None of the Republican candidates for governor are in favor of extending the state’s temporary income tax increase.
The hike is due to expire at the end of next year. Without it, the state will lose about $5 billion in revenue each year.
State Sen. Bill Brady (R-Bloomington) believes the savings in the new pension reform law will make up for that, “which is why it was so important that we passed this,” Brady said. “Now we’ve got a great argument about why this tax increase has to sunset.”
Brady was the only one of the four Republican candidates to support the pension reform law passed by the General Assembly and signed by the governor. State Treasurer Dan Rutherford didn’t, saying the bill will be struck down as unconstitutional in court. If that happens, he can’t rule out keeping the increase.
“Temporary, partial, something – I may need some form of revenue on the table to negotiate a comprehensive package to resolve the financial problems of Illinois,” Rutherford said.
Without any extension, the income tax rate would fall to 3.75 percent.