Illinois comptroller: Fiscal cliff will cost state
CHICAGO (AP) -- Illinois Comptroller Judy Baar Topinka estimates a $1 billion impact on the state budget if automatic federal spending cuts and tax increases take effect.
Topinka sent out a release Friday detailing the impact on the Illinois budget if Congress and President Barack Obama don't prevent the federal government from going over the fiscal cliff. Topinka says the fallout from the fiscal cliff could push Illinois into recession. Topinka estimates Social Security and income tax increases would lower Illinois tax revenues by up to $500 million.
Topinka says if a deal isn't reached to prevent the increases "the consequences will be devastating." She says a planned 2 percent increase in Social Security payroll taxes could cost Illinoisans up to $6 billion in take-home pay.