SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Harmon: Graduated income tax vote next week

Friday, Apr 25, 2014

Posted by Barton Lorimor (@bartonlorimor)

* Tribune…

While prospects for achieving a three-fifths vote of senators in the Democratic-controlled chamber are considered good, getting the same super-majority in the Democratic-led House is believed questionable at best. Earlier this week, Democratic House Speaker Michael Madigan said the proposed constitutional amendment was “significantly short” of the 71 votes needed to put it on the Nov. 4 ballot.

The House sponsor of the plan, Rep. Christian Mitchell, D-Chicago, said he couldn’t say whether he had the required support needed for passage “at the moment.” Vote counts, he said, “are dynamic and ever changing.” Harmon, however, said he was “confident I have the votes in the Senate.”

In an effort to make the proposal more politically palatable, Harmon and Mitchell have proposed separate state legislation that would replace the state’s current 5 percent personal income tax rate, which is set to revert to 3.75 percent in January, with a three-bracket income tax. The first $12,500 in income would be taxed at 2.9 percent, income on top of that to $180,000 would be taxed at 4.9 percent, and all income above $180,000 would be taxed at 6.9 percent.

* Speaking of taxes, take a look at these opposing guest editorials concerning the motor fuel tax. The first is from Doug Whitley…

User fees are a fair and practical funding source for transportation infrastructure. It ensures that those who drive more — and therefore place more wear on our infrastructure — would pay more. Thanks to greater fuel efficiency and no motor fuel tax increases, today’s motorists contribute much less to support highway construction than in prior decades.

We cannot let our transportation networks deteriorate and become our next crushing problem like pensions and education. We need a better way forward that assures a reliable, predictable and stable funding stream to support our mobility and prosperity. We must accept the responsibility to be good stewards of our present and future transportation needs, and that time is now.

A counter from Bill Fleischli of the Illinois Petroleum Marketers Association…

Clearly, the state needs to maintain its infrastructure, but we need to get behind the wheel and stop this push for higher fuel taxes. Illinois Auditor General Bill Holland released a report in 2013 that found Illinois spent less than half of its dedicated road fund dollars directly on road construction costs in eight of the prior 10 fiscal years.

Taxpayers should be outraged. Gas station owners and convenience store retailers are opposed to any plan that would have Illinois drivers paying more to fill-up their gas tanks.

There have been no votes in the Illinois General Assembly on specific proposals to raise the motor fuel tax in 2014, but there is a concerning amount of conversation about the possibility.

That possibility has at least been raised over in the House where the Revenue & Finance and State Government Administration Committees have been working towards a package of tax code changes.

* And here is a budget and state government round-up. Notice the re-appearance of a few doom and gloom stories…

* Minimum wage workers, state lawmakers clash on fair pay, taxes: If the state were to adopt this structure lawmakers would set the new rates. That brings up concerns for opponents. “There’s no limit on that which means they can raise it to whatever level they want and it’s going to be middle class families that get hurt the most.” -says 35th District State Senator Dave Syverson.

* Illinois lawmakers suggest abandoning resort: In a hearing to discuss the Illinois Department of Natural Resources budget Thursday, state Rep. Kelly Burke, D-Evergreen Park, asked whether agency officials had considered giving up on the 25-year-old state-owned Eagle Creek Resort south of Findlay. “Why don’t we get rid of it?” Burke asked. Natural Resources Director Marc Miller did not dismiss the idea, telling a panel of lawmakers that the state faces challenges when it comes to making Eagle Creek financially viable. The 138-room lodge has been closed since 2009 because of an outbreak of mold. A Decatur company brought in to repair the damage in 2010 walked away from the job earlier this year because of a dispute with the agency.

* Do cuts loom for disaster agency?

* Jail is costly place for mental health care

* Quinn: $60 million for Center for Performing Arts an investment in WIU’s future

* I-Team: More school security concerns in Illinois than funding

* Cristal Thomas: Protecting Illinois’ pregnant workers shouldn’t be a heavy lift

- Posted by Barton Lorimor        


32 Comments
  1. - Late to the Party - Friday, Apr 25, 14 @ 7:48 am:

    Minimum wage workers need a raise because of the effects of inflation. State retirees, however, need to have their pension increase cut.


  2. - Late to the Party - Friday, Apr 25, 14 @ 7:52 am:

    Motor fuel taxes: Didn’t we recently raise license plate fees for everyone to pay for recharging stations for electric vehicles? Fully electric vehicles use no gasoline and pay no gas use tax; gasoline/electric hybrid vehicles use little gas and pay little gas use tax.


  3. - Grandson of Man - Friday, Apr 25, 14 @ 9:08 am:

    I was wondering if some deal could be made between Republicans and Democrats to get the term limits amendment and the progressive tax amendment on the November ballot. Perhaps this deal wouldn’t sit well with a lot of legislators who oppose either plan. Just a thought…


  4. - Walker - Friday, Apr 25, 14 @ 9:25 am:

    Not for anything, but if this proposal had real legs, Madigan or one of his experienced leaders would be carrying it in the House. We’ll see.


  5. - Jimbo - Friday, Apr 25, 14 @ 9:45 am:

    Late, it is different when it is someone else’s money lol. Everyone else should (rightfully) pay their workers enough to account for inflation. The state though… Do as they say, not as they do.


  6. - A guy... - Friday, Apr 25, 14 @ 10:14 am:

    The Illinois Senate maintains its status as the most tax friendly chamber in the country. Amazing.


  7. - Robert the Bruce - Friday, Apr 25, 14 @ 10:25 am:

    Which House democrats are against a progressive income tax?


  8. - forwhatitsworth - Friday, Apr 25, 14 @ 10:30 am:

    I wonder why “Late” feels that state retirees should not be able to keep up with inflation? I’m a retired teacher. Is diminishing my pension benefit my punishment for dedicating my life to the service and education of others?


  9. - Anonymous - Friday, Apr 25, 14 @ 10:35 am:

    ref. motor fuel taxes. The Motor Fuel Tax Fund is like the state pension fund. It gets raided to pay other bills. Then the cry that we need increases because there is not enough money in the funds to fund them. State funds, unless designated by law on what the money within the funds can be used for, are just slush funds.


  10. - dave - Friday, Apr 25, 14 @ 10:36 am:

    **I was wondering if some deal could be made between Republicans and Democrats to get the term limits amendment and the progressive tax amendment on the November ballot.**

    It is impossible for the GOP leadership term limit amendment to get on the ballot. It can’t meet the constitutional requirement for being read into the record 3 times in each chamber.


  11. - Darienite - Friday, Apr 25, 14 @ 10:46 am:

    FYI, the local agency portion of the MFT funds can be used to buy salt, aggregate, HMA material, signs, traffic signal and lighting maintenance and energy (i.e., electric) costs. Assuming IDOT and Counties follow suit, is this what the Auditor General has a problem with?


  12. - Geronimo - Friday, Apr 25, 14 @ 10:47 am:

    All this raiding of funds……….either we are woefully undertaxing for all we like to spend on, or money is disappearing to secret places. Which?


  13. - Langhorne - Friday, Apr 25, 14 @ 10:55 am:

    why would senators go out on a limb and vote for the progressive tax plan, at least until madigan says he is close?


  14. - dave - Friday, Apr 25, 14 @ 10:58 am:

    **why would senators go out on a limb and vote for the progressive tax plan, at least until madigan says he is close?**

    Because the progressive tax plan is a much better alternative than the extension of the 5%, and would mean that 94% of the state would pay less than the 5%.

    Its widely supported in districts across the state, and is a very good political vote.


  15. - Keyser Soze - Friday, Apr 25, 14 @ 11:09 am:

    Haven’t seen a poll; how does the public feel about a graduated income tax?


  16. - Tom Joad - Friday, Apr 25, 14 @ 11:13 am:

    I agree with Bill Fleischli. We should start shifting non-road building expenditures off of the gas tax. We should start with this upcoming new budget.


  17. - independent - Friday, Apr 25, 14 @ 11:15 am:

    The graduated tax makes sense, I hope it passes.


  18. - tberry - Friday, Apr 25, 14 @ 11:30 am:

    The mayor of Chicago wants to raise property taxes. The President of Cook County won’t rule out a raise in county property taxes–this means she’s for it. The Governor wants to make a temporary tax hike permanent. And now they are considering a “progressive” income tax that would have the effect of making a temporary income tax hike permanent.

    Enough of the tax and spend! Are they all trying to run the middle class out of the city/county/state?


  19. - A guy... - Friday, Apr 25, 14 @ 12:03 pm:

    Welcome to the “Raise our taxes, it really is a popular position” focus group. Leave your perspective in the lobby and pull up a bean bag chair. Yikes.


  20. - Formerly Known As... - Friday, Apr 25, 14 @ 12:03 pm:

    == Graduated income tax vote next week ==

    == income tax Increase vote next week ==

    Fixed that for you, Senator Harmon.


  21. - mcb - Friday, Apr 25, 14 @ 12:26 pm:

    -dave-
    94% of the population would pay 0.1 percentage points less than the 5%. So in other words, 94% of the population would pay almost exactly the same as they would under an extension. That’s obviously so much better.

    No one supports this measure because of what it means to 94% of the population. It’s what it means to the other 6%. Let’s take more of their money to keep growing government as wastefully and inefficiently as we can, especially if we can funnel it into NRI type programs and patronage hiring so we can keep one side of the aisle in power longer. Great idea! More of the same!


  22. - dave - Friday, Apr 25, 14 @ 1:05 pm:

    **94% of the population would pay 0.1 percentage points less than the 5%.**

    Wrong… you should learn about marginal tax rates.

    For example, a person making $90k would actually be paying a rate of 4.5%.


  23. - Anon. - Friday, Apr 25, 14 @ 1:09 pm:

    ==I wonder why “Late” feels that state retirees should not be able to keep up with inflation?==

    Ummm . . . because if he came right out and said it’s wrong to take away the inflation adjustments, it wouldn’t be snark?


  24. - Formerly Known As... - Friday, Apr 25, 14 @ 2:27 pm:

    I just looked at the Harmon plan details. How is no one mentioning the impact this would have on take-home pay of the working poor? This is nuts.

    The Harmon plan calls for rates of

    $0 - $12,500 = 2.9%; $12,500 - $180,000 = 4.9%; $180,000 and above = 6.9%

    By law, tax rates are supposed to be 3.75% for all beginning on January 1, 2015.

    A person making minimum wage in Illinois makes $17,160 annually. This would raise taxes on those making minimum wage from 3.75% to 4.9%.

    That is not the right thing to do for those working low income jobs. Not good at all.


  25. - Formerly Known As... - Friday, Apr 25, 14 @ 2:29 pm:

    At least the Jakobsson plan, which had its own glaring flaws, dropped the rate to 3% for those making less than $18,000.


  26. - Formerly Known As... - Friday, Apr 25, 14 @ 2:41 pm:

    Upon further review, Harmon’s plan relies on marginal rates rather than flat rates per bracket as was my initial understanding.

    That is better than current law but worse than Jakobsson’s plan. Someone making $17,160 in Illinois would pay taxes of $590.84 under Harmon’s plan, $514.80 under Jakobsson’s plan, and $643.50 under current law.


  27. - mcb - Friday, Apr 25, 14 @ 3:03 pm:

    -dave-
    Either way, much higher than current law, which would drop the 90k earner to 3.75%. This idea is a tax hike. It would raise the rates for most tax payers in January. This is a choice between two different tax hikes. And I would reiterate the second part of my earlier post.
    “No one supports this measure because of what it means to 94% of the population. It’s what it means to the other 6%. Let’s take more of their money to keep growing government as wastefully and inefficiently as we can, especially if we can funnel it into NRI type programs and patronage hiring so we can keep one side of the aisle in power longer. Great idea! More of the same!”


  28. - Formerly Known As... - Friday, Apr 25, 14 @ 3:08 pm:

    After running the marginal rates in comparison to current law taking effect on January 1 2015:

    The Harmon plan would raise taxes on anyone making $21,740 or more.

    That’s not good.


  29. - Formerpol - Friday, Apr 25, 14 @ 3:24 pm:

    I’m absolutely fed up with the Democrats’ always raising or trying to raise our taxes and fees! And I’m not alone. They don’t know how to spend our money wisely now - it’s all about new spending and new programs. For the first time in my life, I’m considering voting straight GOP this year to shake things up. Agencies and programs which depend on state funding will all have to take cuts. It’s the only way to save the state and stop all the smart, successful people who are leaving the state in droves!


  30. - Norseman - Friday, Apr 25, 14 @ 3:40 pm:

    Following up on Langhorne’s train of thought, why would Cullerton allow his members to go out on a limb and vote for the progressive tax plan, at least until madigan says he is close?


  31. - Jeff Trigg - Friday, Apr 25, 14 @ 3:57 pm:

    People making less than $12,500 (or $18.000) have enough problems without the state taking ANY percentage of their income. I never understood why Democrats are willing to tax the income of poor people, state or federal. Its counterproductive. And I know, but EITC is nothing more than a gimmick to plug up hole or two and doesn’t help everyone.


  32. - Just The Way It Is One - Friday, Apr 25, 14 @ 4:21 pm:

    Woo hoo–let the votes be cast on this one–even though Mike Madigan said there wouldn’t be enough to get the 3/5th “Supermajority” to get it on the Ballot for the People. At least we’ll see where the Legislators stand on it, and momentum may be gained toward passage of the Harmon-Mitchell Bill–so that rather than making it Constitutional, at least some substantive progress on a fairer, graduated, Income tax can be achieved–although they may want to UP that highest bracket amount a bit, say to at least $200,000 Annual Income (e.g. if a married couple filing jointly), ‘cuz, then, it really is hard to deny that you’re not really rakin’ it in, and can easily afford to ante up a few bucks more for the People out of your big Pot…!


Sorry, comments for this post are now closed.


* Gonna be a light day here
* No details except for a new hole
* Frerichs to Simon: No thanks
* 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

          
        * Samsung Galaxy E7 sees specs leaked by benchmark
        * Lightning-fast 4G connectivity: India, say hello to Nokia Lumia 638
        * Samsung to update Galaxy Note 4, Note Edge directly to Android 5.0.1
        * Baldurs Gate II Enhanced Edition makes its way to Android
        * Forensic software gets around Apple's iCloud security features
        * BLU Studio 7.0 may be more tablet than phone, but it sure is affordable
        * Bit Dungeon II: Game to save your soul from eternal damnation

        * Blizzard Offers Update On StarCraft 2: Legacy Of The Void
        * GTA 5 For PC Hardware Requirements To Be Unveiled Next Week
        * Micromax Unveils Yureka CyanogenMod Smartphone
        * Gold Plated Samsung Galaxy Note Edge Spotted in Vietnam
        * European iTunes App Store To See Changes In Price Jan 1st 2015
        * 500px App Updated With Built-In Camera And Editing Tools
        * The Interview Movie Release Cancelled Due To Threats

        * AL Central looking like one powerhouse division
        * Samardzija, Lester are right fits in Windy City
        * Samardzija, Lester are right fits in Windy City
        * White Sox offseason momentum transfers to fans
        * Samardzija, Lester are right fits in Windy City
        * White Sox unveil Samardzija, Robertson, Melky
        * White Sox sign Brad Penny to minor league deal

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


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

        Archives
        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


        * Some Rauner Plans Still A Mystery..
        * BGA Cautiously Optimistic..


        * APNewsBreak: Judge rejects NCAA concussions deal
        * Video game developer to open studio in New Orleans
        * U. of Illinois to sexual assault group starts work
        * Durbin: US, Cuba diplomatic ties 'long overdue'
        * Official: Convicted killer slain in Illinois prison
        * Topinka remembered as honest, tough at memorial
        * Senate approves NATO-trial prosecutor for US bench
        * New trial linked to disgraced judge gets underway
        * Illinois employers reminded of income-tax rollback
        * Chicago 'petcoke' handler says it'll enclose piles

        * Chicago couple convicted of stealing state grants
        * Topinka remembered as tough, honest leader at memorial service
        * Illinois employers reminded of income-tax rollback
        * Memorial service for Topinka begins in suburban Chicago
        * Police use vacant Jacksonville site to train for worst-case scenarios
        * State-grant fraud case in hands of federal jury
        * Gov.-elect Rauner says some agency directors may stay
        * Attorney blames couple's bookkeeper in state grant fraud case
        * Attorney general: Quinn, Rauner each should name comptrollers, then voters choose in 2016
        * Prosecutor: Chicago couple bought cars, paid son’s mortgage with grant money

        * Chicago couple convicted of stealing state grants
        * Durbin: US, Cuba diplomatic ties 'long overdue'
        * Chicago couple's $3.4 million fraud case now in jury's hands
        * Treasuries drop as Yellen says Fed is on pace to raise rates
        * Illinois employers: Don't forget income-tax rollback


        * Emanuel halts private parking on city lots near United Center
        * Durbin, Kirk split on Obama’s shift on Cuba policy
        * Unions may win  HOLLOW victory with pension suit
        * time for new course in Cuba
        * CPS move may have cost more than estimated
        * Unions may win Pyrrhic victory with pension suit
        * Chicago couple found guilty of stealing millions in state grants
        * Chicago Cubans cautious yet hopeful about historic policy shift
        * After 50 years, time for a new course in Cuba
        * Obama pardons Naperville man, Brian Sledz


        * 1 killed, 12 others wounded in shootings, including man, 18, hurt near park
        * Man found in South Side home was shot to death
        * Man arrested in 2 downtown bank robberies
        * 2 found dead in South Side home
        * Father of 3 shot to death on way home from work
        * Jury finds Chicago couple guilty in grant scam case with ties to Obama friend Whitaker
        * CPS school for special-needs kids needs full-time nurse, alderman says
        * Proposed NCAA concussion settlement denied by federal judge
        * Oak Park school district, teachers reach tentative deal
        * Chicago police captain returns to work 2 months after being shot


        * Illinois Republican: Cuba Agreement "Good First Step"
        * Obama: US re-establishing relations with Cuba
        * Obama re-establishing US relations with Cuba
        * Sangamon Auditorium: Beware Second Party Ticket Brokers
        * Real-estate developer in hot area sees bright future — and displacement
        * Worries rise in Russia as ruble falls
        * Rauner Named Nation's Most Influential Pension Figure
        * Recent incidents cast doubt on Hammond police accountability, critics say
        * Report details big problems at Illinois prison for women; state says it's safe
        * Chicago 'petcoke' handler says it'll enclose piles


        * Bernard Schoenburg: Schmidt considers challenging Sgro for park board president
        * Brian Sauder: Faithful decisions for the holidays
        * Eugene Robinson: The price of being hacked
        * George Will: A Texas-sized license plate dispute
        * Quote of the day: Thursday, Dec. 18, 2014
        * Chicago couple convicted of stealing state grants
        * Topinka remembered as tough, honest leader at memorial service
        * Illinois employers reminded of income-tax rollback
        * Quote of the day: Wednesday, Dec. 17, 2014
        * Police use vacant Jacksonville site to train for worst-case scenarios


        * Upcoming Services (Dec. 18)
        * Gas prices continue downward trend
        * Official: Convicted killer slain in Illinois prison
        * Our View: Budget problem clear; answer will not be easy
        * Police Beat
        * Special delivery
        * Central Illinois man convicted in double murder
        * All is calm
        * Looking Back (Dec. 18)
        * Charles Lane


        * Larkin presses on, dumps Batavia
        * WW South coach Todd remembered as 'a great guy'
        * Addison Trail makes it 2 for 2 in tournament crowns
        * Girls bowling scoreboard: Wednesday's results
        * Girls gymnastics scoreboard: Wednesday's results

        * Rauner: 'I look forward to working very cl...
        * Rauner in D.C., backs state term limits, n...
        * US Republican congressman to work for bipa...
        * US Rep. Gregg Harper (R-MS) to Serve as Vi...
        * Climate deniers need the boot - Idaho Moun...
        * It's business as usual for election-tested...
        * John Shimkus Defeats Eric Thorsland In Ill...
        * Congressman John Shimkus wins 15th Distric...
        * Davis defeats Callis in race for Congress;...
        * Republican John Shimkus wins race in 15th ...

        * Durbin: US, Cuba diplomatic ties ‘long ove......
        * Galesburg veterans facility named in honor......
        * Reaction to release of Alan Gross, future ......
        * Durbin: Clean water law a tribute to Paul ......

        * Galesburg VA clinic renamed after Lane Evans...
        * Why is he so upset? Because of the secret ......
        * Senate Confirms Vivek Murthy As Surgeon Ge......

        * Baseball ‘kids’ don’t live in Chicago? Why did complaints take so long?
        * Business School?
        * For Our Fallen Vigil In Chicago
        * Demands For Reparations Increase For Those Tortured Under CPD's Jon Burge
        * Memorial For Chicago Police Torture Survivors
        * Chicagoans Hold Vigil For Victims Of Violence And Police Brutality
        * How does one get to become neighborhood of the year?
        * A Thought For The Day...
        * Chicago Group Wants Quinn To Veto Eavesdropping Measure
        * Chicago Mayoral, 24th Ward Candidates Court West Side Voters At Local Forum


        * Illinois Observes National Impaired Driving Prevention Month - December designated to educate communities about the numerous risks associated with driving under the influence of alcohol or drugs
        * The Illinois Office Of The State Fire Marshal Promotes Fire Safety During The Holiday Season - Christmas Trees and Decorations Could Pose Risks of Fires
        * Honoring Illinois Comptroller Judy Baar Topinka
        * Honoring Illinois Comptroller Judy Baar Topinka - United States and Illinois flags at half-staff immediately until Sunset, Thursday, December 11, 2014.
        * Governor Quinn Statement on the Passing of Comptroller Judy Baar Topinka




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