Illinois lawmakers approve 66 percent income tax increase

[BillBoard]

http://news.yahoo.com/s/ap/us_illinois_taxes

SPRINGFIELD, Ill. – Democratic Illinois lawmakers beat a looming deadline and approved a 66 percent income-[COLOR=#366388 ! important][COLOR=#366388 ! important]tax [COLOR=#366388 ! important]increase[/COLOR][/COLOR][/COLOR] in a desperate bid to end the state's crippling budget crisis.
Legislative leaders rushed early Wednesday to pass the politically risky plan before a new General Assembly was sworn in at noon, taking a slice out of the Democratic majority and removing lame-duck lawmakers willing to support the tax before leaving office.
The increase now goes to Democratic Gov. Pat Quinn, who supports the plan to temporarily raise the personal tax rate to 5 percent, a two-thirds increase from the current 3 percent rate. Corporate taxes also would climb as part of the effort to close a budget hole that could hit $15 billion this year.

Pitchforks anyone?

I just hear crickets.

[charliebrown]

Re: Illinois lawmakers approve 66 percent income tax increase

I don't know what to to do.
I live in illinois and this is shameful. Passing a 66% increase in taxes hours before the new assembly is sworn in.
I wrote my rep and told him vote yes or there will an interesting yard sign in my front yard next election cycle.
he already was against the tax hike. I tried to influence my friends to write and call their reps too.

Well money is going to go into hiding from uncle "Pat". My family is here, and my job is here. Indiana is 40 miles away and is a much more tax friendly state. If my personal situation changes I will definitely consider leaving the state. Caterpiller one of
the largest employers is already moving manufacturing jobs out of the state some to Indiana, others to Asia. I'm sure this is
just the big boot to the back side to make the move quicker. The last I heard corporate tax rates are going to rise substantially too.

Does anyone here know a multi-state, multi-national company is responsible for paying state income taxes? How easy is it for
a company to dodge state taxes?

Now excuse me while I find a $1500 to cut from my family's budget this year and next. I do remember the last "temporary" income tax hike from 2 to 2 1/2 to 3% all "temporary"

[lektrode]

Re: Illinois lawmakers approve 66 percent income tax increase

I don't know what to to do.
I live in illinois and this is shameful. Passing a 66% increase in taxes hours before the new assembly is sworn in....
...
Does anyone here know a multi-state, multi-national company is responsible for paying state income taxes? How easy is it for
a company to dodge state taxes?

Now excuse me while I find a $1500 to cut from my family's budget this year and next. I do remember the last "temporary" income tax hike from 2 to 2 1/2 to 3% all "temporary"

right - i expect they'll pull the same s__t out here too - after they consume most of the session on 'social issues' (gay marriage), restore all the cuts to the buracracy the prev admin put thru - then, when its too late to talk about anything else?
"ooops, the projections for increased tourism arent holding up, so we're gonna hafta hold the rest of yaz up" and BOOM goes tax hikes! (in spite of the campaign 'promises' not to!)

[Serge_Tomiko]

Re: Illinois lawmakers approve 66 percent income tax increase

I don't know what to to do.
I live in illinois and this is shameful. Passing a 66% increase in taxes hours before the new assembly is sworn in.
I wrote my rep and told him vote yes or there will an interesting yard sign in my front yard next election cycle.
he already was against the tax hike. I tried to influence my friends to write and call their reps too.

Well money is going to go into hiding from uncle "Pat". My family is here, and my job is here. Indiana is 40 miles away and is a much more tax friendly state. If my personal situation changes I will definitely consider leaving the state. Caterpiller one of
the largest employers is already moving manufacturing jobs out of the state some to Indiana, others to Asia. I'm sure this is
just the big boot to the back side to make the move quicker. The last I heard corporate tax rates are going to rise substantially too.

Does anyone here know a multi-state, multi-national company is responsible for paying state income taxes? How easy is it for
a company to dodge state taxes?

Now excuse me while I find a $1500 to cut from my family's budget this year and next. I do remember the last "temporary" income tax hike from 2 to 2 1/2 to 3% all "temporary"

Here in New York State, there are almost no deductions, so you pretty much have to pay. At least the NYC income tax isn't so bad because the property taxes for residential property is pretty low (A typical house, even if it is $2MM, is just a few grand a year). What I mostly hate about it is it's actually more of a flat tax. I pay the same rate as some hedge fund turkey making a million dollars a year, even though I barely make enough to live in a 110-year old rent stabilized apartment and have some cash left over to enjoy life.

[BiscayneSunrise]

Re: Illinois lawmakers approve 66 percent income tax increase

Here in Florida, we have a state government completely dominated by very conservative Republicans; i.e, governor, CFO, Attorney General, Agriculture Commissioner and the Legislature. They promise significant changes so we will see if the FL state government will be a laboratory to prove conservative ideas vs. blue dominated states like IL.

[zoog]

Re: Illinois lawmakers approve 66 percent income tax increase

As I said in a previous thread about this increase in Illinois: the average state income tax rate is 5%, from a range of 0% to 11% (note that most states have income brackets). You've gone from below average to average.

...Indiana is 40 miles away and is a much more tax friendly state...

Prior to this change, Indiana's state income tax rate was 0.4% higher than Illinois. Now all of a sudden it is "much more tax friendly"? Why not move to Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, where there's no state income tax?

The last I heard corporate tax rates are going to rise substantially too.

The corporate income tax rate is increasing from 4.8% to 7%.

[stetts]

Re: Illinois lawmakers approve 66 percent income tax increase

Dear Charliebrown,
Well, c'mon down! Cat is building a large facility in Seguin, a wonderful town of 25,000 or so just east of San Antonio. Come join the thousand or other souls that are making the decision to become TX residents every day. No income tax but figure 8.25% (state's cut is 5.25) sales tax on most items. Weather's pretty bad--almost got below freezing last night.....
Take care and may you have a wonderful 2011. Stetts

[Serge_Tomiko]

Re: Illinois lawmakers approve 66 percent income tax increase

Here in Florida, we have a state government completely dominated by very conservative Republicans; i.e, governor, CFO, Attorney General, Agriculture Commissioner and the Legislature. They promise significant changes so we will see if the FL state government will be a laboratory to prove conservative ideas vs. blue dominated states like IL.

My company has a fairly large office in Tampa to which I could easily transfer. I have dreamed of moving there for some time. I could live like bona fide king in them parts, especially as I am quite content living in a cheap apartment.

Not only would my cost living be cut in half, I'd have more take home pay due to no income tax. And the chicks are way hotter, a bit sluttier, and a lot more young ones not yet jaded by years of playing the Sex in the City hustle.

Paradise!

[charliebrown]

Re: Illinois lawmakers approve 66 percent income tax increase

We pay around 2.25 - 2.5% of assessed valuation for property tax , and 7.25% sales tax. How does Portland/Oregon compare to that? I am now roughly paying 14% of my gross to state taxes. I would really like to put an addition on my house (sun room), but if that addition costs 50K, I'm looking at $1200 a year, each and every year. I will not do it.

This does not include other taxes such as fuel tax, utility taxes, toll roads, license and registration for cars.
Probably good for another 1%. We won't even go into state corporate taxes which I have no idea how much
gets passed onto the consumer.

[ASH]

Re: Illinois lawmakers approve 66 percent income tax increase

We pay around 2.25 - 2.5% of assessed valuation for property tax , and 7.25% sales tax. How does Portland/Oregon compare to that? I am now roughly paying 14% of my gross to state taxes. I would really like to put an addition on my house (sun room), but if that addition costs 50K, I'm looking at $1200 a year, each and every year. I will not do it.

This does not include other taxes such as fuel tax, utility taxes, toll roads, license and registration for cars.
Probably good for another 1%. We won't even go into state corporate taxes which I have no idea how much
gets passed onto the consumer.

In Oregon, state income tax is basically a flat 9% (there are brackets, but the 9% bracket starts at $7,650 annual income). Last year we added an extra 10.8% bracket starting at $125k and another 11% bracket starting at $250k. There is no sales tax in Oregon, and property taxes vary, but in my (future) neighborhood, it looks like 1.2% of assessed value (based upon figures posted for a neighboring property). Since property taxes aren't a percentage of income, it's hard to add these figures up directly. However, very roughly, if a home is valued at 3.5x gross income, then 1.2% of assessed value would be like 4.2% of gross income.

It seems to me that you are paying higher aggregate taxes in Illinois, depending upon what fraction of your income you spend, etc. etc. Anyway, the suddenness of the change in tax rate can hardly be called convenient.

[BigBagel]

Re: Illinois lawmakers approve 66 percent income tax increase

stetts, don't you guys have a 25 billion dollar deficit for the 2012-2013 state budget?

[charliebrown]

Re: Illinois lawmakers approve 66 percent income tax increase

Hmm sounds like a no brainer.

Florida does have some problems.
Hurricane's stink. I have a friend who works on the Atlantic Coast about once every two years he has to evacuate his home.
Then when he comes back no utilities sometimes for days.

There are many poor schools. If you have kids, it will be hard to find a really good one.
Perhaps you can do private school with all the money you're saving.

[BigBagel]

Re: Illinois lawmakers approve 66 percent income tax increase

My company has a fairly large office in Tampa to which I could easily transfer. I have dreamed of moving there for some time. I could live like bona fide king in them parts, especially as I am quite content living in a cheap apartment.

Not only would my cost living be cut in half, I'd have more take home pay due to no income tax. And the chicks are way hotter, a bit sluttier, and a lot more young ones not yet jaded by years of playing the Sex in the City hustle.

Paradise!

I don't know about your some of your observations about the fairer sex but Tampa has it's down side. Try getting a real bagel or decent slice of pizza. Try eating in a restaurant that's not a chain. The crime rate in NYC is significantly lower. I've never seen a shortage if attractive women in Manhattan. Soho stands out. Of course,unlike Tampa, they're not showing much flesh at this time of year

[lektrode]

Re: Illinois lawmakers approve 66 percent income tax increase

My company has a fairly large office in Tampa to which I could easily transfer. I have dreamed of moving there for some time. I could live like bona fide king in them parts, especially as I am quite content living in a cheap apartment.

Not only would my cost living be cut in half, I'd have more take home pay due to no income tax. And the chicks are way hotter, a bit sluttier, and a lot more young ones not yet jaded by years of playing the Sex in the City hustle.

Paradise!

i dunno dude, you might think that one over fer awhile - sounds tempting, but have you ever really spent any time down that way? i have, spent a winter in lauderdale in 2001, found food/rent prices similar to HNL, gas a bit cheaper, but then ya gotta drive lots more miles to get anywhere (fla = HUGE, like CAL)

and the chix scene was kinda odd (for a 40something at the time): didnt see young women walking around much, was the "newly-wed, or nearly-dead" demographic mostly - maybe they 'only come out at night' but cant say eye saw too many - course i didnt spend a whole lot of time at the beach or in the bars, but/so yer mileage may vary

[lektrode]

Re: Illinois lawmakers approve 66 percent income tax increase

stetts, don't you guys have a 25 billion dollar deficit for the 2012-2013 state budget?

yeah huh?
ole krugman was krowin about that just the other day, as if it justifies his positions on dumping 3 trillion down the toilet to bailout manhattans finest!