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
* Today's number: 89 percent
* Today's video: Rauner victory lap
* Ask a silly question...
* Blagojevich arrested eight years ago today
* Pritzker, Lisa Madigan added to enemies list
* Rauner loves him some DeVos
* Good news for Mitsubishi plant?
* Cullerton to Rauner: Cut a deal with AFSCME before pension reform
* The finger-pointing continues
* Sneed: Madigan "disappointed" in Kennedy's fundraising this year
* 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

  
* US carriers detail Note 7 discharge update and why Verizon didn’t announce a date
* Should Microsoft still try to make a 3-in-1 device?
* Reports of margin call halt LeEco stock trading, company plans immediate business changes
* Prepare to buy the Huawei Mate 9 on January 6 in the U.S.
* Fitbit CEO drops some details on the Pebble acquisition
* Blass: Huawei Mate 9 sales in US to begin January 6
* Weekend fun: Readers, help us out here

* Following up: Mr. Eaton’s drama goes to Washington
* Abreu thrilled for reunion with Moncada
* Giolito excited to join White Sox talent haul
* Winter meetings transformative for White Sox
* White Sox steal show at Winter Meetings
* Adam Eaton delivered despite doubters
* A tale of two Sox at Winter Meetings

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


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

Archives
December 2016
November 2016
October 2016
September 2016
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


* Our View: Could Madigan bring movement to budge.....
* Bernard Schoenburg: Schobin, Joost among Spring.....
* Andy Shaw: Radical changes needed when it comes.....
* Illinois’ political games on budget may be wrec.....
* Implications of ‘lockbox’ amendment still being.....
* Statehouse Insider: The ball's in your court. N.....


* EXCHANGE: Students use notes to counter racist graffiti
* EXCHANGE: Class credited for no post-election negativity
* Suburban cop put on desk duty after excessive force report
* Quincy University cuts 14 jobs as it faces $5M budget hole
* East St. Louis official resigns after corruption guilty plea
* Report: Illinois Lottery didn't pay major scratch-off wins
* Authorities: 1 dead in small plane crash in Illinois
* Northern Illinois braces for up to 12 inches of snow
* U of Illinois inks 10-year deal to buy energy from wind farm
* U of Illinois inks 10-year deal to buy energy from wind farm

* State of Illinois' woes loom large for local fundraisers
* Implications of 'lockbox' amendment still being examined
* Day center services' pros, cons debated in Springfield
* Day center services' pros, cons debated
* State's woes loom large for local fundraisers
* Anti-abortion medical providers argue against Illinois law
* $3M in emergency funds headed to Illinois community colleges
* Springfield-area veterans join pipeline protest
* Rauner asks Democrats for budget proposal, cancels meeting
* Comptroller: State employee bonuses on hold during impasse

* Like our roundup? Share it around.
* No warranty on Allstate's billion-dollar acquisition of SquareTrade
* Airbnb is banned from more and more Chicago condo buildings
* Public pensions have a ton of leverage. They should use it.
* How outmoded technology is clipping United's wings


* 16-year-old boy killed in NW Indiana crash
* Dear Abby: Ratty clothes on boy may be a ploy
* Georgia Nicols horoscopes for Dec. 11, 2016
* Man wounded in North Austin shooting
* Like Bulls, Erik Spoelsta appreciates Dywane Wade’s leadership
* Lamar Jackson becomes youngest winner in Heisman Trophy history
* 61-year-old man with mental condition missing from Uptown found
* Louisville QB Lamar Jackson wins Heisman Tophy
* Injured Seabrook, Toews will be evaluated at morning skate
* Car stolen with 3-year-old girl inside from Marquette Park


* Widow of man slain in Aurora one year ago: 'We need to find these killers'
* Bulls survive Heat 105-100 in rivalry that isn't what it used to be
* Republican John Kennedy wins Louisiana Senate runoff, giving GOP 52-48 edge
* Indiana police officer, 2nd man injured in gunfire exchange
* Trump expected to tap Exxon's Tillerson for State, even as Russia ties raise concerns
* Chicago gun violence having impact on local basketball recruits, coaches
* 29 killed, 166 wounded in twin bombings near soccer stadium: Turkish minister
* Who is Rex Tillerson, dark-horse candidate for secretary of state?
* Police: Toddler left on side of road after carjacking
* Louisville quarterback Lamar Jackson wins 2016 Heisman Trophy


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* State of Illinois' woes loom large for local fundraisers
* Implications of 'lockbox' amendment still being examined
* Day center services' pros, cons debated in Springfield
* Bernard Schoenburg: Schobin, Joost among Springfield staff for Mendoza, Duckworth
* Statehouse Insider: The ball's in your court. No, it's in your court.
* Andy Shaw: Radical changes needed for budget negotiations in Illinois
* Our View: Could Madigan bring movement to budget situation?
* Day center services' pros, cons debated
* John Kelker: New website offers tips on money management
* State's woes loom large for local fundraisers


* Lucille Osman
* Bart Umdenstock
* Donald Hertz
* Catherine Biber
* David Weston
* Clifford Rumburg Jr.
* Marie Smith
* Mark Degenhardt
* Ralph 'Blue' Congleton
* Louis Cormier


* US defense secretary arrives in Iraq to assess Mosul fight
* Paul leads Clippers to season-high 133 points vs Pelicans
* Romanians voting in election overshadowed by graft
* Hamilton scores twice, Flames beat Jets 6-2 for 6th straight
* Couture, Labanc help lead Sharks past Hurricanes 4-3

* 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

* Greg Hinz on Politics Look who wants to be......

* Sen. Mark Kirk Cheers Illinoisans, Cubs Du......

* Old School
* No sanctuary for undocumented students at the University of Illinois.
* Holiday Pop-Up Market Saturday, 3pm-9pm
* D.C. map.
* Shedd School as seen in December
* Looking for more ‘REALTORS® Give Back’ stories
* Breaking. Judge orders TRO against Rauner and for state workers.
* Keeping retirement weird. My mother never asked permission to protest.
* Just over 80 days away ‘til Election Day (already?!?), at least for some of us
* TASC Offers Roll Call Videos for Law Enforcement: The Science of Addiction, Building Partnership with Treatment


* Criminal justice, health services stakeholders convene for Data-Driven Health & Justice Conference - Event will emphasize innovative strategies to address “superutilizers” of emergency departments and jails
* Know Before You Go with IDOT'SWinter Road Conditions Map
* Governor’s Export Awards Recipients Announced
* Governor Signs Legislation to Protect Jobs, Ratepayers and Taxpayers
* Give The Gift Of A Lifetime With A College Illinois!® 529 Prepaid Tuition Plan - College Illinois! can help limit or even eliminate future student loan debt




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