Duffy Blasts Democrats on First Anniversay of 67% Income Tax Hike

A press release from State Senator Dan Duffy:

Tax Hike Marks 1 Year Anniversary

SPRINGFIELD- This Friday, January 13 marks the one year anniversary of the 67 percent tax increase passed by Illinois Democrats in the final hours of the 96th General Assembly. According to State Senator Dan Duffy (R-Lake Barrington) the increase has placed an unfair burden on Illinois citizens and exacerbated existing financial problems.

“Last January I called this tax hike the nuclear bomb of jobs bills, and the numbers have proven me correct,” says Duffy.

”Illinois’ unemployment rate is once again in double-digits. In November alone it was 16 percent above the national average.”

Dan Duffy

On average the tax hike meant the loss of a week’s pay for Illinois residents, or about $1,000 dollars per family.

“This is money that working families don’t have to spend on groceries, gas, and life’s other necessities,” says Duffy.

“Not only has the increase taken cash out of the pockets of Illinois residents, it has also put their jobs in jeopardy and their financial security at risk.”

When the increase passed, proponents of the legislation said that it would not affect jobs.

However in the year since the tax increase took place, Governor Quinn has spent significant time rushing around the state offering special tax deals to large companies to keep them from taking jobs out of Illinois.

Many small businesses, which provide 80% of the jobs in Illinois, have quietly fled the state with no attention from the Governor.

At the time, the increase was sold as a “temporary measure” to help put Illinois back on track by paying off old bills and getting the state’s fiscal problems under control.

Yet as taxes increased, so did the Democrats reckless state spending, making it virtually impossible that the tax hike will expire as planned.

Poor financial management has resulted in Illinois’ credit rating being lowered to the worst in the nation by one major credit rating agency.

Other agencies have issued stern warnings that should Illinois fail to address its fiscal problems, future downgrades could be in the state’s future.

Last week Governor Quinn released budget projections which revealed that the budget passed last year was at least $500 million out of balance despite the tax hike.

It should be noted that $500 million doesn’t include the $2 billion in state obligations that have been pushed off into the next year.

Projections also showed that by the year the tax hike is set to expire the expected budget will exceed revenues by $800 million.

In the spring, Duffy and others released the “Reality Check” plan which contained a menu of more than $6.5 billion in specific spending cuts and revenue generators to bring the budget into alignment with available revenues.

The plan included common-sense, meaningful reforms to the states five public employee pension programs.

“We must repeal the 67% tax increase and bring jobs back to Illinois. We can’t keep increasing taxes to spend more money, while at the same time keep pushing off bills onto the next generation,” says Duffy.

“If we’re going to get Illinois back on track, then we must reform pensions. We have run out of all other options.”


Comments

Duffy Blasts Democrats on First Anniversay of 67% Income Tax Hike — 2 Comments

  1. Ahhh the spin begins…I love how the percent is creeping up.

    Last time I looked 3.5 to 5.5 is just under 64% increase.

    But the reality…the average worker in IL saw no change in net deductions in their paycheck last year and at least for the two month of this year.

    While state tax went up from 3.5 to 5.5, FICA decreased from 6.2 to 4.2….. A WASH!

    Spin is all it is!

  2. The rate went from 3% to 5% for individuals.

    That’s a 67% increase, according to my old math.

    LC Truth is correct about the wash between the income tax hike in Illinois and the cut in Social Security tax by Congress.

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