Koehler votes to raise Illinois income tax
Without the help of Republicans, Senate Democrats voted Tuesday to fix the budget by raising the Illinois income tax and expanding the sales tax.
Sen. David Koehler (D-Peoria) voted in favor of the measure, which would raise the personal income tax rate from 3.75 percent to 4.95 percent and the corporate income tax rate from 5.25 percent to 7 percent.
Sen. Chuck Weaver (R-Peoria) opposed the bill.
The Illinois Republican Party said the move is proof Democrats have no interest in reform.
“Senate Democrats' decision to ram through multiple tax hikes outside a comprehensive jobs and reform package confirms that the entire Democratic Party's position is to raise taxes while protecting the status quo,” Steven Yaffe, Illinois Republican Party spokesman, said in the statement. “First Mike Madigan made clear real reform is not an option, then Democratic candidates for governor began campaigning on raising taxes without reform, and now the Senate Democrats are falling in line. The Democrats moved forward an agenda today that raises income taxes, expands the sales tax and ensures property taxes keep rising.”
Senate Bill 9, sponsored by Sen. Toi Hutchinson (D-Olympia Fields), includes a $5 billion income tax hike to help fund a $37.3 billion budget proposed by Democrats, according to the Associated Press. No Republicans supported the measure, which passed 32 votes to 26. It was sent to the Illinois House.
The bill would also apply sales taxes to services for the first time.
Gov. Bruce Rauner has said he will veto an income tax increase unless it's includes a property tax freeze.
Democrats, including House Speaker Mike Madigan (D-Chicago), have said they want to raise the individual income tax to 5 percent — the rate before Rauner took office.
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