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Illinois may implement 75% state tax increase to fix budget



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It's not pretty, but neither is ignoring an even larger financial deficit as they are doing in Texas. The state of Illinois has been working on cutting costs plus raising taxes whereas Texas prefers to continue doing exactly what they've been doing as their state deficit has grown out of control.

Crippled by a massive deficit, Illinois has seen its bills pile up and its bond ratings fall. Now the state's Democratic leaders are making a desperate effort, and fighting the clock, to fill the budget hole with an equally massive tax increase.

They want to boost the personal income tax rate temporarily by up to 75 percent, pushing the current rate of 3 percent as high as 5.25 percent.

In sheer percentage terms, the Illinois proposal could be the biggest tax increase on the long list of increases states have passed as they grappled with recent economic woes.


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