Cairo Association of Teachers - Newsletter

CAT Tracks for March 14, 2009 IMPEACHMENT ANYONE?

Not really...

However, one would expect the popularity of new IL Governor Pat Quinn to take a hit after this news...at least among families making more than $60,000.

Quinn: Expect income tax increase

By Kurt Erickson, The Southern Springfield Bureau

SPRINGFIELD - Illinois families earning more than $60,000 will pay higher taxes under Gov. Pat Quinn's plan to fill the state's deepening budget hole.

Although Quinn won't release details of his proposed budget plan until Wednesday, aides Friday said a boost in the income tax - for individuals and businesses - would help generate cash to close a budget deficit of nearly $12 billion.

In a briefing with reporters, Quinn chief of staff Jerry Stermer said the tax overhaul would be designed to make sure families earning less than $60,000 annually wouldn't be affected by the change.

"Those who are doing better will be asked to share in the sacrifice," Stermer said.

Quinn, who took over in January for ousted former Gov. Rod Blagojevich, faces a historic budget gap at a time when the nation is undergoing deep financial turmoil. The state's deficit has ballooned in recent months as tax revenues have been reduced to a trickle.

Illinois Department of Revenue spokesman Mike Klemens said the state will see a $3.2 billion drop in revenue over the next year while costs such as Medicaid and state employee salaries are on the rise.

"We're not sure how deep this is," Klemens said.

"We have an unprecedented tsunami of red ink," Stermer said.

Some federal stimulus money will reduce the deficit, but it won't erase the gap.

For now, the state's personal income tax rate is 3 percent. A 50 percent increase would raise that to 4.5 percent. The effects of an increase could be softened by tripling the state's personal exemption to $6,000, Stermer said.

As part of his budget plan, Quinn also is mulling $850 million in cuts in the coming fiscal year. Stermer wouldn't elaborate on what programs might be slashed. Those cuts will come on top of an estimated $500 million that has already been cut from the current budget.

"We have had to do serious belt-tightening," Stermer said.

Along with a proposed hike in the income tax, Quinn is expected to also call for an increase in the corporate tax rate. He also may get behind some changes in the state's sales tax rate and could call for some fees to be raised as a way to help pay for a statewide construction program.

The governor does not endorse an increase in the gasoline tax, nor does he believe an expansion of gambling will pull the state out of its fiscal hole, Stermer said.

Here's at least one person who would like to see unimpeachment!

Also from the Southern Illinoisan...

Blagojevich on Quinn's tax plan: I told you so

The Associated Press

SPRINGFIELD -- Former Gov. Rod Blagojevich has a message for the people of Illinois: I told you so.

Blagojevich released a statement Friday attacking his replacement's plan to propose an income tax increase.

Blagojevich pointed out that before he was removed from office, he predicted Quinn would raise taxes. He says Quinn took just six weeks to support an increase that Blagojevich spent six years opposing.

Quinn confirmed Friday that he plans to seek a tax increase, but he hasn't offered details.

Illinois lawmakers kicked Blagojevich out of office in January for mismanagement and allegations that he tried to sell a U.S. Senate seat.

At the time, Blagojevich claimed his ouster was part of a plot to get him out of the way so officials could raise taxes.