The proposed state tax deal would temporarily
raise the personal income tax rate for the next four years from 3 percent to 5.25 percent.
It would also
increase the corporate income tax rate from 4.8 percent to 8.4 percent
boost the state’s cigarette tax by $1 to $1.98,
which would generate roughly $7.5 billion each year.
Supporters say the new revenue would be used to reduce the state’s debt and fund education and human services. It would also pay for the $12-billion loan Illinois would borrow through a deal to immediately pay off the state’s annual pension contribution and its growing backlog of bills.
Taxpayers would also get some of the money back annually in the form of a $325 property tax rebate check.
Illinios lawmakers are due back in Springfield Sunday, ahead of Monday’s inauguration of Gov. Pat Quinn.