At What Cost?
The state's personal income tax rate, which goes into effect retroactive to July 1, will increase from 3.75 percent to 4.95 percent, and the corporate income tax rate would increase from 5.25 percent to 7 percent.
How will these increases affect Illinoisans? According to the Daily Herald:
- A single person who earns $34,000 a year would pay an additional $382 a year.
- A family of three making $75,000 a year would pay an additional $822 a year.
- A family of four earning $150,000 a year would pay an additional $1,695 a year.
A 66-year-old retiree who has $5,000 in taxable earnings plus Social Security and pension income, which are not taxed in Illinois, would pay an additional $22 a year.