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Category:Automotive transmission technologiesA resolution of the state’s tax woes, passed by Illinois lawmakers Thursday, may have less to do with helping families pay their taxes and more to do with giving them a break from state income taxes.
While some lawmakers are focused on the method of limiting payouts and reversing a tax hike for small businesses, others say the vote is driven by an election-year desire to reduce the amount of tax revenue coming into state coffers.
Lawmakers voted 35-21 to eliminate Illinois’ income tax, plus millions in other funds earmarked for various schools and special projects.
Sen. Jacquelin Schanzenbach said the House bill to end income taxes is a “soft tax” to provide relief for those who would have their taxes go up by as much as $800 in January.
“It’s going to feel good to the folks who are really going to feel it,” said Schanzenbach, D-Chicago. “These are areas where people have worked very hard to build their lives. They’ve worked very hard to build their businesses, they’ve built up their savings so that they can retire in 20 years. That’s why this is very difficult for them.”
The immediate impact on Illinois’ struggling economy is unclear. For now, the elimination of the state’s 4.9 percent income tax and increased sales and excise taxes, effective Jan. 1, are part of a bill pending before Gov. Pat Quinn.
Quinn said he supports the elimination of income taxes but had not fully read the bill.
“I understand the concern over that, but I’m more concerned about what it does for the families that have all their eggs in one basket, that are paying as much as 25 percent of their income in taxes,” Quinn said at an event Thursday morning at the Old St. Mary’s School on Chicago’s South Side. “That’s not fair to them, and that’s not fair to the state.”
Quinn said he has personally approached Democrats and Republicans to work together to find solutions “that are fair to the state and also fair to the families that have been working hard to get themselves a better life for their family.”
His comments came as his administration released a report showing that Illinois’ economy suffered from the fiscal struggles of the state
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