SPRINGFIELD, Ill. — Illinois lawmakers have approved a politically risky 66 percent income tax increase in an effort to solve a historic budget crisis.
The bill now goes to Democratic Gov. Pat Quinn, who supports the plan.
It would temporarily set the personal tax rate at 5 percent, up from 3 percent now. Corporate taxes would climb, too.
Quinn’s office says the tax increase would generate about $6.8 billion annually, helping close a budget hole that could hit $15 billion this year.
In sheer percentage terms, the increase could be the biggest on the long list of those passed as states grapple with nationwide economic woes.
The Illinois Senate approved the measure 30-29 early Wednesday. The House had approved it late Tuesday.
By DEANNA BELLANDI The Associated Press updated 1/12/2011 4:40:55 AM ET 2011-01-12T09:40:55
Source: MSNBC News