Saturday, April 13, 2013
State legislature may consider whether to move to a graduated income tax rate, meaning those who earn more would pay more.
Did the tax man take a big bite out of your wallet this month? With tax season almost behind us, let's take a look at an issue before the state legislature — should Illinois switch from a flat income tax rate to a graduated rate? The last year Illinoisans escaped paying income tax to the state was 1969. Just seven states still collect no income tax. Thirty-four states use the graduated income tax system, while eight others join Illinois in imposing one rate on all. Our friends at Reboot Illinois put together a graphic look at various aspects of the flat tax vs. graduated tax debate, excerpted here on Patch. Check out the full graphic at RebootIllinois.com. Want to know more? This article is posted throughout the Chicago-area Patch network…
Saturday, March 23, 2013
Watch a brief video rundown of recent action in Springfield that could have an impact on your tax bill and money for local schools.
What's happening in Springfield now regarding the state pension crisis will have a long-term impact on your tax bills and the money the state government can afford to send to local schools. Teachers and bus drivers in the suburbs are getting layoff notices and schools are closing in the city of Chicago as the governor projects a cut of $300 million from the state education budget. This week, the Illinois House passed a bill that would trim cost-of-living payments for public retirees. The House previously passed a bill that raises the state employee retirement age incrementally. It's unlikely those measures will pass the Senate, leaving the pension crisis unresolved. Our friends at Reboot Illinois, a non-partisan news and advocacy website…
Wednesday, March 20, 2013
Lawmakers proposed new taxes on oil rigs, license plates, satellite TV, strip clubs and more to find money for schools, parks, youth centers and crisis centers. Reboot Illinois talks taxes.
Wednesday, March 20
By Dennis Robaugh Our friends at Reboot Illinois, a news website dedicated to improving the state of our state, put together a detailed infographic on Illinois taxes in light of news that the temporary income tax hike passed in 2011 could become permanent. State Rep. Lou Lang, D-Skokie, has proposed a bill that would extend the increases indefinitely. Can legislators afford to roll back the tax hikes as planned? The answer is, pension reform notwithstanding, no. In 2012, the state collected almost $20 billion dollars in personal and corporate income tax revenue, a 79 percent increase from 2010. Still, the state’s backlog of unpaid bills increased by 60 percent and its unfunded pension liabilities went up by 13 percent over the same time …
Sunday, January 27, 2013
Despite 2011's 67 percent state income tax hike — which took a week's pay away from you — the state's financial problems have worsened.
Illinois now has the lowest credit rating of all 50 states. Standard & Poor’s rating services downgraded Illinois’ credit rating last week to A-, with a negative outlook. State Treasurer Dan Rutherford, who blamed the negative rating on inaction on the public pension system by Gov. Pat Quinn and the General Assembly, said Illinois is headed for "fiscal disaster." He said the lower rating will force the state to fork over more money on interest payments. This will affect state universities, road construction and other public institutions because more will go to interest than principal as these projects are paid for. “If you went out to borrow $500 because you have such bad credit, it will cost $95 more in interest than better-rated states…