Pension Plan Relies on Making Tax Hike Permanent

By: The AP
By: The AP

Republican leader scrutinizes pension proposal

CHICAGO (AP) -- A top Republican leader is scrutinizing a new Illinois pension overhaul that would make a state income tax hike permanent.

 

 

Senate Republican Leader Christine Radogno (ruh-DOHN'-yoh) said Wednesday the good news is that there are several pension proposals on the table. But she says the bad news is that there isn't consensus.

 

She questions whether Democratic state Rep. Lou Lang's proposal is fair. He's calling for making the income-tax increase of 2011 permanent. That money would be dedicated to payments the state needs to make to catch up with a roughly $96 billion deficit in its pension accounts.

 

But Radogno says those funds were dedicated to help fill a budget hole and schools or public safety could also use the money.

 

The bill is HB2375. Online: http://www.ilga.gov

 

SPRINGFIELD, Ill. (AP) -- A top House Democrat wants to make a state income tax hike permanent and raise the retirement age to get Illinois out of its pension mess.

Deputy Majority Leader Lou Lang rolled out the proposal Wednesday.

It would make the 67 percent income-tax increase of 2011 permanent. That money would be dedicated to huge payments the state needs to make to catch up with a $96 billion deficit in its pension accounts.

The tax is supposed to expire at the end of 2014.

Gov. Pat Quinn did not say whether he supports extending the tax hike when asked Wednesday. But the Democratic governor said the pension crisis can't be fixed with just more money.

Lang's proposal also sets retirement age at 67.

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The bill is HB2375.

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Online: http://www.ilga.gov


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