During 2011, Pat Quinn and fellow Democrats increased the income tax by 67 percent. As elections draw near, many fear if the tax will be a permanent rise. For many these elections may prove to be detrimental, as a permanent tax rise may mean disastrous consequences for some.
If the tax hike is there to be a permanent itch, it can prove to be a very dangerous situation for Democrats. Many believe that such a situation can lead the Democrats to loose their ground in the Illinois and Rauner can use this as a proxy to damage the Democrats’ election campaign and ultimately defeat Quinn by a big margin. Not only this but many economists also think that such a tax hike permanently may even worsen the already bad jobs situation in the state.
Although along the jumble of accusations and protests, Quinn denied that a permanent rise is eminent, but the reality will only surface once he regains office or Rauner wins the election. The reason why the government decided to raise income taxes was to pay bills. The government was unable to pay its obligations and thus it became necessary for it to raise the income tax.
In conclusion, one can only say that this tax may have proved beneficial to the local government but it has not benefited the common person. The state is currently facing many issues including low job growth, slow economic growth and damaged pension system. A permanent income tax rise would be a very unwelcome thing. The government could delay the tax rise until the economy starts trending upward and the current job situation improves.
More state tax articles can be found at our website 2020statetaxnews.com
