Illinois Will Probably Raise Income-Tax Rate to 5%, Budget Director Says

Illinois, which is in its worst financial position ever, will raise the income-tax rate in January to address its deficit, Governor Pat Quinn’s budget director said.

Lawmakers will likely increase the personal tax to 5 percent from 3 percent, generating $6 billion of new revenue, the budget director, David Vaught, said in an interview. The legislature failed to address the deficit this year because of the pending November election, he said.

“We’re going to pass a tax increase in January,” Vaught said. “We expect it is going to be substantial.”

To contact the reporter on this story: Darrell Preston in Dallas at dpreston@bloomberg.net