Emling & Hoffman: Illinois income tax rollback a break for taxpayers

As of Jan. 1, 2015 the individual income tax rate for the State of Illinois will drop 25% from the existing 5% to 3.75%, according to Harold Emling of the Du Quoin accounting firm of Emling & Hoffman.

When State of Illinois income tax rates were increased in 2011, there were provisions automatically reducing the rate to 3.75% on Jan. 1, 2015.

The rates will automatically be further reduce to 3.25% on Jan. 1, 2025.

"Although good news for taxpayers, the resulting change in tax revenues projected for 2015 cause major budget problems for the State of Illinois," said Emling.

"Governor Elect Rauner has said that he will make a decision on his recommendation regarding State income tax rates when he takes office in January," said Emling

"However, Rauner, a venture capitalist and first-time candidate, advocated lower taxes to stimulate the economy during his campaign. He served as an investment manager and former chairman of GTCR LLC, a Chicago-based firm, and worked for more than three decades in private equity," Emling said.