Proposal Would Make Income Tax Increase Permanent

Feb 21, 2013

Illinois income tax increase would be made permanent in the latest proposal to fix the state's underfunded pension systems. The rate increased from 3 percent to 5 percent, but is set to begin lowering in 2014.
But Representative Lou Lang, a Democrat from Skokie, says the state can't afford that.

Rep. Lou Lang (D) Skokie

Lang says Illinois taxpayers didn't create the pension problem, but it's a problem they're stuck with.

"We have a responsibility to fix it. And we have a responsibility to have shared sacrifice. And if the people of the state of Illinois want to have state employees, we're going to figure out a way to fix those systems so we can continue to have state employees." - Rep. Lou Lang

Lang's plan would increase state workers' retirement age to 67 and have them pay more out of every check. It would also gradually require school districts and universities to take over paying for their employees' pensions.

Illinois Public Radio's Chris Slaby contributed to this report