Rep. Reis Sponsors Bill to Repeal 67% Income Tax Hike

January 25, 2011

Springfield, IL.…With Illinois residents and businesses now forced to pay a massive income tax hike; State Representative David Reis (R-Ste. Marie) is leading the charge to repeal the Democrat-approved tax increase.

"Raising taxes to this extent hurts every family and business. Rebuilding our state's fiscal house must be solved by first cutting state spending, changing the way government operates, and reforming the business climate to attract and maintaining employers in our state. Repealing the Democrat's 67 percent tax hike is the first step to restart budget negotiations and to work towards a reasonable and sustainable plan to get our state back on track," Rep. Reis said.

The income tax hike passed in the final hours of the lame duck session with a bare minimum of votes. (60-57 in the House and 30-29 in the Senate) Governor Quinn signed the bill into law on Thursday, January 13.

Rep. Reis adamantly opposed the tax increase and voted against the measure stating, "It will drive families, businesses, good-paying jobs and future employment opportunities from Illinois to neighboring states offering lower tax rates and competitive tax incentives. The repeal bill is a common-sense measure that puts Illinois taxpayers first.

State Representative David Reis' income tax repeal measure, House Bill 175, rolls back the tax increase through the following measures:

• Individual income tax rolled back to 3. (is 5.0%);
• Corporate income tax rolled back to 4.8% (is 7.0%);
• Income tax loss carry forwards restored for 2011-2014;
• Illinois estate tax (death tax) repealed/rolled back to 0.0% (is 6.8%-16.0%, depending on the size of the estate);
• Local governments get their 10% set-aside restored; and
• The Governor's power to "reserve" State appropriations, and pre-empt spending, is repealed.

Rep. Reis continued, "people throughout the district that I've talked to have expressed grave concerns over the tax hike and the financial burden they will endure. Repealing the income tax will save working families money they need to pay high electrical bills, put food on their family's dinner table and keep a roof over their heads. Sadly, the Chicago Democrats who passed the measure have no recognition or remorse for the severity of their actions on citizens struggling to make ends meet. Worse yet, it will not solve our long term structural deficit."

Reis admits the repeal has an uphill battle in the Democratically controlled legislature. He and his colleagues plan to begin a petition drive in the coming days to demonstrate the opposition to the recent tax increases.

"With 54 House Republicans and the 7 Democrats who opposed the increase, mathematically we have enough votes for passage," Reis said. "Final approval of HB 175 rests squarely on the backs of Speaker Madigan and Senate President Cullerton. It simply comes down to whether or not they let the bill come to the floor for a vote."