Illinois House Speaker Michael Madigan, who also is state Democratic Party chairman, is proposing to cut the state’s corporate income tax rate in half. His bill, introduced today, calls for lowering the corporate tax on profits from 7 percent to 3.5 percent.
Tax Day protests are nothing new. From tea to whiskey to war, Americans have long voiced their dissent by opting to keep their tax dollars right in their pockets. But are tax protests effective? And how much do they connect to flaws in our tax policy?
More than half the tax increase now awaiting Illinois Gov. Pat Quinn's signature is supposed to be phased out after a few years. But the last time lawmakers passed an income tax hike that was "temporary," it didn't stay that way. Short-term pain is easier to absorb than long-term pain.
A possible income-tax hike in Illinois may have some taxpayers grumbling, but bond investors say it’s a good step. California is in terrible financial shape, but the bond-rating agency Moody’s says we are even worse. It rates Illinois bonds the lowest in the country.
Illinois legislators are scheduled to begin the fall veto session later this week. And newly elected Governor Pat Quinn tells the Chicago Sun-Times the top priority should be an income tax increase. But Quinn could face some opposition in the Illinois Senate.