Illinois Unemployment / Taxes
12:31 pm
Mon April 11, 2011

Illinois businesses to see tax increase in 2012

Starting next year, Illinois businesses will see a tax increase and the recently unemployed will lose a week of unemployment benefits.

That's because of a compromise bill passed this month in the Illinois Legislature.

The Rockford Register Star reports the deal is part of a longer-term plan to help contribute to Illinois' depleted unemployment trust fund, which is $3 billion in debt to the U.S. Treasury.

Illinois Department of Employment Security spokesman Greg Rivara says the tax increase and benefit cut are expected to generate about $100 million for the unemployment fund next year, or about 3 percent of its current debt.

Illinois is among more than 30 states that have borrowed money from federal officials to keep jobless benefits going.

*Illinois has borrowed more than $40 billion so far.

*Updated 1:01 p.m. April 13, 2011 with Associated Press correction:

CHICAGO (AP) - In an April 11 story about Illinois' plan to contribute to its depleted unemployment trust fund next year, The Associated Press erroneously reported that Illinois borrowed more than $40 billion from the federal government to pay what it owes toward jobless benefits. That total amount was actually borrowed by more than 30 states.