January 12, 2011
SPRINGFIELD, Ill. (CBS) – By a single vote, Illinois lawmakers approved a 66 percent increase to the personal income tax overnight, and soon, your paycheck will be shrinking.
But as CBS 2 Chief Correspondent Jay Levine reports, Democratic state lawmakers have said the tax hike is necessary to get the state’s outstanding bills paid. Lawmakers also say cuts and spending limits will be part of the plan.
The hike increases the state’s personal income tax rate from 3 percent to 5 percent.
In real numbers, if your gross income is $50,000 a year, your state income taxes will rise from $1,500 to $2,500 a year.
I'd imagine that this may provide a boost to Indiana real-estate values.