image
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Daley on Quinncome tax: Change it; Cig tax advances

Tuesday, Mar 31, 2009

* 12:21 pm - Looks like a revamp may be coming

Chicago Mayor Richard Daley said if income taxes go up under Governor Pat Quinn’s proposal, property taxes should go down. Quinn wants to raise the tax to four-and-a-half percent, but the mayor says if it’s going to happen, property owners need some tax relief.

For years, the mayor has advocated what some call a tax swap, wherein the income tax would be raised only if property taxes were lowered a corresponding amount. The mayor said his position on increasing the state income tax has been a long-standing one. […]

“Taxpayers are, first of all, losing their homes,” said Daley. “They are losing their homes. They are losing their jobs. Or someone in the home has lost their job. They are not getting overtime. Some have lost their pensions. There has to be property tax relief. You cannot increase (income) taxes without property tax relief, simple as that. People can’t pay these property taxes.”

Daley wants local governments to get their traditional slice of any income tax increase (Quinn uses that 10 percent share for his capital bill), so this property tax thing could be a negotiating ploy. But it also strengthens Sen. James Meeks’ hand while he negotiates for a tax swap. You can bet the house (and the Senate) that Chicago legislators and the governor and everyone else in politics in this state are taking note of Daley’s remarks.

The governor’s spokesman was surprised that Daley held a news conference to comment on the Quinn budget plan.

I’ll bet he was.

* 12:27 pm - From Lee Newspapers

A day before the federal tax on cigarettes jumps $.62, a Senate committee voted to phase in another $1 increase for Illinois over two years.

* 12:49 pm - More Daley react

“We get no benefit,” the mayor said at a news conference at a school on the South Side. “Then why should anybody be for it?”

The mayor called on the state to expand property tax relief if it is going to raise the income tax.

“You cannot increase the income tax without property tax relief,” he said, noting the high rate of foreclosures.

Daley also complained that the city would only get $54 million in new education funding from the state under Quinn’s budget, saying the schools need an increase of $200 million.

- Posted by Rich Miller        


30 Comments
  1. - Ghost - Tuesday, Mar 31, 09 @ 12:26 pm:

    I guess Daley lowered the Chicago property tax when he raised the sales tax…

    Daley: lets od a zero sum game where we increase on tax and decrease the other for no net change in revenue? This of course will decimate schools funded by property taxes, and besides, Chicago has way too low a property tax rate anyway.


  2. - Cassandra - Tuesday, Mar 31, 09 @ 12:48 pm:

    Daley, like Lisa Madigan, is smart enough to publicly express concern for the plight not only of the poor but also, increasingly, of the plight of the middle class in Chicago, Illinois, and the country as a whole.

    This may or may not be political opportunism on the part of either of these powerful and, in the case of Lisa M., ambitious pols, but expressions of sympathy go a long way and are remembered by the electorate.

    Quinn, while giving lip service to the plight of
    people at the lower end of the income spectrum, comes across as less sympathetic, more interested in getting lots of money for state government, however dysfunctional. He has kept many Blago holdovers in important posts (perhaps because he doesn’t have the clout to remove them) including budget posts. He hasn’t really cut much and his budget proposal is likely be rewritten to protect powerful business interests and unions, leaving the middle class bearing an even larger share of the burden.

    This will be remembered in February. A little sympathy goes a long way, fair or not, and Quinn just doesn’t seem that sympathetic.


  3. - the Patriot - Tuesday, Mar 31, 09 @ 12:50 pm:

    Ghost makes a good point. Since the state is not making state aid payments to schools aready, where will they be funded if real estate taxes are cut. The state already is not making state aid payments. Why would local schools give up their one reliable source of income? Where is the IEA/NEA on this issue?

    I like the idea of an income tax/property tax swap. The problem is it is probably a wash for the wealthy, but it will put more pressure on low wage earners who do not own property now. This is counter to the “redistribution of wealth” mandate of the current democrat party.

    The reality is, this will end up like the stimulus bill. Use money for schools and infrastructure to justify the swap, then a small % actually gets to the school and infrastructure.


  4. - Bobs yer - Tuesday, Mar 31, 09 @ 1:22 pm:

    Have to admit it, I do like the trend of Democratic politicians talking about lowering taxes of any kind. Sort of novel.


  5. - Retired Non-Union Guy - Tuesday, Mar 31, 09 @ 1:24 pm:

    Right now this is all PR posturing.

    But if the property tax swap proposal gains traction, the only way it should be approved is if (a) the State makes up the lost revenue difference to the school districts in such a manner the State can’t waffle on the commitment later which will require a higher income tax rate or lower exemption level, (b) there is an iron-clad bullet-proof, “tar and feather the politicians and school boards if they renege” guarantee in place to prevent the local taxing districts from coming back 6 months or a year later and increasing the property taxes back to the previous level, and (c) the property tax relief should be a direct cut by the local taxing bodies.

    Ain’t going to happen that way … closes off too big a future money pot. Every income tax / property tax swap proposal I’ve seen to date doesn’t include those provisions … so all they are doing is giving a bit of temporary property tax relief in exchange for a bigger pot to take money out of later.

    If anything does get pushed, my guess is it will be proposed in the form of another tax credit against the income tax … which does nothing for seniors and renters.


  6. - Rich Miller - Tuesday, Mar 31, 09 @ 1:28 pm:

    ===Right now this is all PR posturing. ===

    There’s more to it than that.

    One word: Subscribe.


  7. - The Doc - Tuesday, Mar 31, 09 @ 1:29 pm:

    Bobs yer, Daley is simply trying to shift blame and potential political fallout onto Quinn. If an income tax increase accompanies a property tax decrease, I’ll bet you a dollar Daley throws a tirade blaming Quinn when city residents and businesses suffer under the weight of the income tax increase.

    I wonder if Daley realizes that his TIFs will also see a signifcant decrease in revenues, since they are funded by property taxes.


  8. - Anonymous45 - Tuesday, Mar 31, 09 @ 1:32 pm:

    C’mon…Daley wouldn’t call out Blago on his crazy budget ideas, but lambastes Quinn on his?

    Richie is clearly pandering for the black vote in his next re-election campaign…he continues to rob the city blind with his patronage baloney, not needed O’Hare expansion plans, State Street subway rehab, Block 37 etc. and he has the audacity to criticize a Governor who took over this clustermuck a couple of months ago?

    Put yer own house in order, work with Quinn to make it work better or stuff a sock in it will ya?

    Chicagoans re-elected Daley last time in spite of the way he governs because the city still worked…not so now with the economic downturn
    with a loss in quality of life issues in the neighborhoods…the next election looms large for
    Da Mare…


  9. - Rich Miller - Tuesday, Mar 31, 09 @ 1:34 pm:

    ===Richie is clearly pandering for the black vote in his next re-election campaign===

    In this context, that didn’t make a lot of sense.

    What is with some white folks who always want to mention the concept of pandering to black folks?


  10. - Chicago Guy - Tuesday, Mar 31, 09 @ 1:46 pm:

    Give me a break. The biggest taxer, the biggest spender, the biggest debt increaser of all time, Mayor Daley, somehow has credibility on what’s responsible and fair state taxation?


  11. - Jacksonville - Tuesday, Mar 31, 09 @ 2:16 pm:

    If they keep increasing the tax oncigaretts because of the health care cost, when are they going to start taxing overweight people at the same tax rate. They add to the health care cost at the same rate as smokers. Call it a fat tax rather then a sin tax.


  12. - lurking moderate - Tuesday, Mar 31, 09 @ 2:24 pm:

    What about the taxes on alcohol? Shouldn’t those go up to?


  13. - Anonymous45 - Tuesday, Mar 31, 09 @ 2:33 pm:

    Rich,

    Are you sure I am white? Why?

    I am calling Daley out on the fact that he cozies up to the black community when it suits him politically…that’s what he is doing with Sen. Meeks just like Blago did with Meeks…promise him anything, make nice, and make sure he’s not a political threat, then turn your back on him when it suits you…


  14. - Beerman - Tuesday, Mar 31, 09 @ 2:40 pm:

    No!


  15. - VanillaMan - Tuesday, Mar 31, 09 @ 3:06 pm:

    Daley is saying that he is concerned that Chicagoans who are struggling, cannot afford the property taxes he has imposed on them. So, with Quinn piling another tax upon them, the Mayor is even more concerned.

    As a result, the Mayor is saying that Illinois governments can only take so much from those struggling Chicagoans and he thinks that instead of helping these people by actually lowering their taxes, he is telling the Governor that any increase has to see a proportional drop in property taxes.

    So Daley isn’t proposing a tax decrease. He is just warning the Governor that whatever additional income tax generated from Chicago may end up coming out of the pockets of City Hall.

    Daley isn’t a hero here.


  16. - downstate hack - Tuesday, Mar 31, 09 @ 3:26 pm:

    Chicago schools need $200 milllion more!!!!! More and more money, lower and lower test scores.


  17. - Bobs yer - Tuesday, Mar 31, 09 @ 3:31 pm:

    Doc, et al, I know Daley is posturing on this, just like LM. But I’ll take what I can get. Pretty rare to hear a Dem talk about reducing any tax.

    The funniest part about Daley’s rant is his “we get nothing out of this” comment. Is he aware that Chicago is in the State of Illinois? Isn’t balancing the State’s budget important to everyone? He’s treating it like another opportunity to grab dough for….whatever he does with it. If I were Quinn, I’d start suggesting that Daley draw down on his ‘rainy day’ fund.


  18. - Ghost - Tuesday, Mar 31, 09 @ 3:32 pm:

    VM, Daley is really saying pay me my 10% of the increase to buy my support.


  19. - Esteban - Tuesday, Mar 31, 09 @ 3:45 pm:

    One of the justifications for raising tax on
    cigarettes are the public health benefits. I’m
    sure that the pols already know how they are going
    to spend the money but how will they replace the
    revenue if taxation drives consumption down to
    zero, which is that stated goal.


  20. - steve schnorf - Tuesday, Mar 31, 09 @ 3:57 pm:

    I’m not sure I would call $54M “not getting anything”


  21. - Bruno Behrend - Tuesday, Mar 31, 09 @ 4:10 pm:

    There is only one honest tax swap.

    Everything else on the table is a shell game designed to create the pretense of a swap, that might (if we are lucky) yield slightly lower property tax growth for about 6 mos.


  22. - Bruno Behrend - Tuesday, Mar 31, 09 @ 4:11 pm:

    BTW, the Dems/Quinn are to be thanked for their intellectual honesty in passing a raw tax hike absent a dishonest swap.

    Bad policy to be sure, but at least it’s honest.


  23. - Bobs yer - Tuesday, Mar 31, 09 @ 4:43 pm:

    Esteban, I think the marginal reduction in cigarette purchases always has been offset by the increase in taxes.

    Smokers are always an easy target. They’re only about 20% of the adult population, not enough to vote anyone out of office. And smokers all feel too guilty about the habit to complain much (former smoker).


  24. - Fed Up - Tuesday, Mar 31, 09 @ 6:43 pm:

    What about renters? I help my landlord’s property taxes and he gets the tax write off. I get no deduction on my income taxes. No one ever seems to care about us. We vote too.


  25. - wordslinger - Tuesday, Mar 31, 09 @ 7:14 pm:

    Daley wants his “share” of the increase, and will use it to “lower” property taxes in the city by at least that much so he’ll be a hero.

    He’s sitting on a pretty nice “rainy day” fund from his asset selloffs to handle his budget problems.


  26. - hatedumbdumbs - Tuesday, Mar 31, 09 @ 7:54 pm:

    Fed Up,
    If you are paying your rent on time your landlord is paying taxes on that income. He can only deduct expenses on repair NOT the time and effort it takes to get keep the property in order. You get NO tax break you don’t deserve one.


  27. - Sweet Polly Purebred - Tuesday, Mar 31, 09 @ 8:50 pm:

    As a occassional smoker, I guess I know what I’ll be growin’ in my garden this year. Time to research tobacco cultivation and curing. Cheaper and easier than driving to Missouri once in a while for my tobacco fix. I guess I should seriously think about investing in the medical marijuana trend. Being a weeder has to be cheaper than being a cig smoker.


  28. - Bruno Behrend - Wednesday, Apr 1, 09 @ 12:55 am:

    Polly,

    No need to grow it. Back when my sister used to smoke, she would by papers and tobacco and roll her own. If I’m not mistaken, you don’t pay the obscene tax on the bagged tobacco, but then, I don’t smoke, so I don’t know for sure.

    Of course, now that all the legislators reading this site know that, look for the tax increase to be in the upcoming bill…

    DOH!


  29. - Lynn S - Wednesday, Apr 1, 09 @ 10:59 pm:

    Rich, I have submitted a response (admittedly, rather flippant) to this thread 3 times over the last 2 days, but it hasn’t appeared yet. Am I being held for moderation? Kindly requesting a response (the above e-mail is good). Thanks in advance, Lynn S.


  30. - Lynn S - Thursday, Apr 2, 09 @ 11:14 pm:

    No, Polly, it’s still cheaper to buy tobacco than marijuana. The real question, however: is it cheaper to grow and cure your own tobacco than it is to grow marijuana? (Growing methods would have to be similar; i.e., both in ground or both hydroponic.)

    arching an eyebrow, stepping back….

    And Bruno, loose tobacco tax also raised this time. Don’t know if they changed the tax rate on rolling papers, though.


Sorry, comments for this post are now closed.


* Schilling endorses LaHood
* Reader comments closed for the weekend
* Duckworth to announce on Monday
* Rauner mulls selling Thompson Center
* Question of the day
* It's just a bill...
* *** UPDATED x1 *** Brown: Exploring an exploratory committee is "under review"
* Rauner administration denies union report of progress on fair share suit
* *** UPDATED x2 - Durbin out of the running? *** Illinois Republicans react to potential Durbin elevation
* Is a new era finally dawning in Illinois?
* Meanwhile, in Opposite Land...
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Mobile Marketing Trends To Follow From The Israeli Elections
        * Pebble Time concludes Kickstarter campaign, pledges exceed $20 million
        * Profits almost doubled for ZTE last year
        * Mysterious Huawei Honor handset pictures leak
        * Verizon starts pushing out Lollipop update for the Galaxy S5… Again!
        * The Week in iPad Cases: Build your library with book-style cases from Pad & Quill and Portenzo
        * The HTC One M9+ has its design showcased in latest leak

        * Moleskine myCloud Smallpack Review
        * Angie’s List Halts Expansion Plans to Protest Indiana’s “Religious Freedom” Law
        * For some strange reason, Periscope users are obsessed with your fridge
        * Curb Overspending by Establishing a “No Return Policy”
        * Guess How Many Women Made the Forbes Midas List? (It’s Worse than You Think)
        * DashCast Streams Dashboard-Style Web Pages to Your Chromecast
        * Use “Collection Management Policies” to Curate Your Collectibles

        * 'Athletic' Sale makes progress during simulated game
        * 'Athletic' Sale makes progress during simulated game
        * Quintana powers through, locks down A's after first
        * Semien faces White Sox, praises good friend Johnson
        * White Sox not concerned about two key bullpen members
        * Williams remains optimistic for White Sox season
        * Quintana powers through, locks down A's after first

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        March 2015
        February 2015
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Federal, state budgets moved forward last week..
        * WILLIAM NANGLE: Let's hope wise voices prevail .....
        * Rauner talks Budget Fix..


        * 12-year-old shot to death in Quincy
        * Chicago's retired Cardinal George readmitted to hospital
        * Chicago universities study astronaut on 1 year space mission
        * Bison to graze at Midewin National Tallgrass Prairie
        * Nation's biggest nuclear firm makes a play for green money
        * Chicago's Thompson Center could get price tag
        * Bison to graze at Midewin National Tallgrass Prairie
        * University of Oklahoma unveils racist chant probe findings
        * Bradley names Brian Wardle its 14th basketball head coach
        * Ferry reopening between southern Illinois, western Kentucky

        * Statehouse Insider: Now the tough budget talks begin
        * Effingham native Jim Schultz brings entrepreneurial spirit to state agency
        * Rauner's 'right-to-work' proposal focus of larger debate on business climate
        * Effingham native Schultz brings entrepreneurial spirit to state agency
        * Irresistable force, immovable object on business reform
        * Rauner considering appraisal of Chicago's Thompson Center
        * Budget-patching deal dips into various state funds
        * Comptroller Munger expedites funds to child care providers
        * Lawmakers' budget deal raises concerns over burial costs
        * Former Congressman Schilling making 'special announcement' Saturday in Peoria

        * Chicago likely to get sacked by NFL draft
        * Would Cat be better off at half the size?
        * Is Mondelez the next takeover target?
        * Guess which carmaker is Chicago's favorite
        * Don't mention the “U” word around Rauner


          * Indiana governor supports 'clarifying the intent' of religious objection law
          * Manager of Chicago rapper Lil Durk slain on South Side
          * 1 fatally shot, 4 wounded in city shootings
          * Emanuel and Garcia scour city for votes
          * Cops: Woman dies in crash after husband drove car off closed bridge
          * Prosecutors: 7-Eleven robber told investigators 'I was just trying to feed my family'
          * Man fatally shot after argument over woman at South Loop lounge
          * Wrigley rooftop owner indicted on fraud charges in alleged $600,000 scheme
          * 12-year-old boy shot to death in Quincy
          * Recent murder victim remembered at vigil


          * With GOP votes, Indiana House approves religious objection bill
          * After spending scandals, Rep. Aaron Schock says goodbye
          * Legislature to consider Madigan plan to fill state budget gap
          * Rauner signs into law compromise plan to fix budget hole
          * Where can a politician wield more influence? Chicago's City Council vs. Illinois' Statehouse
          * More people moved away from Illinois last year than any other state
          * Flamin' Hot Cheetos top Chicago Public School vending machines
          * Flamin' Hot Cheetos top some Chicago Public School vending machines
          * Flamin' Hot Cheetos top Chicago Public School vending machines
          * ACLU: Chicago police make more stops than New York at its peak


          * Statehouse Insider: Now the tough budget talks begin
          * Statehouse Insider: Now the tough budget talks begin
          * Bernard Schoenburg: Use of city seal on campaign materials becomes issue in Ward 7 race
          * Our Opinion: In Springfield mayor's race, Jim Langfelder gets our endorsement
          * Effingham native Jim Schultz brings entrepreneurial spirit to state agency
          * Andy Shaw: Illinois' legislative scholarship program like a zombie that won't die
          * Rauner's 'right-to-work' proposal focus of larger debate on business climate
          * Rauner considering appraisal of Chicago's Thompson Center
          * Phil Eaton: Illinois can't arrest, treat or bury its way out of heroin epidemic
          * Charles Krauthammer: The GOP racing form: First edition


          * State probing school misconduct allegation
          * An ice-cold adventure
          * Theater shift manager pitches in where needed
          * Governor targets taxpayer-funded tuition program
          * SHELF LIFE
          * The girth of a nation
          * Open Line
          * Free oral cancer screenings offered
          * Bergschneider-Yates
          * King-Tendick


          * Lee Kuan Yew eulogized as architect of Singapore
          * Air Canada plane leaves Halifax runway on 'abrupt' landing
          * Hertz so good for Lakes at Top Times
          * LEADING OFF: Alex Rodriguez to play first base
          * Survived: No. 1 Kentucky holds off Notre Dame 68-66

          * Duckworth to announce Senate bid Monday
          * Illinois Congressman Bost Says Granite Cit...
          * Report: Rep. Tammy Duckworth to announce I...
          * Rep. Tammy Duckworth to announce Senate bi...
          * Bustos And Other Illinois Members Renew Bi...
          * Kirk, Durbin propose changes in disaster d...
          * Longhi: Granite City layoffs not permanent
          * Duckworth announcing Senate run: report
          * In defense of bloody primaries
          * Kelly develops ag platform for diverse dis...

          * Wacko birds perch in Senate...
          * Reid says he won’t seek re-election...
          * Theotis Robinson: Hatred of Obama holds up......

          * US Senate threatens Iran with new sanctions...
          * Senate Warns Obama by 100-0 Vote for Pro-S......
          * Federal, state budgets moved forward last ......

          * Chicago Voter Registration Numbers Increased By 20,000 Since February
          * Fioretti Endorses Emanuel
          * Endorsed by the Daily Herald
          * “The Driver’s Side” – News From The Motorist’s Perspective
          * Congress Parkway Bridge Temporarily Closed Early Sunday Morning
          * The desperate panderer.
          * My dinner with Rahm.
          * Scientism in the Age of Obama
          * Stantis: Budget Bandaids
          * Illinois Congressman Luis Gutiérrez shouted off the stage at USC


          * Governor Rauner Takes Bill Action
          * Nominating Petitions Available For Illinois Commodity Board Seats
          * Health Matters: 2015 Illinois Minority Health Efforts - Creating & Sustaining Healthy Communities
          * ‘Text First, Talk Second’ Often Best Way to Contact Loved Ones When Disaster Strikes - IEMA Encourages People to Have Plan for Communicating with Family Members, Friends during Emergencies
          * New Illinois Server Training Law effective July 1 - State currently offering FREE responsible beverage server classes




              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller