Proposed Legislation To Repeal Tax Increase

On January 13th, 2011, State Representative Kent Gaffney (R-Lake Barrington) introduced House Bill 5828 that will repeal the tax increase.

“While other states have been cutting taxes and creating jobs, Democrats in Illinois decided to pass a massive tax increase on families and businesses,” said Gaffney.  “While our financial problems started long before this, the number one culprit keeping us from recovery is the irresponsible tax increase.  It must be repealed immediately.”

Democrat Governor Pat Quinn signed multiple tax increases with the lowest possible number of votes required for the bill to become law.  As a result, the state income tax rate increased by 66% and the corporate income tax rate rose from 7.3% to 9.5%.  Illinois now has the third highest corporate income tax in the nation and companies are already emigrating from the State. 

HB 5828 aims to:

• Roll back the personal income tax rate to 3% from 5%
• Roll back the corporate income tax rate to 4.8% from 7%
• Removes the provision that limits the net loss carryover deduction to $100,000 for any taxable year ending on or after December 31, 2012 and prior to December 31, 2014
• Repeals Illinois’ estate tax

“With Illinois hemorrhaging jobs, there is some momentum to repeal the corporate tax increase,” said Gaffney.  “We must not stop there. While families are hurting and their incomes are dwindling, government cannot take more money from everyday citizens if we want to get our economy back on the right track.”