taxes

Hillard Family photo in field
Tonya Hilliard

Last year, Illinois was one of a handful of states that lost population. The out migration became a campaign issue in the governor’s race last year and has some throwing up caution flags. But the numbers don’t mean there is a crisis, or even a real clamor, to leave the state.

This story first appeared in the March 2014 issue.

Taxes suck.

That, it seems, is the only truism. Nobody wants to render unto Caesar. But, at least in Illinois, Caesar needs to get re-elected, and so stuff can get complicated.

WUIS

Republican candidate for governor Bruce Rauner has presented a plan he says will help grow Illinois' economy and create jobs.

The Winnetka businessman spoke today at a family-owned manufacturing company in Schaumburg. 

Rauner wants to eliminate the income tax increase Democrats approved in 2011, phasing the rate back to 3 percent from 5 percent. He also says he would freeze property taxes and impose a sales tax on services such as charter flights, travel agencies and sewer service.  

Rauner says Democratic Gov. Pat Quinn has been ``a failure on job creation.''  

Flickr user oldbrochures

Gov. Pat Quinn on Monday signed legislation intended to lower the cost of leasing a car in Illinois. Backers of the law say far fewer people lease in Illinois than in surrounding states.

IGPA

House Speaker Michael Madigan pulled his plan for a so-called "millionaire tax" last week.   The plan would have raised taxes on those earning $1 million or more a year, with the proceeds going to schools.  It would have required a constitutional change. 

Professor Brian Gaines has studied the idea.  He's with the Institute of Government and Public Affairs at the University of Illinois.  He called Madigan's change of heart a bit surprising:

Brian Gaines' essay on the "millionaire tax" -

Amanda Vinicky/WUIS

Though he supported Illinois' income tax hike in the past, Governor Pat Quinn is so far unwilling to take a stance on whether it should expire.

This fiscal year, Illinois is putting $6.8 billion toward pensions. An amount that's more than covered by how much money the state took in from a higher income tax rate -- the increase alone is projected to pull in almost $8 billion this year.

But that raises the question: how will Illinois function when the income tax revenues begin to decrease?