The Illinois Democratic-controlled House levied giant, permanent personal and corporate income-tax rate increases Sunday, in an effort to help the debt-ridden state avoid downgrading their state bonds to “junk.”
Passed with a 72-45 vote, the $5 billion tax bill raises the personal income tax rate from 3.75 to 4.95 percent and the corporate income tax rate from 5.25 to 7 percent, Reuters reports. The bill is on its way to the Illinois state Senate, which is also controlled by Democratic lawmakers, for approval.
Illinois’ Republican Gov. Bruce Rauner immediately came out against the House bill on his Facebook page, promising to veto any proposal that included exorbitant tax increases.
“I will veto Mike Madigan’s permanent 32 percent tax hike. Illinois families don’t deserve to have more of their 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,” Rauner wrote. “But tonight they got more of the same.”
The 72 votes, which include a handful of Republican lawmakers, is sufficient to override a veto from Rauner, but it remains unclear whether or not the Republicans who voted in favor of raising taxes would do so again.
Saturday marked the third straight fiscal year that the state did not have a completed budget. Divisions between the state’s Republican governor and Democratic-controlled legislative branch have lowered Illinois credit ratings to one notch above junk and have left the state with $15 billion in unpaid liabilities.
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