Landmark Vote in House for 32% Raise in Taxes

The Illinois House is in session continuing budget negotiations

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But the Republican governor immediately issued a statement saying he would veto the tax increase.

A stalemate between the state's Republican governor and Democrats who control the legislature has left the nation's fifth-largest state without a complete budget for two-straight fiscal years. Rauner derided the proposals as lacking spending restraint or "structural" changes to he wants.

John Tillman, the CEO of Illinois Policy Institute says, "We're going to be right back in the deficit situation within 18 to 24 months because they have not solved the core problem, which is spending continues to grow too fast because they refuse to reform workers comp pensions and healthcare benefits for government workers". "Instead, they allowed Mike Madigan to play his political games, passed phony budgets, racked up our debt and inflicted pain on the most vulnerable - all of this to force a permanent, 32 percent tax increase on IL families". The House was expected to vote on a revenue package around 2 P.M. Sunday, July 2nd.

The governor says he will veto the plan, but the 72 votes for the budget and the tax increase are enough to override the governor. Rauner, a wealthy businessman, has poured tens of millions of his fortune into the Republican party and the campaigns of GOP legislators.

"It's what my constituents asked me to do", Rep. Swanson said Sunday night of rejecting the tax increase.

Nevertheless, Democratic Rep. Greg Harris says IL is "peering into the darkness", and calls Friday's scheduled votes "a moment of truth".

"We need in this state...we need more jobs and we need more taxpayers", McSweeney said.

The basic outlines of the impasse are unchanged: Gov. Rauner has resisted a tax increase until he passes his economic and political agenda - which includes freezing property tax rates and changing how on-the-job injuries are compensated. Road construction projects have been suspended, social service agencies are trying to decide whether to shut down, and the state's credit rating could be lowered to "junk" status at any time.

In a bid to defuse a complex financial crisis that the state is facing, lawmakers have voted to raise income taxes by a rather dramatic 32%.

But Andersson says Democrats still have incentive to work with Rauner on his wish list.

Rep. Peter Breen (R-Lombard) called Senate Bill 9, which would gather $5.4 billion in revenue via a permanent income and corporate tax increase, a "blackmail budget" and accused Democrats of breaking off negotiations.

However, the Senate is scheduled to return to Springfield Monday. In his amendatory veto message, Rauner said he had eliminated the sunset clauses so "9-1-1 would continue in IL without the General Assembly having to pass legislation to renew the service".

The House turns its attention to other matters such as a Senate plan to borrow billions of dollars to pay down overdue bills.

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