A bill filed by Rep. Lou Lang (D-Skokie) is intensifying speculation that the 2011 personal and corporate income tax hikes could become permanent. The legislation would extend the tax increases indefinitely, with the revenue earmarked for the state's pension funds.
Can legislators afford to roll back the tax hikes as planned? The answer is, pension reform notwithstanding, no.
In 2012, the state collected almost $20 billion dollars in personal and corporate income tax revenue, a 79 percent increase from 2010. Still, the state's backlog of unpaid bills increased by 60 percent and its unfunded pension liabilities went up by 13 percent over the same time period.
The state is currently grappling with more than $9 billion in unpaid bills and a worst in nation $96.8 billion in pension debt.
In this week's infographic, Reboot Illinois reviews Illinois' tax history, breaks down the state's tax revenue and considers what might lie ahead for taxpayers as the state's fiscal outlook continues to deteriorate.