(UPDATE 8:30PM SUNDAY)r
SPRINGFIELD, Ill. (AP) Illinois Gov. Bruce Rauner says he will veto an income-tax increase that the House has approved.

The House voted 72-45 Sunday to increase the personal income tax rate by 32 percent. It’s designed to start repairing the fiscal calamity caused by the nation’s longest budget stalemate since the Great Depression.

Rauner issued a statement that decried “the largest tax hike in history and continue out of balance budgets with no real reform.” The first-term governor insists on business-friendly changes and a statewide property tax freeze in return for agreement on a budget.

The tax increase goes back to the Senate for concurrence.

The House followed the tax bill with approval of an annual spending plan.

The vote was 81-34 for a budget that spends about $36 billion. Democrats point out that it’s about $800 million less than what Rauner proposed last winter.

(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

(EARLIER STORY)
SPRINGFIELD, Ill. (AP) The Illinois House has approved an income tax increase as part of a plan to end the nation’s longest budget standoff.

The House voted 72-45 Sunday on a 32 percent increase in the personal income tax rate. It would go from 3.75 percent to just under 5 percent. It passed with one more vote than necessary to take effect immediately.

Democratic Rep. Greg Harris of Chicago sponsored the measure. He says the increase is necessary to avoid financial catastrophe. Bond-rating houses have threatened to downgrade Illinois’ creditworthiness to “junk” status without action.

More than a dozen Republicans voted for the measure. But some argued that lawmakers need more financial restraint.

The House is now debating a spending plan of about $36 billion.

(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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