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Illinois Governor will wait until after primaries to push for income tax hike
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Illinois' ongoing budget crisis and proposed income tax increases are taking a back seat as the "old" political habits of Illinois politicians re-emerge. According to statements made following a meeting with legislative leaders, Illinois Governor Pat Quinn said that a proposed Illinois tax increase will not be taken up until after the February 2nd primaries. As a result, the State's budget will remain unconstitutionally unbalanced and the budgets of social services organizations relying upon state funds will remain in limbo.
The Governor's decision to delay debate over a proposed income tax hike stems from two likely, yet purely political motives: a change in parliamentary procedure that occurs after January 1st and the emergence of a second front-running candidate for the Democratic nomination for Governor.
If the Governor and Democratic leadership in Springfield push for a tax hike during the fall-veto session in Illinois, such an income tax increase will require the approval of three-fifths of both the Illinois House and Senate. Without full support within their own party and limited support from the minority Republican caucus, it is unlikely that such legislation would pass. However, by waiting until after January 1st, the legislative rules temporarily change in Illinois allowing such legislation to be approved with a simple majority. As a result, Democratic leadership, including Governor Quinn, expect to pass an increase in Income taxes.
Although the Governor and legislative leaders could address an Income tax increase immediately following the first of the year, they have made the decision to further delay passage until after the February 2nd primaries. The delay of debate over such legislation stems from the calls from Democratic Gubernatorial candidate Dan Hynes for the implementation of a progressive income tax in Illinois. This past year, Governor Quinn called for a flat 50% increase in the state's current 3% flat tax, but contrarily supported a progressive tax in past years. As a result, the post-primary income tax increase proposals will likely take the shape of Democratic voter sentiment during the primaries as Governor Quinn tries to win his parties' nomination. Furthermore, Democrat leadership also supports the delay in the proposed income tax hike out of fears that primary races could focus attention upon income tax hikes that could result in the nomination of fiscally conservative Democrats that oppose the hike in the state's income tax rate.
Regardless of the political motives behind a delay in budgetary decisions, such a delay in proposed solutions only increases the likelihood of employment layoffs at a State level and leaves the budget of social services providers in limbo as social programs and non-profit providers have only received partial funding for the upcoming fiscal year. Delays in the debate of State revenues and expenditures only to serve to further damage the fiscal position of the State and represent a return to politics as usual at the Illinois Statehouse.
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