tax increase

Illinois Senate Democrats

Updated estimates show that Illinois is on the trajectory to spend $2 billion more than the spending plan Gov. Bruce Rauner vetoed because it's out of balance, even though it has gone 44 days without a budget.

Illinois has been without a budget since the start of July. And yet money's steadily flowing from state coffers, thanks to court orders, decrees, and other arrangements.

"We can't even close down the state right," said Republican Rep. David Harris of Arlington Heights.

Lisa Ryan/WUIS

As Illinois faces major budget problems, everyone has a different answer for which services to cut and which taxes to raise.

Mike Nobis is worried. His commercial printing company has been in Quincy, Illinois for 108 years. He says he's struggling to compete with other companies, especially those across the border in Missouri.

Illinois' current sales tax does not cover most services. Nobis says if that tax is expanded to cover the printing industry, he might go out of business.


A hike in Illinois’ income tax rate will begin rolling back at the end of this year, and a majority of Illinois voters are alright with that.

A new poll shows 56-percent of voters oppose making the increase permanent.

Respondents to the survey, which was done before the election by the Paul Simon Institute at Southern Illinois University, were asked that question fairly directly.

Michael Madigan
Brian Mackey/WUIS

The General Assembly finished its legislative session shortly after midnight Saturday, approving a billion-dollar road construction program.

Democrats started the session with an ambitious agenda: raise the minimum wage, boost college assistance for low-income students, maybe even change Illinois' flat tax into a graduated one. In the end, none of that happened.

Brian Mackey/WUIS

A major credit rating agency says the next two months will be "critical" for the future of Illinois' finances. The key question is whether to make a temporary tax hike permanent.

Like most of the big credit rating agencies, Standard & Poor's has been bearish on Illinois finances — lowering the state's credit rating four times in recent years.


  Even if Illinois keeps its higher income tax rate, a new report projects the state is headed toward deficit spending. 

Illinois residents are paying a 5-percent tax on their income. It's been that way since 2011.

According to a new report from the University of Illinois' Institute of Government and Public Affairs, that tax money helped balance Illinois' budget this year.

But economist David Merriman, who directed the project, says that won't last.


“We have an impossible situation. If we solved pensions, then we would be looking at only $6 billion worth of debt with a dramatic drop of revenue taking place in 2015. That’s the best-case scenario.”

Kent Redfield,
emeritus political science professor 
at UIS

As lawmakers spend countless hours debating gun control measures and changes to the public employee pension systems, the next potential budget disaster in the state is on its way. 

Charles N. Wheeler III
WUIS/Illinois Issues

Since the outgoing General Assembly increased personal and corporate income tax rates in January, lawmakers have been at great pains to show how business-friendly they really are.

In the spring session, for example, the legislature approved a compromise workers’ compensation measure that sponsors said would save business up to $700 million, mostly by reducing payments to doctors and hospitals that treat injured workers.

Charles N. Wheeler III
WUIS/Illinois Issues

For the typical Illinois legislator, long-range planning usually means thinking about the next election. Struggling this spring to fashion a new budget, though, lawmakers found themselves worrying about the one after that, too.

The reason for the altered perspective? A dawning realization that serious belt-tightening would be needed now to avoid either a fiscal meltdown or a vote to raise taxes three budget years hence.

WUIS/Illinois Issues

  When Gov. Pat Quinn signed a law this winter boosting Illinois’ corporate income tax rate, he was hardly its only fan. The governors of Indiana and Wisconsin could barely contain their glee.