The increase is being justified as a means to get the state out of a $13 billion deficit. According to The Wall Street Journal, the increase passed at the minimum with a vote of 60 to 57. It was then passed on to the Senate where it was expected to pass by Wednesday morning.
Under the new measure, the income tax would temporarily rise from 3 percent to 5 percent. Corporate tax rates would also rise from 4.8 percent to 7 percent. According to The New York Times, these income taxes are about a 66 percent increase from where they were before.
Advocates of the increase such as Gov. Pat Quinn believe the increase was necessary in order to prevent layoffs and foreclosures if the state does not fix its deficit immediately. As the Journal reports, Illinois is one of the few states that are taking to tax increases to fix their budget’s downfall. Other states like California are looking at other ways to fix their deficits and suggest making large service cuts.
Read More: Illinois House passes an increase of income tax late Tuesday night.
