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Illinois Senate Leader: Tax Deal Reached
SPRINGFIELD, Ill. (AP) -- Illinois taxpayers would see income tax rates jump by 75 percent for the next four years under a Democratic proposal to address the state's crippling budget crisis.

The plan also would mean smokers would pay an extra dollar per pack.

Democratic leaders are presenting the proposal to rank-and-file legislators to gauge support for the politically risky tax hike.

Senate President John Cullerton said he, Gov. Pat Quinn and House Speaker Michael Madigan support the proposal as part of the solution to a deficit that could hit $15 billion this year.

Illinois personal income tax rate would climb from 3 percent to 5.25 percent for four years under the plan Cullerton outlined. That means someone who owes $1,000 would owe $1,750

After four years, the rate would drop to 3.75 percent.

(Copyright 2011 by The Associated Press. All Rights Reserved.)
01 07 11 by Newsroom
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