Illinois' Income Tax Rate Boosted By Two-Thirds; Other States To Follow?
Eye-popping headlines from Illinois this morning about action taken early today by legislators there:
-- "Lawmakers Pass 67 Percent Tax Hike." (Chicago Tribune)
-- " Ill. Faces 66 Percent Tax Boost Amid Budget Crisis." (The Associated Press)
As NPR's Kathy Lohr explained on Tuesday's edition of All Things Considered, at least 40 states have projected budget gaps for the upcoming fiscal year. "Some states will raise sales or income taxes, others will continue to increase fees on businesses and anything they can think of," Kathy reported. "Many are promising deeper cuts in state services. That means education, Medicaid reform and pension funds will be among the programs debated again this year."
On Marketplace Morning Report, Washington bureau chief John Dimsdale noted that if your Illinois income tax bill was going to be $1,000, it just went up to $1,666. The tax rate was raised from 3 percent to 5 percent. In 2015, it will decline to 4 percent. Here's the audio of his report: Copyright 2011 National Public Radio. To see more, visit http://www.npr.org/.