Politics & Government

Nybo: State Revenue Did Not Meet Projections, Short $1.086 Billion

Tax increase will "most likely be permanent."

Editors note: This information was provided by the Office of the House Republican Leader. As the election approaches, Elmhurst Patch will publish press releases involving contested candidates in local races. We suggest, however, that any candidate in an Elmhurst-relevant race consider becoming a blogger on Elmhurst Patch. The link to get started on that process can be found here.

Observing the one year anniversary of Illinois’ largest tax increase, state Rep. Chris Nybo (R-Lombard) continues his call for fiscal responsibility recognizing our state’s $7 billion in unpaid bills, higher unemployment and the personal struggles of Illinois families and businesses. The Democratic-led 67 percent corporate and the individual tax increase (SB2505) was signed into law by Gov. Quinn on Jan. 13, 2011, in the final hours of the 96th General Assembly lame duck session. Not one Illinois House Republican voted for the measure.

“It was said to be a temporary measure aimed at reducing debt, getting our bills paid, and addressing increasing unemployment,” said Rep. Nybo. “One year later, we find ourselves in a worse position considering small businesses are still struggling, unemployment has increased and billions are mounting in unpaid state bills.”

According to Nybo, Illinois’ Commission on Government Forecasting and Accountability (CFGA) reported that SB 2505 revenues have not met the January 2011 expectations. Net new revenues during the first six months of FY12 (July 2011-December 2011) in the areas of individual income tax receipts, corporate income tax receipts, and estate tax receipts show that these three taxes brought in net new revenue during this period of $2.996 billion, equivalent to $5.992 billion for a full 12-month period. This was a shortfall of $1.086 billion from expectations.
 
In 2009, the most recent year in which this number is available from the U.S. Census Bureau, the median income of a household based in Illinois was roughly $54,000. The average size of an Illinois household was roughly 3 people. This average Illinois family paid $1,000 more in Illinois income taxes in 2011, at a time when increasing prices in gas, groceries, other taxes and general costs of living were also hitting resident’s wallets hard.

“The only path toward fiscal stability in Illinois is to continue curbing spending and advocating for meaningful reforms after years of abuse and neglect,” added Nybo. “Fiscal responsibility must be a shared value by all who serve in our state government.”

Upon passage, the “temporary” corporate and individual tax increase, established in SB2505, are set to expire in 2015. Last week, Gov. Quinn speculated in his “Budgeting for Results” address that this tax increase will most likely be permanent based on his revenue and spending estimates in the next three years.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here