Legislators Voice Positions on Tax Hike

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SPRINGFIELD, Ill. - Democratic leaders hustled Friday to build support for a $7.5 billion tax increase plan that would rescue Illinois from a paralyzing budget crisis but could leave the state on shaky financial ground for years to come.

Republican legislators and business groups warned that the tax proposal would hurt Illinois businesses and kill jobs. A tax increase would drag down the economy, they said, and the increased corporate income tax rate would become the nation's highest.

State. Rep Monique Davis (27th) is confident the tax proposal would beneficial for Illinois businesses. I believe if we dont pass it, Illinois businesses will have to close because they will not have anyone coming to their businesses, Davis said Tuesday during a phone interview with the Citizen. I personally believe businesses will flourish because there will be some stability brought about in our government it will give some stability for the services we provide.

Davis told the Citizen the tax proposal was expected to come to vote on Tuesday and hopefully pass the same day. The proposal had not been voted or passed by Citizen deadline.

As of Tuesday, Democrats scaled down the tax increase proposal. According to Fox Chicago News, House Speaker Mike Madigan confirmed to Fox that the proposal has been scaled down, from 5.25 percent to 5 percent. The tax rate right now is 3 percent. The proposal would scale the increase in taxes from 75 percent to 66 percent.

Illinois faces a budget deficit that could hit $15 billion this year. That's about half the size of the key part of the budget, the section generated and controlled by Illinois.

Davis said her biggest worry as a legislator is the non-payment to state providers such as medical and child care providers. If were not paying those people that provide those services, eventually they will close their doors to our people in need.., she said. Davis continued by saying she will vote for a tax increase to help alleviate the states financial woes.

The tax proposal would address the problem in several ways.

The temporary portion would provide money to keep general government services running. Another portion of the increase would be set aside to pay off about $8 billion in bonds that Illinois would sell so it could pay its backlog of overdue bills.

Parts of the increase would also be earmarked for schools, so that education gets some additional money in lean years ahead, and for property tax relief.

There is little doubt a tax increase can pass in the Senate, which has backed other tax measures. The real battleground will be the House. Democrats there have the raw numbers to approve the increase without any Republicans, but it would be difficult.

I think it will have trouble getting Republican support, Davis said when asked if she thought whether the proposal would have trouble passing in the House. They want to stay on the sideline and then point fingers. If the state fails, they will point fingers and blame us. If we pass the tax increase they will point fingers and blame us. They are offering zero solutions.

Recently, Davis made a statement on the House floor showing support for former Gov. George Ryan. Ryan is not being released from jail to be by his ailing wifes side. There are some sentences that are worse than a death sentence. I think George Ryan is being given a sentence worse than the death penalty if hes not able to be with his wife of 55 years.

Davis believes Ryan is being punished for placing a moratorium on the death penalty while he was in office. George Ryan used an Executive order to place a moratorium on the death penalty. It seems after that, people were very disturbed with him.

Thelma Sardin, AP Wire

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