Income Taxes Go Up 67% in Illinois

Budget trouble in Illinois will hit residents' wallets: Lawmakers approved a 67% increase in the personal income tax rate (from 3% to 5%) along with a 46% hike for businesses (from 4.8% to 7%), reports the Tribune. The Legislature did so in the wee hours as its final act before new lawmakers were to take over. Not a single Republican supported the move.

"So here we are in the very end of this lame-duck session on a late night putting more burden on the hardworking people of this state," said one GOP opponent. "Here's an investment tip, put a lot of money into moving vans." Democrats said they had no choice given the $15 billion deficit. Considering that rates in neighboring Iowa and Wisconsin were even higher, they said fears of a mass exodus by businesses were overstated, notes AP.
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