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New Taxes Possible in January
(IRN)-What will it mean to you if the state income tax goes up?

The governor is proposing a 1 percentage point increase, and lawmakers might take up the issue the first week of January, having given it the cold shoulder so far.

For most families, it would mean several hundred dollars more in tax, not a huge amount, but John Tillman of the anti-tax Illinois Policy Institute says that takes money away from somewhere else.

"The average Midwest household gives $1,700 a year to charity," he says. "Should they cut that money going to charity? Should they cut the tutoring that their son might need in math or reading or language arts? Should they cut the family vacation and hurt those job creators, or go out less?"

A 1 percentage point increase is figured this way, for most families: Take your annual income, subtract about $10,000 for deductions and personal exemptions, and divide what's left by 100. The answer is the increase, so a person who makes $40,000 a year would see an increase of about $300.

Tillman says there should be no satisfaction in making a small sacrifice to save the state: A 1 percentage point income tax increase won't come close to solving the state's budget problems, Tillman says.

Tillman also estimates that a tax increase would damage the Illinois economy and slow economic growth to the tune of $1,353 per household in the coming years.

(Source: Illinois Radio Network)
12 16 10 by Newsroom
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