Swimming in debt, Illinois considers massive tax boost - KMOV.com

Swimming in debt, Illinois considers massive tax boost

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By KMOV Web Producer By KMOV Web Producer

SPRINGFIELD, Ill. (AP) -- A major Illinois tax increase has jumped its first legislative hurdle, setting the stage for a vote by the entire Illinois House.

The tax plan was approved 7-5 Tuesday by the House Revenue Committee.

It would temporarily bump the state's personal income tax rate to 5 percent, up from 3 percent now. That's a slightly smaller increase than Democratic leaders originally proposed.

Legislative leaders agreed to impose strict caps on spending. If spending grows more than 2 percent a year, the income tax increase would immediately be canceled, officials said.

The tax package could generate about $7 billion a year, enough to balance the annual budget and begin chipping away at a backlog of unpaid bills.

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The bill is SB2505.

Online: http://www.ilga.gov

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Online:

http://www.ilga.gov

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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