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.


* Afternoon news
* New TIF money to be declared a surplus?
* *** UPDATED 1x *** SERS seeks to delay state pension reform implementation
* Popped for pop
* Morning Shorts
* Rich went on vacation, and all we got was this lousy intern
* Proft explains himself
* SUBSCRIBERS ONLY - MJM crosstabs
* 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

          
        * Linksys WRT1900AC Wi-Fi router review: Faster than anything we’ve tested
        * 10 ways Apple could make iOS's Notification Center great
        * Apple Launches 8 GB iPhone 5c in Six More Countries
        * HoverChat brings Chatheads multi-tasking to SMS
        * Apple, Google, Microsoft Embrace the Fight Against Smartphone Theft
        * Samsung Galaxy S5 will outsell GS4, as first Tizen phone is expected end of Q2
        * Samsung Gear wearables get comfy with 20 Samsung Android devices

        * How to Create a Successful Business Blog
        * 8GB iPhone 5C Now Available In More European Countries
        * MediaTek Shows Off A New Chipset With LTE Connectivity
        * Samsung Gear Smartwatches Get Support For 20 Smartphones And Tablets
        * Samsung To Launch Android Wear Powered Smartwatch Later This Year
        * Nokia Lumia 1020 Used To Document Underwater Diving Mission
        * High-End Samsung Tizen Device To Arrive By End Of Q2 2014

        * Robin Ventura vents about replay system after unsuccessful challenge
        * Big chill: Alexei motors home on walk-off error
        * Unlike previous seasons, Alexei catching fire
        * Ventura not pleased call at first base stands
        * White Sox 2, Red Sox 1: A win for the pitchers
        * Big chill: Alexei motors home on walk-off error
        * White Sox honored to don No. 42 on backs


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

        Archives
        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. Pat Quinn, GOP gubernatorial candidate Bru.....
        * Quinn grabs big cash advantage over Rauner..
        * Lawmaker kicks off new campaign for Chicago casino..
        * Chicago man gets 50 years in 2008 shooting death..


        * Dress codes: Where should schools set limits?
        * Quinn, GOP's Rauner announce campaign donations
        * 6 residents, 2 firefighters, hurt in Chicago fire
        * Police: Ex-ISU president says he yelled at worker
        * Chicago-only casino option to face opposition
        * Rutherford: Dismiss sexual-harassment lawsuit
        * Man pleads guilty to 2012 sexual assault of child
        * Church: No evidence of abuse by reinstated priest
        * Farmers off to slow start planting corn crop
        * Tanning salons adjust to new Illinois law

        * Voter rights, crime victim rights amendments set for fall ballot so far
        * 2015 tax rates still far from settled
        * Illinois House Speaker Madigan cleared in transit probe
        * House bill urges schools to make digital emergency plans
        * House panel plans gambling expansion hearing in Chicago
        * Chicago-only casino option to face opposition
        * Rutherford's lawyers ask judge to dismiss sexual-harassment lawsuit
        * GOP's Rauner raised $9M in first quarter of 2014
        * Bill outlawing police ticket quotas clears Senate
        * School funding formula overhaul clears committee

        * Quinn grabs big cash advantage over Rauner
        * Modern Wing galleries reopen this week
        * Rutherford: Dismiss sexual-harassment lawsuit
        * Billionaire hedge fund executives join Ricketts' political group
        * ADM seeks chocolate asset sales as it retains cocoa presses


        * Aldermen searching everywhere for alternatives to property tax hike
        * Judge Harris spends $1M for appeals court bid — 5 times the salary
        * Feds: Rep. Derrick Smith admits to FBI he screwed up over bribe
        * Convicted ex-cop Mandell to judge: I ‘never ever bothered anyone’
        * Man who molested, photographed 11 kids gets 50 years in prison
        * Priest reinstated after inquiry finds abuse claim unfounded
        * CTA narrows possible routes for proposed CTA Red Line expansion
        * The proper response to Kansas atrocity: solidarity
        * Man dies day after he was charged in fatal South Side crash
        * Woman sexually assaulted Monday afternoon in Lake View


        * Man shot after argument in South Side bar
        * Boys jump into arms of cops, neighbors as South Side fire injures 8
        * Smoking rate among Chicago students drops
        * Embattled Homewood-Flossmoor girls basketball coach may not return
        * White Sox mark anniversary of Boston Marathon bombing
        * Oberweis says he and Durbin are both millionaires
        * Wicker Park deemed a top spot for millennials
        * Northfield officials acknowledge tension in Chief Keef saga
        * Steven Mandell's letters from jail get judge's attention
        * Shedd names newest penguin chick


        * City Approves More Video Gaming Despite Upcoming Ordinance
        * Rutherford: Dismiss Sexual Harassment Lawsuit
        * Madigan on Voting Rights: 'We Don't Know What The Future Holds'
        * Durbin Calls For A Return of 'Earmarks'
        * Quinn, Rauner At IEA Conference - Full Audio
        * FBI agents say indicted state rep took them to get bribe cash
        * McCarthy dismissive of crime research
        * Gas Station Owners Warn Against Fuel Tax Increase
        * Rauner: "I'm Not Anti Union At All"
        * Raising Gax Tax "Unwise," Says Quinn, But Offers No Other Ideas


        * Their view: Remembrance in the cruelest month
        * 2015 tax rates still far from settled
        * House bill urges schools to make digital emergency plans
        * Chicago-only casino option to face opposition
        * Rutherford's lawyers ask judge to dismiss sexual-harassment lawsuit
        * GOP's Rauner raised $9M in first quarter of 2014
        * Illinois House orders audit of anti-violence funds
        * Poll: Illinois residents least trusting of state government
        * Our opinion: Approve statute of limitations change for Illinois rape cases
        * Lt. Gov. Simon, husband report $208,000 in Illinois income


        * Saline board approves Peabody road proposal
        * RI County voters to decide on Hope Creek funding
        * Bettendorf roadwork begins Monday
        * GOP congressional candidates debate in Davenport
        * Strong winds increase threat of grass fires throughout Q-C area
        * Youth women invited to Strive for Excellence
        * Living Lands & Waters' MillionTrees project tops 725,000 trees
        * Chicago man gets 50 years in 2008 shooting death
        * Illinois House orders new audit of anti-violence funds
        * Ameren touts power grid upgrades; critics are skeptical


        * The 10th District money race
        * Aurora Democrat calls out IHSA
        * Lawyers: Ill. hazing law vague, unconstitutional
        * Ill. House OKs lower-cost hunting bill for seniors
        * Quinn’s running mate takes new consulting job

        * When Punishment Is Torture: An Open Letter...
        * Jesse Jackson Jr. placed in solitary confi...
        * Jesse Jackson Jr. Transferred To Alabama P...
        * Jesse Jackson Jr. sent to solitary then tr...
        * Jesse Jackson Jr. Maneuvers Himself Into M...
        * Jesse Jackson Jr. Changes Prisons, Could B...
        * Jesse Jackson Jr Moved to Alabama Prison C...
        * Inmates Sent To Solitary Confinement For H...
        * Jesse Jackson Jr. transferred to minimum s...
        * Jesse Jackson Jr. moved to another prison ...

        * Loading Koch Industries Website Too Many T......
        * Maryland and DC among worst for food aller......
        * Cleveland State University to reestablish ......
        * Convicted political boss Al Sanchez runnin......
        * Candidates make last filings for local, st......

        * Illinois Lt. Gov. Simon opposes pension le......
        * Dillard Odd Man Out on Pension Deal Reaction...
        * Sen. Mark Kirk sides with Rauner on pensio......
        * Governor's race infighting threatens pensi......
        * SCHOONERS - Home of Everyone's Favorite Be......

        * Wilson/Broadway Shooting Victim Home From Hospital
        * Local Entrepreneur Turns Potholes Into Profit
        * "Benchwarmer Bandit" Suspect Caught
        * He did his time. But will critics “let it go” with regards to Vanecko’s offense?
        * Water, Water, Everywhere
        * We Get Calls...
        * Activists with A Better Illinois use the “Illinois Fair Tax Calculator"
        * Former State Rep Smith Made Guilty Admission To Feds
        * The Civil War Death Toll, Reconsidered
        * Green Mill Jazz Fundraiser To Provide Day Camp For Boys & Girls


        * Governor Quinn Honors Jackie Robinson - Barrier-Breaking Baseball Player Was American Icon
        * Governor Quinn Urges Homebuyers to Act Fast and Take Advantage of Welcome Home Illinois Program - Program Offers First-Time Homebuyers Down-Payment Assistance and a 3.75 Percent Interest Rate on a 30-Year Fixed Mortgage
        * Extending Federal Unemployment Would Help 64,000 Illinois Workers - 86 Percent Still Without Work One Month Later; Veterans and Older Workers Hardest Hit
        * Governor Quinn Statement on Passover
        * Governor Quinn Visits Brookfield Zoo to Proclaim Autism Awareness Day - Event Makes Special Connections Between Children with Autism and Animals




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