Just got our first new Income Tax hit as an IL resident

[digitaldevice]

How are we supposed to help businesses succeed (which would give MORE money in taxes to IL with our purchases).

I am opening a bakery in May, Small business that has been in the works for about 7 months. Due to the new taxes I'm moving it 20 miles to the North in WI. If I didn't have my mom to look after id move it down to FL like Jimmy Johns is doing.

 

[sam_gordon]

As a PP said, the tax hike was 2% (3% to 5%) or 60%. So, my math isn't wrong. We're only seeing 40% of that raise ($600) because 60% ($900) goes to the state of IL. So, the raise covers the tax hike and leaves a little left over. ($25 a paycheck to be exact, as DH is paid bi-monthly) The $900 hike is covering his entire salary not just the raise-that may be where you're confused.

That's what I kind of wondered. Only $75 of the new $1500 is going to state taxes (1500 * 5%). Bi-monthly means twice a month, right? So he gets 24 paychecks in a year. So even if you got the entire $1500 (with nothing going to taxes, 401K, etc), you'd only see an extra $60 & change in each paycheck.

It all depends on how you want to look at it. Something tells me out of the $1500 raise, you're still getting $1200-$1300 after taxes. Even if Federal withholding is 20%, and state is 5%, that's still $1125 you're getting. I know it doesn't seem like much since that's split between paychecks, but you are getting to keep way more than $600 of the raise.