illinois income tax

Rauner: Voters were Misled on Sorry State Finances

Dec 2, 2014
Brian Mackey

Illinois Governor-elect Bruce Rauner told reporters the state's finances are in terrible shape.

It looks like Illinois lawmakers will allow the temporary higher income tax rate to expire January 1.

Illinois Ends Fiscal Year In The Black...Temporarily

Jul 10, 2014

The state took in over a billion dollars more in taxes than the prior year, thanks to an uptick in sales tax money.  Personal income tax revenue also rose , but the amount coming from corporate income taxes dropped. It's something Jim Muschinske, a budget forecaster for the state, said was predicted.

"That was not unexpected. In fact, we actually did better this fiscal year than what was initially assumed back when the budget was passed," Muschinske said.

Amanda Vinicky/Illinois Public Radio

Illinois lawmakers are going back to the drawing board on a state spending plan.

Republican candidate for governor Bruce Rauner is wading deeper into the debate over whether Illinois ought to extend a higher income tax rate. He's still refusing to say how he would manage the state budget.

The Rauner campaign says it's making robo-calls to voters in seven House districts. These are key Democrats in the budget debate — most have previously taken positions against the higher tax rate.

Gov. Pat Quinn appealed directly to Democrats in the Illinois House Monday evening. He’s struggling to win support for his plan to extend Illinois’ higher income tax rate.

The governor appeared at a closed meeting of the Illinois House Democratic caucus.

Quinn is trying to win the support of the 60 Democrats required to make Illinois’ 5 percent income-tax rate permanent — instead of letting it decline by more than a percentage point as scheduled at the end of the year. Quinn warns without the higher tax rate, there will have to be drastic cuts in state services.

The Illinois House will take the lead on whether Illinois keeps its 5 percent income tax. It's scheduled to roll back at the end of this year unless legislators take action.

It's happened in the past. The Illinois Senate will pass a controversial measure -- like a tax hike -- only for it to languish in the House.

Not this time.

Senate President John Cullerton says the Senate will vote on the tax question if and only if it first passes the House.

 Two major Democratic initiatives are still short the votes needed to pass, at least in the House, as the General Assembly heads into the final stretch of its spring session.


How to deal with Illinois' income tax rate is arguably the biggest issue looming over Illinois politics.

A western Illinois lawmaker is warning of dire consequences if the temporary income tax increase is allowed to expire.

Rich Egger

Illinois Governor Pat Quinn is selling his budget plan as a way to better fund schools. But that money doesn't come right away.

Rich Egger

When lawmakers raised individual income taxes from three percent to five percent a few years ago, it came with an expiration date.

Illinois Republicans are amping up their push to repeal Illinois' income tax hike, which increased from 3% to 5% one year ago.

Republican legislative leaders marked the one-year anniversary of the increase by stacking $1,000 worth of groceries. They said that's the average amount Illinois families are paying in additional taxes since the increase.

"It's real money out of people's pockets, and we can't forget that," said Senate Minority leader Christine Radogno (R-Lemont).