Terry
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« on: January 20, 2011, 11:59:15 am » |
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Here is what Mike Frerichs has to say about he tax increase. You decide.......
"It is no secret that the State of Illinois is facing a budget crisis. It seems that each day we hear new reports about Illinois’ fiscal instability. The state has a backlog of billions of dollars in unpaid bills. Schools are not being funded adequately or on time and thousands of people risk losing access to vital services that only the state can provide.
Much of the last two years has been spent trying to find solutions to these problems. During that time, we’ve passed monumental reforms to the State’s pension systems and to Medicaid that will save us billions of dollars in the long term. We’ve reformed the budget process to allow for greater transparency and accountability. We’ve also cut overall State spending by 11% over the last two years.
In spite of these efforts, the state’s budget deficit remains unresolved. To that end, the Illinois General Assembly passed legislation this January increasing both the individual income tax and the corporate income tax. I joined 29 of my Senate colleagues in supporting this legislation.
There has been plenty of political rhetoric surrounding this issue. Much of the information that is being dispersed is misleading or inaccurate. It is my hope that this letter will clear up the confusion and explain why I voted in favor of the measure.
Senate Bill 2505 increases the personal income tax from 3% to 5% and the corporate income tax from 4.8% to 7%. In 2014, these increases will be rolled back to only slightly higher than they are now. At the same time, the bill imposes a firm spending cap on the legislature for the next four years. The State’s Auditor General will review the budget to determine if the legislature has spent over that cap. If that happens, then that particular spending bill will be returned to the General Assembly.
I voted for Senate Bill 2505 because the bill will provide a tremendous amount of relief to the hospitals, schools, community colleges, the University of Illinois and other facilities in my district that are owed money by the State. In addition, it is important to note that the bond market was telling us we would not have been able to sell our bonds by the end of March; thus making Illinois insolvent and delaying funding for job-creating capital projects throughout the state.
The tax increase passed this month will go a long way toward paying down our debt ensuring vital state programs continue operating. At the same time, the spending cap included in the legislation will ensure greater fiscal discipline in the future. While this vote was a tough choice, it is my belief that the bill’s passage was a necessary step toward Illinois making a full economic recovery.
Thank you for your concern about this critically important issue. Please do not hesitate to contact my office with further questions or concerns."
Michael
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