ICS Magazine

Tax-hike bill still up in the air; would impact service businesses

May 30, 2009

SPRINGFIELD, Ill. -- Unable to put together the votes for a bill to raise income taxes, House Democrats adjourned unexpectedly Friday but planned to return for a final weekend scramble aimed at closing a multibillion-dollar budget gap.

The surprise development came after a lengthy closed-door meeting among Speaker Michael Madigan of Chicago and his fellow House Democrats, who hold a majority in the chamber but were stymied in part by the refusal of Republicans to offer any support for a tax increase.

The proposal -- which could raise upward of $6 billion -- would increase the income tax by 67 percent and expand the sales tax on services such as dry cleaning, video rental, dating services and carpet cleaning. The theory is that a larger tax bite would mean fewer cuts.  Want the whole story?