* From the Democratic Governors Association…
Today, Republican billionaire Bruce Rauner again attempted to claim the mantle of job creator. The truth is Rauner has made his fortune by perfecting the art of massive layoffs and shipping jobs overseas.
Incredibly, in today’s pamphlet, he directly cites India and the Philippines as places where he wants to make Illinois more competitive. This is rich, since these are places where he himself has established companies to snatch American jobs, drives down wages and maximize profits.
Billionaire Bruce says he’s going to “travel the world” to work on jobs. Maybe while he’s over in China, the Philippines and India, he can say hello to some of his workers.
* From the IMA…
The Illinois Manufacturers’ Association (IMA) announced its endorsement of Bruce Rauner for governor at a press conference today with the candidate at Quality Float Works, Inc., a family-owned and operated manufacturing company. The IMA undertook a rigorous endorsement process that included candidate questionnaires, a survey of member companies, and individual interviews with both candidates. The IMA became the first statewide business organization to endorse in the race for governor and has donated $250,000 to Rauner’s gubernatorial campaign.
In their endorsement, the IMA pointed to the continued economic struggles the state is facing along with the hostile business climate towards job creators. Illinois manufacturers employ 570,000 workers directly and contribute the single largest share of the gross state product. Yet, the state’s poor economic conditions have resulted in nearly 130,000 manufacturing jobs disappearing - more than 47,000 of these jobs have been lost in the last few years.
“Illinois is closing one day at a time with a quiet exodus of businesses leaving the state. We cannot afford a hostile business climate coupled with a tax and spend policy that crushes investment across our state. While you cannot blame the current administration for all the problems facing Illinois, it’s time that Illinois has a governor who is fully committed to creating a pro-growth economic strategy. We are proud to support Bruce Rauner who is the right kind of leader to turn our economic ship around and put people back to work,” said Greg Baise, president and CEO of the Illinois Manufacturers’ Association.
The IMA also applauded Rauner’s ambitious plan to grow jobs in Illinois. This includes a reduction in income tax rates, freezing property taxes and modernizing the sales tax structure so that we have a broad-based tax system. “In particular, Bruce’s call for a permanent extension of the Research & Development tax credit is critical because innovation is the lifeblood of manufacturing,” Baise added. “His commitment to reduce the high cost of workers’ compensation and bring long awaited tort reform - two issues that plague Illinois employers, particularly those in the manufacturing - are long overdue.”
Finally, Baise referenced the current limbo with hydraulic fracturing as a perfect example of the challenges facing business and state government. “More than a year ago, business leaders, labor unions and environmental organizations stood together and announced a comprehensive deal for hydraulic fracturing. This innovative technology will create tens of thousands of jobs and millions of dollars in new tax revenue. It has the strongest environmental safeguards in the nation and will reduce our reliance on foreign sources of energy. Today, a full 13 months after the measure was signed into law, the State has refused to issue the final rules. They have all kinds of excuses, but at the end of the day, they have failed to get the job done.”
I’ll add more as I receive them.
* Durkin and Radogno…
This afternoon, the leaders of the Republican caucuses in the Illinois House and Senate released the following statements in support of Bruce Rauner’s Jobs and Growth Agenda:
Senate Republican Leader Christine Radogno (R-Lemont):
“The contrast in this election has never been more clear. Bruce Rauner wants to lower your income taxes while Pat Quinn wants to raise them 67%. Bruce Rauner wants to freeze your property taxes while Pat Quinn lets them rise. There’s only one candidate who has a vision to create jobs and turn Illinois into a growth economy, and that’s Bruce Rauner.”
House Republican Leader Jim Durkin (R-Western Springs):
“Middle-class families across Illinois are struggling under the Quinn-Madigan policies of higher income taxes, higher property taxes, and burdensome regulations. Bruce Rauner’s plan offers the citizens of Illinois a new direction of lower taxes, high-paying jobs and real opportunities for growth.”
* Quinn campaign…
Below is the statement of Quinn for Illinois Communications Director Brooke Anderson following the unveiling today of the Rauner Tax by Republican nominee for governor Bruce Rauner. Rauner’s proposal emerged today after 500 days of hiding his budget from voters, over a period where he repeatedly reneged on promises for details and solutions:
“After 500 days of keeping voters in the dark about his plans to deal with the state’s structural challenges, we now have clarity on exactly where billionaire Republican Bruce Rauner wants to take Illinois: into a ditch.
“Not only did Rauner today propose a regressive tax that pushes the burden onto the middle class to preserve tax breaks for the very rich, the Rauner Tax doesn’t even remotely add up.
“Under Rauner’s policies, Illinois would face a nearly $10 billion budget hole next fiscal year, which would cause radical cuts to education, public safety and health care services. Even according to his own pamphlet, the Rauner Tax adds up to just $577 million.
“Only someone who uses elite accounting methods to avoid taxes himself would propose a tax hike on services that hurts small businesses, hits working families the hardest and doesn’t solve the problem at the same time. Only someone with nine homes would propose taxing trailer parks.
“Bruce Rauner believes that if Rauner succeeds, Illinois succeeds. But history shows that is a failed ideology and just like his proposal to cut the minimum wage, the Rauner Tax is designed to help himself.”
* Rauner react to Quinn react…
In 2009, Quinn Supported A Tax Hike Plan Passed By Senate Democrats That Would Have Applied The State Sales Tax To “Dozens Of Services.” “Democrats warned of severe cuts in education and health-care funding without a tax increase, but couldn’t muster the votes in the House for a two-year, 50 percent increase in the personal income tax. The House likewise balked at the prospect of considering a Senate-backed plan to raise the income tax 67 percent and apply the state sales tax to dozens of services. Republicans, the minority in both chambers, opposed all tax-increase plans and blamed Democrats for a new round of dysfunction made infamous during the tenure of ousted Gov. Rod Blagojevich.
With lawmakers facing the need to revisit the budget talks in coming months, post-session voting requirements will give the GOP a seat at the bargaining table. Rookie Gov. Pat Quinn, who supported both failed tax plans, said he would call legislative leaders together Monday to work on putting together a better budget than one that is ‘hopelessly out of balance.’” (Rick Pearson and Ray Long, “Tax Hike Defeated; Budget Gap Remains,” Chicago Tribune, 6/1/09)
· Quinn Testified In Favor Of The Senate Tax Hike Plan Before An Illinois House Committee. “The Senate Democrats’ 2009 income tax increase bill also included a provision extending the state’s sales tax to services, such as haircuts, that are not taxed now. Quinn testified for the bill before a House committee.” (Chris Wetterich, “Quinn, Brady Far Apart On Taxes,” The State Journal-Register, 10/3/10)
The Tax Plan Quinn Supported Taxed The Following Services (not an exhaustive list):
(5) Dry cleaning and laundry, except coin-operated (81232).
(18) Taxi and Limousine services (4853)
(12) Coin operated video games and pinball machines (71312)
(20) Motion picture theaters, except drive-in theaters (512131)
(30) Laundry and dry cleaning services, coin-operated (81231).
(37) Circuses and fairs — admission and games (7113).
(38) Cable and other program distribution (5175).
(39) Rental of video tapes for home viewing (53223).
* From the union-backed Illinois Freedom PAC…
Today, Billionaire GOP candidate Bruce Rauner held a press conference to propose 30 new regressive taxes. It comes on the heels of a bevy of news that Rauner and Rauner financed companies avoided taxes and overbilled taxpayers.
· Rauner used loopholes now under scrutiny by the IRS to slash his tax obligation. He avoided contributing a single penny to Social Security and Medicare for two straight years, in 2010 and 2011, but says he’s open to taxing retirement income including Social Security.
· Rauner was a director of HealthRev, which failed to pay $81,000 in Illinois taxes. The company also made thousands in contributions to Cook County officials after it received a multi-million dollar government contract.
· American Habilitations Services - a Rauner financed firm linked to deaths, assaults, and legal action - was cited by the state of Florida for overbilling taxpayers.
· The firm Rauner ran for 31 years, GTCR, failed to pay nearly $13,000 in unemployment taxes in 2005.
· Rauner’s current company, R8, failed to pay the state’s business license fee.
“It’s crystal clear: Billionaire Bruce Rauner wants middle class families to pay more, while he pays less,” said Neal Waltmire, Communications Director for Illinois Freedom PAC. “He already pays a lower tax rate than millions of Illinois’ middle class families, but apparently exploiting the status quo is not good enough for him.”
* From Brooke…
They are wrong about the Governor’s position. He opposes a tax on services as he stated unequivocally and spelled out, in his Budget Address this year.
“I won’t institute any new, unfair taxes on everyday services that working people rely on. It hurts working families the most to tax basic services like going to the Laundromat…like taking your child to daycare…like visiting the barber shop…or taking your dog to the vet.
We should not create a new and unfair tax burden on everyday families and the small businesses that serve them.”
http://www2.illinois.gov/gov/Documents/Budget/FY15%20Budget%20Address.pdf
* The Rauner folks point out that laundromats, daycare, barbershops and vet care - all mentioned by Quinn in his speech - are not covered by Rauner’s proposal.
- Formerly Known As... - Thursday, Jul 17, 14 @ 12:44 pm:
Feisty release from the DGA.
If only they cared as much for Illinois’ current state as they do about our future. In case they missed the memo, our economy and the job creation they mention isn’t exactly sterling as is.
- William j Kelly - Thursday, Jul 17, 14 @ 12:47 pm:
Rauner has no credibility on this or any other issue and less and less credibility as a ” businessman” everyday! Rauner is going to take the whole republican ticket down in November!
- Cassiopeia - Thursday, Jul 17, 14 @ 12:48 pm:
The DGA is putting a good face on the their efforts in Illinois for Quinn.
Unfortunately for Quinn they will likely drop him soon and concentrate their efforts in states where they have a greater chance of success.
- 47th Ward - Thursday, Jul 17, 14 @ 12:50 pm:
From the Tribune’s coverage:
===The scheduled 2015 rollback could cost the state $4 billion in annual revenue, according to projections. Rauner’s plan did not offer a schedule of how to reduce the rate over the next four years from 5 percent to 3 percent in the personal rate and 7 percent to 4.8 percent for the corporate rate.===
While it’s entirely possible I’m not reading this right, it looks as if Rauner wants to sign legislation hiking the personal income tax from the 3.75% it will be when he takes up to the 5% where it is now. Then he’d gradually lower it over his term, finally cutting the last .75% and bringing it back to a flat 3%.
Is that right? Because if so, then both he and Quinn support making the tax rate 5% next January. Not that it’ll matter, but that should take taxes off the table as a political weapon since they’re both calling for the same thing in the short term.
- Formerly Known As... - Thursday, Jul 17, 14 @ 12:59 pm:
Meanwhile, last report in May we lost -2,600 nonfarm payroll jobs but our unemployment rate declined from 7.9 to 7.5.
That drop in unemployment wasn’t because of our amazing job creation. It was because 15,500 people dropped out of our labor force.
- wordslinger - Thursday, Jul 17, 14 @ 1:01 pm:
Geez, all of these press releases are awful. They’re so hackneyed and knee-jerk. Are they supposed to be informative and clever?
Read the “quotes” in any of them. No one talks like that.
Put out a real person and engage in a real dialogue.
- OneMan - Thursday, Jul 17, 14 @ 1:04 pm:
Hey a post without a mention of Rahm….
Nice job person I will not name…
Props to the Rauner crew for being ready for Quinn’s response.
- The more things change - Thursday, Jul 17, 14 @ 1:04 pm:
Quinn’s communications director is recycling rhetoric from her work on Gery Chico’s campaign. They even ran ads on the “Rahm Tax” and it still didn’t move enough voters. Hard to see how it will work this time.
Sigh…
- OneMan - Thursday, Jul 17, 14 @ 1:11 pm:
The more things change….
Just Googled that, yep it’s gonna work this time.
- The more things change - Thursday, Jul 17, 14 @ 1:14 pm:
One more thing: why doesn’t the Quinn folks take this as an opportunity to undermine Rauner’s own policy. “This proposal has been before the legislature for more than 4 years and Bruce Rauner was nowhere to be seen? Glad to see he’s joined the party, but it’s a little to late for political pandering. We need real solutions…etc.”
A knee jerk dismissal to something you’ve supported in the past is just classic amateur hour campaign staff.
- OneMan - Thursday, Jul 17, 14 @ 1:21 pm:
Because Rauner tax has a better ring to it? Didn’t get that one either.
- Anon - Thursday, Jul 17, 14 @ 1:30 pm:
“The IMA undertook a rigorous endorsement process that included candidate questionnaires, a survey of member companies, and individual interviews with both candidates.”
I thought the Rauner campaign didn’t fill out candidate questionnaires?
- DuPage - Thursday, Jul 17, 14 @ 1:43 pm:
From Illinois Freedom PAC
“· The firm Rauner ran for 31 years, GTCR, failed to pay nearly $13,000 in unemployment taxes in 2005.
· Rauner’s current company, R8, failed to pay the state’s business license fee.”
That is a pathetic response, but not as bad as Quinn’s. Shows that the Quinn people were caught flat footed on this one.
- Yellow Dog Democrat - Thursday, Jul 17, 14 @ 1:49 pm:
@wordslinger:
Unless I am mistaken, the Senate Democrats’ sales tax plan was revenue neutral. In other words, while applying the sales tax to a long list of professional services, it reduced the overall tax rate on things we buy every day.
I found it cute he wants to tax radio, tv and outdoor advertising, but not newspapers. As I read it, advertising on Capitolfax is also exempt. Kudos.
While I appreciate Rauner taking the admonishment to heart, this is a pretty flimsy proposal. 1/3 of the revenue comes from taxing legal services, and while Judge Mary Kay O’Brien admonished an audience once to “Never say never,” there is a reason that legal services are only taxed in four states, and I find it highly unlikely to happen here.
There is a reason that Durkin’s release didn’t specifically back taxing legal services.
But hey, don’t take my word for it. Reporters should poll the lawyers in the GA and ask them if they support Rauner’s “Death Tax,” which everyone would pay when they created or amended their will.
- Toure's Latte - Thursday, Jul 17, 14 @ 1:51 pm:
Excellent shot from the DGA. Fast clean, one point hammered hard, done. Rauner flails, IMA flails, Radogno and Durkin — who can tell what up with those two anymore, and Quinn fails to take advantage of it.
In, hit, out. Repeat. Not this essay contest nonsense.
Why Quinn’s people muck up this simplicity instead of repeating it verbatim for several news cycles is mystifying.
- William j Kelly - Thursday, Jul 17, 14 @ 2:04 pm:
No wonder rauner recently paid off the Illinois Republican Party $7,000,000 plus to kill the calls to “replace rauner” on the November ballot!
- OneMan - Thursday, Jul 17, 14 @ 2:10 pm:
Thanks for that laugh….
- Demoralized - Thursday, Jul 17, 14 @ 2:24 pm:
==“The contrast in this election has never been more clear. Bruce Rauner wants to lower your income taxes while Pat Quinn wants to raise them 67%. Bruce Rauner wants to freeze your property taxes while Pat Quinn lets them rise. There’s only one candidate who has a vision to create jobs and turn Illinois into a growth economy, and that’s Bruce Rauner.”==
You might add to that quote that Bruce Rauner has no plan to credibly make up for the lost revenue with these brilliant tax reduction plans.
- Ducky LaMoore - Thursday, Jul 17, 14 @ 2:28 pm:
Read my lips, yes new taxes. Nothing better than a fight about who can raise taxes better!!!
- Jeff Trigg - Thursday, Jul 17, 14 @ 2:30 pm:
“No wonder rauner recently paid off the Illinois Republican Party $7,000,000 plus to kill the calls to “replace rauner” on the November ballot!”
“Thanks for that laugh….”
That $7 million wasn’t even enough to kill the calls Oswego Willy was making to replace Rauner.
- Budget Watcher - Thursday, Jul 17, 14 @ 2:30 pm:
Clearly there’s a huge chunk missing from this plan, so again I’m more interested and apprehensive about what’s not here. Frankly, it worries me more that he won’t divulge his complete plans.
- JS Mill - Thursday, Jul 17, 14 @ 2:48 pm:
==Read my lips, yes new taxes. Nothing better than a fight about who can raise taxes better!!! ==
Priceless and totally accurate!!!! BTW there was a great artilce in the June Harvard Business Review regarding the rise in the influence of the financial sector. Long story short…the focus on the value of a company’s stock has led company’s to make poor long-term decisions. Rauner is part of that sector. His tax plan reduces the tax burden on corporations and increases their bottom line. Of course the IMA will support him. The tax burden gets pushed to the individual citizen. At current rates Illinois tax rates are still generally lower for most citizens, Illinois needs to maintain the current rates and increase revenue to pay off structural debt.
- too obvious - Thursday, Jul 17, 14 @ 2:50 pm:
Securities trading, brokerage services, etc. all left out of course. Unbelievable. Rauner and the Griffins really do think we’re all a bunch of gullible hayseeds.
- walker - Thursday, Jul 17, 14 @ 2:55 pm:
I hope Radogno didn’t actually say that, and it’s from some clueless political intern.
If you want to say that Quinn wants a “67% increase”, then you must say that Rauner wants your taxes to “stay flat”.
If you want to say that Rauner wants to “lower your taxes,” then in that scenario Quinn wants your taxes to “stay flat.”
You cannot use both pre- and post sunset assumptions in the same statement. It is then not true.
And the truth is that Rauner will most likely come out firmly for an extension of the current rates, which he has already hinted. Will Radogno then say “Rauner is for a 67% increase in taxes?” Of course not.
It’s political gobbledygook. We expect that from campaigns. Radogno should be above that, as one of the few people to trust on our state budget. It wouldn’t bother me so much If I didn’t count on her to be straight on the numbers.
- Oswego Willy - Thursday, Jul 17, 14 @ 2:57 pm:
===That $7 million wasn’t even enough to kill the calls Oswego Willy was making to replace Rauner.===
Can I take 1/2 of that in cash, and have Rauner pay the tax in it?
(Pretty funny - Jeff Trigg -, well done)
- Rich Miller - Thursday, Jul 17, 14 @ 2:58 pm:
===Rauner will most likely come out firmly for an extension of the current rates===
If he wins, there will be no extension before he’s inaugurated. He’ll have to raise ‘em back to 5 percent himself. Bet on it.
- Oswego Willy - Thursday, Jul 17, 14 @ 3:03 pm:
===If he wins, there will be no extension before he’s inaugurated. He’ll have to raise ‘em back to 5 percent himself. Bet on it.===
Which is confusing on the political, that, Rauner dialed into districts to stop the tax staying, now may need those votes in the GA to get it to 5%.
I think one of the most fascinating jobs in a Rauner Administration would be Legislative Liaison for the Governor’s Office. Fascinating.
- Ginhouse Tommy - Thursday, Jul 17, 14 @ 3:13 pm:
As I stated before, Bruce Rauner has some serious education that he can use to come up with a better plan than these pathetic plans. For someone who can run a tight ship, this is laughable. Every plan that he comes up with will be put under a microscope and analyzed for flaws. If and when he ever comes up with a good idea, it will silence all of his critics. We’re still waiting and the election will be here before you know it. Mr Rauner has to realize that time is starting to run out and so are his chances for an election win. You and our people need to get serious. NOW.
- Pete - Thursday, Jul 17, 14 @ 3:13 pm:
Does the Quinn camp really believe that the working people of Illinois shouldn’t be paying for the services that they utilize in the form of a tax?
If you live in Illinois and generate your income in Illinois, you are responsible for a portion of the expenses. The response by Quinn is neither a solution nor a counter-proposal. If we can’t lower the expenses, and we can’t tax people that are using the services… how can the system work.
Progressive income taxes don’t help balance budgets that are based on promises to live beyond our means.
- siriusly - Thursday, Jul 17, 14 @ 3:28 pm:
How old is that Quinn service tax list? How could there possibly be 53,000 video rental stores? I can’t even think of 10.
- OneMan - Thursday, Jul 17, 14 @ 3:31 pm:
sirusly
don’t think that was a count of establishments because this
(20) Motion picture theaters, except drive-in theaters (512131)
wouldn’t make any sense
- Joe M - Thursday, Jul 17, 14 @ 3:32 pm:
Rauner and his campaign can’t help but remind me of David Coe Johnston’s “9 Things the Rich Don’t Want You to Know About Taxes”
http://wweek.com/portland/article-17350-9_things_the_rich_dont_want_you_to_know_about_taxes.html
- DuPage - Thursday, Jul 17, 14 @ 3:51 pm:
DuPage@1:43=Please modify your nickname a little bit. I have been using the nickname DuPage for a long time. Thank you.
- wordslinger - Thursday, Jul 17, 14 @ 4:02 pm:
Upon closer look, some of the rhetoric in the plan doesn’t match up with the reality of what’s being proposed.
As 47 and others have pointed out, on Page 7, Rauner talks about rolling back the current income tax rates over four years.
Um….. they’re going to roll back on Jan. 1.
Rauner’s actually proposing an immediate extension of the current rates. No details on the four-year rollback plan.
You kind of buried the lede there, Baron, lol.
Any of that will require a vote in the GA. And as Rich pointed out, if Rauner wins, it will wait until he’s governor because there’s no way in the world a defeated Quinn would do his dirty work for him in a lame-duck session.
There’s going to have to be a lot more ’splaining on this.
Is it possible we’ve actually stumbled into a realistic, responsible discussion on revenue?
- Chicago Cynic - Thursday, Jul 17, 14 @ 4:10 pm:
Word, you are exactly right. Rauner was successful in burying the lede - he’s advocating extending the income tax hike and piling on $577 million in new taxes on top.
- 47th Ward - Thursday, Jul 17, 14 @ 4:10 pm:
Thanks Word.
I just wish somebody would have asked him today if he knew that the income tax rate January 1 was going to be 3.75%, and if so, how the rest of the Rauner revenue plan meshed with that reality.
- Bill White - Thursday, Jul 17, 14 @ 4:40 pm:
=== I just wish somebody would have asked him today if he knew that the income tax rate January 1 was going to be 3.75%, and if so, how the rest of the Rauner revenue plan meshed with that reality. ===
Why won’t 100 reporters ask his campaign spokes-folk right now?
Q: What income tax rate is presumed to be in effect as of January 1, 2015 in connection with candidate Rauner’s plan released today?
- VanillaMan - Thursday, Jul 17, 14 @ 5:05 pm:
I wish Governor Quinn would quit referring to Rauner as billionaire. The moment it appears in a press release of his, it ruins any credibility the rest of the statement could have. No one refers to another person in this way and it signals to the reader that the statement isn’t balanced or believable.
Durbin needs to send one of his pr folks over to Quinn to teach them how to correctly write about an opponent. This “billionaire” crap is embarrassing.
Beat Bruce by showing Illinois voters they already have the right guy as governor. Amateur hour press releases like this only helps Rauner. Stop showing the gubernatorial sweat and panic.
- Under Further Review - Thursday, Jul 17, 14 @ 11:28 pm:
Cry me a river. Quinn has no credibility on tax issues after he lied and bobbed and weaved on the same subjects all throughout 2010. In fact, as pointed out above, Quinn also proposed similar taxes to those that he is now protesting against.
- Anonymous - Friday, Jul 18, 14 @ 3:49 am:
start fracking in bruce`s hometown now