Latest Illinois Budget Proposal Includes Huge Tax Increases

Illinois’ budget crisis drags on in Springfield, with the fate of the latest and ever changing leadership proposal including increases in the individual income tax rate from 3.75% to 4.95%, and the corporate rate from 5.25% to 7.0%. Opposition is likely from Governor Rauner, because the proposed measure fails to include all the ethics, pension and workers compensation reforms he wants, and from Democratic legislators and leaders, because the proposed increases still won’t fill the state’s budget shortfalls and unfunded pension liabilities. Looks like the deadlock will continue for several more months.