Addressing the City Club of Chicago on Dec. 9, House Speaker Madigan said increasing Illinois’ income tax rates to those in place after the 2010 temporary income tax hike is “a good place to begin.” Senate Republicans, however, say Illinois should focus on reforming how the state does business, boosting Illinois’ economy, and protecting taxpayers.
In December 2010, Democrats lawmakers approved a 67% income tax hike that increased Illinois taxpayers’ individual income tax rates to five percent, and corporate tax rates to seven percent. In January 2015, the temporary tax rate was allowed to expire, reducing individual income tax rates to 3.75 percent and corporate rates to 5.25 percent. Madigan says we should increase income tax rates once again, but has resisted implementing much-needed structural reforms.
Throughout the budget impasse, Republican lawmakers have maintained that Illinois needs fundamental reforms to improve the state’s economic climate, create jobs, and grow the middle-class, saying any solution must treat the problem, not just the symptoms.