Bomke stresses need for spending cuts following tax increase

[January 13, 2011]  SPRINGFIELD -- State Sen. Larry Bomke, R-Springfield, is stressing the need for fiscal restraint in response to the passage of the largest tax increase in Illinois history.

In the final hours of the 96th General Assembly, the Illinois legislature voted in favor of a tax increase that translates to a 67 percent higher personal income tax rate and 46 percent higher corporate rates.

If signed by Gov. Quinn, SB 2505 will raise the personal income tax rate from 3 percent to 5 percent. It will also raise the corporate tax rate from 4.8 percent to 7 percent. This is a 46 percent increase that when added to a 2.5 percent income tax on businesses will mean the state's employers will pay 9.5 percent in taxes.

While Bomke understands that the state has a deep hole to fill, he believes that spending cuts must come first and then a modest tax increase.

"Cuts are necessary to help rescue Illinois from this fiscal crisis," said Bomke. "The budget deficit and now this tax increase are the consequence of eight years of fiscal mismanagement by the state's Democrat leaders."

While proponents of the bill say there are built-in spending limits, Bomke believes these limits are still too high. A $3 billion increase has been approved for the next fiscal year, followed by nearly $1 billion a year the following three fiscal years. The bill includes no real fiscal reform, which leads opponents of the bill to say that in five years Illinois will be facing the same budget crisis it is today.

"We can't put this problem off for another day," said Bomke. "We still have difficult decisions to make. Unless we make tough choices about scaling back state services, reforming government and implementing budget cuts, we'll be right back at square one in a couple years."

[Text from news release from Sen. Larry Bomke]