Is This CT’s Future? Illinois, Without a Budget, Passes $5 Billion Tax HikeJuly 5, 2017
Illinois has been operating without a budget for years. The state's Senate just passed a $5 billion tax hike. Is this a warning to Connecticut lawmakers?
Illinois’ Senate overrode a veto from Gov. Bruce Rauner (R-Ill.) to pass a $5 billion tax hike, so that the debt-ridden can afford a “$36 billion spending plan.”
Bloomberg breaks down the tax hikes – a 32-percent hike on individual income, and a 33-percent hike on corporate income – and why Rauner opposes them:
The tax bill that Rauner vetoed would raise individual income taxes to 4.95 percent from 3.75 percent, and corporate levies to 7 percent from 5.25 percent.
Rauner wants any spending plan to include some of the agenda that he says he was elected to enact: a property-tax freeze, legislative term limits and changes to the workers’ compensation insurance system to cut costs for businesses. Democrats, led by Madigan, have resisted, saying those changes would hurt the middle class. While those legislators say they’ve passed some of Rauner’s items, the governor says they haven’t gone far enough.
Sound familiar? Connecticut is still without a two-year budget, five days after the deadline, and it’s creating uncertainty as Connecticut’s towns and cities try to craft their own budgets. Without further state aid or major budget changes, Hartford may have to declare bankruptcy.
Now, with Illinois’ legislature on its way to overriding the governor to pass tax hikes, add tax increases as another potential consequence if Connecticut operates without a budget in the long term.
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