SPRINGFIELD -- Comptroller Dan Hynes wants to tax wealthy Illinoisans to help balance the state budget.

The Chicago Democrat kicked off his bid for governor Wednesday by outlining a plan to raise income taxes on people earning over $200,000.

For millionaires, the rate would be 7.5 percent, up from the current flat 3 percent rate paid by all taxpayers.

"It's better to place the burden on those most able to pay," Hynes told reporters in Springfield.

The three-term comptroller also wants to raise taxes on services he deems luxuries, such as tanning salons and health clubs, as well as boost the number of casinos. Both concepts have previously run aground in the legislature.

Hynes staked out his positions as he began ramping up his campaign against Gov. Pat Quinn. The two are set to meet in the February 2010 primary.

Quinn's campaign said Hynes' tax plan wouldn't help the state financial picture for years.

"Basically, Hynes is late to the table with a proposal that's going to take even longer to implement," said John Kupper, a spokesman for Quinn's campaign.

A handful of Republicans, including state Sens. Bill Brady of Bloomington and Kirk Dillard of Hinsdale, are battling it out for the GOP nomination.

Brady said raising taxes would send jobs and people out of the state.

"The first words we hear from candidate Hynes is a proposal to dig deeper into the pockets of Illinois' citizens and businesses," Brady said in a prepared statement. "Raising taxes is the wrong approach. As I travel around Illinois, I don't hear support for new and higher taxes."

Hynes, 41, also criticized Quinn for changing his positions on issues during his first eight months in office.

"We need consistent leadership," Hynes said.

Kupper said changing plans happens when a governor is trying to compromise with lawmakers.

"That's part of the process," Kupper said.

Hynes, who is casting himself as a fiscal expert after serving three terms as the man who pays the state's bills, says a so-called "progressive" tax system will help plug a $10 billion budget gap.

However, changing the state's current flat income tax in order to force wealthier people to pay a larger percentage would require a constitutional amendment. He wants lawmakers to put the question to voters in the November 2010 general election.

Hynes said, he believes voters will endorse the idea, which could raise $5.5 billion in new revenue.

"I believe they will choose this path," Hynes said. "This plan makes sense."

In addition to changing the state income tax, Hynes outlined a series of other budget maneuvers he said will help pull the state out of debt.

He would cut management-level state workers, especially those appointed by former Gov. Rod Blagojevich. He would cut certain state contracts, such as those for advertising and consulting. And, he would push spending levels back to 2005 levels.

Some of his proposals, however, have previously been rejected by the legislature.

For example, he would expand the number of casinos, raise cigarette taxes and end certain kinds of tax breaks aimed at luring businesses to the state. Each of those ideas have failed to gain traction in recent years.

Hynes' bid for governor marks his fifth statewide election. In addition to winning three terms as comptroller, he made an unsuccessful bid for U.S. Senate in 2004, losing in the primary to Barack Obama.