Illinois House Approves Income Tax Hike

SPRINGFIELD, IL — After missing the deadline to pass a state budget on Friday, sending Illinois into its third fiscal year without a budget, the Illinois House passed a $5 billion income tax increase early Sunday night. The bill, which now heads to the Senate, would increase the state's personal income tax rate from 3.75 percent to 4.95 percent; the corporate rate would jump from 5.25 to 7 percent. House members voted 72-45 in favor of the measure, which needed 71 votes to pass.

“Today, Democrats and Republicans stood together to take a crucial step toward reaching a compromise that ends the budget crisis by passing a fully funded state budget in a bipartisan way," House Speaker Michael Madigan (D-Chicago) said in statement. "While none could say this was an easy decision, it was the right decision," he added, saying there is more work to be done. "We will continue working with Republicans to ensure the issues still on the table are fully resolved," Madigan said.

One House Republican told the Chicago Sun-Times he backed the bill, even if it costs him the next election. "If I lose my seat, so be it,” state Rep. Michael Unes (R-East Peoria) said. “Without this, we will lose thousands of lives and thousands of jobs and the alternative is so much worse."

Shortly after passing the tax bill, the House also approved a spending bill by a vote of 81-34.

Rauner immediately pledged to veto the tax hike if it passes the Senate.

"It's a repeat of the failed policies that created this financial crisis and caused jobs and taxpayers to flee," he said in a statement, according to the Chicago Tribune. "Illinois families don't deserve to have more of the hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs. Illinois families deserve more jobs, property tax relief and term limits. But tonight they got more of the same."

Image via Patch file