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.


* Tomorrow's news today
* Oddities and ends
* Durbin launches second positive ad
* *** UPDATED x3 - Full Rauner response - Rauner issues statement - Quinn responds *** Question of the day
* Black radio ad slams Rauner for failure to hire a single African-American at company
* Today's chart
* *** UPDATED x1 - Quinn responds *** Rauner unveils ethics reform plan
* Today's number: 30 percent less likely
* Bigfooted by the Trib
* *** UPDATED x1 - Bustos responds *** Schilling ad attacks Bustos over budget cuts
* *** UPDATED x1 *** SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, TV ads, cable TV buys and an events list
* Quinn moves to second negative track
* Rate Bruce Rauner's new TV ad: "100 years of failure"
* 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

          
        * Motorola Moto X (2014) review: the modest Moto goes mainstream
        * Amazon outs new Fire HD models and Fire HD Kids Edition
        * Amazon unveils new Fire HDX 8.9, Fire OS 4 “Sangria”
        * iOS 8 launched, iPad dates, Sony losses & more – Pocketnow Daily
        * Growing pains? Motorola VP Punit Soni is leaving
        * iOS 8 hands-on (Video)
        * Apple Updates iMovie and Numbers for iOS 8 [Update: Pages too]

        * Olympus Run: Classic Arcade Feel, With High-DPI Visuals
        * Tweet a Short Story for a Chance to Win 'The Bone Clocks' by David Mitchell
        * Goat Simulator Heads To iOS And Android Platforms
        * Saved by The Bell and Mean Girls Get a Play-Doh Makeover
        * 3D Printed UAV Drone Takes To The Skies
        * Need a Therapist? There is an App for That
        * Google Lets You Add Missing Places On Maps

        * Royals 6, White Sox 2: Chris Sale roughed up
        * Following up: Adam Eaton's second half, Chris Sale's schedule
        * Gillaspie, White Sox solve Royals' bullpen
        * White Sox 7, Royals 5: Kansas City bullpen titans falter
        * Sale seeks another stellar start in KC, series win
        * Gillaspie, White Sox solve Royals' bullpen
        * Out call on Viciedo confirmed on replay


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

        Archives
        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


        * Rauner ethics plan targets lobbyists, lawmakers..
        * GOP appeal seeks to knock Libertarian off ballot..
        * Another View: Don't ask why domestic violence v.....
        * Gov. Quinn announces aluminum company locating .....


        * Journalists criticize White House for 'secrecy'
        * Emanuel wants no more signs as large as Trump's
        * Warrant: SC dad feared 5 slain kids would kill him
        * Peoria forgoes search, promotes interim cop chief
        * Woman gets prison sentence in 5-year-old's death
        * Emanuel wants no more signs as large as Trump's
        * Herbicides indirectly kill fish in Manteno lake
        * GOP appeal seeks to knock Libertarian off ballot
        * Rauner ethics plan targets lobbyists, lawmakers
        * Ex-deputy gets 50 years prison in child sex case

        * Rochester resident to lead State Board of Elections
        * GOP appeal seeks to knock Libertarian gubernatorial candidate off ballot
        * Jesse White to focus on technology, highway safety if re-elected
        * Rauner’s ethics reform plan targets lobbyists, lawmakers
        * White to focus on technology, highway safety in fifth term
        * Quinn blasts NFL owners with dig at Rauner
        * Hundreds apply for jobs at northern Illinois federal prison
        * Rauner questions medical marijuana program secrecy
        * New subpoena issued for Quinn’s anti-violence program
        * Evans: Eliminate conflicts of interest in legislature

        * Emanuel wants no more signs as large as Trump's
        * Old Second CEO retires after 42-year bank career
        * Illinois representatives split votes on Obama's Syria campaign
        * Leo Burnett, WPP lose Miller Lite ad account to TBWA
        * Blago creeps further into race for governor as Rauner unveils ethics plan


        * Appeals court to decide if Beanie Baby billionaire got off easy
        * 16 suburban firefighters stranded in Mexico after hurricane
        * Naperville Council OKs new liquor rules
        * Rahm to Aramark: Clean up the schools or clean out your desks
        * Trump happy over Emanuel crackdown on signs
        * Lawyers allege state Sen. Donne Trotter took $2,000 in FBI sting
        * Highland Park woman gets 5-year sentence for killing 5-year-old girl
        * Young boy shot in face in Auburn Gresham neighborhood
        * Hitting a child is always wrong


        * 1 dead, 4 wounded in city shootings
        * Lawyers want to question Trotter about alleged $2,000 cash payoff
        * Lawsuit filed in last week's death of woman hit by CTA bus
        * Wallenda walks on wire, prayer and $20M insurance
        * Outfit enforcer gets 15 years in prison for gun conviction
        * Four charged in fatal shooting at River Oaks Mall
        * TSA boss: Passenger pre-screening to be new standard
        * Ex-sheriff's deputy gets 50 years in child sex abuse case
        * Cops: Man tried to assault girl walking to school on South Side
        * Third person arrested in fatal shooting of retired police sergeant


        * Jekyll & Hyde: A Story Of Good & Evil At Muni
        * Despite Outbreak, Illinois Virus Cases Remain Low - Why?
        * Teen Arrested For Threat Against Glenwood High School
        * I Like Illinois Website Debuts, In Time For The Election
        * Cullerton: I LIKE Illinois!
        * Trauma Care Decision Highlights Competition Between Springfield Hospitals
        * Springfield Art Co-Op Founder "Blossoms" On East Coast
        * Springfield Mayor Houston Points Out Sewer Improvements
        * Mayor: We Are Doing Sewer Work
        * N.J. Gov. Christie Stumps For Rauner In Springfield


        * Christopher Mooney: Evidence in policymaking — no cure-all, but better than the alternative
        * Eugene Robinson: Hillary Clinton needs to tell us her vision
        * George Will: Obama needs Congress to approve this war
        * On Lincoln’s Side: Washington’s close call
        * Bernard Schoenburg: New poll, AFSCME nod help change narrative
        * Rochester resident to lead State Board of Elections
        * GOP appeal seeks to knock Libertarian gubernatorial candidate off ballot
        * Jesse White to focus on technology, highway safety if re-elected
        * Rauner’s ethics reform plan targets lobbyists, lawmakers
        * Quinn blasts NFL owners with dig at Rauner


        * PBL decides to stick with SVC
        * Kroner's Week 4 storylines: Receivers spark M-S
        * Central's Moore makes most of opportunity
        * American Sign Language classes available
        * Lee thinks Chargers still have what it takes
        * Vigil for peace
        * Wednesday's prep highlights: Sabers triumph in tennis
        * Asmussen: Louisville drops the ball
        * Coleman moves up hoops visit
        * Prep football statistics after Week 3


        * Fremd bounces back at Barrington
        * Girls volleyball / Lake County roundup
        * Boomers repeat as Frontier champs
        * Man charges NFL mishandled case involving Brandon Marshall
        * GOP appeal seeks to knock Libertarian off ballot

        * Army Veteran Shane Scherer Joins Roskam's ...
        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Jackson Jr.'s political fund fined nearly ...
        * Jesse Jackson Jr. political fund fined nea...
        * 'Celebrity Crime Files' Season Three, With...
        * Sean Hannity Battles Illinois Democrat Lui...
        * Fox's Hannity spars with Democrat over thr...
        * Hannity Battles Rep. Gutierrez: 'Not Contr...
        * Luis Gutierrez: Securing border 'sounds go...

        * 16 suburban firefighters stranded in Mexic......
        * Hoffman Estates firefighters stranded by H......
        * Congress Is About to Decide Whether to Tax......
        * Senate report: China hacked Transcom contr......
        * Senator Durbin Applauds Decision to Raise ......

        * Shangri La's Barr al Jissah ResortSpa to o......
        * ISIS fight: Congress to vote on arming Syr......

        * Who knew Flying Wallendas were still around? They’ll be in Chicago soon
        * Small Compensation
        * Neil Steinberg compares opposition to Israeli policies and campus rape.
        * Richard Skoda’s dreams.
        * S.O.R.E. field trip. Town Hall with Senators Biss and Manar on school funding, Special Needs.
        * Learning Disabilities Association (LDA) of Illinois opposes SB16.
        * Chicago’s Marshall High School and Zombie education reform.
        * California public pension funds to hedge fund managers: “Drop dead.”
        * Leadership.
        * Hooray for cartoonists.


        * Rauner Launches New TV Ad: 100 Years
        * 100 Years
        * Bruce Rauner Announces Ethics Blueprint
        * Across Illinois, They’re Talking About Pat Quinn’s Corruption
        * New subpoena in federal probe of Quinn anti-violence grant program




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