67 percent.

Posted on January 13, 2011. Filed under: Uncategorized |

Sixty-seven percent. That’s how much Illinois plans to increase income taxes as it begins to dig out of the hole it’s in – a nearly $15 billion deficit, to be exact.

The tax increase, 67 percent for personal income taxes and 46 percent for business income taxes, is expected to cut that in half.

I’d imagine that’s a bitter pill to swallow if you’re living and/or working in Illinois!

That article does not mention any spending cuts included in the plan, which does, on a brighter note, include some long-term planning.

“Under the bill the current 3 percent personal income tax rate goes up to 5 percent until 2015, when it would drop to 3.75 percent.

Lawmakers compromised on the plan allowing the tax rate to lower in 2025 to 3.25 percent.

A family or individual making $40,000 a year, the increase would amount to an extra $800.

For businesses, the rate now at 4.8 percent would go up to 7 percent until 2015, and then would drop to 5.25 percent.”

What do you think, Connecticut?

At a time when the 50 states have a combined deficit of approximately $140 billion for the next fiscal year, the budgeting process is going to be painful.

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