It’s been a year since a lame-duck Legislature raised income taxes and Illinois’ fiscal outlook remains bleak, despite the fact that working families are now paying about $1,000 more in taxes that could be better spent on groceries, gas and other necessities, according to Senator Bill Brady.

No Republican lawmakers voted for the “temporary” tax increase passed in the early morning hours January 12, 2011.

Senate Bill 2505 hiked the state’s personal income tax rate from 3 percent to 5 percent – an increase of 67 percent. It also increased the state’s corporate income tax rate from 4.8 percent to 7 percent – an increase of 46 percent. Governor Pat Quinn signed the bill into law the next day.

“For years now, we have been telling our Democrat colleagues that a tax-and-spend approach to government would have a disastrous effect on Illinois’ jobs climate, especially in a time of economic recession. No one listened and now the state is at a critical juncture,” Senator Brady said. “Despite a record income tax increase – or perhaps, because of that record income tax increase – our fiscal outlook is bleak at best.”

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