Senate Democrats have pushed through a tax hike plan that Sen. James Meeks (D-Chicago) has been touting for years. It would raise the income tax rate from 3 percent to 5 percent and expand the sales tax to services such as cable television, dry cleaning and video rentals. It would also double a tax credit for people who pay property taxes and triple a tax credit for low-income taxpayers.
It's doubtful that the House will approve this tax hike, but it could get the ball rolling on Gov. Pat Quinn's tax plan or prompt something in between. Quinn has been seeking a 50 percent income tax hike (from 3 percent to 4.5) and has agreed to a two-year tax hike. But so far, there hasn't been enough support among House Democrats and Republicans have refused to help pass a tax hike.
Speaker Mike Madigan has been weighing a budget that wouldn't cover the entire fiscal year, which would allow lawmakers to go home for the summer without voting for a tax hike. They'd then have a chance to find out if they will face any serious challengers in next year's election before having to face another vote on a tax hike.
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