LIVE session coverage...
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.


* That's probably the ballgame
* Chris Crane: New Plan Will Help Ensure Reliable Power
* Question of the day
* *** UPDATED x1 *** Heroin bill to survive political bickering
* Durkin threatens caucus with "consequences"
* 7 dead, 45 diagnosed with Legionnaires’ disease at Quincy veterans' home
* 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

          
        * Starting today, Hulu subscribers can pay an additional $4 per month for no ads
        * Google Docs gets updated with new integrated research tool and voice typing
        * Verizon follows Google, unveils new company logo
        * Google will unveil new Nexus smartphones on September 29th in San Francisco
        * Sony unveils the Xperia Z5, Z5 Compact, and Z5 Premium with a 4k display
        * Sony Xperia Z5, Xperia Z5 Compact, Xperia Z5 Premium hands-on
        * Acer Predator 6: a smartphone with a deca-core processor for gamers

        * Montas returns with a much-improved slider
        * Back at short, Saladino looks to find niche with Sox
        * 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

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


        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


        * Rauner wins labor fight; Illinois House fails override
        * Illinois authorities searching for escaped prisoner
        * The Latest: Child care restoration fails in Illinois House
        * City of Peoria, creator of Twitter parody settle lawsuit
        * Officials begin process of dissolving Belleville Township
        * Group promotes Lincoln family gravesites in Hancock County
        * Bond set for Indiana man accused in suburban Chicago assault
        * ISP investigate baby's bathtub drowning in eastern Illinois
        * Will County officials say rabid wildlife count on the rise
        * Chicago police: 1 dead, 2 injured in morning shooting

        * Illinois House comes up 3 votes shy of overriding union arbitration bill
        * Bill to stop Illinois State Museum closure advances in House
        * Override effort on union arbitration bill fails in House
        * Legionnaires' disease cases rise at Quincy veterans home
        * Union arbitration override fails in House
        * Illinois House Democrats seek to override Gov. Rauner on union arbitration
        * Veto override vote looms in Illinois House
        * All Democrats present as veto override vote looms in Illinois House
        * Illinois House faces crucial vote on union arbitration bill
        * United Way advance keeps Helping Hands shelter open as state budget impasse continues

        * Small-biz owners diss Emanuel record
        * Obama, Durbin hit the magic number on Iran nuke deal
        * Navistar posts another loss, sending stock down again
        * Stocks rebound after 2-day selloff
        * Meet Chicago's first couple of indy filmmaking


          * Security ushers Emanuel away as Dyett protesters take to stage at budget hearing
          * 6 people shot dead, including 16-year-old boy, since late Tuesday in Chicago
          * Rauner prevails on major labor bill as Madigan fails to muster votes
          * Pope Francis comforts Chicago high school student over loss of her father
          * Crowds mourn 'heartbreaking' deaths of Lindenhurst dad, daughter
          * Cows caught wandering around Chicago's Mount Greenwood neighborhood
          * Deputies shot on duty last year eager for news on cop's killer


          * Our Opinion: Panhandling deserves a community response
          * Bernard Schoenburg: Ex-Schock aide says he saw red flags
          * Norbert Brauer: Trans Pacific Partnership a secretive, one-sided deal
          * George Will: The blood-stained Indian Child Welfare Act
          * Eugene Robinson: Digging a hole to build a wall
          * Illinois House comes up 3 votes shy of overriding union arbitration bill
          * Bill to stop Illinois State Museum closure advances in House
          * Legionnaires' disease cases rise at Quincy veterans home


          * HS Volleyball: Danville vs. Westville 2015
          * Week 2 football storylines: Broncos will look to build off big game
          * Thieves sought in string of car burglaries in DeWitt County
          * Bill to keep state museum open clears house committee
          * 2015 Week 1 prep football statistics
          * Steering committee recommends Champaign County Historical Museum be closed
          * Update: Vote on contract negotiations a win for Rauner
          * Judge OKs new drug case against Paxton man
          * Peoria and the ACLU settle 'Twittergate' lawsuit
          * Update: Rauner's veto on arbitration bill stands


          * Heavy police presence in Volo
          * Husky named Diesel, NIU's 'mascot emeritus,' has cancer
          * Worker who helped Clinton set up email server takes Fifth
          * Judge refuses to drop charges against police in Gray death
          * Redskins GM's wife apologizes for tweet about reporter

          * 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

          * 'Pressure Durbin on Iran treaty' - Beloit ......

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

          * Illinois House Reverses Rauner's Changes To Anti-Heroin Bill
          * Illinois House Reverses Rauner's Changes To Anti-Heroin Legislation
          * Judge Rules Against Holding Illinois In Contempt Over Disability Payments
          * Happy Labor Day From Progress Illinois
          * House Fails To Override Rauner's Labor Bill Veto
          * State of Illinois, Teamsters Reach New Labor Contract Deal
          * Measure To Undo Child Care Cuts Falls Short In Illinois House
          * Lawmakers Thwart Rauner's Proposed Changes To Home Services Eligibility
          * House Passes Bill To Preserve Home Services Eligibility Requirements
          * Buyer’s remorse. NEA and edTPA.


          * Legionnaires’ Disease Cases in Quincy
          * Legionnaires’ Disease Outbreak at Illinois Veterans’ Home-Quincy Update
          * Governor Bruce Rauner Proclaims Workforce Development Week
          * Veteran Spouse Ada Ruth Cripps Honored As The IDVA Volunteer of the Year
          * State-Teamsters One Step Closer to Finalizing Agreement




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