SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Illinois not joining 16 other states in a sales tax holiday this month as federal revenues drop $1 billion

Thursday, Aug 4, 2011

* There won’t be another back to school sales tax holiday in Illinois this year. Iowa is about to hold its 11th annual holiday on sales taxes for clothing and footwear. Missouri is also having a tax holiday soon. Time Magazine has more info

At least 16 states are hosting tax-free shopping events in the near future, including 11 states waiving sales tax on many purchases this weekend: Alabama, Arkansas, Iowa, Louisiana, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, and Virginia. Other states—Connecticut, Florida, Maryland, Massachusetts, Texas—hold their tax-free weekends later in August.

More details about each state are here.

* The Northwest Herald wonders if the lack of an election is the reason for no repeat performance in Illinois this year

The governor has said nary a peep about it, because the Illinois General Assembly didn’t reauthorize the tax holiday. Frankly, we don’t recall the governor pushing very hard for a reauthorization, either.

What’s different in 2011?

The economy still isn’t very robust.

Families still are struggling to make ends meet, and back-to-school shopping remains “expensive and difficult,” to use Quinn’s words from last year.

Besides, the state has had a hefty chunk of new money coming in since January, after the Legislature approved and Quinn signed big increases in income tax rates for individuals and businesses.

So, you’d think it would have been even easier this year than last for the state to give back-to-school shoppers a temporary sales tax break.

The cynic might point out that last year was an election year, and this year isn’t.

But surely that wouldn’t be the reason the governor and Legislature forgot all about extending the sales tax holiday in 2011.

Would it?

* And Sen. Toi Hutchinson didn’t completely dispute that angle during a talk with Phil Kadner

State Sen. Toi Hutchinson (D-Olympia Fields), who was a sponsor of the original tax holiday bill, told me Wednesday that Illinois simply can’t afford such generosity this year.

“We have $8.7 billion in unpaid bills,” Hutchinson said. “We’ve made unprecedented cuts in the state budget that are very painful.

“As much as I would like to help families and schoolchildren in Illinois, this is simply something the state cannot afford to do this year.”

I noted that last year the state was not only drowning in red ink, but had yet to pass a 67 percent income tax hike. Still, the Legislature thought the sales tax holiday was a good idea.

“Sometimes you do things for political reasons that are not good public policy reasons,” Hutchinson said.

I give Hutchinson high marks for honesty. Most politicians wouldn’t have answered that question in such a direct manner.

“When they (legislative leaders) came to me last year and asked me to carry this bill, I thought it would be a good thing to do to help people who were struggling in this economy and had children in school,” Hutchinson said.

“I have since learned a lot more about the budget process, and as much as I would like to help people with children in school again this year, it just doesn’t make sense.”

* I’m probably excerpting too much from Kadner’s column, but he has more that’s of interest

Susan Hofer, spokeswoman for the Illinois Department of Revenue, said the state estimates that consumers spent $323 million on school supplies during last year’s 10-day tax holiday, for a sales tax savings of $16 million.

That’s far short of the $60 million in savings some politicians were predicting when the bill waiving the 5 percent state share for sales tax for school supplies passed.

As for the business stimulus the legislation was supposed to create, Hutchinson said, “After studying some of the figures on tax holidays, I’m not sure people spend more. I just think it impacts when people spend instead of how much they spend.”

Gov. Pat Quinn originally predicted $40-60 million in savings.

Thoughts?

* Meanwhile, the state is losing out on big federal bucks this fiscal year

The end of the federal stimulus program and changes in Medicaid payments will cost Illinois more than $1 billion this fiscal year compared to last, says an analysis from a state economic-forecasting commission.

‘We knew this was coming,” said Jim Muschinske, revenue manager for the Illinois Commission on Government Forecasting and Accountability.

The commission’s July revenue update estimated the state would receive $4.530 billion in federal transfers for the fiscal year that ends June 20, 2012. The estimate compares to $5.386 billion received in the previous fiscal year.

Muschinske said a 60 percent federal reimbursement rate for state Medicaid costs returned to 50 percent after the economic-stimulus program expired. The state’s decision to stretch out payments to Medicaid providers in the current fiscal year also will reduce the amount eligible for federal reimbursement, he said.

* Related…

* Governor’s office announces homebuyer down-payment assistance program

* Illinois notifies seniors eligible for free rides

* Yearly tab for Ald. Burke’s bodyguards nearly $600,000

- Posted by Rich Miller        


17 Comments
  1. - How Ironic - Thursday, Aug 4, 11 @ 8:31 am:

    I think the ‘tax holiday’ idea is foolish, and doesn’t spur additional spending. As pointed out, it simply shifts buying for goods that would have been purchased otherwise to a few days where the state doesn’t get any revenue.

    Similar to politial talk when gas prices climb about a $.05/gallon ‘tax’ savings. It’s stupid.

    If the state was flush with cash, and all bills were current, then perhaps it might make some sense. But until then, it’s a dumb idea.


  2. - Sam I am - Thursday, Aug 4, 11 @ 8:44 am:

    The Burke story ruined my morning.


  3. - Bonsaso - Thursday, Aug 4, 11 @ 8:59 am:

    Maybe someone could run against Burke by saying how much they could save the city.


  4. - Wumpus - Thursday, Aug 4, 11 @ 10:39 am:

    Fine, I am going to drive to Indiana or Wisconsin to celebrate in their tax holidays! I don’t care if gas is $4 gallon!

    These holidays are silly.


  5. - zatoichi - Thursday, Aug 4, 11 @ 10:56 am:

    Illinois is #50 on the national net asset poll and it seems like a good idea to cut some revenue. A small tax vacation feels good today, Later we can cut some funding that will eliminate jobs because there is not enough cash to pay the bills. Excellent, Smithers!


  6. - Metro East Transplant - Thursday, Aug 4, 11 @ 11:56 am:

    I agree the holiday tax will not spur any additional spending. The required items on my 8th graders school supply list + a lunch box totaled $160 alone. No money left to additionally spend.


  7. - Cincinnatus - Thursday, Aug 4, 11 @ 11:58 am:

    Rich said,

    “But surely that wouldn’t be the reason the governor and Legislature forgot all about extending the sales tax holiday in 2011.

    Would it?”

    It’s not an election year…

    Re: Medicaid reduced funding.

    Does it make sense to revisit AllKids yet?????


  8. - Hunterdon - Thursday, Aug 4, 11 @ 1:37 pm:

    re:
    Governor’s office announces homebuyer down-payment assistance program

    Has Quinn lost his mind!?
    Isn’t this program exactly what was going on a few years ago on the federal level that played a huge part in our current economic mess?
    Illinois cannot afford to front down payments for low income people to buy homes they really can’t afford in the first place. It was a financial disaster on the Federal level and it will be the same for Illinois. What is Quinn thinking?


  9. - Cincinnatus - Thursday, Aug 4, 11 @ 2:39 pm:

    - Hunterdon - Thursday, Aug 4, 11 @ 1:37 pm:

    “Has Quinn lost his mind!?”

    You can’t lose what you never had…


  10. - Ghost - Thursday, Aug 4, 11 @ 2:52 pm:

    Lets just do a sales tax holiday rememberance day.


  11. - mcbroke - Thursday, Aug 4, 11 @ 3:06 pm:

    I cannot believe what I’ve read about “Smart Move” the gov’s new program to provide up tp $6000.00 toward the purchase of a home……….for those who may not have enough for the downpayment……..or other incidentals like appliances. In Sangamon county, a household may have up to $81+k income to purchase a home up to $247,000.00. what? Can this be correct?

    But what really slays me is that the $200 million program will serve 1300 households. Let’s see….$200 million divided by 1300 households =
    $153,846.00. But the maximum given each household is $6000.00. Where is the remaining $147,846 [x 1300} or $192+million going? Overhead?

    I must surely have my figures wrong.


  12. - zatoichi - Thursday, Aug 4, 11 @ 4:04 pm:

    mcbroke,
    Your figures are right out of the article. Twist it another way, at $6,000 a home they could provide financial help to 33,333 homes compared to the 1,300 target in the article. If they gave me $6,000 to help pay off my home, I could then spend the extra money in the local economy helping our local businesses. Now that would be a ‘Smart Move’.


  13. - Phineas J. Whoopee - Thursday, Aug 4, 11 @ 4:07 pm:

    MCbroke, they must be funding the entire loan.

    There seems to be a mad race to get taxpayers to pay for any and every social service any goo goo can think of even while our economy raises toward bankruptcy.

    My favorite is breakfast served in the classroom. Families get free lunches, food stamps (theoretically to buy food) and breakfast. I’m sure there is after school programs where snacks are served as well. Where do people think the money is going to come from?


  14. - Rich Miller - Thursday, Aug 4, 11 @ 4:16 pm:

    Yes, complain about school breakfasts. Great. Go with that. Sheesh.


  15. - wishbone - Thursday, Aug 4, 11 @ 5:58 pm:

    +1 “Yes, complain about school breakfasts. Great. Go with that. Sheesh.”


  16. - wishbone - Thursday, Aug 4, 11 @ 7:42 pm:

    “It’s just where do you stop?”

    How about we stop giving agricultural subsidies to millionaires like Michele Bachmann?


  17. - wordslinger - Thursday, Aug 4, 11 @ 10:59 pm:

    Here, I hope, are some common-sense and obvious observations based on a lifetime of experience and history:

    –The required items on my 8th graders school supply list + a lunch box totaled $160 alone. No money left to additionally spend.–

    Don’t buy them. I tossed the required list by the time my first (trainer) kid hit third grade. They don’t use half that junk on the list. Get it when they need it and don’t take the big hit up front.

    –My favorite is breakfast served in the classroom. Families get free lunches, food stamps (theoretically to buy food) and breakfast–

    That old Bolshevik, Winston Churchill, said:

    “There is no finer investment for any community than putting milk into babies.”

    Short and perfect. I’ll leave it at that. The dude had a way with expressing universal truths in the English language. Like the man said:

    “Short words are best and the old words when short are best of all.”

    Words to live by.


Sorry, comments for this post are now closed.


* Emanuel demands Rauner "re-evaluate" child care slashes
* Today's number: $1.18 billion
* The most romantic thing I've ever seen
* Protecting Wall Street, while exposing local employees
* Illinois Credit Unions – Actively engaged in the communities they serve
* *** LIVE *** Overtime session coverage
* AFSCME bill override roundup
* Caption contest!
* Dave McKinney lands at Thomson Reuters
* Governing ain't easy
* Good morning!
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

          
        * Photos of reported new Moto X Force “Bounce” leaked
        * Sony Xperia Z5 Compact launches with flagship specs in a petite package
        * Sony announces the Xperia Z5 with side-mounted fingerprint scanner
        * Samsung announces SLEEPsense sleep tracker
        * Hulu Introduces Ad-Free Subscription Plan for $12 a Month
        * Alcatel OneTouch Idol 3 4.7 review
        * Huawei announces the Mate S at IFA 2015

        * White Sox paying David Robertson a lot, but getting a lot
        * Sale fans 10, Avi homers in loss at Target Field
        * Sale equals Unit with 13th 10-K start of '15
        * Rodon takes aim at slowing Twins' playoff pursuit
        * Twins 8, White Sox 6: Bullpen collapse wastes resiliency
        * Sale fans 10, Avi homers in loss at Target Field
        * Robertson undeterred by waiver claim reports

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


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

        Archives
        September 2015
        August 2015
        July 2015
        June 2015
        May 2015
        April 2015
        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


        * Judge closes start of Drew Peterson pretrial hearing
        * EXCHANGE: Living life of a hoarder isn't easy
        * Chicago protests featured in photo exhibit at Roosevelt U
        * West Nile virus claims 2 lives in Illinois this year
        * Corrections department holding summit for Illinois parolees
        * Illinois economic index holds steady in volatile month
        * Ill. House might attempt override of union-arbitration veto
        * 7 dead from Legionnaires' disease at Quincy veterans home
        * Lawsuit: U of Illinois retaliated over sex harassment claim
        * Illinois House gears up for override of union-strike veto

        * Illinois House faces crucial vote on union arbitration bill
        * United Way advance keeps Helping Hands shelter open as state budget impasse continues
        * House faces crucial vote on union arbitration bill
        * LIHEAP program delayed by state budget impasse
        * United Way advance keeps Helping Hands shelter open as budget impasse continues
        * Judge declines to hold Illinois in contempt on payments
        * State, Teamsters agree on new contract that includes four-year wage freeze
        * State, Teamsters agree on new contract
        * Rauner signs law toughening penalties on drunken drivers
        * Illinois State Museum is latest target in political fight

        * Stocks rebound after 2-day selloff
        * Meet Chicago's first couple of indy filmmaking
        * Meet Chicago's first couple of indie filmmaking
        * Uber drivers in California win a round in court
        * George Lucas, Mellody Hobson unveil new Lucas Museum design


          * 2 dead, 1 wounded in South Shore shooting
          * A growing memorial for slain officer as manhunt changes direction
          * Genealogy gold mine: Millions of wills now online
          * Notre Dame sends alerts after 3 sex attacks reported since Friday
          * Madigan, Rauner face showdown day over major labor bill
          * Suspect in Willowbrook stabbing, sexual assault arrested in Indiana
          * Man dies after his car collides with CTA bus in Roseland
          * Manhunt continues in Lake County as Fox Lake mourns slain police officer
          * Slain Fox Lake police officer remembered as dedicated cop, inspiring mentor
          * Northerly Island Park opens Friday on Chicago lakefront


          * James Skibo: Museums are treasures worth saving, not destroying
          * The Rev. Alexander Sharp: Gov. Rauner's desire for criminal justice reform in question
          * Michael Gerson: Donald Trump declares war on demography
          * E.J. Dionne: Iran and the case for realism
          * Illinois House faces crucial vote on union arbitration bill
          * United Way advance keeps Helping Hands shelter open as state budget impasse continues
          * LIHEAP program delayed by state budget impasse
          * Judge declines to hold Illinois in contempt on payments
          * Todd Maisch: National labor board's decision a real jobs killer
          * State, Teamsters agree on new contract that includes four-year wage freeze


          * U.S. offers $10 million in grants for railroad crossing fixes
          * Wills of millions of Americans now available online
          * Hunt for 3 suspects in Illinois officer's death continues
          * Court hearing for 6 officers charged in death of black man
          * Biden to test political waters in Florida as he mulls 2016
          * Obama gets Iran deal win as Senate Dems amass enough votes
          * Semi loaded with steel stolen from business
          * 20150902-093602-pic-366900686.jpg
          * Arthur zoo developer targets Rockome Gardens
          * Forced turnover


          * US offers $10 million in grants for railroad crossing fixes
          * Court hearing for 6 officers charged in death of black man
          * Police say they're following leads, tips from public in Fox Lake investigation
          * US markets recover a day after big plunge
          * Wear orange Sept. 3 to shine light on hunger and ways you can help

          * House lawmakers overcome hurdle on key tra...
          * Rodney Davis talks funding with Bloomingto...
          * The agency that fought Illiana gets a new ...
          * Rep. Dold takes educational cruise down Ch...
          * Lawmakers decry high turnover rate of VA h...
          * CBD Oil, and politics
          * Simon considering state Senate bid
          * Killer Congressman Tom MacArthur trying to...
          * Shutdown? State may not notice
          * Rep. Bob Dold

          * Durbin Speaks on Rauner Veto - Alton Daily......

          * Sen. Kirk calls attention to International......

          * Free Concert At Buena Park Circle A Success
          * Double Murder On Winthrop Overnight
          * Sign up for Sept. 10-11 commercial real estate foundations course in Chicago
          * Morning Minute: Thinking about buying a home? Tips to improve your credit score
          * State Budget Impasse Could Force Shutdown Of Cook County Independent Living Center
          * Illinois African-American Jobless Rate Among The Nation's Highest
          * Progress Center for Independent Living Press Conference
          * Emanuel Leaves Door Open To Tax On Ride-Hailing Services
          * Justice Theis announces application process for 6th Subcircuit vacancy
          * Federal Judge Orders Ex-Chicago Comptroller To Start U.S. Prison Sentence


          * Legionnaires’ Disease Outbreak at Illinois Veterans’ Home-Quincy Update
          * Veteran Spouse Ada Ruth Cripps Honored As The IDVA Volunteer of the Year
          * State-Teamsters One Step Closer to Finalizing Agreement
          * GOMB Director Issues Statement
          * Governor Announces Appointments




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