Financially Failing State Passes Huge Tax Increase To Cover Mismanagement

  • 07/07/2017
  • Source: AAN
  • by: Remington Strelivo
As Illinois flirts with insolvency, Democrats are passing the buck to taxpayers—passing a whopping 32 percent hike in state income taxes.

The income tax hike had been vetoed by Republican Gov. Bruce Rauner earlier this week, but the state senate overrode the veto on Thursday with a 71-42 vote. 10 Republicans joined Democrats in voting for the tax hike, which is expected to net an additional $5 billion in government revenue per year.

Illinois taxpayers will see their personal income tax skyrocket from 3.75 percent to 4.95 percent. The law also raises the business tax rate from 5.9 percent to 7 percent. All in all, the average resident of Illinois will see their state taxes go up 32 percent.

The tax hikes will compound the state’s economic crisis: more people are moving out of Illinois than any other state, and Illinois has the lowest number of new jobs being created of any state. The bill also lacks any sort of much-needed spending cuts and budget reforms—preferring to balance the budget on the backs of taxpayers instead.

Last month, both S&P and Moody’s downgraded Illinois’s bond rating to “near junk,” the lowest a state has ever been approved. Moody’s previously warned that, because of the Democrats’ bill that will hike taxes but not address the big problems with the state budget, they’ll likely downgrade Illinois to junk bond status soon.
 Source: AAN
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