Illinois has a state sales tax rate of 6.25%.
Now Governor Pat Quinn is elated to have had his lame duck law-makers pass a new income tax law. Although I despise the two party system which gives power to people with their own money making agendas. I must state according to the report this hike was passed without one Republican vote for. I must mention the voters in all but 3 counties were against tax hikes.
Retroactive to January 1, 2011, Individual taxpayers will face an 67% increase in personal income tax. Business will face a 46% rise. This according to the governor will give $250 million a year to schools. However had they passed a $.98 Cigarette tax increase, schools would have gotten $300 million a year. The money raised was originally earmarked to reduce property taxes. But in the final draft this was dropped. NO property relief.
I am sure you smokers will disagree with me here, but I feel if you can afford a nonessential like cigarettes, you can surely well afford a tax on cigarettes. I classify any nonessential a luxury.
I suppose the economy and unemployment rate is healthier in ILLINOIS than any other state. Why else would they even consider a non logical move like this. Seems to me more people will have to leave the state, being unable to afford the tax hike. Business can you afford to stay in ILLINOIS.
I suppose the Governor knows his State better than I. If you can’t cut spending raise income. Can the individual taxpayer do that? NO. Can business do it? YES! they just raise their prices, which also generates more sales tax money for the state, an covers the tax raise. Thus the business tax raise, is passed on to consumers making their total 113% raise in income tax.
Without spending cuts and only raise taxes. Will the Governor bankrupt the state. Or will the tax base be forced to leave the state/
That Is How I See It