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Illinois group wants to keep tax increase, tax retirement income

Associated Press

CHICAGO - A government watchdog group says Illinois should keep its temporary income tax increase in place for a year longer than initially promised and begin taxing retirement income to dig the state out of a budget hole.

The Chicago-based Civic Federation says its five-year plan would allow the state to pay off its $5.4 billion backlog of unpaid bills and avoid budget cuts.

The 47-page report was released on Monday.

It's a more detailed plan than has emerged so far from legislative leaders and various candidates.

David Yepsen of Southern Illinois University says the approach has "a little pain for everyone."

But because expiration of the state's income tax is a politically touchy subject, Yepsen says debate on the proposal could be put on hold until after the November election.

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