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.


* Reader comments closed for the weekend
* Rauner vetoes several social service bills
* Ok, that's enough
* I truly hate this US Senate race
* Rauner signs life insurance bill
* Question of the day
* State bond sale goes well, but still paid a higher price
* *** UPDATED x1 *** Picking on the little guys
* We've been a sorry state for a long time
* Munger and Mendoza face off in hostile debate
* I'm still befuddled by this move
* *** UPDATED x5 - Motion approved - Noven to withdraw - $421 million budget hit - One appointee appears to be ineligible - The plot thickens as three new board members appointed *** Controversy expected at TRS hearing today
* React to remap reform ruling
* Divided court kicks remap reform off ballot
* 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

  
* Eighth beta for Apple software out for devs, seventh iOS 10 beta for public
* China’s Galaxy Note 7, the same as everyone else’s — 4GB RAM, 64GB storage
* Google Wallet debuts automatic transfers so you can skip “cashing out”
* Android 7.0 factory images are live for most Nexus devices
* Sony Xperia X Compact and Xperia XR specs revealed
* Mobile ad startup AppLovin in talks for $1.5 billion acquisition
* Apple’s own Snapchat could signify a huge services milestone

* White Sox rally past M's on Frazier's walk-off hit
* Frazier sets RISP issues aside with clutch hits
* Sox won't reveal direction until after season
* Frazier ties it, then sinks M's on walk-off hit
* White Sox rally past M's on Frazier's walk-off hit
* Sale faces fellow ace Felix, Mariners at Cell
* Top Sox pick Burdi could be September callup

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


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

Archives
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
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


* Comptroller Candidates Debate on Right to Work .....
* Crazy political mapping in need of a national r.....
* Governor tells Carbondale education program to .....
* How Cuts to Public Universities Have Driven Stu.....
* Rauner is missing a chance to push back on gun .....
* Understanding the stalled contract negotiations.....
* Stephanie Franklin (left), family educator at R.....
* Bill toughening oversight of wine shipping sign.....
* New law makes insurance companies find, pay ben.....
* Illinois' pension payment expected to increase .....


* Illinois' pension payment expected to increase by $400M
* New law makes insurance companies find, pay beneficiaries
* Springfield woman sentenced for DUI in fatal crash
* Waukegan schools to replace some pipes, water fountains
* Feds honor 2 Maryland employers who support Guard, Reserve
* New law makes insurance companies find, pay beneficiaries
* The colonel's secret recipe revealed? Not so fast, says KFC
* Welcome to the fourth grade: Teacher's rap targets students
* EXCHANGE: After 46 years voice of Fairmount Park goes silent
* Decatur woman can petition to become nurse under new law

* New law makes insurance companies find, pay beneficiaries
* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Decatur woman can petition to become nurse under new law
* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner
* Springfield-area jobless rate remains lowest in Illinois
* Illinois 'Obamacare' health insurance rates up significantly
* Rauner's office warns teachers' pension change could be 'devastating'
* IDOT to analyze fairgrounds flood-control measures
* Rauner signs bill to punish trafficking guns into Illinois

* Rauner is missing a chance to push back on gun crime
* Hedge fund becomes biggest Tronc shareholder
* Former CS Publisher John Carroll dies
* New law makes insurance companies find, pay beneficiaries
* Airlines bring free sandwiches and streaming back to coach


* Woman pushing baby stroller killed in Parkway Gardens shooting
* Police: Armed robberies reported in South Loop, Near West Side
* Woman killed in Riverdale hit-and-run crash
* Woman, 74, ordered held on $2M bail in husband’s slaying
* Lockport man gets 9 years for beating fiancee with brass knuckles
* Jack Higgins’ Perspective for August 28, 2016
* Red Line construction, concerts to impact weekend CTA service
* Editorial: Cops can’t solve murders without trust and detectives
* Man wounded in South Side shooting
* Sticker shock: Illinois on hook for another $421M next year


* Too bad Cubs can't go right to late October
* How Illinois politicians consciously created these debt and pension crises
* Woman killed, 2 other people wounded in shootings on South Side
* The UAE spends big on Israeli spyware to listen in on a dissident
* Criminal probe launched in case of lawyer who allegedly posed as judge
* Heckling and gunfire as police investigate shooting: 'We’re just playing'
* Judge: Tree-carved Lady Justice statue can remain outside Hinsdale law office
* CSN to broadcast Vin Scully call of Sunday's Cubs-Dodgers third inning
* PAWS Chicago rescues 26 cats, dogs from flood-ravaged Louisiana
* Japan's military begins training for new overseas missions


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* New law makes insurance companies find, pay beneficiaries
* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Decatur woman can petition to become nurse under new law
* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner
* Springfield-area jobless rate remains lowest in Illinois
* Bernard Schoenburg: Illinois an 'outlier' in party appointments to legislative vacancies
* Esther Cepeda: One man's clutter could be another man's treasure
* Scott Reeder: A case for tempering justice with mercy
* Illinois 'Obamacare' health insurance rates up significantly


* Police: School administrator pepper sprayed by student
* Redistricting becomes campaign issue
* Rauner tours Rebound, calls the alternative high school in Carbondale 'inspirational'
* Crime Stoppers of McLean County 8/27/16
* Comptroller Munger supports "no budget, no pay" legislation in Carbondale Friday
* PODCAST: Cindi Canary, Independent Map Amendment 08-26-16
* Illinois' pension payment expected to increase by $400M
* Updated: storms sock southern counties
* SIU PG Cook cleared for full contact
* Storms sock southern counties


* Elgin woman charged with bringing drugs into DuPage jail
* ECC begins layoffs; 15 positions eliminated so far
* Dislike down arrow? Publicity has Guaranteed Rate founder looking up
* Wauconda Twp. Historical Society to host ice cream social
* Safely dispose of drugs at Lake County police departments

* 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

* Reps. Duckworth, Schakowsky, Quigley & Sen......
* Dick Durbin's war on affordable banking - ......
* Dick Durbin's war on affordable banking - ......

* US Senate candidate Duckworth visits Shelb......
* I truly hate this US Senate race - The Cap......
* Duckworth critical of Kirk during visit to......

* Judge Orders Release Of Additional Clinton Emails
* Illinois Corrections Department, AFSCME Pointing Fingers On Inmate Assault Of Pontiac Prison Workers
* PEACEBOOK Performs In Clarendon Park Friday and Saturday
* Transgender Performer Sues Over Chicago's Ban On Female Nudity In Bars
* Illinois Governor Vetoes Wage Hike For Workers Who Serve The Disabled
* U.S. Education Department Takes Further Action Against ITT
* Greenpeace: U.S. Foodservice Firms Fail On Seafood Sustainability
* Rauner Vetoes Child Care Assistance Bill
* Pension Adjustment To Cost Illinois $421 Million
* Concerned About Gang Loitering On Wilson? Join Positive Loitering Tonight


* Statement on Redistricting Referendum
* Rauner Administration Takes Action to Help Illinoisans Find Lost Life Insurance Money
* Illinois Residents Encouraged to Register for ‘The Great ShakeOut’ Earthquake Drill - 'Drop, Cover and Hold On’ Drill Set for October 20
* Governor Takes Bill Action
* Illinois Seeking Flexibility to Improve Delivery of Behavioral Health Care




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