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.


* Mess with the bull...
* Credit unions serve as not-for-profit cooperatives; Banks elect Subchapter S to avoid taxes
* *** LIVE *** Session coverage
* They got him on tape
* Question of the day
* Get well soon, Mika!
* Comprehensive heroin bill introduced
* Viewer mail
* Former "role model" running a "lost" state
* Today's number: $41,237
* Strong Chicago business growth powering Illinois economy
* Consequences of a trooper hiring freeze
* Rauner still on the warpath
* 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

          
        * The Week in Mac Apps: Better invoices, fancy folders, document converters, and more
        * Sony Theme Creator Beta lets you customize your Xperia device
        * The QWERTY slider lives, as BlackBerry shows off future handset
        * Bluetooth Keyboard BKB50 to go with Sony’s slimmest tablet
        * Last chance to save 92 percent on the White Hat Security Hacker Bundle & more
        * Hands-on with the Lenovo Pocket Projector
        * Microsoft Turns To Software To Move Hardware

        * Exclusive: Uber acquires mapping startup
        * These are the Foods Most Prone to Foodborne Pathogens
        * Deadspin Oregon: We Have The Right To Access A Rape Victim's Medical Records | Gawker The Antiviral
        * Google Contacts gets a long-overdue update
        * Catch Yourself Complaining with the "But-Positive" Technique
        * TiVo’s Quarterly Revenue Rises About 7 Percent
        * Apple granted patent to use wireless strength map data for vehicle navigation

        * Abreu mourns loss of friend, mentor in Minoso
        * Undaunted by injuries, Ynoa continues to pursue dream
        * White Sox agree to terms with 24
        * Samardzija finds comfort in intrasquad outing
        * Visitation, services for Minoso announced
        * White Sox interested in seeing if hype translates to success
        * A/V Room: Like his Cadillacs, Minnie Miñoso tributes rolling

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


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

        Archives
        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


        * Get well soon, Mika!..
        * Consequences of a trooper hiring freeze..
        * Illinois governor says New Jersey is 'going dow.....
        * Question of the day..
        * Illinois prisons head out, no permanent replace.....
        * Jameis Winston has predraft meeting with Buccan.....
        * Chicago's Fiscal Free-Fall..
        * Family of girl declared brain-dead sues Califor.....
        * Illinois prisons head out, no replacement named..
        * Here’s a deadline Rauner should have missed..


        * 5 arrested in Chicago 'crash-and-grab' thefts
        * Senate Democrats introduce plan to plug budget hole
        * Cubs' scramble on Wrigley Field hits bump when mayor balks
        * Quincy tavern gas leak sends 6 people to hospital
        * State superintendent warns of 'perfect storm' for districts
        * Officials: Grateful Dead fans can't camp during concerts
        * Illinois prisons head out, no replacement named
        * Visitation Friday, service Saturday for Minnie Minoso
        * Illini look to ticket giveaway to fill late game seats
        * Winfrey's Harpo Studios in Chicago to close in December

        * New state lawmaker Butler officially sworn in
        * State superintendent warns of 'perfect storm' for districts
        * Illinois prisons head out, no permanent replacement named
        * Netanyahu visit highlights danger of Iran, lawmakers say
        * Illinois prisons head out, no replacement named
        * Lawmakers introduce heroin harm reduction bill
        * Rauner: New Jersey is 'going down the drain'
        * Hunters, outdoorsmen hope for ally in Rauner
        * Tim Butler, congressional staffer, selected to fill former Rep. Rich Brauer's seat
        * Schock reimburses costs for lavish 'Downton Abbey' office decor

        * McDonald's serves $3 million Happy Meal to ex-CEO
        * Harpo Studios to shutter, ending 200 jobs
        * United Airlines looks to give club chow an upgrade
        * Mayor: Chicago rules ban 24-hour construction at Wrigley
        * Cardinal George in hospital for evaluation


          * Jackie Robinson West whistleblower arrested outside neighbor's home
          * 3 more charged in 'crash-and-grab' investigation, four others sought
          * Oakland courts Lucas museum if Chicago plan falters
          * City brushes back longer Wrigley construction hours
          * Ferguson police showed routine racial bias, Justice report says
          * Mundelein teen sentenced in stabbing death of sister
          * Bridgeport activists call for 31st Street CTA bus route
          * Senators propose plan for Rauner fund sweeps
          * 3 shot on Far South Side, 1 shot on West Side
          * Drew Peterson asks for immediate trial on murder-for-hire charges


          * 2015 Budget - CapitolView
          * PARCC Standardized Test Causes Problems
          * New Administration Promises Change After Repeated Errors Found In Audit
          * Local Lady Digs For Family Roots On PBS Program
          * Rauner Tells Cabinet: I'll Take Your Arrows
          * Bat-Killing White-Nose Syndrome Spreads In Illinois
          * The Raw Milk Underground
          * Senator Starts Petition To Try To Stop Budget Cuts
          * Are All Those Cat Videos Making Us Stupid?
          * Butler Sworn In As 87th District Representative


          * New state lawmaker Butler officially sworn in
          * State superintendent warns of 'perfect storm' for districts
          * Illinois prisons head out, no permanent replacement named
          * Netanyahu visit highlights danger of Iran, lawmakers say
          * UIS hopes to pick new mascot by April
          * Lawmakers introduce heroin harm reduction bill
          * Kathleen Parker: Twitter as America's conscience
          * Quote of the Day: Tuesday, March 3, 2015
          * Rauner: New Jersey is 'going down the drain'
          * Jorge Chapa: Illinois' majority-minority future and the age-race shift


          * Bettendorf focused on infrastructure
          * PODCAST: Chelsea Norton - Champaign Park District 3-3-15
          * Benefit planned for Anna family
          * Paxton police stop 'rolling, working, cooking meth lab'
          * Police investigating report of sexual assault at Lindenwood
          * Man charged with third DUI
          * Coffee with a Cop scheduled in Twin Cities
          * Herrin man donates blood for more than 40 years
          * Lawsuit coming on behalf of pedestrian hit by MTD bus
          * Virginia Farner


          * New critical-thinking state tests cause angst
          * Texas announces loyalty points system for football tickets
          * Titans release safety Pollard, claim Massaquoi off waivers
          * W. Chicago man gets 17 years for role in stabbing
          * Are you smarter than a third-grader? Take the PARCC practice test.

          * Immigrants hear how Obama policy might gai...
          * Immigrants hear how Obama policy might ben...
          * FIBRA Prologis to Participate in Citi's 20...
          * FIBRA Prologis Asistirá a la Conferencia d...
          * Gutierrez: I'll Shut Down DHS Instead of V...
          * Gutierrez: Obama eyes partial launch of an...
          * Gutierrez: GOP 'hurting themselves' with k...
          * Gutierrez Reveals WH Considering Implement...
          * Gutierrez: GOP Only Likes Netanyahu Becaus...
          * Why I Won't Be at Benjamin Netanyahu's Spe...

          * GOP Pushes Ahead With Bill Requiring Congr......
          * Netanyahu visit highlights danger of Iran,......

          * The most important line of Benjamin Netany......
          * Republicans to push for Iran bill...
          * Netanyahu's Careful, Clever Speech to Cong......
          * Sen. Sessions: Fight Against Obama's Execu......

          * Secret Rahm memo to Clinton: Step up attack on immigrants. Be Nixon on crime.
          * Netanyahu.
          * Congress Approves DHS Funding Bill Without Immigration Rollbacks
          * Congress Approves DHS Funding Bill Without Immigration Rollbacks (UPDATED)
          * Americans Were Asked If They Think Obama Loves America. He May Not Love the Results.
          * Dr. Ben Carson forms 2016 exploratory committee
          * Rauner's Budget Could Deal A Blow To Amtrak Service
          * IDFPR provides process to transfer to broker license from managing broker license
          * Get your ticket now for March 12 Springfield mayoral debate
          * Absentee Ballots Might Save Mell From Runoff In Chicago's 33rd Ward


          * IEMA Urges People to Prepare for Severe Weather - Tornadoes, floods and severe storms can happen any time of year
          * IDHS helps more than 5,000 individuals with disabilities find jobs - Program offers necessary tools to earn a living wage and become more independent
          * 24th Anniversary Desert Storm Remembrance Ceremony
          * Illinois Department of Human Rights Announces 2015 Spring Training Schedule
          * Snow and Freezing Rain to Impact Travel in Illinois - IDOT Crews Prepared to Battle Winter Weather this Weekend




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