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Taxpayers: Are a 67 percent state income tax increase and new sales taxes coming?

November 24, 2010

From press release

CHICAGO—The president of Illinois’ largest taxpayer organization has issued a warning to Illinois taxpayers that they are frighteningly close to being socked with a 67 percent increase in their state income tax, and a hike in the state corporate income tax from 7.3 to 7.5 percent. Also, new state sales taxes between 7-10 percent will be created on 39 services.

“Gov. Patrick Quinn (D) has proposed a 33 percent increase in the state personal income tax, but an even worse state income tax increase is alive and well, and could be passed in this lame-duck session of the General Assembly,” said Jim Tobin, president of National Taxpayers United of Illinois (NTUI).

“Last year, the State Senate passed a back-breaking 67 percent increase in the state income tax—the biggest tax increase since 1969. In addition, this bill, H.B. 174, places a new state sales tax between 7-10 percent on 39 services, such as Internet service providers, home and office computers, phones with Internet capability, and cable and other program distribution such as DISH. The state corporate income tax also would be increased from its current rate of 7.3 to 7.5 percent.

“H.B. 174 was stopped in the State House of Representatives, but because it was passed by the State Senate, it is still alive,” warned Tobin. “All the tax-raisers have to do is pass H.B. 174 in the State House of Representatives and send it to Gov. Quinn, and Illinois taxpayers will be stuck with a huge, permanent 67 percent increase in their state personal income tax and new sales tax between 7 percent and 10 percent on 39 services.

“The real reason the Springfield politicians want more taxpayer dollars is to pump billions more into the state’s floundering pension plans for retired government employees, which are giving retired government employees lavish, gold-plated pensions higher than the wages of many workers in the private sector. Some of these retired government employees are literally pension millionaires, getting pensions of hundreds of thousands of dollars a year.

“It is urgent that Illinois taxpayers call and write their state senators and state representatives and demand that they oppose any attempt to raise the state income tax or create new sales taxes. Unless taxpayers make their voices heard, and quickly, they will be saddled with more and higher job-killing taxes that will plunge the state further into recession.”

To view the 39 services taxed under H.B. 174, visit ntui.org.

From the Nov. 24-30, 2010 issue

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