Illinois racing in place

New Tax Plan Being Discussed

The IML previously reported about a tentative $7.5 billion tax and budget agreement that was announced last Thursday. The magnitude of that tax proposal, which would have increased the personal state income tax by 2.25%, the corporate state income tax by 3.6%, and the sales tax on tobacco products by one dollar, fell under intense criticism. Legislators have been deluged with calls from angry constituents opposing the tax plan. As a result, the package of tax increases, property tax relief, and spending restrictions does not have sufficient support within the General Assembly. 

With time quickly running out on the 96th General Assembly, a new tentative agreement has emerged. This tax and budget agreement would reportedly increase the personal state income tax by 2% (instead of 2.25%) and raise the corporate state income tax by approximately 2.2% (instead of 3.6%).

This is endgame stuff when tax proposals have to get through the Assembly every month. It is what government do just before they collapse in default.