Illinois’ income tax rate will go down today. The tax was raised from 3 percent to 5 percent four years ago, and now it’s going down to 3.75 percent.
Former Gov. Jim Edgar says people won’t notice unless they look carefully, because it’s not a lot of money in a paycheck. “I don’t think it’s gonna change anybody’s lifestyle. I’m sure people will be happy, and I think people will be surprised because they don’t usually believe once you raise a tax that you’re gonna lower it,” he said.
However, Edgar warns that the state’s financial condition, with pension debt and bond debt, as well as needs for education and transportation, is such that revenue will be needed, whether that involves raising the income tax again, or expanding the sales tax, or both, or something else.
Edgar served as governor from 1991-99, and is now a distinguished fellow at the Institute of Government and Public Affairs at the University of Illinois. Politically, he endorsed Bruce Rauner for governor, after going with Kirk Dillard in the Republican primary.