Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-House committee OKs raising Ill. income tax
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Associated Press - May 31, 2009 2:34 PM ET
SPRINGFIELD, Ill. (AP) - A $5 billion tax increase is one step away from passing in the Illinois House.
Supporters say the increase is necessary to avoid cutting many government services by up to 50%. Even with the higher taxes, spending will have to be cut sharply.
A House committee approved the tax increase 11-6 on Sunday. That sends it to the floor for a vote by the full House.
A win there would put it on the governor's desk. Gov. Pat Quinn says this isn't the tax plan he would have written but it's better than the alternative of severe service cuts.
The legislation would raise the personal income tax rate to 5%, up from 3% now. It also would apply the sales tax to some services.
The bill is HB174.
On the Net: http://www.ilga.gov
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