Regional
1:44 pm
Thu January 13, 2011

Perry Courts Illinois Business After Tax Hike

Texas – Gov. Rick Perry is criticizing Illinois for raising taxes and predicts the hikes will be a recruiting boom for Texas.

Perry on Thursday said he was troubled by the Illinois Legislature's move to "tax the rich without talking about how to make the thoughtful prioritized decisions on how to govern."

Illinois Democrats backed the measure to help erase a deficit as high as $15 billion.

Texas has a similar shortfall but Perry promises not to raise taxes to pay for it, leading to fears of massive cuts to vital programs fears the Texas governor calls unjustified "doom and gloom." Perry says nothing stifles innovation" more than tax hikes.

Illinois lawmakers Wednesday passed the increase to raise the personal income tax rate from 3 percent to 5 percent for four years.

Copyright 2011 The Associated Press.