Illinois Income Tax Increase Plan: Rates To Rise To 5.25 Percent For Four Years

Leaders in Springfield appear poised to push for a temporary income tax increase of 2.25 percentage points, in order to help offset the state’s massive deficit.Last night, the Chicago Sun-Times reported that Governor Pat Quinn, Senate Majori…

Leaders in Springfield appear poised to push for a temporary income tax increase of 2.25 percentage points, in order to help offset the state’s massive deficit.

Last night, the Chicago Sun-Times reported that Governor Pat Quinn, Senate Majority Leader John Cullerton and House Speaker Mike Madigan had reached a deal to raise the tax rate from 3 percent to 5.25 percent, only for the next four years.

That would be coupled with a corresponding increase in the corporate tax rate, from 4.8 to 8.4 percent. Lawmakers will also push for a dollar-a-pack increase on cigarette taxes.

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