Realization of 2015 income tax decrease uncertain

Published 11/14 2013 10:43AM

Updated 11/14 2013 10:47AM

SPRINGFIELD -- Your income taxes are set to go down in 2015, but the problem is, state finances haven't improved since the tax went up. So, will the tax hike become permanent?

Governor Quinn isn't saying much about it. In fact, when he was in Springfield Wednesday, he didn't directly answer the question of whether he's for keeping the income tax rate at 5% or not.

The General Assembly approved the tax hike in 2011. It increased the rate from 3 - 5%, but that increase is supposed to start decreasing in 2015.

In fact, on January 1, 2015, it's supposed to be back to 3.75% of your income. But, that will mean a $5 billion loss for a state which is still hurting.

Quinn says he doesn't want to talk about taxes. He wants to solve pensions first. He says the state loses $5 million each day it doesn't solve the pension issue and each year, pension payments take up more of the state budget.

Another potential solution to the problem is a progressive income tax. It would mean higher earners paying more in taxes than people who make less. Lawmakers could discuss it during their spring session which starts in January.

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