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Plan to double income tax for some clears Illinois House panel

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By Kenneth Lowe | Wednesday, April 09, 2008 |

SPRINGFIELD — A plan to double the state income tax rate for individuals making more than $250,000 a year narrowly passed a House committee Wednesday.

The proposed constitutional amendment now heads to the full House, where it must be approved by a three-fifths majority of members. If it’s OK’d there and in the Senate, the increase wouldn’t go into effect until Illinois voters approve the amendment by referendum in November.

The bid to generate more cash from the state’s wealthier residents comes as a separate income tax hike proposal is moving through the Senate. That proposal, sponsored by state Sen. James Meeks, D-Chicago, would raise the income tax on individuals to

5 percent, up from its current level of 3 percent. Businesses would see their corporate income tax rates rising from 4.8 percent to 8 percent.

Senate President Emil Jones recently put the proposal back on the Senate’s order of business. He opposed the legislation when it originally hit the Senate.

Meeks said there hasn’t been an income tax increase in 17 years.

Downstate lawmakers, such as state Reps. Shane Cultra, R-Onarga and Bill Mitchell,

R-Forsyth, have said an income tax increase should be accompanied by a decrease in local property taxes, an issue that neither of the proposals address.

Others, like Kim Maisch, Illinois director of the National Federation of Independent Business, say the state would do better to cut spending rather than raise taxes.

“We haven’t seen any restraint in spending,” Maisch said. “This governor keeps trying to spend money that we just don’t have. At least lawmakers are trying to show some restraint.”

Kenneth Lowe can be contacted at Kenneth.lowe@lee.net or (217) 789-0865.