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In fact, for working households, it already does, as they may feel pain for decades, including higher (private and public) unemployment or underemployment because of disastrous federal and state policies.
Illinois State Legislature Acts
On January 12, Chicago Tribune writers Ray Long and Monique Garcia headlined, "(Gov.) Quinn congratulated Democrats on income tax increase," saying:
With no Republican support, House and Senate Democrats (on the last legislative day before newly elected lawmakers take over) passed a major income tax increase, "rais(ing) the personal (rate) by 67 percent and the business (rate) by 46 percent."
As a result, the personal tax rate will rise from 3% to 5%, then drop to 3.75% in 2015 and 3.25% in 2025 unless budget crisis remains dire enough to require further tax increases, not cuts, a distinct possibility.
Corporate rates will rise from 4.8% to 7% until 2015, then drop to 5.25% in 2015 and 4.8% in 2025, depending on budget priorities and whether Republicans or Democrats are in charge.
Tax changes were effective retroactively to January 1 and will raise an estimated $6.5 billion in 12 months, way short of what's needed, and estimates have a way of not being met. In addition, the new law plans:
"to limit spending in each of the next four budget years - $36.8 billion in FY 2012, $37.5 billion in FY 2013, $38.3 billion in 2014 and $39 billion in 2015. The state's auditor general would determine if lawmakers and the governor exceed those spending limits. (If so), the higher income tax rates would revert to current levels."
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