Every New Year it is expected that items are marked up via it being clothing, food and some feel breathing has a heavy price. Taxes are among the increases that every person dreads. This is especially true for those living in the state of Illinois.
As of January of 2011, a bill was passed by the Illinois House of Senate that would increases taxes in the state by 66 percent! The legislation would raise approximately $6.8 billion a year for state’s debt by raising individual income taxes. These rates will be raised to five percent from three percent as of last year. On the other hand, corporate taxes will increase to seven percent from 4.8 percent.
This four year state increase would be in conjunction with the state spending limits all the way through 2015. For the fiscal year of 2012, which begins on July 1, the minimum would be around $37 billion. According to Republican lawmakers, this would be a ten percent hike for the fiscal year of 2011 spending allowance.
What this means for personal taxes payers and corporations are more funds are required to be paid on property taxes as well as small business revenue. Many in the state are concern because they are worried that Illinois will be in worst shape then it currently is. Raised taxes will almost be impossible to pay and will eventually lead to more foreclosures and small businesses to go under. Illinois, which faces a gap in the budget as it is, being in debt of $15 billion is one of many states that are on the list of devastating budget crises. The sate is considered one of the weakest due to mismanaging of funding in Illinois.
During this year, already in progress, many will be holding their breath to see what will become of the new increases. Concerned citizens are taken action by writing letters to the legislation voicing their opinions.