SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Question of the day

Wednesday, Jun 18, 2014

* The Local Government Distributive Fund doles out state income tax money to local governments on a per capita basis. The Daily Herald found, of course, wealthy suburbs whose residents pay a lot of income taxes, don’t get much of that back…

In 2012, each town got $87.85 per person, according to state revenue department records. For residents living in unincorporated areas, the county received those funds, state officials explained.

This state’s income tax redistribution policy means some suburban areas like parts of Aurora got back more than 25 percent of what residents paid in income taxes, while other areas like Oak Brook and Barrington received less than 2 percent of the income taxes workers there paid.

* The Question: Do you support keeping the LGDF based on population or switching to a formula based on a fixed percent of what local residents pay in income taxes, or getting rid of the LGDF? Take the poll and then explain your answer in comments, please.


free polls

- Posted by Rich Miller        


31 Comments
  1. - RonOglesby - Wednesday, Jun 18, 14 @ 2:15 pm:

    I guess I dont know enough about the system, though I would say get rid of yet, then make the locality tax as needed. Why have the state pull it in, only to distribute it (thus taking a cut for administration).

    I would like to see the “Make chicago another state” backers pipe up on this topic.


  2. - wordslinger - Wednesday, Jun 18, 14 @ 2:19 pm:

    If you’re going to do it, keep it as it is.

    I know it’s sacrilege in certain circles, but some taxation is an attempt to narrow the gaps in resources.

    That’s why the good small government folks in Mississippi, Alabama, Louisiana, etc., get back a heck a lot more from the federales than they pay in.

    Barrington and Oak Brook are doing a-ok.

    Speaking of Barrington, the dude who lives across the pond from my sister has put his house up for sale. Keypad locks for every room, panic room, two-story brick doghouse (for many guard dogs).

    Guy has some security issues, lol.

    http://www.chicagobusiness.com/realestate/20130702/CRED0701/130709963/admiral-theatre-owner-asks-15-9-million-in-barrington#


  3. - Disband the IML - Wednesday, Jun 18, 14 @ 2:26 pm:

    LGDF should be gotten rid of along with the IML that has become nepotism-ridden under Eisenhauer.


  4. - Ducky LaMoore - Wednesday, Jun 18, 14 @ 2:27 pm:

    Why would you change it? The cost of roads, water, sewers etc doesn’t change with how much income taxes are paid in any given municipality.


  5. - Wensicia - Wednesday, Jun 18, 14 @ 2:28 pm:

    Keep it as is; it’s hardly harming the people who need this benefit the least.


  6. - DuPage - Wednesday, Jun 18, 14 @ 2:29 pm:

    Get rid of it, but only if the funds go to the 5 state pension funds.


  7. - OneMan - Wednesday, Jun 18, 14 @ 2:30 pm:

    wordslinger

    It would appear there is good money in the dancing arts…

    To the question, kind of interested in what it means about ‘parts of Aurora’, did they break it down by neighborhood? Because I highly doubt it is that high in my neck of the woods…


  8. - G'Kar - Wednesday, Jun 18, 14 @ 2:31 pm:

    I did not vote as I am not clear on the concept. I would support what ever system gives more help to poorer communities, especially down state.


  9. - A guy... - Wednesday, Jun 18, 14 @ 2:38 pm:

    Keep it. It’s a mechanism designed to do exactly what it is doing. Some towns benefit more than others. The ones that do, can use the assistance. The ones that don’t are doing just fine. It’s probably much better than the distribution formulas the legislature lords over. Let it be.


  10. - Gathersno - Wednesday, Jun 18, 14 @ 2:38 pm:

    Keep it as because it is based on need. The richer ones can afford to help the poorer ones.


  11. - A guy... - Wednesday, Jun 18, 14 @ 2:41 pm:

    === wordslinger - Wednesday, Jun 18, 14 @ 2:19 pm:
    Barrington and Oak Brook are doing a-ok.
    Speaking of Barrington, the dude who lives across the pond from my sister has put his house up for sale. Keypad locks for every room, panic room, two-story brick doghouse (for many guard dogs).

    Guy has some security issues, lol.===

    Slinger, all you had to do was ring my Carillon. I’d have given you the punch code for the 3 entry doors, locked up the Rotts and Dobies and greeted you with a very warm smile. lol


  12. - Mister Whipple - Wednesday, Jun 18, 14 @ 2:43 pm:

    Get rid of it. Do as Indiana does. Every county has an income tax as do many municipalities. If the thought is the most responsive government is local government, let the locals decide what they need and how to raise it.


  13. - zatoichi - Wednesday, Jun 18, 14 @ 2:47 pm:

    Just leave it alone. I do not think Oblong, Paris, or Pittsfield are going to be knocking Barrington or Oakbrook off the top of the money charts soon. Roads, bridges, schools, water systems, sewage and related stuff is still needed across the state. Some areas of the state will never have the population/economy to do these things well on their own.


  14. - railrat - Wednesday, Jun 18, 14 @ 3:03 pm:

    rid this and some township govt. entities, at least show the citizens an attempt of some type of relief!!!


  15. - Mayor Dave - Wednesday, Jun 18, 14 @ 3:11 pm:

    It should be proportional to the amount paid in by local residents. The state is already redistributing much of the other 94% to poorer communities as it is. A per capita distribution of the LGDF amounts to a double income redistribution.


  16. - Common Cents - Wednesday, Jun 18, 14 @ 3:23 pm:

    Under the % of income tax paid concept the dis advantaged communities become even more disadvantaged


  17. - Precinct Captain - Wednesday, Jun 18, 14 @ 3:24 pm:

    Is it working for its designated purpose? It is, so keep it as is. There is a reason the state of Illinois takes a statewide view of things. Sometimes that statewide view means helping our less able communities.


  18. - Norseman - Wednesday, Jun 18, 14 @ 3:34 pm:

    Keep current system. Wealthy communities are in a much better position to support their government services than lower income communities. Higher property tax proceeds, sales tax, etc.


  19. - Illiana - Wednesday, Jun 18, 14 @ 3:39 pm:

    Rich,

    It is rare for you to quote an article & not link to it. Half surprised no one mentioned the missing link yet.

    On the poll, I would say “Change to percent…” is clearly the worst of the three options. Costs do not change just because tax collections differ. Indeed for those of us downstate, this is probably a benefit to sharing a state with Chicagoland. I can see cogent logic in the other two, but really it is good enough that messing with the Local Government Distributive Fund methodology should be very low or absent from anyone’s priority list.

    Also from the article Arlington Heights Republican David Harris put it nicely “To my mind, it’s a fair way to do it now. I don’t want to go complicating the formula. The more complicated the formula gets, the more people play games with the money.”


  20. - DuPage - Wednesday, Jun 18, 14 @ 3:39 pm:

    @Gathersno2:38=Keep it as because it is based on need.=
    It is based on population. I have seen a lot of this money spent on things that were not really necessary. Local officials tend to look at it as “free money” and feel less accountability then if it was local tax dollars. It tends to be spent on wants instead of needs. When some of these spending items are questioned by local taxpayers, they are told it was paid by state dollars not local tax dollars. A lot of these towns could tighten their belts.
    The state is paying out this money and at the same time says they can’t pay the pension funds, can’t pay to fix the roof or the sump pump. Time for the state to end the LGDF and use the state tax money for state needs.


  21. - Charlie Wheeler - Wednesday, Jun 18, 14 @ 3:45 pm:

    Historical note

    Revenue sharing– the LGDF– was a key element of the 1969 compromise negotiated by Gov. Richard B. Ogilvie and Chicago Mayor Richard J. Daley that provided needed Democratic votes in the Senate and the House to approve legislation creating the income tax. Ogilvie had mentioned sharing some of the new income tax receipts with local government in his 1969 budget address, in which he proposed the tax. The negotiations between the two leaders resulted in local governments receiving a one-twelfth of share of income tax receipts, distributed on a per capita basis.

    Negotiations tied to later income tax rate increases resulted in a one-tenth share to the LGDF; since January 31, 2011, the local government share has been 6 percent of individual income tax proceeds and 6.8 percent of corporate income tax proceeds.

    Charlie Wheeler


  22. - Anonymous - Wednesday, Jun 18, 14 @ 3:48 pm:

    Keep it; given the ‘unfunded mandates’ Springfield imposes on local agencies, give them something. And these regulations are passed to all munis, large or small.


  23. - Michelle Flaherty - Wednesday, Jun 18, 14 @ 3:51 pm:

    Reminds me of the Replacement’s line …
    The rich are gettin richer, and the poor are gettin drunk …

    Abolish it, impose a corresponding reduction in the state tax rate, and give each muni the ability to impose an income tax if the locals are so enamored with spending income tax money. I’m sure Rep. Harris will gladly sponsor the plan.


  24. - dreamer - Wednesday, Jun 18, 14 @ 3:52 pm:

    Best to leave it the way it is now. If the formula were switched most local roads outside Chicago and the suburbs would be gravel or dirt.


  25. - lake county democrat - Wednesday, Jun 18, 14 @ 3:54 pm:

    “The rich get richer, the poor get the picture.” - Midnight Oil


  26. - Diogenes in DuPage - Wednesday, Jun 18, 14 @ 3:55 pm:

    A regressive tax doesn’t deserve a progressive tweak.


  27. - SAP - Wednesday, Jun 18, 14 @ 3:56 pm:

    Keep it. Wordslinger nailed it. For those who propose replacing it with a local income tax, be careful what you wish for. Letting local governments impose their own sales taxes has made the sales tax code much more complex. A local income tax would make that look like child’s play.


  28. - the Other Anonymous - Wednesday, Jun 18, 14 @ 4:10 pm:

    The argument underlying a switch in distribution from per capita to a proportion a tax paid is based on this idea that somehow I should personally get in government services the exact amount I put in. The argument seems to be that if I pay $1 on taxes, that money has to expended in a way that allows me to get exactly $1 in services.

    If one really believes that, then why have government at all?

    The point is that one thing that government does that no other entity can do is provide services based on need instead of ability to pay. And yes, that means that some people will pay taxes and not receive a benefit back in the exact amount.

    To me, that seems like a good thing, especially when the tax dollars flow to communities in need.

    IMO, this is a bogus issue designed to stir up populist envy amongst the very people who have the least reason to envy others.


  29. - BW - Wednesday, Jun 18, 14 @ 4:12 pm:

    I would look for the State to re-allocate the Personal Property Replacement Tax before the LGDF. It makes no sense to distribute funds based on what businesses your local government had 40 years ago.


  30. - Taxguy - Wednesday, Jun 18, 14 @ 9:32 pm:

    Why change it? You are taking a percentage of the Illinois Income Tax and distributing it to all communities based on population.

    It’s efficient and seems fair. Every city or county gets an amount based on population.

    Its okay if the folks in Barrington see some of their taxes go to Aurora or Dolton.


  31. - Ahoy! - Thursday, Jun 19, 14 @ 9:21 am:

    I voted to keep it as is. I would vote to get rid of it as long as their were guarantees of mandate reduction that would save more than the revenue being lost. This would be a win-win since the State could keep the revenue and for the local government would get more savings than revenue lost.

    I would not favor having it as a percentage of income. If that is the case, do away with the fund and allow municipalities to implement local income taxes.


Sorry, comments for this post are now closed.


* Governor asked how he sleeps at night
* Munger hit on two online fronts
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** UPDATED x1 - ILGOP slams Quinn *** On this point, I agree with Pat Quinn
* 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

  
* ZTE Warp 7 lands on Boost Mobile with large screen, large battery, low price tag
* The future of mobile video is virtual reality
* Google Contacts 1.5 update adds several new features
* Papa John's Announces Pizza-Ordering App for Apple TV
* Rugged Kyocera DuraForce PRO with unique trio of cameras gets AT&T launch date and price tag
* Instagram Tries to Differ From Snapchat by Curating 'Stories' in Explore Tab
* Pre-IFA Archos lineup also includes rugged 50 Saphir and 4GB RAM 55 Diamond Selfie

* Adams among top prospect performers Monday
* Late HR spoils Saladino's heroics, Shields' start
* Shields ends August in promising fashion
* White Sox try to solve Norris, make up ground
* Late HR spoils Saladino's heroics, Shields' start
* Eaton shakes off HBP; Lawrie remains in limbo
* Hit in 57 games, win $5.6 million

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


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

Archives
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Illinois Policy | Illinois' comeback story star.....
* Gov. Rauner Calls On Local Lawmakers To Address.....
* Illinois Governor Bruce Rauner discusses state .....
* Jim Nowlan: Rauner breaking the mold - Champaig.....
* MENDOZA’s new MUNGER MATH ad — RAUNER, QUINN wi.....
* WIU Finances Stable — For Now..
* Rauner vetoes $15 wage for caregivers, expanded.....


* EXCHANGE: Student sees benefits of 'Pokémon Go'
* 3 Illinois cities receive federal grants to help police
* New U of Illinois chancellor will start work a little early
* Marion airport terminal, behind schedule, to open this fall
* Cockatoo named 'Cookie', 1 of oldest such birds, dies at 83
* Illinois bike race marred by crashes when riders hit tacks
* Man arrested in triple-slaying in northwestern Indiana home
* University of Wisconsin-Madison is top party school in US
* The Latest: Autopsies show 3 died of multiple stab wounds
* Groups ask Clinton, Trump to support Great Lakes restoration

* New law: No pensions for new county board members
* Rauner vetoes bill raising caregivers' minimum wage
* FBI warns of possible state election-system hacks; Illinois reported breach in July
* Thirty-year-old SNAP overpayments still being collected
* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Progress on U.S. 67 sputters due to lack of funds
* New law makes insurance companies find, pay beneficiaries
* Decatur woman can petition to become nurse under new law
* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner

* Why Mondelez gave up on acquiring Hershey
* United's Munoz picks American Airlines president for co-pilot
* United names American Airlines exec as president
* Mondelez drops bid for Hershey
* Abbott's deal headaches go beyond bad luck


* Ryan Lochte among the new cast of ‘Dancing with the Stars’
* Metra construction to slow down BNSF trains through mid-September
* Metra train struck by lightning on North Side
* Obama guidance, press schedule Aug. 30, 2016. HHS Sec. Burwell
* Man charged with fatal South Loop shooting
* Knife-wielding robbers strike 6 times in 2 hours on North Side
* Man tried to lure 8-year-old boy into minivan in Irving Park
* 2 dead, 12 wounded in shootings Monday on South, West sides
* Man shot in East Garfield Park
* Fitbit makes exercise even more of a game


* 11 shot in Chicago Monday, including boys 15 and 16
* Ryan Lochte and the rest of the 'Dancing With the Stars' cast revealed
* Chicago Teachers Union plans another vote on authorizing strike
* Anthony Weiner sexting casts doubt on his own judgment - not on Clinton's
* On the street where you live - do you fear gun violence?
* Kim has officials killed by anti-aircraft gun, paper says
* Actor Gene Wilder, star of Mel Brooks movies and 'Willy Wonka,' dies at 83
* John Lennon's killer denied parole for 9th time
* Harvey school board member charged with sexual assault
* Longer than a football field, Ken Griffin's beach home praised for its modesty


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* New law: No pensions for new county board members
* Kathleen Parker: The GOP's Trumpian deflation
* Their View: Shameful abandonment of Iraqi, Afghan allies
* Rauner vetoes bill raising caregivers' minimum wage
* FBI warns of possible state election-system hacks; Illinois reported breach in July
* Thirty-year-old SNAP overpayments still being collected
* Heather Eagleton: Ending 'step therapy' puts patients first
* Angie Muhs: The ups and downs of online comments
* Bernard Schoenburg: Davis, GOP quick to attack independent Gill
* Statehouse Insider: Do we hafta put all of that money into pensions?


* Podcast: State Representative Carol Ammons 8/30/16
* Keys outlasts fellow American Riske in late night at U.S. Open
* Badges for Life today, Wednesday
* Will Batman take on Deathstroke?
* Carbondale seeks election nominations for City Council seats
* Heat's on, school's off: Central has decision down to a science
* Foot Locker shooting for wider appeal
* Next e-recycling event trying to avoid long waits
* This day in history, Aug. 30, 2016
* Jim Dey: Criticism from all corners


* Images: After Hours, Sept. 5, 2016
* Lochte mum on Rio return, plugs 'Dancing with the Stars' gig
* US home prices rise in June at slowest pace in 10 months
* Westwood, Kaymer, Pieters get captain's picks for Ryder Cup
* Uganda grants 8 oil production licenses to Total, Tullow

* 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

* 3 Illinois cities receive federal grants t......
* Three Illinois cities, including Decatur, ......
* Three Illinois cities, including Decatur, ......

* Duckworth goes on the attack over free tra......
* Duckworth goes on the attack over free tra......

* Schakowsky challenger gains Speaker Paul Ryan's endorsement
* Illinois online voter registration hack becomes national news
* Former City Official Given 10 Year Sentence In Red Light Camera Bribery Scheme
* “The Driver’s Side” – News From The Motorist’s Perspective
* When it comes to law enforcement, some things change while others do not
* Stephen Hawking. Does money matter?
* An ode to Sam’s.
* Cartoon of the Day - 8/29/16 Trump Chicago shooting
* Cartoon Of The Day
* Cartoon of the Day - 8/26/16 Trump bigotry


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




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