Like many Senate Republicans, Pamela Althoff (R-McHenry) expressed trepidation over the tax hike bill that ended up passing the Senate floor on Tuesday.
“As this bill sits in front of us today, I have grave concerns,” Althoff said. “We really still don’t understand what is in it and how it applies, and how and who it is we are really taxing. The committee meeting was very brief, the legislation – even though it has been sitting out there for a while – has been changed dramatically.”
Senate Democrats voted to pass the revenue package, SB9, which would allegedly raise $5.4 billion in new taxes for the next fiscal year by hiking the individual income tax rate to 4.95 percent from 3.75 percent, raising the corporate rate from 5.25 percent to 7 percent, imposing a 1 percent tax on cable TV and digital streaming, and creating a separate 5 percent tax on satellite TV. Democrats argued it will balance the budget and create a $203 million surplus for the state.
Sen. Kyle McCarter (R-Lebanon) called it a punishing tax increase that would force taxpayers to leave the state. Sen. Dale Righter (R-Mattoon) admonished Senate Democrats for rushing the process and refusing to work on a bipartisan plan that would introduce reforms to money sinkholes like workers' compensation.
Althoff urged the floor to reconsider the proposal.
“I would strongly urge that we give it greater consideration, and we consider some of the items that I’ve just raised,” Althoff said. “While there are some really good parts of this legislation -- I mean I love the earned income tax increase [and] I think it is really nice that we are seeing corporate taxes being reduced -- I really do believe that this needs significantly more consideration. I would urge that the body vote 'no.'”
SB9 passed along party lines, 33-26, and is now in the House.
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