SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Quinn open to negotiating permanent tax rate

Monday, May 26, 2014

* Champaign News-Gazette

Gov. Pat Quinn indicated Saturday that he’s open to negotiating Illinois’ income-tax rate and might accept something less than the 5 percent individual tax rate he’s been campaigning for all spring. […]

“We’re working on a budget that’s balanced, that pays the bills, that pays for the things we want to do as a state, that helps our families. We can negotiate that. That’s part of political life,” he said. “But we’ve got to make sure that we have adequate revenue to pay for the programs that are vital to everyday people and their schools, and making sure that we take good care of people’s safety.”

Asked whether extending the current 5 percent income-tax rate is dead, Quinn said, “No, I think we have to work hard on getting the job done in a balanced way. Revenue has to equal expenditures.”

If that change gets them to 60 House votes, then maybe they should try. I’m just not sure it gets them to 60.

Your thoughts?

- Posted by Rich Miller        


31 Comments
  1. - Oswego Willy - Monday, May 26, 14 @ 2:08 pm:

    I would have more faith in this idea if Governor Patrick Quinn had a Floor Leader to negotiate with the Speaker and …and …the Rank and File.

    I would buy this tact, but without a Floor Leader to shepherd Quinn’s plan, or to start any negotiations with Legislative leaders or leadership, but Quinn lacks that skill set or level on his own. In reality, if Quinn can get MJM to allow a negotiated plan as described, Madigan might be better off with the same exact plan, sell it to everyone and their brother as Quinn’s and Quinn just takes it as a gift, and takes “credit” for a Madigan or Cullerton budget, crafted as Quinn describes.

    Might be the best solution yet, to the bad hand they all have.


  2. - east central - Monday, May 26, 14 @ 2:26 pm:

    4.75% for 3 years to meet full pension payments while the case works through the courts, with a transition to 4% over the following 3 years. 4% matches Quinn’s original tax pledge, which makes it a magic number.

    The Democrats needed to remove the pension issue from the campaign which they did by passing SB1.

    Now they need to remove the tax increase from the campaign.

    Rauner has fought both because these issues are valuable to him in the campaign.

    If the Democrats do not get it done, Quinn loses big. Then Rauner & company go to work on GA seats in the subsequent elections.

    Passing a Plan B is the only politically responsible action.


  3. - steve schnorf - Monday, May 26, 14 @ 2:35 pm:

    When I was in high school, our football coach used to say to our defensive ends, if you let them get outside of you, “it’s all over but the shoutin’”. I think that’s where we are.


  4. - Anonymous - Monday, May 26, 14 @ 2:46 pm:

    The math is simple, the pension plans need more money and lots of it. Either a tax extension or a cut in spending is needed to be done to make the math work. Either course of action by the GA and Quinn will be a political negative on election day but it needs to be done some day.


  5. - Norseman - Monday, May 26, 14 @ 2:54 pm:

    If a reduced rate will get them to 60 votes, it would have surfaced in the rumor mills by now. I can’t see a legislator going to his constituents and telling them that I only voted for X% increase instead of Y% and then have to deal with spending reductions that would still be necessary.


  6. - Oswego Willy - Monday, May 26, 14 @ 3:07 pm:

    ===I can’t see a legislator going to his constituents and telling them that I only voted for X% increase instead of Y% and then have to deal with spending reductions that would still be necessary.===

    Well put.

    The political reality of “it’s only…” Is a heavy lift, even if the governmental warrants that some stability in an increase is needed.

    Can’t be a “little pregnant”; can’t vote for a “smaller” permanency and expect that to be seen in the political optics as viable.

    Of course, if Quinn had a Floor Leader to negotiate any or all these possibilities, none would be a last resort.

    Great example of dysfunctional government not working when it’s starting to work.


  7. - east central - Monday, May 26, 14 @ 3:09 pm:

    If they fail now, why should anyone have faith in Democratic leadership?

    Why should they have any base left if all they can do when holding the governor’s office and a super-majority in the GA is pass a budget with drastic cuts that hurts their traditional supporters?


  8. - Capitol View - Monday, May 26, 14 @ 3:11 pm:

    I’ve been predicting for months that the state income tax would be dropped by 1/2 of 1% and made either permanent or continued for another five years. It is the only logical resolution here.


  9. - Cassandra - Monday, May 26, 14 @ 3:11 pm:

    Let’s make everybody mad. The ones who want the tax increase to stay. The ones who want it to go. The ones who are fearful of cuts. The ones who want more cuts. The ones who want property tax relief (which presumably would be unaffordable at a lower tax rate, but who knows what Quinn is thinking). The ones who think Chicago rates are too low. Why would Rauner bother coming out with a master plan for the Dems to pick apart. They can self-destruct on their own.


  10. - jake - Monday, May 26, 14 @ 3:15 pm:

    A big problem is Quinn’s lack of popularity and lack of skill in working with the legislators. I believe that support among the Democrats for extending the current rate actually went down after Quinn met with the caucus.


  11. - Michelle Flaherty - Monday, May 26, 14 @ 3:17 pm:

    Ummm … What date is it Mr. Governor?


  12. - Norseman - Monday, May 26, 14 @ 3:20 pm:

    === Ummm … What date is it Mr. Governor? ===

    Governor: “It’s Memorial Date! I get to ham it up in front of the veterans groups. Besides, I’m not doing any good in Springfield.”


  13. - Coach - Monday, May 26, 14 @ 3:43 pm:

    I would tie it into the gambling bill and make one large bill! It is time to be creative and get votes! I’m sure you might find some out there to get you close to the 60 votes needed!


  14. - Anonymous - Monday, May 26, 14 @ 3:44 pm:

    Coach I think you might have a solution!


  15. - Anon - Monday, May 26, 14 @ 4:11 pm:

    How about embracing the Civic Federation’s proposal of a more gradual decline in the rate? The Civic Fed can hardly be depicted as a bunch of liberal big spenders.

    Steve: Could you kindly explain how “it’s all over but the shoutin’” applies here?


  16. - Befuddled - Monday, May 26, 14 @ 4:23 pm:

    Extending it at 5%, or 4.5% or 4%, isn’t it all a broken promise? Better off all in or all out.


  17. - Anon - Monday, May 26, 14 @ 4:37 pm:

    == Isn’t it all a broken promise? ==

    Can you find any quote from Quinn promising the tax rate would drop back after four years? Since when is a sunset provision in a law a promise that the law will not be extended?


  18. - Befuddled - Monday, May 26, 14 @ 4:48 pm:

    Anon 4:37
    First of all, seriously? You want to act like Quinn didn’t sell this as temporary? Even if there wasn’t a quote, that defies logic. But here’s just one quote - there are many others.

    “The idea here is a temporary income tax to deal with the immediate fiscal emergency the state faces.” Pat Quinn, State Journal Register

    Temporary means it’s going away. There is no confusion there about what he’s saying. Give me this temporary tax increase so I can fix the problem. Otherwise, he would have said raise the tax permanently.


  19. - Anon - Monday, May 26, 14 @ 4:53 pm:

    == Isn’t it all a broken promise? ==

    Can you find any quote from Quinn promising the tax rate would drop back after four years?

    Since when is a sunset provision in a law a promise that the law will not be extended? It is merely a guarantee that a law will expire UNLESS it is re-enacted.


  20. - Befuddled - Monday, May 26, 14 @ 5:03 pm:

    Anon 4:53
    From Merriam-Webster Dictionary:

    “tem·po·rary adjective \ˈtem-pə-ˌrer-ē\

    : continuing for a limited amount of time : not permanent

    : intended to be used for a limited amount of time”

    Again, the Governor called the tax increase temporary. Part of the definition of temporary is “not permanent”. Now, Quinn wants to make the tax increase permanent - by logic - not temporary.

    It’s not that hard.


  21. - Befuddled - Monday, May 26, 14 @ 5:06 pm:

    The Research and Development Credit sunsets almost every year. But nobody refers to it as the temporary Research and Development Credit. Sunsets alone do not mean temporary or permanent.

    But when you call it temporary - that means temporary.


  22. - steve schnorf - Monday, May 26, 14 @ 5:21 pm:

    anon, because in fact I believe it is all over but the shoutin”


  23. - Anonymous - Monday, May 26, 14 @ 6:39 pm:

    He lied. Get over it. At least it’s not the immorality and legal defiance of the constitutional provision
    of pensions. This is minor. Supreme court won’t have to hear this one.


  24. - Steve - Monday, May 26, 14 @ 6:46 pm:

    Anything above 3% is still a tax increase: no matter how the Democrats spin it.


  25. - RNUG - Monday, May 26, 14 @ 6:48 pm:

    Time to get really creative … or maybe just plain crazy.

    Drop Quinn’s property tax rebate plan. Introduce a new bill to drop the income tax back to 3%, not the 3.75% it is scheduled to fall back to. That will cut something like $7B from the individual income tax.

    Then replace the revenue with a new sales tax on all services / labor at the current sales tax rate. Estimates have this equal to the current sales tax, which will bring in almost $10B if the estimates are accurate. I’m going to assume the estimates might be high and it will only generate the $7B needed to replace the income tax loss; it better to be conservative.

    Put this ALL in ONE BILL. Direct any excess over $7B for FY15 as follows: 33% goes to the 5 state level pension funds, 33% goes to various municipal pension funds, and the other 33% goes to the state road fund. If the service tax comes in at $10B, that’s an extra $1B for the state pensions, $1B for the municipalities and $1B to roads. Include a inflation adjustment raising the $7B threshold by 3% each future Fiscal Year.

    Income tax relief, property tax relief by shoring up municipal pension funds, and showing up the state pension funds. Fixes 3 problems with only 1 new tax. A lot of things to like and only 1 thing to hate.

    And here’s the best part; for municipalities that have a local sales tax, they gain a bunch more revenue also.


  26. - Oswego Willy - Monday, May 26, 14 @ 6:49 pm:

    - Steve -,

    Keeping the tax permanent, is not an increase to what your taxes were before, it would be after; they would be the same.

    Being ignorant to facts does not make your drive-bys helpful.


  27. - RNUG - Monday, May 26, 14 @ 6:58 pm:

    The knowledgeable will catch this, but I should have noted at 6:48 PM I was using full fiscal year figures when I should have adjusted it for the half year effect in FY15. The numbers I used would be close for FY16.


  28. - 1776 - Monday, May 26, 14 @ 9:59 pm:

    Maybe if Quinn was in Springfield today rather than the Sox game he could help…

    On second thought, keeping him out of town probably helps Cullerton and Madigan!!!


  29. - low level - Tuesday, May 27, 14 @ 7:08 am:

    If it gets them closer to 60, by all means.

    My larger thought is that anyone who wants to be governor at this point in time must be completely out of their mind. This super wealthy Rauner guy wants that job? He’s nuts - OR, really doesn’t realize how difficult it really is.

    Bruce, I learned a long time ago: politics is easy, even fun in some cases. Governing is very very difficult. Be careful what you wish for.


  30. - Angry Chicagoan - Tuesday, May 27, 14 @ 8:04 am:

    What east central said.

    However, I think a good many of the Democrats in the legislature would rather deal with Rauner. Sometimes turkeys do vote for Christmas, without the full comprehension of what it involves in the long run, or else without the self awareness required to understand that one is, in fact, a turkey.


  31. - Doichef - Tuesday, May 27, 14 @ 8:13 am:

    Quinn: “Revenue has to equal expenditures.” No, Pat, your expenditures must equal your revenue! This is the typical illogical thinking that got us into this mess — establish the expenses and then raise the revenue to match it. That is literally the cart before the horse.


Sorry, comments for this post are now closed.


* *** UPDATED x1 *** Question of the day
* Adventures in governing
* Rauner on Obama: "One of the most anti-business presidents we've had in the last 70 years"
* Callis recycles ad, reportedly lowers buys
* *** UPDATED x2 - Frerichs responds - Cross responds *** Frerichs says Cross is Rauner's "lapdog"
* Poll: Rauner leading by 6, Topinka up by 22, Cross up by 10
* Pumping up the base
* NRI head will testify next week
* *** UPDATED x2 *** Another day, another GTCR revelation
* Rate Rauner's three new TV ads
* SUBSCRIBERS ONLY - Supplement to today’s edition: Congressional crosstabs
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning, everybody!
* 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

          
        * A New App Called Offtime Helps You Unplug Without Missing Out
        * iPhone 6 Plus review – Apple’s outstanding entry to the “phablet” market
        * LEGO Creator Islands lets you build all things awesome
        * Chargerito smartphone charger is incredibly small
        * Skylanders Trap Team Review: Good Storytelling And Simple RPG Mechanics Succeed
        * Parrot Zik 2.0: lighter, better battery controls
        * Samsung shares Galaxy Note 4 release dates for nations around the globe

        * ARM Introduces New Platform for The Internet of Things
        * Why Windows 10 is an Ambitious Step Forward, Not a Retreat
        * Netflix Will Pay You to Instagram Famous Movie Locations
        * New Swarming Drones Appear Just in Time for Looser Rules on Eyes in the Skies
        * LGBT Real-Name Controversy: Facebook Apologies, Promises Changes
        * Facebook Apologizes to Drag Queens Over “Real Name” Policy
        * Wealthfront Hires MessageMe COO Ali Rosenthal to Run Partnerships

        * Guide to American League rooting interests for White Sox fans
        * Anderson, Edwards prospects to watch in AFL
        * Manager notes: How Robin Ventura and Chris Sale get along
        * Voting underway to decide Hank Aaron Awards
        * Development of young core in '15 can define Chicago's future
        * Improved White Sox take important step in 2014
        * September call-ups report card: position players


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

        Archives
        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


        * Gov. Quinn Proclaims “First Ladies Health Day” .....
        * McAuliffe to campaign for Gov. Pat Quinn in Chi.....
        * Sitting Governors Fight to Keep Their Jobs..
        * Rauner, Quinn clash on Obamacare expansion ahea.....
        * Panel Investigating NRI To Hold Hearings Next Week..
        * Skokie man takes charge of Chicago’s first Oliv.....
        * Reeder: State government unaware of education s.....
        * Rauner calls for restructuring of the tax code..


        * Donations drying up for Lincoln library foundation
        * Ex-Chicago police commander getting out of prison
        * Governor candidates' views on Obama library evolve
        * Community prosecutor to serve East St. Louis area
        * U of Chicago increases aid to needy students
        * Officer accused of taking drug from evidence room
        * Federal agents charge 22 in alleged drug ring
        * Md. bankruptcy halts suit in deadly Illinois crash
        * Illinois universities competing for students
        * Ex-Texas deputy gets 12 years in drug cash case

        * Donations drying up for Lincoln Presidential Library foundation, chairman tells lawmakers
        * ALPLM at center of legislative hearing in Chicago
        * Former head of anti-violence program to testify
        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act
        * State-owned airplanes to be sold in online auction
        * GOP opposition to school funding bill irks Manar

        * Secret Service Director Julia Pierson resigns
        * United stock dips on news of first U.S. Ebola case
        * Chicago-Indianapolis train getting snacks, surfing and biz class
        * Young drinkers have abandoned big beer. Can it be saved?
        * New networking group launches


        * Video shows Rauner opposing Medicaid expansion last year
        * Rauner’s biggest strength proving to be greatest weakness: Mihalopoulos
        * CPS students with good GPA could get free ride to City Colleges
        * Union: CPS was warned that janitor job cuts could cause problems
        * Lawyer: Key witness to answer questions from panel probing NRI
        * Emanuel super PAC rakes in $2.4 million since late June
        * Pedicab operators say city rules putting brakes on their business
        * IHSA to boycott legislative hearing set for Friday in Chicago
        * Quinn urges City Council to tighten reins on small digital signs
        * Man charged with killing girlfriend, 7-year-old daughter


        * Worker with gun arrested at Elgin water treatment plant: 'He had a bad day'
        * Minor injuries in pepper spray incident at West Side school
        * Emanuel won't rule out fee hikes in 2015 budget
        * Registered sex offender charged with attacking woman at Brown Line stop
        * CPS grads can qualify for new city college scholarships
        * Rauner, Quinn clash on Obamacare expansion ahead of president's Chicago visit
        * Cops: Man with symptoms of dementia missing from Humboldt Park
        * Jury begins deliberating in Naperville 'smart meter' case
        * Former cop convicted of perjury gets 4-1/2 months in jail
        * Nearly two dozen charged in multimillion-dollar drug operations in Chicago area


        * Tim Landis: Bike Lanes, Medical Marijuana And Meat
        * Clock Ticking On Illinois Prison Crowding
        * Decatur Unemployment Shows Biggest Drop In Nation
        * Quinn Lauds Affordable Care Act, Backs Down From State Marketplace
        * A Redo On Redistricting
        * Polls Showing Illinois Governor's Race A Draw
        * Bruce Rauner, Before He Was A Candidate (Author Interview)
        * Listen to State Week - September 19, 2014
        * Clearing The Air On Clean Air Plan
        * Meet Bishop Blase Cupich, Chicago's incoming archbishop


        * Donations drying up for Lincoln Presidential Library foundation, chairman tells lawmakers
        * Former head of anti-violence program to testify
        * Michael Gerson: Two cheers for Obama, not three
        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Panel plans to resume anti-violence program probe
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act
        * State-owned airplanes to be sold in online auction


        * Boil order lifted for part of Murphysboro
        * Madison County man, suspect lucky to be alive after wild battle over guns
        * Street closures listing
        * Madison County resident, suspect lucky to be alive after wild battle over two guns
        * Missouri police officer from Belleville charged with drug possession, stealing
        * Columbia American Legion receives missing money
        * Today's chat recap: R-E-L-A-X
        * Fort de Chartres offers look at World War II with ‘Salute to Our Heroes’
        * Launa McClaine
        * RI police called to Thurgood Marshall Learning Center


        * Crisis backpack taken from Hoffman Estates elementary school
        * Golf Road lanes reopened in Hoffman Estates
        * Man in custody after gun reported at water district building in Elgin
        * Prison set for Highland Park woman in 'huffing' death
        * WINGS, YWCA neck and neck in Purple Purse Challenge

        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...
        * Representative Jan Schakowsky Statement on...
        * Representative Jan Schakowsky Statement in...
        * U.S. House Passes Resolution Condemning An...
        * Representative Jan Schakowsky Statement on...

        * Northeastern Illinois University celebrate......
        * Illinois gets $19 million for justice prog......
        * Illinois gets $19 million for justice prog......
        * Illinois gets $19 million for justice prog......
        * Illinois gets $19 million for justice prog......

        * On The Campaign Trail, GOP Gov. Snyder Hig......

        * Obama Headed To Chicago To Fundraise For Quinn
        * Emanuel To City Sister Agencies: Require A $13 Minimum Wage
        * Public Interest Group Urges Against 'Wasteful Spending' On Illiana Expressway
        * Emanuel Considering Free City Colleges Tuition For CPS Grads With High GPA
        * Chicago Police: 2014 Murders Hit Lowest Level Since 1965
        * Panel Investigating NRI To Hold Hearings Next Week
        * Get Ready! Wilson L Renovations Start This Month
        * Effective Property Tax Rates in the Collar Counties
        * Conservative orgs say "no" to candidates who say "no" to Republican principles
        * New Poll: Rauner leads by 6, Cross by 10, Topinka by 22


        * Screwed Up
        * Jobs Governor
        * Wake Up
        * Rauner Launches Three New TV Ads
        * Quinn must take lame duck tax vote off the table




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