 Senate Bill 2505,
Public
Act 96-1496 was signed into law by Gov. Pat Quinn on Jan.
13 and has remained in the headlines of Illinois newspapers. This
new law increased income tax rates by 67 percent and corporate rates
by 46 percent.
Under the new law, the personal income tax rate jumped from 3
percent to 5 percent. It also raised the corporate tax rate from 4.8
percent to 7 percent. With all taxes combined, Illinois employers
now pay 9.5 percent to the state.
While Bomke and the other sponsors of the repeal bill understand
the need to create revenue in Illinois, they see spending reductions
as a priority that should come before an increase.
"The tax is too high," according to Bomke. "Yes, we need revenue,
but first we need to get our fiscal house in order."
While supporters of the tax increase say the legislation included
built-in spending limits, Bomke believes that these limits do not go
far enough to cut spending. A $3 billion increase has been approved
for the next fiscal year, followed by nearly $1 billion a year the
following three fiscal years.
"We still have tough choices to make about scaling back state
services, implementing budget cuts and reforming government," Bomke
says. "Unless we rein in spending now, in five years we will be in
the same mess we are today."
[Text from file sent on behalf of
Sen.
Larry Bomke by Illinois
Senate Republican staff] |
