Friday is payday for millions of Illinoisans, but many will be getting a smaller paycheck.
That’s because payroll deductions are catching up to an increase in the state income tax approved two weeks ago.
The typical Illinois household, with annual income of about $50,000, will have to pay an extra fifty bucks a month to the state tax collector. Some told FOX 32 bluntly how they feel.
“Upset, because they don't take into consideration the lower class,” said single mom Niquita Campbell. “I have a student in college. So, that tuition is going up also. But then you go add something else on me that I can't afford.
“I think they had to raise the money, though,” said lawyer Steve Daday. “It will hurt, yeah.”
How much it will hurt depends on income. Illinois’ flat tax rose from 3.75% to 4.95%, as of July 1. Those reporting $25,000 adjusted gross income must pay $300 more a year. Those earning $100,000 must pay an extra $1,200.
Adding to the pain, the state's already spent about three years’ worth of that tax increase. While the general assembly and Gov. Rauner were fussin' and feudin', spending soared out of control.
“Unfortunately, the tax increase has already been spent. it was spent over the last two years when we didn't have a budget, when we were spending on average about six billion dollars a year more than we were taking in,” said Laurence Msall, president of the Civic Federation.
Kevin Bufkin expects the new, higher tax deductions will start shrinking his paycheck next week.
“It’ll affect the budget a little bit. But, you know, I feel it's worth it,” said Bufkin.
“You know, I won't be able to do as much for my mother or my son. You know, I won't be able to,” said Chicagoan Dorian Christmas. “It kinda ticks me off.”
The State Department of Revenue says if you have any questions about the bigger bite taken out of your paycheck, you may find answers at their website. The address is tax.illinois.gov.
Forecasts predict the income tax increase will put an extra five billion dollars a year into the state treasury. The increase is permanent.