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Quinn tweaking tax plan numbers as deadline on budget looms

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SPRINGFIELD - With time running short and his budget plan in trouble, Gov. Pat Quinn is tweaking some of his numbers in hopes of garnering a last minute dose of support from lawmakers.

In an interview with the Lee Enterprises Springfield Bureau Wednesday, Quinn said he wasn't backing off his demand to raise the state income tax rate to 4.5 percent, up from its current 3 percent.

But, he is no longer calling for the personal exemption to move from $2,000 to $6,000. Rather, he has agreed to raise it to $3,000, meaning there will be less relief from the proposed tax hike.

To partially offset that change, Quinn is calling for increasing the state's earned income tax credit.

The current Illinois credit matches 5 percent of the federal credit. Quinn would bump that up to 10 percent. For a family of four earning about $42,000 annually, that would amount to an estimated $480 in relief.

Quinn also wants to provide more property tax relief. Currently, homeowners can deduct five percent of their property taxes on their income taxes. Quinn wants to double that credit to 10 percent.

"Yeah, it's a little different," Quinn said. "The basic blueprint is the same."

In all, the tax hike and accompanying changes could result in an additional $3.7 billion in revenue.

Quinn's latest proposal is designed to bring more lawmakers on board with his plan to tackle a staggering budget deficit. The centerpiece of his plan is the income tax hike, which has found tepid support among the General Assembly.

State Sen. Mike Jacobs, D-East Moline, said he thinks the lower deduction makes the tax more fair. Quinn's original plan would have actually reduced taxes for some families that didn't earn enough.

"It puts us on a flat tax where everybody pays," Jacobs said Wednesday.

The legislature is in its final scheduled week of its spring session. Members of the House and Senate are trying to avoid the lengthy summer overtime sessions that were commonplace during former Gov. Rod Blagojevich's tenure.

As the clock ticked down Wednesday, Quinn said he hopes the changes help get lawmakers home for the summer.

"We hope to get to heaven with that," Quinn said.

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