January 11, 2011 - Democratic leaders in the Illinois General Assembly reached tentative agreement Thursday on a tax deal that would temporarily raise the individual income tax rate from 3 percent to 5.25 percent. The plan also calls for a $1 per pack increase in the state cigarette tax that would be dedicated to education funding.
UPDATE - January 11, 2010 5:11pm CST - The Illinois House today shot down a $1.01-a-pack cigarette-tax increase to provide more money for schools. The measure got 51 votes, but needed 60 to pass.
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Property owners would get a $325 annual check from the state - instead of the current property tax deduction -- to offset the cost of property taxes.
The plan calls for borrowing $8.75 billion to pay off old bills. And to prevent the state from sinking into a financial abyss again, lawmakers will be asked to approve bills limiting spending increases and imposing a prohibition on new programs for the next three years.
Senate President John Cullerton, D-Chicago, warned that the plan still could be "tweaked" before it finally goes before lawmakers for a vote. He outlined it for Senate Democrats Thursday afternoon. "The reaction from the caucuses was very positive," Cullerton said.
Reference: Illinois Gen. Assembly reaches tentative agreement to raise income, cigarette taxes, give property tax break by Doug Finke, Murphysboro American,