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Madigan: Raise Income Tax Rate Back to 5 Percent, for Starters

via Chicago Tribune

“Democratic House Speaker Michael Madigan indicated Wednesday that he wants the state income tax rate to return to its previous high of 5 percent to help balance the state’s out-of-whack budget.

During a rare speech, Madigan was asked by a City Club of Chicago audience member how high he thinks taxes need to go.

Madigan joked that he wanted to “avoid creating a headline for tomorrow’s newspaper,” then proceeded to create one.

“I’d say that a good place to begin, good place to begin would be the level we were at before the income tax expired,” Madigan said, referring to the 5 percent individual income tax rate and 7 percent corporate tax rate set in 2011 as part of a four-year temporary tax hike. The individual tax rate rolled back to 3.75 percent in January.”

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