SPRINGFIELD – The Illinois House has approved an income tax increase as part of a plan to end the nation's longest budget standoff.
The House voted 72-45 Sunday on a 32 percent increase in the personal income tax rate. It would go from 3.75 percent to just under 5 percent. It passed with one more vote than necessary to take effect immediately.
Gov. Bruce Rauner says he will veto an income-tax increase that the House has approved.
Democratic Rep. Greg Harris of Chicago sponsored the measure. He says the increase is necessary to avoid financial catastrophe. Bond-rating houses have threatened to downgrade Illinois' creditworthiness to "junk" status without action.
More than a dozen Republicans voted for the measure. But some argued that lawmakers need more financial restraint.
Rauner issued a statement that decried "the largest tax hike in history and continue out of balance budgets with no real reform." The first-term governor insists on business-friendly changes and a statewide property tax freeze in return for agreement on a budget.
The tax increase goes back to the Senate for concurrence.
The House followed the tax bill with approval of an annual spending plan.
The vote was 81-34 for a budget that spends about $36 billion. Democrats point out that it's about $800 million less than what Rauner proposed last winter.