Jan 10, 2011

Illinois proposes 75 percent income tax hike

Illinois Governor Pat Quinn and the leaders of both houses of the Illinois General Assembly have agreed on raising the state income tax.

If the bill passes, the plan would raise the personal income tax rate from the current 3 percent to 5.25 percent.

That’s a 75 percent increase.

In real dollars, that would mean if you currently owe $1,000 in taxes, next year you would owe $1,750.

The report says the increase is for four only years. After four years the personal income tax would go down to 3.75 percent.

Will Illinois lawmakers really lower taxes that much once they have enjoyed having that extra tax money to spend for four years?