Illinois Tax Increase

Illinois Tax Increase - Democratic Illinois lawmakers beat a looming deadline and approved a 66 percent income-tax increase in a desperate bid to end the state's crippling budget crisis. Illinois Democrats' decision to hike taxes rather than make cuts in state spending has received criticism from an unlikely source--Chicago Mayor Richard Daley. Here's what he's saying about the tax increase. The increase will now Democratic Governor Pat Quinn, who supports the plan to temporarily raise the rate of income tax to 5 percent, an increase of two thirds of the current rate of 3 percent. Corporate taxes would also rise as part of the effort to close a budget hole that could reach 15 billion this year.