Home / World / Illinois Senate approves major income tax hike despite Rauner veto threat – Chicago Tribune

Illinois Senate approves major income tax hike despite Rauner veto threat – Chicago Tribune

The Illinois Senate approved a major tax increase on Independence Day that’s a key step toward ending a record budget impasse, even as Republican Gov. Bruce Rauner has threatened to veto it.

The 36-18 vote came after a very short debate Tuesday, and two days after more than a dozen Republicans in the House broke ranks with Rauner to join Democrats to support the plan amid growing frustration.

“We don’t have any time left,” said Sen. Toi Hutchinson, D-Olympia Fields. She laid out what is at stake without a resolution, including the state’s credit rating being downgraded to junk status, road workers being laid off, and the dismantling of higher education and social safety net.

While the measure has cleared both legislative chambers, a number of hurdles remain. Rauner is expected to quickly veto the plan once it is sent to him, and legislators in the Senate and House would have to take another vote to override him if the plan is to become law.

Even then, S&P Global Ratings warned that long-term damage has already been done.

“Even with a budget, however, it’s likely that Illinois’ finances would remain strained and vulnerable to unanticipated economic stress,” the agency said. “In addition to having accumulated record amounts of payables, the state’s university system has been deprived of state funding since January 2017. If a budget is enacted, the degree to which it closes the state’s structural deficit, provides a pathway for addressing the backlog of unpaid bills, and its impact on cash flows, will be important factors in our review of its effect on Illinois’ credit quality.”

mcgarcia@chicagotribune.com

kgeiger@chicagotribune.com

Source: world

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