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The Latest: Illinois Senate votes approves income tax rise – Island Packet

The Latest on the Illinois Legislature’s action to address the nation’s longest state budget stalemate (all times local):

11:25 a.m.

The Illinois Senate has OK’d an annual spending plan of $36 billion following a critical vote to raise the income tax rate.

The Senate is controlled by Democrats. It voted 39-14 on the budget, approving the same measure that passed in the House on Sunday. If approved by Republican Gov. Bruce Rauner, it would be Illinois’ first budget in more than two years.

The Senate earlier voted to pass a measure that would increase income taxes by $5 billion to begin digging out of a multibillion-dollar deficit.

Rauner has pledged to veto the tax increase because he’s convinced Democrats won’t send him the “structural” changes he insists will boost business and provide property tax relief.

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10:45 a.m.

The Illinois Senate has approved an income tax increase to raise $5 billion a year aimed at ending the nation’s longest state budget crisis since at least the Great Depression.

The Democratic-controlled Senate voted 36-18 Tuesday to hike the personal income tax rate by 32 percent. It would increase the personal rate from 3.75 percent to just under 5 percent. Corporations would pay 7 percent instead of just over 5 percent.

Republican Gov. Bruce Rauner has promised to veto the measure because Democrats who control the General Assembly have yet to agree to resolve certain issues. They include statewide property tax relief, cost reductions in workers’ compensation and benefits for state-employee pensions, and an easier process for dissolving or eliminating local governments.

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12:15 a.m.

Another financial showdown is set for Tuesday between Illinois Gov. Bruce Rauner and Democrats who control the General Assembly.

The Senate has scheduled votes on a $5 billion increase in the income tax and a $36 billion spending plan approved overwhelmingly by the House on Sunday night.

Approval by the Senate would send the measures to the Republican governor. He’s already promised to veto them.

Rauner has withheld support for a budget deal for two years in Illinois until he gets “structural” changes to boost business and relieve property-taxpayers.

The Senate’s vote would be to concur with House changes to the legislation. But an OK would require a three-fifths majority vote of 36 senators.

A version of the budget that the Senate endorsed in May got 32 votes.

Source: world

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