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University of Illinois Says Tax Increase Not Enough
(IRN)-Now that you are getting used to the idea of paying more in state income tax in Illinois, it's already in effect, by the way, consider this: a new report from the University of Illinois says it's not enough of a solution.

As part of the Fiscal Futures Project from the university's Institute of Government and Public Affairs, the report says the increases, two percentage points for individuals and 2.2 percentage points for corporations, will not fully solve the deficit problems.

"We estimate that the structural deficit, the difference between what we spend and what we raise in continuing revenues, is $11 billion in fiscal year 2011, and this tax increase raises only less than $4 billion in 2011," says IGPA associate director David Merriman. "In the following year it raises more than that, over $7 billion, but it's still not enough to close the deficit."

Merriman says the state's modus operandi appears to be to slap something together at the last minute, as opposed to having a comprehensive plan. Merriman says some ideas which have not gotten a thorough hearing here, but which are in use in other states, include taxing retirement income and broadening the sales tax base.

(Source: Illinois Radio Network)
01 19 11 by Newsroom
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