January 10, 2010

Mixed Messages:
How Governor Quinn’s tax hikes
will erase President Obama’s
tax cuts
Budget & Tax Brief

The Problem Our Solution

Illinois families should be wary of plans to Reject calls to increase Illinois’s state income
hike taxes at the state level that would all but tax.
wipe out the benefits of the bipartisan tax
compromise between President Barack Obama Why This Works
and Congressional Republicans. Sending less to DC only to pay more in taxes
to Springfield defeats the important, bipartisan
In federal legislation that extended the Bush-era effort to encourage productive behavior and
tax cuts, and also included economic growth via the
a payroll tax cut, a four- Graphic 1. How A State Income Tax Code.
member family making Tax Increase Would Reduce
$80,000 would save $800 Benefits from Obama/GOP As President Obama
in 2011 federal taxes over Compromise Tax Plan (family of has said of the tax hike
four with $80,000 in income) threat faced by the
what they would have
paid next year if 2010’s 2011 Federal Tax Bill with 2010 middle class, “It would
$10,510
tax laws were simply tax laws* be a grave injustice to
carried forward and 2011 Federal Tax Bill with Obama/ let taxes increase for
$9,710
indexed for inflation. GOP Plan these Americans right
Net Gain $800 now. And it would deal
Yet Illinois’s governor is a serious blow to our
pushing a 33 percent hike 2011 State Income Tax Bill economic recovery.”1
to the state income tax $2,160
without tax hike
for 2011, taking an extra 2011 State Income Tax Bill with
Governor Quinn and
$720 away from that same Quinn’s 33% tax hike $2,880 legislative leaders would
family. Governor Quinn’s Net Loss -$720
do well to take a page
budget director called for from President Obama’s
2011 State Income Tax Bill with
a 66 percent increase last Quinn’s 66% tax hike
$3,600 post-election playbook
fall, which would snatch and not raise taxes on the
Net Loss -$1,440
$1,440—almost double hard working people of
the federal savings. 2011 State Income Tax Bill with Illinois.
$3,780
Quinn’s 75% tax hike
Democratic state leaders
are even considering Net Loss -$1,620 Endnotes
1 President Barack Obama, “State-
a 75 percent increase, *2010 tax laws are extended into 2011 and inflation- ment by the President on Tax Cuts and
burdening a family of tied parameters are indexed. Unemployment Benefits,” December 6,
four with an additional 2010, http://www.whitehouse.gov/
Source: MyTaxBurden.org and Illinois Policy Institute the-press-office/2010/12/06/statement-
$1,620 in state income calculations. president-tax-cuts-and-unemployment-
taxes. benefits.