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.


* Thanks, but I'll pass
* Roberts appointment questioned
* Poll: Rauner has 14-point lead
* Today's rant
* *** UPDATED x1 *** Quinn campaign goes up with first TV ad of the season
* 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

          
        * After A Decade In Business, Kargo Says It’s Growing Fast, With Big Ambitions For Premium Mobile Ads
        * Asana Doubles Down On Mobile, Releases New iOS App
        * Cortana now shows local recommendations from Foursquare
        * TouchPico: the Android-run projector you think you need
        * The Week in Mac Apps: Quacks like a … file
        * Samsung Galaxy K Zoom vs Nokia Lumia 1020 camera comparison
        * Halfway to Iron Man: Hands On With the Myo Motion Control Armband

        * Asana for iPhone and iPad Updates with a New Interface and More Speed
        * ​Refresh Your Tired, Worn-Out Patio Umbrella On the Cheap
        * Two new Lumias and a high-end HTC device are rumored to round out the Windows Phone lineup
        * Study: How can retargeting supercharge a Facebook ad campaign?
        * Halfway to Iron Man: Hands On With the Myo Motion Control Armband
        * Amazon Fire Phone not enticing enough to leave Apple, Android
        * BlackBerry buys “Merkel phone” security outfit Secusmart

        * White Sox trade rumors: John Danks-Yankees rumors persist
        * Podcast: Big Hurt, HOF
        * Frank Thomas lets it out, lets everybody in during Hall of Fame speech
        * This Week in White Sox Minor League Baseball
        * White Sox Minor League Update: July 27-Aug. 2
        * New draftee Rodon tops White Sox updated Top 20
        * White Sox focused on long-term at Trade Deadline


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

        Archives
        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


        * Firefighter jobs: What returning vets must know.....
        * Should A Controversial Oregon Timber Harvest Be.....
        * Ethics panel raps state fair directors for beer.....
        * What's the rush? - Champaign/Urbana News-Gazette..
        * Muslims gather in Bridgeview to celebrate end o.....
        * Our View: 'Rita's Law' could curb corruption - .....
        * Firefighter jobs: What returning vets must know.....
        * Should A Controversial Oregon Timber Harvest Be.....


        * NDSU picked to win Missouri Valley football crown
        * Excavation finds courthouse where Lincoln worked
        * NCAA settles head-injury suit, will change rules
        * Summary of NCAA head-injury settlement
        * Stories of athletes named in NCAA lawsuit
        * Starved Rock trails still closed from storm damage
        * Judge orders fitness test for inmate who escaped
        * Chicago Police union wants file release delayed
        * Illinois boy to meet Coast Guard rescuers
        * Giant ketchup bottle draws tourists in Illinois

        * Illinois State Fair manager fined by ethics commission for accepting free beer tickets
        * Sangamon County on its own for road salt
        * Sangamon County on its own for winter road salt
        * Lawyers will push to speed up pension reform ruling
        * Quinn says state EPA will block PCBs from Clinton landfill
        * State appeals court upholds FutureGen power agreement
        * Concealed carry rules tough on out-of-state residents
        * Regulators say Illinois doctor faked pot paperwork
        * Quinn aide: Court rulings don’t jeopardize federal health-care subsidies
        * Illinois communities scramble to find road salt

        * JPMorgan cuts hundreds of tech workers
        * Introducing Woof, the warm and fuzzy app for adopting stray pets
        * Medicare, Social Security prognoses improve, but outlook remains dire
        * Jimmy Dean wants to come to work with you
        * This $1,000 pill is now the hepatitis C treatment of choice


        * City to pay $1.2M to family of prep sports star fatally shot by cop
        * Watchdog needs independence
        * West Side alderman rips Emanuel for missing Shamiya Adams’ funeral
        * Architectural team for Lucas museum includes woman behind Aqua Tower
        * Despite DUI convictions, ex-deputy keeps job, could retire with full pension
        * State Police: Ald. Rey Colon pulled over on Ike, accused of DUI
        * Ethics panel raps fair directors for violating ban on gifts
        * Police marine unit plucks woman from lake after watercraft flips
        * Addison woman, 2 daughters shot during robbery in Hammond
        * $2 million bail for man charged in fatal shooting of cabdriver


        * NCAA reaches $75 million settlement in concussion lawsuit
        * Willis Clan back in 'Talent' spotlight
        * Naperville councilmen: Close bars earlier
        * Durbin bill to target corporate inversions
        * Chicago-area home prices climb 1.5% in May
        * Jury acquits man in fatal shooting of former Simeon football star
        * Police: Teen shot on West Side, man wounded in South Side robbery
        * Officer takes cover as man with concealed carry permit fires at suspect
        * Cop fired after shooting dog in front of girl, 6
        * Lawsuit filed by father of boy who drowned at McKinley Park pool


        * Excavation Finds Courthouse Where Lincoln Worked
        * State Fair Officials Fined For Violating Gift Ban...For Beer Tickets
        * Inspector General Finds Old Metra Practice Could Lead To Fatigued Conductors
        * Exoneree Diaries: "You've got anger issues, Dad."
        * Clout On The Business Side of Medical Marijuana
        * So, when is it Jane Byrne's turn?
        * State Police Cancels New Trooper Training, Citing Budget
        * Feds' Immigrant Numbers For Illinois May Not Tell Whole Story
        * Listen to State Week - July 25, 2014
        * Inspector General Discloses Political Hiring Investigation


        * Sangamon County on its own for road salt
        * Illinois State Fair manager fined by ethics commission for accepting free beer tickets
        * Me Inc. offers plenty of dividends
        * Quinn says state EPA will block PCBs from Clinton landfill
        * Regulators say Illinois doctor faked pot paperwork
        * Illinois communities scramble to find road salt
        * New law expands state Holocaust Commission
        * Quinn, Rauner budget plans debatable
        * Angie Muhs: Who will be the next First Citizen?
        * Tony Leone: Put the ALPLM under federal control


        * Jackson County has yet to fill expiring seat
        * Saluki football picked fifth in MVFC preseason poll, NDSU favorite
        * More than a workout
        * Store puts infamous shoplifted dress on display
        * 12 days to Camp Rantoul
        * Asmussen's Top 50: No. 12 LSU
        * St. Jude Telethon, runs, continue growth
        * Daily business briefing: More than a third of Americans reported to collection agencies
        * MVFC taking submissions for top moment
        * Sesser man killed in car crash


        * Rose returns as U.S. basketball team opens camp
        * Shorewood man's love of TV began at village hall
        * Historian documents the men of 44th regiment
        * Act 10, voter ID, domestic registry decisions near in Wisconsin
        * Wisconsin mother of kids shot in van charged with neglect

        * Luis Gutierrez Gives Up the Ghost - News 6...
        * Rep. Gutierrez: Obama Could Grant Amnesty ...
        * Rep. Luis Gutierrez: Executive Action Coul...
        * Dem Rep Brags He's Working With Obama To G...
        * What's next for Peter Roskam? - Chicago Su...
        * Gutiérrez: 'I Think We Can Get 3 or 4, May...
        * Gutiérrez heads to White House to talk bor...
        * Obama flat wrong on trafficking law, says ...
        * Officials push for funds to finish West Ch...
        * Luis Gutierrez to La Raza: Get Amnesty to ...

        * Why Washington will do nothing to keep com......
        * Democrats to introduce bill to target corp......
        * Democrats to introduce bill to target corp......
        * Democrats to introduce bill to target corp......
        * Democrats to introduce bill to target corp......

        * Kirk optimistic about new plan to fix the VA...
        * Kirk: Hamas must be defeated...

        * Ridgway church rebuilding after 2012 tornado destruction
        * Never be late for a job interview...
        * I've become a fan of "Bar Rescue
        * Advocates for the developmentally disabled question Quinn/Emanuel commitment
        * Revolving door continues on Capitol Hill
        * Korn's Brian Head Welch reviews in Orland Park his changed life story [video]
        * Senate Republicans ask public opinion on medical marijuana rules
        * Teachers Unions vs. Students [video]
        * Morning Minute: Illinois and U.S. housing markets pick up in June
        * IPACE endorsements and pension thieves.


        * Pat Quinn’s Reality Check
        * Hoy Op-Ed on Immigration
        * Governor Quinn Reminds Drivers to Take Caution in Work Zones, Directs State Agencies to Redouble Efforts to Protect Public and Workers - Encourages Public to Increase Vigilance Following I-55 Tragedy
        * Governor Quinn's Statement on the Unpatriotic Corporate Tax Inversion Loophole
        * Governor Quinn Statement on Eid al-Fitr




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