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Illinois House rejects increasing state income tax
Unable to muster a last-minute legislative Hail Mary, Gov. Quinn came up empty-handed Sunday in his bid to increase the state income tax by 50 percent to stave off $7 billion in budget cuts.

Dealing Quinn the biggest legislative defeat of his 17-week governorship, the House voted 42-74 against his push to temporarily raise the income tax rate for individuals from 3 percent to 4.5 percent. Sixty votes were needed for passage.

"I'm a little disappointed tonight in our General Assembly, that we were not able to get enough revenue to have a balanced budget for the coming fiscal year," a visibly frustrated Quinn told reporters Sunday evening. "While we're disappointed, we are not in any way undaunted."

Unable to nail down the income tax increase, Quinn is in an epic bind. If he can't convert 29 Republican and Democratic income tax opponents to "yes" votes in the coming weeks, Quinn must cut billions of dollars in vital state services as he gears up for a 2010 gubernatorial run later this year.

The top House Republican pinned blame for the tax plan's failure on Springfield's ruling Democrats, who could not put together a balanced budget despite having comfortable House and Senate majorities and a governor with whom they can finally work after ousting ex-Gov. Rod Blagojevich.

"They've clearly failed, no question about it," said House Minority Leader Tom Cross (R-Oswego).

Others in Cross' party were celebratory. "People say 'just stop the spending,' and I agree with them. I claim a victory here for those folks," said Rep. Randy Ramey (R-Carol Stream).

The governor still has about 10 weeks of budgetary wiggle room before having to strike some kind of tax-hike deal or begin what one Democrat called an "apocalyptic" series of funding cuts.

To avert that budgetary bloodbath, Quinn said he intends to reconvene the four legislative leaders for more budget talks today, ruling out a special session and insisting he plans to bring no other funding options to the table beyond his tax-hike plan.

"I believe in the tax based on ability to pay: the income tax," Quinn said. "If we were here 100 years ago and Teddy Roosevelt was still alive, he'd tell you it follows a principle as old as the Bible. Taxes should be based on the ability to pay."
Posted by: Fred 2009-06-02
http://www.rantburg.com/poparticle.php?ID=271016