 In an interview on Wednesday, the governor's budget director, David
Vaught, said lawmakers intend to increase the individual tax rate by
66 percent come Jan. 1."We're going to pass a tax increase in
January," he told Bloomberg News. "We expect it is going to be
substantial."
A proposed increase could bring in $6 billion, according to
Vaught's calculations, which would help backfill the state's
monumental $13 billion budget deficit. But Vaught's announcement
could have a much more immediate impact on Quinn's campaign
prospects.
The state is still reeling from a struggling economy, despite
moderate job rate increases in the last few months, and lawmakers
are apprehensive to show support for raising taxes during an
election year, which made Vaught's statement all the more
surprising.
Quinn is now trying to distance himself from the budget
director's proposal, while affirming his own plan.
"I don't think (Vaught) should philosophize about taxes. I will
tell him that. I don't think he should talk about any other plan
than my plan," he said Thursday. "My plan is very straightforward.
It's a 1 percent surcharge on the income tax, and that will be used
exclusively for education."
As of now, the state's individual income tax rate stands at 3
percent. Under Vaught's scenario, both the individual and corporate
income tax rates would be raised to 5 percent.
Quinn has championed a proposal to raise the individual income
tax rate to 4 percent -- what he has dubbed the "1 percent education
surcharge" -- to bring in more than $1 billion for education, but
lawmakers have not shown support for the proposal.
The timing of Vaught's tax-hike scenario will not be lost on
voters -- it is nearly two months after the November election --
which makes the story even more troubling for Quinn.
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Quinn's opponent for the November general election, state Sen.
Bill Brady, R-Bloomington, criticized Quinn for considering tax hike
proposals while boosting the salaries of some of his top officials.
"It seems that Gov. Quinn's policies are to raise the taxes on
the backs of Illinois families and businesses to pay for his bigger,
bloated government," he said. "I'm here today to assure the people
of Illinois and the businesses of this state that as governor, I
will not raise taxes on families and businesses."
Brady took time to criticize Vaught, who received a $24,000 boost
to take his annual salary to $144,000 per year.
Quinn said Brady's statements concerning no tax increases were
misleading, and that homeowners would feel the strain if Brady
became governor.
"We cannot have politicians from Bloomington running around
Illinois telling people before an election (that) nothing is going
to happen as far as tax reform when it comes to supporting
education, but then after the election presiding over the biggest
property tax increase in Illinois history," he said.
Both candidates' approach to taxes will be scrutinized as the
state's Nov. 2 general election nears.
[Illinois
Statehouse News; By BILL McMORRIS]
Kevin Lee contributed to this report.
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