Illinois House and Senate Pass 32% Permanent Income tax Increase
Sunday evening, the Illinois house voted 72-45 to raise Illinois income tax rate by 32%. It will be the largest permanent tax hike in Illinois' history.
The income tax increase, which will increase Illinois personal income tax rate from 3.75% to 4.95%, will go into effect immediately, and will be permanent. Illinois businesses will face an increase from 5% to 7%. The measure will go Illinois Senate, where Democrats have a veto proof majority, for approval.
(Update 7/4/2017 11:54am) : The measure passed the Illinois Senate by a vote of 36-18 on Tuesday.
It is estimated that the average Illinois family will see an increase of $1200.00 in new taxes annually. Use this calculator to calculate how much less money you will earn.
Two of our area Illinois House members voted in favor (YES) of the 32% income tax Increase.
Rockford Democrat Rep Litesa Wallace took to Facebook to praise her YES vote for the 32% permanent income tax increase.
Robert Pritchard (R), who represents DeKalb and Boone Counties, was one of the few Republicans who voted FOR the tax increase, and the only Republican from the Stateline to do so. Mr Pritchard has yet to issue a written statement. The Illinois policy institute named Rep Pritchard as one of the:
Republicans who believe they are "safe" enough to vote for a $5 billion tax increase.
I contacted our three State Senators from the Stateline to find out how they plan to vote on the tax increase when it comes before the State Senate this week, and here are their responses:
- Dave Syverson (R - Rockford): Voted NO
Sen Syverson said "without reforms I am a no on more revenue".
- Tim Bivens (R): Voted NO
Sen Bivens said: During debate in the last tax increase in 2011 we were told bond ratings would improve, business climate would improve, our bills would be paid, there was a four percent cut built in every year, the tax was temporary, and we all know how that worked out.
- Steve Stadelman (D Rockford): Voted: YES
Sen Stadelman responded late Monday evening with this statement
I still hope Republicans and Democrats can reach an agreement on how to reach a balanced budget before a vote is taken.
On Monday, Sen Stadelman, when asked how he would vote on the income tax increase, did not respond, but on Tuesday, voted YES.
(UPDATE: 11:54 am 7/4/17) Sen Stadelman voted YES on the permanent tax increase.
Governor Rauner issued a statement on Sunday night indicating he plans to veto the tax hike if it lands on his desk.
I will veto Mike Madigan’s permanent 32 percent tax hike. Illinois families don’t deserve to have more of the hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs. Illinois families deserve more jobs, property tax relief and term limits. But tonight they got more of the same.
However, it should be noted that the margin the bill passed by, in the house and the Senate, is enough to override the governor's veto.