posted January 12, 2011 01:49 PM            

**SPRINGFIELD, Ill. – Democratic Illinois lawmakers beat a looming deadline and approved a 66 percent income-tax increase in a desperate bid to end the state's crippling budget crisis.

**Lawmakers rejected a $1-a-pack increase in cigarette taxes, which would have provided money for schools. They also blocked a plan to borrow $8.7 billion to pay off overdue bills, which means long-suffering businesses and social-service agencies won't get their money anytime soon.

http://news.yahoo.com/s/ap/20110112/ap_on_bi_ge/us_illinois_taxesinois

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What we do for ourselves dies with us. What we do for others and the world is immortal"~

posted January 12, 2011 06:39 PM            

Sounds as if they had no choice. It's only up to 5% overall, and will automatically decrease over time as the state comes out of it's debt.

Illinois is one of only a handful of states that still operate with a flat-rate tax standard regardless of income, according to the National Conference of State Legislatures. Even with the 2011 adjustments, Illinois would have one of the lowest tax rates in the nation, but the rates across the US are hard to pin down because most states, such as Iowa, have up to nine different tax rates for personal income.

“In terms of taxable income, it’s not always an easy comparison to make [between states],” says Arturo Pérez, a fiscal analyst with the organization.

Republicans criticized the Illinois package, saying that it would force companies to move to neighboring states and that lawmakers would use the tax revenue only to increase spending, thus bankrupting the state. “Here’s an investment tip for you: Put your money in moving vans. They’ll be in high demand,” state Sen. Kyle McCarter (R) said during debate of the package.

State Democrats lauded the package for an extra twist: A spending cap would limit state spending through 2015. If lawmakers were caught exceeding the new limits, the new tax rates would revert to their original rates.

“This is not a game, not a trick ... we’re really trying to handcuff ourselves and the governor in our spending,” said Illinois Senate president John Cullerton (D), according to the Chicago Tribune.

posted January 12, 2011 06:43 PM            

I smoke but that`s my issue and I would rather pay a higher cig. tax than see the lower or middle class pay more income taxes at this time in space. So how about splitting the tax?

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What we do for ourselves dies with us. What we do for others and the world is immortal"~