Local News for Will County, Joliet, New Lenox, Manhattan, Wilmington, Peotone, Beecher, Elwood, and Frankfort Illinois.
Wednesday, January 12, 2011
Did your State Representative and/or State Senator vote for the Tax Increase?
Did your State Senator and State Representative vote for the State's Tax Increase?
Here is a portion of the new tax bill, from the Illinois General Assembly's website:
"Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Increases the rate of tax for individuals, trusts, and estates to (i) 5% for taxable years beginning on or after January 1, 2011 and prior to January 1, 2015, (ii) 3.75% for taxable years beginning on or after January 1, 2015 and prior to January 1, 2025, (iii) 3.25% for taxable years beginning on or after January 1, 2025 (now, the rate is 3%). Increases the rate of tax for corporations to (i) 7% for taxable years beginning on or after January 1, 2011 and prior to January 1, 2015, (ii) 5.25% for taxable years beginning on or after January 1, 2015 and prior to January 1, 2025, (iii) 4.8% for taxable years beginning on or after January 1, 2025 (now, the rate is 4.8%). Contains provisions concerning estimated taxes. Provides for deposits from the additional income tax proceeds into certain special funds related to education and human services. Provides that, if State spending for any fiscal year beginning in fiscal year 2012 and through fiscal year 2015 exceeds certain State spending limitations, then the tax rates shall be reduced to 3% of the taxpayer's net income for individuals, trusts, and estates and to 4.8% of the taxpayer's net income for corporations. Provides that the Auditor General shall examine any Public Act making an appropriation or statutory transfer from general funds and prepare a report on whether or not the State has exceeded the State spending limitation, which shall be filed with the Secretary of State and copies shall be filed with the Governor, the State Treasurer, the State Comptroller, the Senate, and the House of Representatives. Contains provisions concerning emergency spending. Makes related changes in the Illinois State Auditing Act. Amends the Secretary of State Act to require the Secretary of State notify the Auditor General of any Public Act filed with the Office of the Secretary of State making an appropriation or transfer of funds from the State treasury. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying after December 31, 2010, "State tax credit" is defined as the amount calculable under the Internal Revenue Code as that credit would have been computed and allowed on December 31, 2001, with an exclusion amount of $2,000,000, and with a reduction to the adjusted taxable estate for any qualified terminable interest property election. Amends the State Finance Act to allow the Governor to reduce certain funds appropriated for statutory mandates to accommodate budgetary limitations. Effective immediately."
To read the entire act, and find out how your Senator and Representative voted, go here.