UPDATE: Illinois Senate approves tax increase to end budget impasse
UPDATE: Gov. Rauner vetoes tax hike. The Senate immediately moves to override the Governor's veto. The House said just about an hour ago it will not move to override a veto.
The Illinois Senate has approved an income tax increase to raise $5 billion a year aimed at ending the nation's longest state budget crisis since at least the Great Depression.
The Democratic-controlled Senate voted 36-18 Tuesday to hike the personal income tax rate by 32 percent. It would increase the personal rate from 3.75 percent to just under 5 percent. Corporations would pay 7 percent instead of just over 5 percent.
Republican Gov. Bruce Rauner has promised to veto the measure because Democrats who control the General Assembly have yet to agree to resolve certain issues. They include statewide property tax relief, cost reductions in workers' compensation and benefits for state-employee pensions, and an easier process for dissolving or eliminating local governments.
– State Sen. Neil Anderson (Andalusia): “Today, I voted against a piece of legislation that would permanently increase the income tax for people in this state. It is irresponsible to pass legislation like this without first putting in place real reforms to the way our state operates. The people deserve better.
-State Sen. Daniel Biss: "This budget has support from Democrats and Republicans—it’s far from perfect, but it will open schools in the fall, fund vital social services, pay public sector employees, and put our state within the realm of financial solvency. "
-Speaker Michael J. Madigan: "I’m disappointed that Leader Durkin has chosen not to attend our leaders meeting for the second day in a row. Democrats are committed to working with Republicans to find common ground on the remaining non-budget issues that have long been prioritized by the other side of the aisle, but we can only do so if Republicans are willing to negotiate with us. It is my hope that Leader Durkin will return to the table to discuss the issues that he and Governor Rauner have insisted by considered alongside the state budget.”
