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posted: 3/27/2014 1:01 AM

Other tax proposals

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By Zach White

The proposal by Gov. Pat Quinn to make Illinois' temporary income tax permanent joins a growing list of options being pushed in Springfield.

• Quinn would make the 2011 income tax hike permanent, not allowing the 5 percent rate to roll back to 3.75 percent. Democratic leaders like House Speaker Michael Madigan and Senate President John Cullerton are supporters, but almost all Republicans and some Democrats are likely to balk at the idea of making permanent a tax increase billed as "temporary."

• Lawmakers could do nothing and try to make budget cuts to compensate for $1.6 billion in lost revenue in the next budget year. Illinois Senate Republicans have accused Democrats of exaggerating the state's budget troubles to justify higher taxes.

• Madigan also proposed an additional 3 percent tax on income more than $1 million a year. Quinn did not express an opinion on the tax hike, but his staff said he would look at the details. It would take an amendment to the state constitution, and Madigan has said the $1 billion generated should pay for schools.

• State Sen. Don Harmon, an Oak Park Democrat, proposed creating a graduated income tax, where people making more money pay a higher tax rate. Harmon would have most Illinoisans pay a 4.9 percent rate, and everyone who makes more than $180,000 would pay a 6.9 percent rate on that income. Harmon said Wednesday he has not spoken with either Quinn or Madigan about his plan, but state Rep. David McSweeney, a Barrington Hills Republican, already has amassed enough opponents to defeat it if no one changes their minds.

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