It’s been a year since a lame-duck Legislature raised income taxes and Illinois’ fiscal outlook remains bleak, despite the fact that working families are now paying about $1,000 more in taxes that could be better spent on groceries, gas, and other necessities.
No Republican lawmakers voted for the “temporary” tax increase passed in the early morning hours January 12, 2011.
Senate Bill 2505 hiked the state’s personal income tax rate from 3 percent to 5 percent – an increase of 67 percent. It also increased the state’s corporate income tax rate from 4.8 percent to 7 percent – an increase of 46 percent. Governor Pat Quinn signed the bill into law the next day.
Democrat leaders insisted that increasing taxes would not affect jobs but in the ensuing year, a number of high-profile employers threatened to leave Illinois. Tax incentives have been passed to retain the employers—and jobs, but the state unemployment rate has still reached double-digits and was 16 percent above the national average in November." />Skip to Main Content
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