Illinois’ Comptroller says a major tax hike would be needed to cover the state’s growing debt.
Leslie Munger says the income tax rate in Illinois would need to double from its current rate to combat the debt. She says Illinois is on pace to spend an additional 6.2-billion dollars more than it brings in.
Last year the income tax rate dropped in Illinois – from 5-percent to 3.75-percent. Munger says the tax rate would need to be in the range of 7 to 8 percent:
“That’s what the math would require to get that covered, but I don’t believe that there is a legislator who would vote for that high of an increase, nor does that account for the fact that we would most certainly lose businesses and reduce our tax base again.”
Munger emphasizes that would also not be her recommendation. She suggests a long-term plan is needed with a combination of reforms, cost-cutting, and new revenue.
