Quinn Tweaks Tax Plan To Court Votes

SPRINGFIELD, Ill. (AP) -- Republican lawmakers on Wednesday rejected appeals for their help in raising taxes to fill the state's massive budget deficit, while Gov. Pat Quinn tweaked his tax proposal in hopes of picking up new support.

Democratic leaders say they lack the votes to pass an income tax increase that would help close the $11.6 billion deficit. They're asking Republicans to vote for the increase if it's coupled with spending cuts.

"Raising taxes is going to cost more Illinoisans their jobs, and we are not going to participate in that," said Sen. Matt Murphy, who follows budget issues for Senate Republicans.

Quinn offered a new version of his tax proposal in a bid to pick up additional Democratic support.

The new version would generate between $3.7 billion and $4 billion for state government, compared to $3.2 billion under Quinn's original proposal. That means lawmakers would still have to cast a politically risky tax vote, but it would produce more money for the programs they support.

The government would get that additional money by cutting back on tax breaks Quinn had proposed to shield many families from the tax increase.

Instead of tripling the personal exemption - an amount of income exempt from taxes - to $6,000, the new version would increase it to just $3,000. But the earned income tax credit for the working poor and a property tax credit would be doubled. The effect would be to concentrate most tax relief on poor families.

The new version "preserves the blueprint for tax relief and fairness that Gov. Quinn is seeking with his reform budget," said spokesman Bob Reed.

There was no indication whether Quinn's revision helped his cause. The Democratic governor stayed in his office throughout the day for meetings with some key lawmakers on the budget, ethics and more.

He and the four legislative leaders did not discuss the budget as a group, even though Sunday is the last scheduled day of the legislative session.

In another blow to Quinn's budget, the House voted to make the state's full annual payment to government retirement systems. Quinn had proposed trimming the payment by $2.2 billion, justifying the reduction by calling for changes in retirement benefits that would save the state money for decades to come.

House Speaker Michael Madigan said there was little support among House Democrats for reducing the pension payment, a step that has been taken in past years.

Spending that pension money would leave the government with about $3.5 billion to cover $10 billion worth of proposed spending, said Madigan, D-Chicago. Even if lawmakers approve a tax increase, the state would still face a budget hole of roughly $3 billion.

Rep. Sara Feigenholtz, D-Chicago, used the debate to warn that Illinois is on the verge of making massive cuts to important services.

"It will virtually shut down programs that are life-sustaining and vital programs to the people of Illinois," she said.

-ASSOCIATED PRESS