SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Feeling the tax hike

Thursday, Jan 3, 2013

* From the Senate Republicans

Here’s some food for thought. Remember that payroll tax cut that Congress granted everyone two years ago and now is expiring?

If you don’t remember the bonus, that’s because here in Illinois workers never saw the money. Governor Quinn and his fellow Democrats immediately took it away from taxpayers by raising state income taxes by an equal amount.

Now, as part of the “Fiscal Cliff” compromise, payroll taxes will return to the previous rates. But, will Quinn give back the tax hike? Not likely, since the state continues to spend more than it takes in, even after the 67% state income tax hike.

Set aside for a moment the debate over whether the tax hike will be allowed to expire.

In the near term, the SGOPs are right that the two percentage point payroll tax holiday meant that Illinoisans didn’t really feel the two-point state income tax hike. But now they will.

Discuss.

- Posted by Rich Miller        


21 Comments
  1. - Steve Bartin - Thursday, Jan 3, 13 @ 8:59 am:

    Which is just another way of saying Illinois didn’t get the benefit of the FICA tax cut that other states did. Look at the stagnating results. Illinois has a population growth rate well below the national rate since 2010 according to Census estimates.


  2. - Fan of the Game - Thursday, Jan 3, 13 @ 9:02 am:

    The SGOP is right, but that message won’t resonate because 1) Democrats rule in Illinois and 2) the SGOP does a horrible job of selling its valid points.


  3. - RNUG - Thursday, Jan 3, 13 @ 9:07 am:

    Very few Americans realized the “payroll tax cut” was actually cutting the employee contribution to Social Security. If it had been honestly presented as shorting the already in trouble SS fund, I doubt there would have been much public support for it two years ago.

    That’s part of the reason Washington didn’t extend that cut; they knew SS needed the funds … even if all the Feds are going to do is take the money, spend it, and leave IOU’s. Or you could look at it in a more cynical light and say the extra money in will be used to further expand federal government spending …

    A lot of the media is co-mingling the various tax issues and including it as a “income tax hike” in their fiscal cliff stories. Sometimes the truth of it is found in the last paragraph or two of the story.

    As far as IL citizens go, most will be “outraged” their taxes went up without understanding which tax and why.

    One of the few advantages of being retired these days is I get to ignore this “tax hike”.


  4. - Small Town Liberal - Thursday, Jan 3, 13 @ 9:09 am:

    - since the state continues to spend more than it takes in -

    What courage from the same SGOPs that mostly voted to override the Governor’s facility closures:

    http://capitolfax.com/2012/11/29/quinn-loses-budget-vote-wont-change-outcome/

    Such hypocrisy deserves to be a superminority.


  5. - LincolnLounger - Thursday, Jan 3, 13 @ 9:18 am:

    Much ado about nothing. It’s not like the voters will hold them accountable.


  6. - Poster - Thursday, Jan 3, 13 @ 9:21 am:

    Will the tax hike expire? I’m still waiting for the temporary license plate increase to expire


  7. - wordslinger - Thursday, Jan 3, 13 @ 9:28 am:

    Steve, through what wizadry do you correlate marginal tax rate changes and population growth? And all in just a few months, too.

    I’m always fascinated by theories that transform tax policy into some uber-thermostat able to control the economic climate in a global economy with just slight adjustments, irregardless of the scores of other factors in play, mostly out of the control of any state government.

    You can argue that revenues and expenditures should balance, but that requires a plan and a will to make it happen.


  8. - dupage dan - Thursday, Jan 3, 13 @ 9:38 am:

    I am reminded of then Senator Paul Simon supporting NAFTA. He was excoriated by members of his own party, labor unions, etc. Sen Simon stood by his convictions and supported the controversial bill. It is a rare politician who takes a stand that appears contrary to will of his constituency. It is possible that had an impact on the his presidential candidacy.

    I wish we would see more of that on both sides of the aisle right now.


  9. - dupage dan - Thursday, Jan 3, 13 @ 9:49 am:

    I am not unsurprised that wordslinger would use the word “irregardless”. Such use of the nonstandard double negative is beneath you.


  10. - Bee - Thursday, Jan 3, 13 @ 9:50 am:

    ~In the near term, the SGOPs are right that the two percentage point payroll tax holiday meant that Illinoisans didn’t really feel the two-point state income tax hike. But now they will. ~

    Two weeks ago, I excitedly called my mortgage underwriters to let them know I received a 4% pay increase. Today, I received my first paycheck showing the increase…. I am actually receiving 6% less than before. I don’t think this is going to help get me out of foreclosure.


  11. - wordslinger - Thursday, Jan 3, 13 @ 10:00 am:

    Thanks, DD, your parsing of my Midwestern vernacular got me thinking about Paul Simon and NAFTA…


  12. - Third Reading - Thursday, Jan 3, 13 @ 10:03 am:

    Petulance. Poutiness. Peevishness.

    Not a winning formula for a minority party.

    I’m outta here.


  13. - Dan Johnson - Thursday, Jan 3, 13 @ 10:07 am:

    To be fair, if it wasn’t the “Illinois General Assembly” that raised state income taxes two percent, but instead “Governor Pat Quinn” then it wasn’t “Congress” that created the payroll tax cut for everybody but instead “President Barack Obama” since he and the Dems were the only advocates for it (GOP wanted marginal tax rates especially for high-income to remain at ‘01 levels), and going back to the Recovery Act of 09 that implemented the cut in the first place, that passed with only Democratic votes.


  14. - dupage dan - Thursday, Jan 3, 13 @ 10:17 am:

    Blaming the use of that word on your midwestern upbringing - Oh Prunella.


  15. - steve schnorf - Thursday, Jan 3, 13 @ 11:01 am:

    Since the tax increase was 2 years ago and peoples paychecks didn’t go down, and the paycheck cut starts now, my guess is in many peoples minds the blame goes to Congress not the GA and Gov


  16. - HEY JACK, - Thursday, Jan 3, 13 @ 12:54 pm:

    Steve and Dan are on target with their comments. My net pay will definitely be 2% lower. How sad for hard working midlle class workers and for that matter all workers. To much spending and not enough accountability. If not corrected soon the U.S. as we know will become more and more socialistic, if changes are not made immediately to our system and with our so called Senators and Representatives. Not to mention the Govenor and current President’s total lack of responsibility to U.S. citizens!


  17. - Scott - Thursday, Jan 3, 13 @ 1:09 pm:

    Wait you are blakming Obama for the tax cut the Dems voted for and asking the Republicans that voted against the tax cut to protect you form the tax increase? Brilliant.


  18. - Joe M. - Thursday, Jan 3, 13 @ 1:51 pm:

    - Which is just another way of saying Illinois didn’t get the benefit of the FICA tax cut that other states did

    However, many states already had higher rates than the 5% rate that Illinois raised its individual income tax rate to. For example, here are the top individual state income rates of some of our neighboring states:

    Wisconsin: 7.75%
    Iowa: 8.89%
    Missouri: 6%
    Kentucky: 6%


  19. - Wumpus - Thursday, Jan 3, 13 @ 2:20 pm:

    At least I can shop in Cook County again


  20. - Arthur Andersen - Thursday, Jan 3, 13 @ 3:04 pm:

    Steve, I suspect you are right on attributing the blame to DC instead of SPI.
    I do need to hear Oswego Willy’s take on the SGOP point, though.


  21. - Ruby - Thursday, Jan 3, 13 @ 5:08 pm:

    It should be noted that the 2 percent increase in the payroll tax brings the employee contribution for Social Security back to 6.2%. Meanwhile the Social Security compounded COLA (cost of living adjustment) has been under attack by many newspapers and politicians under the code words “entitlement reform”. The Social Security defined benefit plan can’t be sustained if the employee contribution is only 4.2%.


Sorry, comments for this post are now closed.


* Pollapalooza
* Another day, another $1.5 million
* Justifiable turnabout or pay to play?
* Cook moves Enyart district from "Lean D" to "Toss-up"
* Two important inversion opinions
* SUBSCRIBERS ONLY - Supplement to today’s edition
* 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

          
        * HP takes a stab at smartwatches with round-faced design
        * Pocketnow Insider: this is the phone the editors want right now
        * Oneplus One watch, a waterproof One M8, & signing away your rights to Facebook | Pocketnow Weekly 107 (Hangout)
        * OnePlus rumored to ditch CM, OneWatch plans leaked
        * HTC’s Windows Phone One M8 pops up in certification database?
        * Runtastic Orbit tracks lifestyle 24/7 for a healthier you
        * Comic: Nothing old can stay

        * Seven Important Lessons from World Religions Everyone Should Know
        * Fashion first? Designer Michael Bastian sets his sights on wearable technology
        * Keeping Some Clutter May Be More Valuable For Lower-Income Households
        * MakerBot 3D Printing Specialist Launches MakerBot Europe With Offices In Germany
        * Wunderlist 3 Launches With Real-Time Synchronisation (video)
        * How to Pick (and Manage) Credit Cards for the Best Travel Rewards
        * Deadspin Phillies GM Explains Why Terrible Team Didn't Get Better | Jalopnik Could You Do $11,500 Fo

        * July struggles bury Dayan Viciedo, Gordon Beckham
        * AL Central trade deadline wrapup
        * White Sox 7, Tigers 4: Returning home in one piece
        * Abreu's hit streak reaches 20 with first-inning single
        * Ventura loses replay challenge in ninth inning
        * White Sox take series while Detroit deals
        * Abreu's hit streak reaches 20 with first-inning single


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

        Archives
        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


        * Group picked by Quinn administration made no lo.....
        * Making Illinois schools safer with new epinephr.....
        * Two more costly losses for public unions - Inve.....
        * Campaigns working to get people to vote early, .....
        * Criminal States - National Review Online..


        * Ex-Bulls player pleads not guilty to sex abuse
        * Chicago high-rise shooting victim remains critical
        * Southern Ill. man gets probation in weapons case
        * 2 men rescued from bucket lift in Illinois
        * Guilty plea in crash that killed 2 motorcyclists
        * Durbin, Kirk push for federal action on Asian carp
        * Demoted worker shoots CEO, kills self in Chicago
        * Jewish judge won't give up case of Arab activist
        * Rauner says he'll be 'champion' for farmers
        * Man accused of putting needles in packaged meat

        * State lawmaker's replacement named
        * Rauner says he'll be 'champion' for state's farmers
        * Quinn: Workers' compensation rate to fall in 2015
        * Quinn signs epinephrine law for Illinois schools
        * Governor candidates differ on overseas tax breaks
        * Quinn: State will 'prevail' in Shakman lawsuit
        * Illinois Medicaid restricts use of hepatitis drug
        * Quinn OKs ballot question on tax hike for incomes over $1M
        * Lawsuit against Quinn back in court in October
        * Illinois to ask voters about taxing millionaires

        * Knock off all 32 Greek tragedies this weekend
        * Emanuel's 2015 budget puts off pension crisis for now
        * Allstate cuts auto rates for first time in six years
        * Chicago biz center aims to foster two-way trade with China
        * Chicago biz center aims to spark two-way trade with China


        * 1 dead, 1 critical in Loop workplace shooting
        * Everything you need to know about Lollapalooza 2014
        * Former co-worker recalls shooter, victim in Loop office tragedy
        * VA manipulated vets’ appointment data in Chicago, elsewhere, audit finds
        * Police questioning person for fatal Edgewater crash involving CTA bus
        * Police chase ends with crash at Great Lakes Naval Station
        * Bicyclist hit by Metra train in Des Plaines dies
        * Old tank cars put Chicago at risk
        * Judge, big supporter of Israel, balks at leaving Palestinian terrorism-related case
        * Father of slain teen fatally shot in Humboldt Park


        * Competency hearing today for girl, 12, in Slenderman stabbing case
        * Man dies in building fire in suburban Cicero
        * The Overnight Beat: Follow reporter Pete Nickeas and photographer Anthony Souffle on the streets of Chicago.
        * Police chase ends with crash at Great Lakes Naval Station
        * Crews struggle to get enough water to fight extra-alarm fire
        * Metra train hits, kills bicyclist on UP Northwest Line
        * Father shot dead 6 days after son slain: 'It hurts so much'
        * Chicago's day of reckoning over pensions delayed
        * Ricketts family to host political fundraiser at Wrigley Field
        * Shootings leave 1 dead, 3 wounded


        * "The Civil War" Becomes A Downtown Musical
        * New Choir Brings A Level Of Expertise
        * Republican Attorney General Candidate: Pension Changes Unconstitutional
        * Some Historic Sites To Curtail Hours Due To Lack Of Money
        * At Historic Sites, Budget Cuts Could Lead To Closures
        * State Fair Manager "Moving Forward" After Ethics Violation
        * Community Prosecutions Credited With Drops In Crime
        * Community prosecutions credited with drop in crime
        * Police responding to shooting in the Loop
        * Demoted worker kills self, wounds CEO in Loop shooting


        * Bernard Schoenburg: Changes coming to Prairie Capital Convention Center board
        * Margaret Niederer: Bruce Rauner is not the change Illinois needs
        * E.J. Dionne: The GOP’s impeachment two-step
        * Esther Cepeda: Giving teachers their voice
        * State lawmaker's replacement named
        * Rauner says he'll be 'champion' for state's farmers
        * Our Opinion: Dangerous pedestrian crossing getting the attention it deserves
        * The GOP as the party of reform
        * John Cooney: Lawsuit abuse is a myth spun by big business
        * Quinn: Workers' compensation rate to fall in 2015


        * More construction coming to Southern Illinois
        * Sheriff: Juveniles who trespassed at former Belleville area school may be charged
        * Quinn to hold bill-signing event in Granite City
        * Nursing home Medicaid backlog remains high
        * 9 days to Camp Rantoul
        * Asmussen's Top 50: No. 9 Baylor
        * Future Illini gear up for season
        * Patchy Midwestern Dryness of Little Concern
        * Durbin slams CN for slowing Amtrak
        * Fred Giertz 8/1/2014


        * U.S. markets fluctuate a day after a major drop
        * U.S. consumer spending up 0.4 percent in June
        * Harley recalls bikes for ignition switch problem
        * U.S. employers add 209K jobs, rate rises to 6.2 pct.
        * Country House restaurant getting new spot in Lisle

        * Taking care of the immigrant children cros...
        * Dem Rep Schakowsky Suggests US Torturing I...
        * 3 politicians try living on minimum wage b...
        * Politicians Give Living on Minimum Wage a ...
        * Malkin's news for Dems: It's 'not an inter...
        * Labor Dept., Dems renewing push to hike mi...
        * Rep. Jan Schakowsky (D-Imwit) Dares To #Li...
        * Illinois Congresswoman Takes on Minimum-Wa...
        * Rep. Jan Schakowsky's minimum-wage menu is...
        * 'It's an adventure'! Michelle Malkin and f...

        * Durbin, Kirk & Great Lakes Senators Call F......
        * Durbin, Kirk & Great Lakes Senators Call F......
        * Durbin, Kirk & Great Lakes Senators Call F......
        * Durbin, Kirk Push for Federal Action on As......
        * Durbin, Kirk Push for Federal Action on As......

        * Durbin, Kirk & Great Lakes Senators Call F......
        * Kirk Calls on Secretary McDonald to Stand ......

        * Morning Minute: U.S. pending home sales slow in June, but rise in Midwest
        * In Case You Missed It: Top IARbuzz blog posts for the week
        * Wisconsin Supreme Court Upholds 2011 Union Law
        * U.S. Employers Add 209K Jobs, Unemployment Rate Rises To 6.2%
        * Moore: A Rauner win would be thunderbolt to the political class around the nation
        * Jobs Report: The Status Quo Remains the Same
        * Pension crisis and proposed solutions discussed on Chicago Tonight [video]
        * Di Leo: Tolerance, Freedom, and Hypocrisy in an Age of Confusion
        * The Power of Rational Thinking
        * Task Force To Weigh Chicago Museum Campus Traffic Improvements


        * ICYMI: Federal funds misused in Quinn anti-violence program
        * Rauner Rolls Out Agriculture Coalition and Key Supporters From the Agricultural Community Across Illinois
        * Governor Quinn Signs Law to Expand Health and Wellness Services in Communities Across Illinois - New Steps Will Help Expand Access and Quality of Healthcare
        * Pat Quinn: Patronage Will Prevail
        * Governor Quinn and Company Officials Open Nippon Sharyo Expansion in Rochelle - Passenger Rail Car Manufacturing Plant Expansion Creating 90 New Jobs




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