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.


* Unions file suit in St. Clair County
* Reader comments closed for the holiday weekend
* AG Madigan files TRO
* In re James Dimas
* Question of the day
* Weirdest. Oppo Dump. Ever.
* Big bucks reported by Zopp, Raja
* LIVE Comptroller Munger press conference coverage
* Yet another clock starts ticking down
* Hey, Cardinal fans...
* Rauner makes cheery visit to Illinois State Museum
* The Tier 2 difference
* *** UPDATED x4 *** Attorney General goes to court
* Credit Unions – Protecting Financial Futures
* GOP legislator wants "temporary, balanced budget"
* Food for thought
* The blame game
* Meanwhile, in the real world...
* When Indiana invaded Illinois
* 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

          
        * Our 5 best new Windows Phone apps of the week
        * Curved screens versus flat
        * Motorola Droid Turbo experiences battery issues after Lollipop update
        * [Deal] Flipkart slashes INR 9,000 off the price of the Nexus 6
        * Samsung starts rolling out Lollipop update for the Galaxy A5 in Russia
        * Curved iPhone, Galaxy S6, Google Wi-Fi comments & more – Pocketnow Daily Recap
        * This might be the best phone for Ingress

        * Capital Gains: PayPal Buys Xoom, a New Unicorn Emerges and More
        * Microsoft Edge Browser Doesn’t Support Silverlight
        * Keep Condiments From Dripping in the Fridge With Containers
        * Self-Driving Cadillac CTS Will Hit Roads In 2017
        * Bungie Finally Details Destiny: The Taken King Expansion
        * World Of Warships Open Beta Arrives
        * Google May Offer "Did You Mean" Suggestions While Searching on Android

        * White Sox winning fair share of close games
        * All-Star starters unveiled tonight, full rosters Monday
        * White Sox trade rumors: Jeff Samardzija makes sense for everybody
        * All-Star starters unveiled tonight, full rosters Monday
        * Eaton brothers share special July 4th moment
        * Avisail jumps into highlight reels, robs HR
        * White Sox slip past O's for fourth straight win

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


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

        Archives
        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


        * Closer Look: Despite Budget Deadlock, There Are.....
        * The State of Illinois: Despite budget deadlock,.....
        * Illinois mired in uncertainty over budget - Voc.....
        * Closer Look: Despite budget deadlock, there are.....


        * Bison thrive on the Illinois prairie; 14 calves born
        * Boy, 7, killed during violent July 4 celebrations in Chicago
        * Quincy man charged in shooting that killed 1, wounded 1
        * Danville childhood home of Dick Van Dyke on condemned list
        * Traders recall the 'rush' and 'roar' as famed pits close
        * Closer Look: Despite budget deadlock, there are ways out
        * Dead shows set attendance records at Chicago's Soldier Field
        * 7-year-old boy shot, killed in Chicago over Fourth of July
        * Woman who tries to sneak on planes arrested twice in 2 days
        * East St. Louis paid big legal fees to state senator's firm

        * Statehouse Insider: Take the over on when this impasse is going to end
        * Springfield School District has paid nearly $500K in pension penalties in past 6 years
        * East St. Louis paid big legal fees to state senator's firm
        * Illinois Senate honors victims of Charleston church shootings
        * Bill would allow cameras in Illinois nursing homes
        * State employee lawsuit seeks assurance of full pay despite no budget
        * U of I freezes administration hiring over budget
        * Attorney General Lisa Madigan seeks court ruling on state payments during budget impasse
        * Illinois EPA: State has landfill capacity for 21 more years
        * State lawmakers point fingers over budget impasse; temporary budget in limbo

        * Toni Preckwinkle's monster
        * Why Caterpillar is letting its geek flag fly
        * How much could Chicago pension payments jack up your property tax bill? Try 30 percent
        * Who's to blame for the summer of governmental meltdown?
        * Can Rauner pit Cullerton against Madigan against Emanuel?


          * Two men killed in Gresham after shots fired at SUV
          * Inside a weekend crime scene: 'Somebody walked up with a mask on'
          * 3 killed, 27 wounded over eight hours in Chicago, including boy, 7
          * Three children among four hurt in Elgin fireworks incident
          * Grandmother of slain boy, 7: 'Who would do that to a baby?'
          * July 4th festivities around Chicago
          * Grateful Dead watch parties: 'The next best thing'
          * Follow our live coverage of the Fourth


          * Coping while black: A season of traumatic news takes a psychological toll
          * Rauner proposal would advance $450M to help Chicago schools
          * For same-sex marriage opponents, the fight is far from over
          * Emails show Emanuel, top officials aware of Clinton's private address
          * After pension payment, Chicago Public Schools to make $200M in cuts
          * CPS, Emanuel warn of deep cuts, layoffs to school district
          * After marriage equality, what's next for the LGBT movement?
          * The night Chicago politicians spent punching each other in the face
          * The legacy of Willie Dixon on his 100th birthday
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions


          * Bernard Schoenburg: Independent redistricting proposal could be on 2016 ballot
          * Statehouse Insider: Take the over on when this impasse is going to end
          * Statehouse Insider: Take the over on when this impasse is going to end
          * Springfield School District has paid nearly $500K in pension penalties in past 6 years
          * Letter: Rauner being set up for a fall
          * Angie Muhs: A year later, optimistic and grateful
          * East St. Louis paid big legal fees to state senator's firm
          * Illinois Senate honors victims of Charleston church shootings
          * Kenny Hartman: EPA stifling input on renewable fuel changes
          * Bill would allow cameras in Illinois nursing homes


          * 2015 Champaign County Freedom Celebration fireworks show
          * Best of teams: No. 35, South Carolina
          * Daily Digest 7/5/15
          * Daily Digest: Ceremony to honor forest anniversary
          * Best of teams: No. 36, North Carolina State
          * Best of Illini: No. 35, Gabe Megginson
          * Best of Illini: No. 36, James Crawford
          * 70-year-old factory opened as radio maker
          * The perfect gift for Hepburn fans
          * Ask 'Mimi,' July 5, 2015


          * At least one injury in I-88 crash between semi, motorcycle
          * Greece's finance minister says Greek people have said 'no more' to continued austerity
          * Injury, lane closures in 1-88 crash between semi, motorcyle
          * The Latest: European socialists call for new Greek talks
          * Pair of lions kept as pets by Gaza family arrive in Jordan

          * 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 on Overtime Rules - Alton Daily News...

          * Thousands Line Route For Arlington Heights......

          * CPS pension bill paid for with the the lives of teachers and students. In debt by design.
          * I will be talking about Confederate flags direct from the NEA RA on WBAI radio Monday morning.
          * Supreme’s agree to hear fair share case. Public employee unions in jeopardy.
          * Why my NBI was more than about the Confederate flag. 
          * Rev. William J. Barber: “The Confederate war flag belongs in a museum — not over or on our state house or on state-issued license plates. It is a symbol of terror, hatred and treason to America’s ideal.”
          * Story can help you and your buyers avoid financial roadblocks
          * Morning Minute: U.S. pending home sales at highest level in nine years, NAR says
          * U.S. Supreme Court Rules on Texas ‘Disparate Impact’ Case
          * Today’s the day for associations to meet NAR core standards
          * CIPS course offered July 22


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report




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