It’s law — Quinn signs 67 percent tax hike

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SPRINGFIELD — Gov. Quinn moved quickly Thursday to sign legislation that raises the state income tax by 67 percent on individuals and 46 percent on businesses.

The governor made his move one day after saying he had no choice but to advocate for a much higher tax hike than he did in his gubernatorial campaign because “our fiscal house was burning.”

Quinn’s move — aimed at helping eradicate a budget deficit forecast to reach as much as $15 billion — was announced by an email from his office. The governor made no public statement on the matter Thursday.

Under the increased rate, which takes effect immediately, the state will claim 5 percent of workers’ paychecks rather than 3 percent. For businesses, the income tax rate will now be assessed at 7 percent rather than 4.8 percent.

Quinn has faced a barrage of criticism about supporting the tax increase given how he advocated for a 1 percentage point hike in the individual rate during the gubernatorial campaign.

On Wednesday, Wisconsin Gov. Scott Walker made a high-profile pitch to lure Illinois businesses across the border to take advantage of a lower-tax environment he hopes to create during a special legislative session he has convened. Currently, Wisconsin’s tax rates are higher than Illinois’.

Senate President John Cullerton (D-Chicago) fired back at Walker on Thursday, telling the newly elected Republican governor to “bring it on.”

The top Democrat in the Illinois Senate said this state’s lower tax structure and a $2 billion-plus budget deficit Wisconsin faces that could lead to higher taxes north of the border make the Land of Lincoln a more appealing place to do business.

“Between our investments in infrastructure, our recent moves to stabilize our budget and now Gov. Walker leading the marketing effort, we hope to see a lot of interest in Illinois from businesses,”Cullerton said. “I’d like to thank Wisconsin’s governor for helpingspread the word.”