Legislation containing a massive tax hike was heard in the House Revenue Committee this week, but no vote was taken.
HB 293 (Amendment 1) would make permanent the 3.75% individual income tax but raise the corporate income tax to 6 percent. The bill would also eliminate several business tax credits such as the rolling stock exemption, the single sales factor and sales tax exemption for manufacturing equipment.
As well, the retailer’s discount would be capped at $1,500, it would end the partial sales tax exemption for gasohol and reduce the state estate tax, or death tax, exemption from $4 million to $2 million.
While this bill contains many of the favorite targets of the tax increase crowd, there was a lot of skepticism as to whether or not it would get a vote. Any discussion of a tax hike will most likely be part of the budget negotiations. Democrat leaders have said publically they would not pursue a tax hike without the support of Governor Rauner. Likewise, the governor has said no tax hikes without reform.