News

Rauner: Cut Income Taxes, Raise Sales Tax

Rauner: Cut Income Taxes, Raise Sales Tax

Photo: Newsradio WTAX

Republican governor candidate Bruce Rauner is proposing a sales tax increase, and promising an income tax decrease.

Rauner wants the income tax to revert to the 2010 level – that is, to fall from 5 percent to 3 percent – which he says should be done gradually over four years. The tax is already scheduled to fall to 3.75 percent, unless lawmakers take action.

To generate a half-billion to make up for that, he wants to extend sales tax to services that he characterizes as luxury. “Non-necessities, like charter airplane flights, interior decorating, marina towing – they are tax-free in Illinois, while we tax necessities like clothes and shoes and furniture. We’ve gotta change that. We’ve gotta have a broader tax base,” he said.

Services he proposes taxing include: Warehousing and storage, waste removal, travel agent services, advertising sales, armored car services, debt collection, commercial art and graphic design, commercial linen services, maintenance and janitorial services, marketing, printing, investment services, public relations, security guards, telephone answering services, lawyers, overnight trailer park rentals and golf club membership and fees.

The proposal he articulated does not contemplate exempting anything that’s taxed now, nor lowering the sales tax rate.

The expected revenue – up to $577 million – still probably would not cover the loss in revenue from the income tax cut, but Rauner said there are ways to patch together a budget from year to year without losing sight of the long-term goal of having a tax environment that supports economic growth.

Rauner unveiled the tax proposal as part of a broader business agenda today (Thursday) at a factory in Schaumburg. That agenda also includes less civil liability for businesses, less regulatory oversight and cheaper costs for worker compensation.

Recent Headlines

15 hours ago in Local

Second Arrest Made in Rochester Homicide

Dewon Loman

One of two people that remained wanted after a deadly shooting incident late last month outside Rochester has been taken into custody.

15 hours ago in Local

President Obama’s Visit: The Day After

2-10-16 Obama Springfield

They're not done replaying the game films yet, but those involved in orchestrating Wednesday's presidential visit to Springfield say, for now, it was a fun and positive experience that went well.

15 hours ago in Local

Chicago Woman Charged with Supplying Gun to Niece

gun

Federal prosecutors say a Chicago woman has been indicted on charges that she supplied her 14-year-old niece with the handgun the girl allegedly used to kill another teen during an argument over a boy.

18 hours ago in Local

Par-a-Dice Cuts Staff, Blames Video Gaming

video gambling

Par-A-Dice Casino in East Peoria has announced announced they are laying off employees amidst a protracted slump in business.

18 hours ago in Local

Jury Sides with Illinois Man in Excessive Force Lawsuit

gavel2

Jurors in southern Illinois have found in a federal civil lawsuit that an Olney man was the victim of excessive force when law enforcement officers stopped him near Benton in April 2012.