Illinois Business Journal Illinois Business Journal
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Proposal to jump state income tax rates to be resurrected after November election

By ALAN J. ORTBALS

   The proposal to raise Illinois state income taxes on individuals and businesses by 67 percent has been pulled off the table for now.
   However, co-sponsors State Sen. John Cullerton, a Democrat from Chicago, and State Sen. James Meeks, a Democrat from Calumet City, say they will bring the bill (SB 2288) back during the fall veto session in November. Some say the sponsors expect to garner more votes when the specter of an election is not looming on the horizon.
   Since Gov. Rod Blagojevich has consistently vowed to veto SB 2288 or any other legislation that attempts to raise income taxes, such a bill would need to attract a three-fifths majority in both houses to make it veto-proof. A similar measure that called for increasing the personal income tax on individual taxpayers earning $250,000 or more a year failed to [continue]

. Sen. Minority Leader Frank Watson (R-Greenville) says although SB 2288 passed in the House, the bill to raise state income taxes by 67 percent likely won't succeed in the Senate. Its co-sponsors plan to resume discussion on SB 2288 during the fall veto session after November's general election.
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Illinois' tax burden 25 percent higher than Missouri's, foundation says
By ALAN J. ORTBALS

   While the General Assembly contemplates tax hikes, Illinois is already at a distinct disadvantage when competing with Missouri, according to the Tax Foundation, a nonprofit tax research organization based in Washington D.C.
   The foundation uses an index that compares states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes and

taxes on property - including residential and commercial property. Based on this analysis, Missouri ranks 15th in the Tax Foundation's State Business Tax Climate Index, while Illinois falls in at 28th.
   According to the foundation, the average Illinois resident pays $622 in state income tax, $1,312 in sales tax and $1,407 in property tax. The average Missouri resident, [continue]

Illinois comptroller blasts spendthrift ways of governor, legislature
By ALAN J. ORTBALS

   Illinois state government is unprepared for the economic downturn that may already be Under way because it has failed to address numerous long-standing budgetary issues, according to Illinois State Comptroller Dan Hynes. So far in this legislative session, lawmakers have focused on raising revenues rather than cutting spending.
   The comptroller's analysis states that Illinois General Fund revenues increased nearly $5.5 billion from FY03 through FY07, or 5.5 percent per year, driven by a 24 percent growth in income and sales taxes. If current year government projections hold, revenue growth will be more than $6 billion. And yet, even with the large growth in [continue]