The state's top Republican leaders on Thursday called for an immediate repeal to the state's income tax hike that was passed a year ago.
Senate Minority Leader Christine Radogno and House Minority Leader Tom Cross said the hike hasn't been a solution to the state's fiscal problems and are instead hurting the state's working families.
Democratic Gov. Pat Quinn signed legislation last year that raised the personal tax rate to five percent from three percent for four years. The goal was to help bring Illinois out of its deepest budget hole in history.
But a report Thursday by the Illinois Policy Institute claims the increase made Illinois less competitive for business and had other negative impacts.
"One year later, the verdict is in: the tax hike policy is a failure," said John Tillman, the CEO of the Illinois Policy Institute.
Months after the hike was raised, the state reported collecting more money than it collected in 2010, but the leaders say spending hasn't decreased, so the state's financial picture isn't improving.
Cross listed Medicaid, AFSCME contracts and pensions as areas where spending cuts could be made to save the state billions of dollars.
Quinn's office disputes the GOP leaders and think tank's claims. A spokeswoman said the increase brought in $7 billion last year.
Illinois Policy Institute: 3 Reasons the Tax Hike Failed
