It has been several weeks since slim majorities in the Illinois House and Senate overrode Governor Rauner’s veto of the Democrats’ budget proposal, and we’re still finding surprises the Speaker hid in the 600-plus page document. The most devastating provision however, a costly, permanent income tax increase on Illinois families, is not a surprise. It’s history repeating itself.
Upon passage of the override, your state income tax rate increased from 3.75% to 4.95%. Supporters argued that it was a minor increase and that our income tax remains in line with most of our neighboring states. I did some math to see just how “minor” the increase would be for families here in the 41st legislative district. Included is a breakdown by zip codes for families in Naperville and Warrenville that show just how much more this tax increase will cost our communities in the first year alone. The total is a whopping $109,249,318 more in taxes flowing from here to Springfield!
What did we get in return for the tax increase? Will Illinois families paying some of the highest property taxes in the nation get property tax relief? No. Were reforms secured to permanently rein-in state spending or address our out-of-control state pension costs? No. How about needed reforms to promote job growth and repair our economy? No. In fact, taxes on businesses were increased too.
If this all sounds familiar that’s because it’s the exact same failed approach that the state took in 2011 – increase taxes without addressing any of the underlying issues hurting our state.
We all know what happened. Families and businesses fled our state in record numbers while our debts and unpaid bills continued to grow.
There’s a saying that those who don’t learn from history are doomed to repeat it. Sadly, such is the case with this state budget scheme. I’m extremely disappointed in how this legislative session has ended, but I will continue to do my best to advance new policies to make Illinois competitive, strong and a place we can all be proud to call home.
