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Illinois House debates income tax increase
By Mike Riopell
mike.riopell@lee.net
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SPRINGFIELD — As Gov. Rod Blagojevich tries to raise taxes on businesses to create billions of dollars for schools and health care, lawmakers continue toiling over a years-old plan to raise the income tax on residents for the same reason.

Many lawmakers have shied away from it in the past, at least partly because voting for an income tax hike could be politically dangerous.

They debated the idea again in a House committee Tuesday, but didn’t vote on it.

Trying to win over lawmakers, state Sen. James Meeks referenced a vote 10 years ago when members of the House voted “yes” on a similar proposal to raise income taxes, while reducing property taxes to help poorer school districts.

“No legislator lost their office because they supported the tax swap,” said Meeks, a Chicago Democrat who has been the plan’s chief supporter in recent years.

But even if lawmakers eventually support the tax swap proposal, Blagojevich has been clear in his opposition. Anticipating the debate, one of his aides distributed a statement shortly before Tuesday’s hearing began.

“I oppose any increase in the income tax or sales tax,” Blagojevich said. “I will veto any tax increase on people.”

Instead, Blagojevich has proposed raising billions of dollars by hiking business taxes, an idea that proved controversial even before he officially proposed it.

State Rep. David Miller, a Calumet City Democrat who is sponsoring the tax swap plan, said the governor’s opposition could make it tough to convince lawmakers to go along.

“Historically, it has presented a concern,” he said.

State Rep. Roger Eddy, a Hutsonville Republican and school superintendent, said he doesn’t doubt Miller will try to find enough votes to bypass the governor. But it can be tough to override a veto on a controversial measure.

“That’s a very, very difficult thing to do,” Eddy said.

In Tuesday’s hearing, Taxpayer Federation of Illinois President Tom Johnson suggested that the property tax relief promised by the tax swap isn’t real. He says that while homeowners might get a break in the initial years, local taxes will eventually return to their initial levels.

“I think we need to clearly understand the property tax relief,” Johnson said. “It will never meet the taxpayers’ expectations.”

The legislation is House Bill 750.

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Reader comments on this story - 7 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

to working for what? wrote on Mar 21, 2007 4:30 PM:

" In time, you will give your employer money for the benefit of working. "

When does it end wrote on Mar 21, 2007 2:48 PM:

" Between the property tax, Fed tax, Electric increase, Natural gas costs, gasoline cost. Everytime I get a little raise there is some new fee, tax or utilities going up that I am actually making less than before my raise "

To Leland wrote on Mar 21, 2007 2:47 PM:

" While I agree with you whole heartedly, you have to know that accountability and transparency of business in the government will never happen. The government will never openly show the people how much money they waste. Every citizen is already entitled to see the budget, public information. The real problem lies in the fact that politicians spin everything into such a mess that the lay person wouldn't understand 90% of what is written in plain english in a budget or any other document that the government produces. "

Leland Lesher wrote on Mar 21, 2007 7:17 AM:

" How about some open books from the Legislature and Governor BEFORE any increase in taxes. I am like "me" in the basic concept, but I would like some public accountability by the Legislature and Governor on how and where the money currently coming into the State is spent. Some OPEN, transparent, straight-forward accountability. "

To me wrote on Mar 21, 2007 2:39 AM:

" Good idea but get ready for the conservatives to attack. "

me wrote on Mar 20, 2007 11:09 PM:

" Are you serious? I doubt very seriously they would raise the income taxes so high, that people wouldn't be able to live. As I stated earlier on another blog, in my opinion, they need to start by raising the state income tax level, by 1% for people who earn $50,000 or more Annually. Using basic multiplication, a 1% increase on these individuals would generate an additional $50,000,000 per year. 1% of $50,000 is $500 ($500 per year x 100,000 tax payers = $50,000,000). It all works out to around $41.67 per month. For people who get paid 2 times per month it comes to $20.83 per pay period. Having to pay an extra $20 bucks per paycheck isn't going to force people to file for bankruptcy. Remember, I am only talking about people with an adjusted gross annual income of $50,000 or more. You people hear "raise the income tax", and you think you will not have any money left. This is basic math that even my 10 year old can do. "

working for what? wrote on Mar 20, 2007 6:39 PM:

" With all of the new "taxes" & "fees", most people will soon be working for NOTHING!!! "
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