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.


* IDPH wants to ban beer garden smoking
* Yes, it's quite a paradise
* *** UPDATED x2 *** What do Sha-Na-Na, Bill Enyart and pies have in common?
* Rauner endorsed by several black ministers
* Question of the day
* A quick run-through of the down-ballot statewide polling
* Poll: A three-point spread
* A bit petty, no?
* Trouble in paradise?
* Durbin sides with Holland against Quinn
* Nursing home bankruptcy trial gets underway
* SUBSCRIBERS ONLY - Political events calendar
* Davis' poll shows him leading big
* Rauner on patronage: Zero if elected
* You're gonna need a bigger boat, Bruce
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, mail, TV buys
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** UPDATED x1 - Frerichs response *** Former Democratic state treasurer endorses Cross - Cites bipartisanship, Israel bonds as reasons (COMMENTS OPENED)
* Prison reform group responds to new Rauner ad (COMMENTS OPENED)
* Quinn hit on botched early prisoner release program (COMMENTS OPENED)
* Reader comments closed for the weekend
* SUBSCRIBERS ONLY - Friday's cable TV buys
* 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

          
        * AT&T to start selling LG G3 Vigor on Sept. 26
        * AT&T to carry Samsung Galaxy Alpha, available on Sept. 26
        * CyanogenMod 11 nightlies land for international Galaxy S4 Active
        * iOS 8 is still no Android when it comes to third-party support
        * THAW transfers smartphone files to PC by screen contact
        * Apple Watch spotted out in real-world testing
        * iPhone 6 record sales, Google Nexus 9 plans, AT&T Galaxy Alpha & more – Pocketnow Daily

        * Own Your Own Micro Motion 3D Printer for $349
        * Mini Garage Houses Your Keychain, Holds Your Car Keys
        * Nokia Lumia 930 Receives Windows Phone 8.1 Update 1 Now
        * Ray Ozzie on Talko, His New Venture to Give Business Collaboration a Voice
        * Engine Firing Test Completed For India’s Low-Cost Mars Mission
        * UpLocket Is A 3D Printed NFC-Capable Accessory
        * Google Play Store Set To Show Price Ranges For In-App Purchases

        * Bassitt twirls gem, blanks Tigers for 7 2/3 in first win
        * Carroll, White Sox out to spoil Tigers' Central plans
        * Bassitt twirls gem, blanks Tigers for 7 2/3 in first win
        * White Sox 2, Tigers 0: Chris Bassitt picks up first win
        * Avisail realizes V-Mart will be highly coveted as free agent
        * White Sox announce dignitaries for Paul Konerko Day
        * Johnson prepared to work for second-base job in spring camp


        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


        * Gov. Quinn Promotes High-Speed Rail In Granite .....
        * Gov. Quinn - Belleville News Democrat..
        * Approaching elections raise questions about wages..


        * Ohio grand jury to review highway shooting case
        * Prosecutors seek time to review ex-lawmaker's past
        * Quinn, Rauner differ over 'common sense' on guns
        * Quinn, Rauner promote community investments
        * Illinois medical marijuana applications due Monday
        * Suspect in Joliet double murder waives jury trial
        * Chicago museum only US site for Bowie exhibit
        * Slain girl's mother speaks at Watson memorial
        * U of I Foundation receives increase in donations
        * Illinois city marks birthday with mega bratwurst

        * Governor candidates differ over ‘common sense’ on guns
        * Quinn, Rauner differ over ‘common sense’ on guns
        * Rauner gets support from black Chicago pastors
        * Don’t bet on gaming expansion — yet
        * GOP's Rauner gets another $1M from hedge fund CEO
        * Former Illinois prisoners get help reintegrating
        * Court: Lincoln inmate must use $20K settlement to pay incarceration costs
        * Deadline ahead for Illinois marijuana businesses
        * Gov. Quinn picks up Sierra Club endorsement
        * Statehouse Insider: Rauner hit with double whammy

        * U.S. cracks down on overseas tax moves
        * United cutting winter schedule long before snow falls
        * University of Illinois donations jump 10 percent
        * George Lucas takes a selfie — and other names at Expo Chicago
        * Emanuel, McCarthy to testify on sentencing reform


        * Faternity suspended from Loyola University for 3 years
        * 1 killed, 10 wounded in shootings Monday
        * Bishop Blase Cupich: ‘I’m going to love this city’
        * Defendant in Joliet double-murder waives right to jury trial
        * Parents who want to attend school fair asked to provide names, emails
        * Truck driver arrested after allegedly holding children hostage near Midway
        * Feds want severe punishment for man charged in credit card scheme


        * Rauner avoids nursing home questions as trial starts
        * Niles man killed in motorcycle accident in DesPlaines
        * Evanston police investigate overnight shooting
        * Police: Man arrested after holding children at gunpoint in truck
        * Cupich vows to aid poor, help Chicago neighborhoods
        * Indicted commander credited with saving neighbor's life
        * Teen run over by car after falling off hood
        * Lawndale shooting wounds 2
        * Police: Galewood neighborhood bank robbed
        * Indiana man dies while hiking with brothers at Grand Canyon


        * Polls Showing Illinois Governor's Race A Draw
        * Cupich to be next Chicago archbishop
        * Listen to State Week - September 19, 2014
        * Chris Mooney: More Evidence-Based Policymaking Needed
        * African Drumming At Southwind Park On Saturday
        * Investors gather in Chicago seeking cannabis businesses
        * Climate, Space Create Challenges For Local Food
        * Can A Governor Really Create Jobs?
        * How do you find high school dropouts?
        * Governor's Race Has A Third Contender; Judge Keeps Libertarians On Ballot


        * Governor candidates differ over ‘common sense’ on guns
        * Kathleen Parker: Mark Sanford’s ongoing saga with himself
        * Rauner gets support from black Chicago pastors
        * Don’t bet on gaming expansion — yet
        * Thomas Schneider and Jay Scott: Building strong families to curb child abuse, neglect
        * GOP's Rauner gets another $1M from hedge fund CEO
        * Former Illinois prisoners get help reintegrating
        * Court: Lincoln inmate must use $20K settlement to pay incarceration costs
        * Deadline ahead for Illinois marijuana businesses
        * Gov. Quinn picks up Sierra Club endorsement


        * Marion VA hosts town hall
        * Award-winning Southern Illinoisan journalist dies
        * Donnelly wins conference award, team reamins No. 16
        * Flaws nets Big Ten honor
        * Correction: Freemon did not break state record
        * Monday's prep highlights: Chrisman, Watseka, PBL sweep in VB
        * M-S girls' tennis 'breaking the mold'
        * Tate: Abdullah could spell trouble
        * City’s guiding document under review
        * Blogger weighs in on prof's side


        * Imrem: Cutler efficient enough to get job done
        * Rozner: Gutsy Bears hang on for win, jump atop North
        * Bears win: Take Jets' gifts, get offense going, hold them off
        * Lights not too bright for Sutton, Ferguson
        * Girls golf: Monday's result

        * 6-cent hike in diesel boat fuel tax urged ...
        * Legislation would boost apprenticeships - ...
        * Lipinski: Leading effort to halt proposal ...
        * Lipinski Takes Action on Student Air Traff...
        * Rep. Lipinski Votes for Limited Authority ...
        * New GAO Report Reveals that Taxpayer Dolla...
        * Lipinski attacks Obama over terrorist thre...
        * Illinois vote: Dems split on aid for Syria...
        * Rep. Lipinski Stands with Middle Class; Su...
        * Rep. Lipinski Announces New Federal Fundin...

        * Illinois firms keep $100 billion in foreig......
        * Illinois firms keep $100 billion in foreig......
        * Illinois firms keep $100 billion in foreig......
        * Illinois firms keep $100 billion in foreig......
        * Illinois firms keep $100 billion in foreig......

        * Democrat Giannoulias backs Republican Cros......

        * Maybe we can fight over pies?
        * Eric Metaxas on the future of America's religious freedom
        * Lois Lerner and the IRS Scandal: An Update on the Investigation and Cover-up
        * Wash clothes and empty pockets at Manteno's new gambling venue
        * Hypocrisy: Harry Reid said in 1993 what GOP says now about Illegal Immigrants [video]
        * Illinois Dems shed "little guy" persona with pricey reception for Mike Madigan
        * Chicago Faith Leaders Sing, Pray For A South Side Trauma Center (VIDEO)
        * Emanuel, National Group Launch Youth Anti-Tobacco Video Contest
        * Higgins: Conservatives should vote for Quinn
        * Obama Signs Executive Order To Tackle Antibiotic-Resistant Bacteria


        * The Economic Empowerment Forum Endorses Rauner for Governor
        * State Director on Aging Says September Observances Stress the Importance of Healthy Aging - September is Healthy Aging Month; September 23 is Falls Prevention Day
        * Governor Quinn Breaks Ground on First Veterans Home in Chicago - New Facility Will Care for 200 of the Nation’s Heroes
        * Quinn still refusing to fire 20 political cronies
        * Illinois Chamber of Commerce Endorses Rauner for Governor




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