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Raising Taxes During a Recession

In January 1983, Illinois was in the depths of a severe recession. Unemployment in the state had reached 12.9 percent, substantially higher than the current rate of 11.5 percent. Nonetheless, the General Assembly and the Governor instituted a temporary 18-month income tax increase to bolster state revenues. The individual income tax was raised from 2.5 percent to 3 percent and the corporate income tax from 4 percent to 4.8 percent. Download and read report

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