Wednesday, February 20, 2008

Guv dangles tax cuts, but would levy, borrow more

Did you know that the governor has given his state of the state speech today? You can read it here, but you'll need PDF from Adobe. And here's a story from Crain's...
Rod Blagojevich, tax cutter?

Illinois’ unpredictable governor is reaching for that mantle, unveiling a proposed fiscal 2009 state budget that dangles the prospect of a credit for families with children and for some businesses while jacking up taxes on business overall by far more.

The $31.7-billion spending plan relies heavily on a series of tried-and-true Blagojevich fiscal tactics, including closing business tax “loopholes,” a proposed partial privatization of the state lottery and heavy borrowing. At the same time, it has a new twist: Most notably for business, the possibility of a one-year, 20% cut in the corporate income tax.

Lawmakers are just hearing of the governor’s plans and were not yet prepared to comment, but key elements of Mr. Blagojevich’s proposal have been floated and shot to pieces by the General Assembly in previous years, and this plan is likely to get a rocky reception.

The good news for taxpayers in the proposed budget is that the governor wants to duplicate in Illinois the child tax credit recently enacted nationally by Congress in an effort to stimulate the economy. The refundable credit of up to $300 per child for dependents under 17 would apply to any family earning up to $150,000 for a couple and $75,000 for a single parent.
Tomorrow I might gather more info about this budget. I'll keep them all in one post.

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