Senate Bill 400 raises the personal exemption on income taxes from $2,000 to $2,050 and links it to the annual rate of inflation. It would also expand the earned-income tax credit, which allows more than 2.5 million lower-income families to keep more of their earnings.
“Illinois has been heading in the wrong direction for years now. Our state is on all the important economic indicator lists – it’s just that we are ranked at or near the bottom of those lists,” Senator Brady said. “I do not like everything in this package, but it is a compromise, and a good first step toward getting our state back on the top of those economic indicator lists.”
The 44th District Senator said Republican lawmakers negotiated the tax law changes in good faith, but many have expressed frustration because they previously warned their Democrat colleagues that the 67% income tax increase approved in January 2011 would have a disastrous effect on Illinois’ jobs climate.
“Time and again, I have said that we must fundamentally change the way we do business in Springfield. It is a message that bears repeating. We need true reforms, controlled spending and good fiscal management – not expedited political solutions,” Senator Brady said. “I will continue to push for a responsible approach, for long overdue reforms to a system that clearly does not work. We need to change our course, before it is too late.”
Approved by the House of Representatives December 12 and by the Senate December 13, Senate Bill 397 and Senate Bill 400 now move to desk of Governor Pat Quinn, who has indicated he will sign them into law.