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Illinois lawmakers pass 66 percent income tax increase

Associated Press

SPRINGFIELD, Ill. (AP) - Illinois lawmakers have approved a politically risky 66 percent income tax increase in an effort to solve a historic budget crisis.

The bill now goes to Democratic Governor Pat Quinn, who supports the plan.

It would temporarily set the personal tax rate at 5 percent, up from 3 percent now. Corporate taxes would climb, too.

Quinn's office says the tax increase would generate about $6.8 billion annually, helping close a budget hole that could hit $15 billion this year.

In sheer percentage terms, the increase could be the biggest on the long list of those passed as states grapple with nationwide economic woes.

The Illinois Senate approved the measure 30-29 early Wednesday. The House approved it late Tuesday. Illinois Senate President John Cullerton says fixing the state's finances will require hard work even after lawmakers passed a massive tax increase.

Cullerton says lawmakers also need to tackle workers' compensation and education reforms once a new General Assembly is sworn in Wednesday.

The Chicago Democrat is looking for $300 million in cuts because of a new spending cap lawmakers approved. He says the cap will be eaten up by pension, Medicaid and other expenses, requiring cuts elsewhere.

Here is how Heartland lawmakers voted on Senate Bill 2505:

SENATE

•Dist. 54 - John Jones (R) - NO
•Dist. 58 - David Luechtefeld (R) - NO
•Dist. 59 - Gary Forby (D) - NO

HOUSE