33% Proposed Tax Increase in Illinois

Governor Pat Quinn campaigned on the necessity of a 33% tax hike to help Illinois’ struggling financial situation.

But, what does this 33% tax hike mean to Illinois residents?

The Illinois Policy Institute, in conjunction with the Tax Foundation has ranked Illinois has the 14th highest taxed state in 2008.  As of July 2010, Illinois is ranked as the 8th highest, and Chicago is tied among the highest tax rates in the country.

Two different proposed bills on the table in Illinois.
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Governor Quinn’s plan over the next 3 to 5 years could create a loss of personal income of $1,353 with no private sector job loss; or no drop in personal income, and a loss of 107,684 private sector jobs.

David Vaught, Quinn’s Budget Director’s plan over the next 3 to 5 years could create a loss of personal income of $2,734 with no private sector job loss; or no drop in personal income and a loss 217,519 private sector jobs.

We were able to speak with John Tillman, CEO of Illinois Policy Institute.