Phelps, Reis vote to hike taxes, Severin votes no

SPRINGFIELD (Heartland Newsfeed) — In a move that Republican leaders say cut off negotiations, the House passed a bill Sunday that nets $5.4 billion in revenue by raising income and corporate taxes and creates several new taxes on services. Rep. Brandon Phelps (D-Harrisburg) voted for the 33 percent tax hike and despite the Republican leaders’ opposition, fifteen House GOP members also voted to approve the measure, including Rep. David Reis (R-Olney) and Rep. Sara Wojcicki Jimenez (R-Leland Grove). Rep. Dave Severin (R-Benton) voted against it in a bipartisan effort to stop the hikes.

Senate Bill 9 hikes the personal income tax rates to 4.95% from 3.75% and the corporate tax rate to 7.00% from 5.25% – in a state that has the most hostile corporate tax rates in the Midwestern United States. It also allows for additional sales taxes to be charged for services, dry cleaning, parking garages and others. Many Republicans, including House Minority Leader Jim Durkin (R-Western Springs), criticized the bill, saying it does not address the underlying problems in the state. Durkin was disappointed to see negotiations stopped. “We [Republicans] have participated in good faith,” Durkin said. “I have, every day, worked to find the right balance in how we can fix Illinois, not just by raising taxes but by reducing spending and also making sure there are meaningful reforms to make Illinois an attractive state for families and businesses. Without that, the exodus will continue. I am disappointed that we are taking this up at this moment when there has been significant progress [made] to address the priorities of the governor and also the priorities of the caucus.” SB9 passed 72-45 and awaits a Senate vote.