The expiration of Illinois' temporary income tax increase will give families more money
QUINCY, Ill. (WGEM) -
Families in Illinois will have a little more money to spend from each paycheck this year.
That's because a temporary income tax increase expired Wednesday. Families of four with an income of $50,000 will have an extra $900 in their pockets in 2015.
For Illinois residents like Angela Mitchell, who struggle to make ends meet every week, more money on each paycheck could go a long way.
"Every little bit does help," Mitchell said. "Those who don't have to deal with a hard time due to a lack of money don't see it, but those who are like 'Hey, we are going to go without food for two days,' we see it big time."
Now people like Mitchell will get a little much-needed help. Starting Thursday, the income tax rate dropped from five percent to 3.75 percent.
The temporary income tax increase that was designed to help pay for underfunded pensions and outstanding state bills expired at the end of the year.
"To actually have some more money in our pockets is going to help people in the long run, especially those with kids or those living in a multi-family home," Mitchell said.
Illinois families aren't' the only ones who may benefit from the tax drop. Based on estimations, there will be an additional $26 million going into Adams County alone instead of Springfield.
Bruce Guthrie, of The District in Quincy, says he hopes some of those dollars will help small businesses.
"Any time folks have a few extra dollars at the end of the month, that's always a good thing and hopefully they can go out and support local retailers," Guthrie said.
Guthrie says putting money into the community will only help to strengthen the local economy.
"Local businesses are important to support because they live here, and when you support them, they are out there supporting the community," Guthrie said. "They are out their reinvesting in the community. They are out there hiring folks."
The corporate tax also declined. It was at seven percent and now it's at 5.25 percent.
Now, incoming Governor Bruce Rauner will have to figure what steps he plans to take to balance the budget when he takes office later this month.