In the absence of congressional action, income taxes will go up, and extended unemployment benefits will end in Illinois beginning January 1st when the so called "fiscal cliff" arrives.
The Fiscal Cliff is the creation of a 2011 debt ceiling-deficit reduction deal which allows tax cuts to lapse and triggers automatic spending cuts. It was designed to be severe, so that disagreeing lawmakers would compromise to avoid it, but that has yet to happen.
Illinois Governor Pat Quinn says the worst consequence of the Fiscal Cliff will be the end of the Bush-era tax cuts for regular people.
Also set to expire will be the 2 percentage point cut in the Social Security payroll tax, which for two years has masked the 2 percentage point increase in the state income tax that took effect at the same time, at the start of 2011.
In an attempt to avert the fiscal cliff, The US House will return to session on Sunday.
