Two years ago on their night of infamy, Jan. 11, 2011, General Assembly Democrats — and exclusively Democrats — voted to raise the Illinois personal income tax rate by 67 percent. Many Illinoisans have been furious about it, although not as furious as they would have been if their paychecks had actually been gouged by those additional 2 percentage points.
But when the Democrats boosted the personal income tax rate from 3 to 5 percent most of us didn't suffer: The state tax hike coincided with a 2-percentage-point decrease in the federal payroll withholding for Social Security.
However, on Monday the federal payroll tax cut expired. And the new agreement that has avoided many impacts of the "fiscal cliff" doesn't renew it for a third year. If you pay into Social Security, you'll now send an additional 2 percent of your earnings to the federal government.
Think of it this way: The impact of your Quinncome tax increase — long advocated by Gov. Pat Quinn and made law by his signature two years ago — has finally hit home. Your home. You just took a pay cut. ...More HERE