Sen. Pamela Althoff (R-McHenry) is said to be voting for a state budget plan known as the “grand bargain.”
The compromise, which was negotiated between Republicans and Democrats in the state, would bring to an end a standoff that’s held the Land of Lincoln in its crux for more than a year and a half. The budget plan, which was announced by Senate President John Cullerton (D-Chicago) and Senate Minority Leader Christine Radogno (R-Lemont), would result in significant tax increases for residents, according to the Illinois Policy Institute.
The proposed plan would result in a nearly 33 percent income tax increase for residents who would see individual income taxes rise to 4.95 percent and corporate taxes to 7 percent, the institute said. The state would hit wallets again with a specialty tax on sugary beverages of a penny per ounce. The tax on sodas and similar beverages alone would bring in an additional $200 million to 300 million per year said the Institute.
There is a freeze on property tax increases for two years, but that may do little to help residents who already suffer under one of the highest tax burdens in the nation. Additional measures in the budget include raising the state minimum wage to $11 per hour and the creation of a Chicago Casino Development Authority.
Illinois, which already has almost $11 billion dollars in unpaid bills, would also be borrowing $7 billion if the measure passes in the legislature. Finally, there would be two payments to the Chicago Teachers Pension fund totaling $430 million spread over two years.
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