Governor Signs Tax Relief Legislation

Last week, Governor Quinn made history with the signing of tax relief legislation that will benefit every taxpayer in Illinois.  As the chief Senate sponsor of this measure, I was humbled to be a part of a process that will assist so many working families who are still struggling through this shaky economy.

A key provision of Senate Bill 400 is an increase in the Earned Income Tax Credit (EITC) for the first time since its inception in 2000.  By 2013, the EITC will rise to 10% from the current 5%, benefiting the over 935,000 Illinois families that claimed this credit in 2009.  This includes nearly 20% of families in both Cook and Kankakee Counties who saw an average savings of around $115.

Also included in this legislation is an increase in the standard exemption from $2,000 to $2,050.  While this may not seem like a dramatic boost, we added a provision that increases the exemption yearly based on the rate of inflation (if the standard exemption had been tied to inflation when it was created in 1969, it would now total over $6,100).  Too many families have seen their food and shelter costs increase without a corresponding increase in their own pay. 

I applaud the work earlier this year in steps taken to modernize our tax structure and provide needed relief to small businesses.  It seems that as of late, however, we have grown accustomed to repeated calls from our business community asking state leaders for incentive packages to grow and sometimes even stay in Illinois.  Unlike working families, businesses have the ability and the time to come to Springfield and advocate for or against various pieces of legislation.  This process makes it hard for working families to have their voices heard. 

I am proud of this legislation for that very reason.  With all of the talk surrounding business incentives, we were able to include meaningful tax relief to those who have not been given a handout or an incentive just because of a downturn in the economy. 

Read more about this legislation by clicking on the links below:

Chicago Tribune- Quinn increases tax credit for working poor

ABC 7- Quinn signs earned-income tax credit