $55,000
2014 average state tax liability at 5 percent: $2,750
Average liability at 3 percent rate: $1,650
Average liability at 3.75 percent if tax is rolled back: $2,062
Average reduction with the rollback: $688
Most Democrats say allowing the tax to roll back, as planned, would lead to
drastic and painful cuts in education, social services and other state programs.
Republicans say the tax hike hurts the state's economy and business climate, and
that the government needs to drastically cut back spending instead.
Quinn's assistant budget director, Abdon Pallasch, argues that while rolling
back the rate would save taxpayers' money in state income taxes, the result
could be that they pay more in local property taxes, such as those used to pay
for public schools, which would see cuts in state funding.
Sources: Governor's Office of Management and Budget; Illinois Department of