The World

10 ESSENTIAL STORIES

By Harriet Barovick, Ishaan Tharoor, Alexandra Silver, Claire Suddath, Frances Romero, Kayla Webley and Josh Sanburn Monday, Jan. 24, 2011

    • (3 of 3)

    Illinois lawmakers, seeking to make up a $15 billion budget shortfall, approved an increase in the personal income tax from 3% to 5%--the state's first increase since 1989 and the biggest tax hike yet by states struggling with massive deficits. Along with spending cuts, the hike is expected to generate $7 billion a year, enough to balance the annual budget and help the state pay overdue bills. Meanwhile, California's new governor, Jerry Brown, slashed $12 billion from that state's budget and extended temporary tax breaks that were due to expire this year.

    3. 1
    4. 2
    5. 3
    6. Next Page