SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
“Rauner opens door to higher income tax rate”

Monday, Jul 21, 2014

* Way to go, Rick Pearson

Republican governor candidate Bruce Rauner today opened the door to a potential income-tax hike, saying the 3.75 percent personal rate he would inherit if he wins this fall would be subject to negotiations with a General Assembly that’s expected to remain in Democratic hands.

Rauner, elaborating on the tax plan he unveiled last week, said voters shouldn’t get hung up on short-term budget issues and tax rates. Instead, he said, the overall goal is to make structural changes in state government that would lead to a rollback of the income tax to 3 percent by the end of his first term in office.

In releasing his proposal, Rauner called for a four-year phase out of the 2011 state income tax increase approved by Democrats and signed into law by his general election challenger, Democratic Gov. Pat Quinn. That increase, which bumped the personal rate from 3 percent to 5 percent, is scheduled to roll back to 3.75 percent on Jan. 1, before the next governor is inaugurated.

“Well, I think we’ll work out the specific rate with the General Assembly like we’re going to work out the entire budget with the General Assembly. My personal goal, (the) 3.75 (personal rate) I think is good, but we need to work out the overall plan and how we transition,” Rauner said during a campaign event at a River North restaurant.

“What we need to do is make major structural change over time so we become a growth state again. That’s the critical thing. And here’s what my commitment is. We need to roll the (personal) income tax rate back from 5 percent back to 3 percent where it started within a four-year period and I think 3.75 is a good place to step to next but we’ll work out those details with the General Assembly,” he said. [Emphasis added]

It’s just not possible to immediately get a brand new service tax up and running. No way could businesses comply right away. So you can’t use money from the service tax to plug the second half of this fiscal year’s budget. He’s gotta raise that rate from 3.75 percent. And he all but admitted he’d have to start at five. And that means a post-inaugural vote. And a bipartisan vote at that.

That’ll be fun to watch.

- Posted by Rich Miller        

  1. - Snucka - Monday, Jul 21, 14 @ 4:23 pm:

    Mr. Rauner: Please tell us what the state budget would look like if the income tax were 3%. Even assuming you could get the sales tax through, from where would the $7.4 billion in savings come? Please be specific.

  2. - 47th Ward - Monday, Jul 21, 14 @ 4:27 pm:

    ===we’ll work out those details with the General Assembly===

    Details schmetails. Rauner’s a big picture guy, he’s not going to get bogged down in the details.

    On the other hand, at least he recognizes there’s a whole ‘nother co-equal branch of government he’ll need to win over.

  3. - NotRMiller - Monday, Jul 21, 14 @ 4:29 pm:

    First admission that the Constitution calls for a Legislative branch..Maybe the candidate has a clue..

  4. - Wensicia - Monday, Jul 21, 14 @ 4:35 pm:

    If he wins, he’ll be quietly hoping for the GA and Quinn to extend the 5% rate during the lame duck session. Not likely.

  5. - ChinaTown - Monday, Jul 21, 14 @ 4:37 pm:

    Interesting development.

    Let’s be honest… Rauner’s been running the state for months. The chickens and costumes are just what fill the vacuum as the PQ people and media wait for his next move.

  6. - Grandson of Man - Monday, Jul 21, 14 @ 4:50 pm:

    It’s time that at least some realism creeps into the Rauner Campaign and the candidate. I’m glad he realizes that the state desperately needs the tax revenue.

    I don’t see how a state can be “pro-growth” when its finances are collapsing, which would happen without stronger revenue.

    As far as phasing out a future income tax increase, that can be a political battle for another day, just like the current tax increase was a battle this year. What else can we do? At least we would be kicking the can down the road in a more-responsible way.

  7. - DuPage - Monday, Jul 21, 14 @ 4:58 pm:

    A new tax plus not eliminating the income tax increase is a bad idea. A NEW tax of any kind is a bad idea. Once a new tax is established, it will not go away. Keep the income tax at the present rate, and a new tax will not be needed.

  8. - Wally - Monday, Jul 21, 14 @ 5:00 pm:

    How much buying power was taken away from the citizens of Illinois the past 3 1/2 years? How much buying power is taken away when gas costs $3.50- $4.25?

  9. - steve schnorf - Monday, Jul 21, 14 @ 5:07 pm:

    Wally, do you have a point, or are you asking a serious question? If the latter, you’ll have to be more specific; by inflation or what?

  10. - RNUG - Monday, Jul 21, 14 @ 5:08 pm:

    Maybe I have too much of an anti-Rauner bias, but to me his language implies more of a negotiation where he believes he is either an equal to the GA or that he will have the upper hand over the GA.

    Even after winning I don’t think he will be in a position of strength vis-à-vis the GA. He MIGHT get there if he learns to effectively horse trade with Madigan or he vetoes enough bills, but he won’t start out equal. I predict a rough first year if Rauner wins the election.

  11. - Steve - Monday, Jul 21, 14 @ 5:11 pm:

    Bruce Rauner is another name for Jim Edgar-Jim Thomspson: he wants to raise taxes. This is great news for Pat Quinn.

  12. - wordslinger - Monday, Jul 21, 14 @ 5:11 pm:

    I’m very surprised by this. I figured Rauner would just beat Quinn like a rented mule on the tax increase, then, when he won, claim “things are much worse than I thought” and ask for more money.

    The fact of the matter is both candidates are now on record as saying that that the tax hike needs to be extended. And Rauner wants new taxes, to boot.

    Didn’t see that coming.

  13. - LIncoln Lad - Monday, Jul 21, 14 @ 5:20 pm:

    Maybe Bruce has a conscience. Doesn’t want to promise what he knows he can’t deliver.

  14. - Oswego Willy - Monday, Jul 21, 14 @ 5:30 pm:

    ===“Well, I think we’ll work out the specific rate with the General Assembly like we’re going to work out the entire budget with the General Assembly. My personal goal, (the) 3.75 (personal rate) I think is good, but we need to work out the overall plan and how we transition,” Rauner said during a campaign event at a River North restaurant.===

    “Mike Madigan never had to deal with me.”

    “I would say 1/3 of the GOP GA is corrupt”

    “Career Politicans”

    “Bribed by Union Bosses”

    There is no other job, hands down, that will be more fascinating to see being done than the Legislative Liaison positions directly out of the Governor’s Office.

    Maybe a close second, maybe, might be “Governor Rauner’s” floor leaders.

    One-third of the a Republican General Assembly is corrupt; the Democrats lead by Speaker Madigan, those Career Politicians, and President Cullerton, calling into his district to STOP the original tax from sun-setting…

    I have not typed one letter…to the plan… and yet the hurdles seem high.

  15. - circular firing squad - Monday, Jul 21, 14 @ 5:30 pm:

    Wow…glad we did vote for Mitt in the Crossover orimary….This flip made Big Jim and Blink Jim look honest
    He should have never fell for the media taunting about no details…tsk tsk

  16. - VanillaMan - Monday, Jul 21, 14 @ 5:46 pm:

    Smart move by the challenger. Rauner continues to show that he is willing to lead even when he knows his decision won’t be easily accepted. He continues to fill the vacuum Quinn leaves wide open.

    Quinn is going to bleed independents and RINOs by displaying a level of realism they’ve been demanding.

  17. - Oswego Willy - Monday, Jul 21, 14 @ 5:55 pm:

    ===Quinn is going to bleed independents and RINOs by displaying a level of realism they’ve been demanding.===

    How, by admitting he is going to try to raise the tax rate the first day he is inaugurated? I bet those Conservatives, and low tax Republicans won’t mind walking away from Rauner.

    Quinn will veto any raise if he’s a lame duck. There won’t be enough votes to override that.

    So - VanillaMan -, the voters are going to be lemmings to a man whose main campaign themes have been hammer and shake, and now wants cooperation and compromise?

    I give you it takes “stones”, but stones sometimes don’t mean votes.

  18. - circular firing squad - Monday, Jul 21, 14 @ 6:13 pm:

    We also wonder if Mr & Ms Reboot want their cash back from Flip

  19. - steve schnorf - Monday, Jul 21, 14 @ 6:53 pm:

    you got it Steve, the way Thompson and Edgar got whipped. JRT, the longest serving gov in the state’s history and JE, last R to win Cook County and 102 counties. You sure can spot the ones who were easy to beat.

  20. - Cheswick - Monday, Jul 21, 14 @ 8:43 pm:

    Will conservatives, seeing the handwriting on the wall, just stay home on election day?

  21. - Now What? - Monday, Jul 21, 14 @ 9:12 pm:

    Trying to get my brain around the pseudo Machiavelliian move here by Brucey. Is he now defining the election as a straight up personality difference between him and Quinn? Is he just assuming that voters don’t want to be bothered with details of budgets and percentages and just want Quinn out? Is he assuming that public employees and public pensioners hate Quinn so much that they’ll hold their nose and vote for Brucey? They did for Blago in 06 and one could argue for Quinn in ‘10.

    If Brucey reaches out to the unions next, I’m buying a Harley!

  22. - Michelle Flaherty - Monday, Jul 21, 14 @ 9:32 pm:

    So Rauner wants to re-enact the temporary tax increase so he can make what’s already going to have gone away go away again?

  23. - Chicago Cynic - Monday, Jul 21, 14 @ 10:17 pm:

    Only took three days for someone in the press (other than Rich) to finally report this correctly. This is exactly the point 47, soccermom, me and many others made when this tax plan came out. He’s for extending the existing tax and a whole new tax. That should go over big with the base.

  24. - Norseman - Monday, Jul 21, 14 @ 10:35 pm:

    Michelle, I wish this was one of your excellent snarky comments. However, you perfectly described this goofy paradox.

  25. - DuPage Bard - Tuesday, Jul 22, 14 @ 12:11 am:

    Big question- how do his lemmings, such as Ives and Duffy spin this one? They scream about lowering the income tax and letting it expire. How are they going to justify his comments now? This is going to be interesting watching the “new age” Republicans take hold of the Illinois savior.

  26. - Yellow Dog Democrat - Tuesday, Jul 22, 14 @ 7:19 am:

    Michelle -

    But - and this is very important - Rauner wants you to understand that reinstating the tax hike was not his idea.

    PERSONALLY, he would prefer it if the rate schedule went something like this:

    2015 - 3.75%
    2016 - 3.03%
    2017 - 3.02%
    2018 - 3.01%

    Look, I get it. Policy wise, Rauner really goofed by attacking Quinn for making the tax hike permanent. Math is forcing Rauner to embrace more or less the same policy.

    Politically, it could be troublesome.

    Five years ago, Quinn thought a temporary tax increase and expanding the sales tax were good ideas. Rather than deny those things, he should admit them.

    “Yes, I supported modernizing the sales tax five years ago — business owners across Illinois told me the Rauner Tax would crush small business, which drives job creation, and unlike Bruce Rauner, I listened.”

    Might as well own it like you did term limits.

  27. - NO SENSE ! - Wednesday, Jul 23, 14 @ 8:50 am:

    Listen to Mr.Rauner he knows what he talking about he pays less taxes then most everyone if the commercials are true. If true that is on your past government that allows people making so much money to get off by paying less taxes.

Sorry, comments for this post are now closed.

* Question of the day
* Prepare for a skewering
* Rauner apologizes for no budget, blames Dems
* This just in... Mautino to be recommended for Auditor General
* Study: Four of the ten worst cities for African-Americans are in Illinois
* Lip service
* Today's quotable
* War of words resumes
* BND collects two more scalps
* McCarter gearing up to challenge Shimkus
* Caption contest!
* Sorry to see him go, happy to see the other guy leave
* "Unclear" on the concept
* A complete leadership stalemate
* Behind the impasse
* Report: Child care more expensive than state university tuition
* We're not exactly Old Faithful here
* Good morning!
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Visit our advertisers...







Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

* BBM update: Sticker Club subscription, PayPal integration
* A future software update will bring Samung Pay to Verizon
* Verizon finally meets up with Samsung Pay
* App Slicing on iOS 9 will help you cut down on your disk space
* October’s Android distribution numbers show little change from last month
* Debacle over Samsung- and TSMC-sourced Apple A9 processors
* Microsoft Lumia 950 / Lumia 950XL hands-on (Video)

* Hawk Harrelson's reduced schedule creates opportunity for White Sox...
* Holliday, Ventura connection goes way back
* 2015 in 3 words: Sale, Abreu, inconsistency
* Hawk cutting '16 broadcast schedule
* Podcast: Shifting the target
* White Sox face toll of three losing seasons
* Montas solid, but offense silenced in finale


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

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


RSS Feed 2.0
Comments RSS 2.0


* Providers, clients bash Rauner administration c.....
* Providers, clients bash Illinois Gov. Rauner ad.....
* Cartoonist offers his vision of shared sacrific.....
* IL Representative urges governor to reopen Spar.....
* Parents, day care owners bash Rauner child care.....

* Chicago police chief takes tough questions after complaints
* Illinois stops paying local health clinics for STD testing
* Panel recommends Rep. Mautino for Illinois Auditor General
* EXCHANGE: Nachusa Grasslands plans to add bison this fall
* Route 66 Museum to hold auction in Springfield
* Suburban college recognized for campus safety efforts
* Metra installs charging stations downtown Chicago
* Police superintendent to face alderman demanding his firing
* Terrorism suspect due in court for 2nd straight day
* Chicago aldermen demand firing of police superintendent

* Providers, clients bash Rauner administration changes to day care eligibility
* Illinois stops paying local health clinics for STD testing
* Panel recommends Rep. Mautino for Illinois auditor general
* Chancellor Koch: Budget pressures growing for UIS, other schools
* Illinois to implement new ratings for schools, districts
* Budget impasse cuts services for domestic abuse victims
* Weaver tapped to replace LaHood in Illinois Senate
* Peoria city councilman tapped to replace Darin LaHood in Illinois Senate
* Illinois budget impasse affecting emergency call systems
* Legal marijuana stirs hope in southern Illinois town

* McCarthy says he'll stay on despite complaints
* DC mayor announces settlement in Exelon, Pepco merger
* Exelon-Pepco merger just got a big step closer
* Hyatt Regency debuts largest campaign in its history
* FDA says it's fighting drug shortages

* Regular season carries more weight than ever for Blackhawks
* Meet the newest Blackhawks
* Patrick Kane remains the Blackhawks’ biggest X-factor
* NHL season preview and predictions
* Mihalopoulos: Ald. Burns could wind up feeling the heat
* ‘I’m not done,’ Karen Lewis says a year after cancer diagnosis
* McCarthy ‘extremely disrespectful’ to council, one alderman tells him
* McCarthy ‘extremely disrespectful’ to council, Ald. Beale tells top cop
* Emanuel on McCarthy: ‘I’m standing by him’
* Neighborhood fests overlooked, some aldermen say

* Chicago Teachers Union president running for re-election
* Pilsen residents kept waiting for cleanup of toxic lead contamination
* Lawmakers ask state education officials to explain superintendent perk
* Emanuel wants CPS property tax hike but mum on spending specifics
* Plainfield toddler hurt in lawn mower accident
* Murder charge filed in 2013 crash that killed Chicago boy during cop chase
* Cops: 1 in custody after police shoot at suspect who tried to run them down
* Man given 40 years in prison in cold case murder of teenage mother
* Trial underway for man accused of killing Metra officer
* Lakeshore cities expect marine sanctuary to have huge impact

* Providers, clients bash Rauner administration changes to day care eligibility
* Illinois stops paying local health clinics for STD testing
* Panel recommends Rep. Mautino for Illinois auditor general
* Kathleen Parker: The GOP’s (New) McCarthyism
* Clark Bullard: Unclear if CWLP’s proposed rate changes are fair
* Chancellor Koch: Budget pressures growing for UIS, other schools
* Illinois to implement new ratings for schools, districts
* Paul Findley: Boehner deserves souvenir from Pope's visit
* Budget impasse cuts services for domestic abuse victims
* Weaver tapped to replace LaHood in Illinois Senate

* Woman sentenced to probation in heroin case
* Why I Love the Dead: A Microcosm
* Gifford considers new sign, need to fill positions
* Georgetown regulates outdoor furnaces
* Thomasboro looks at uniform for public works chief
* UPDATED: I-74 lanes open after crashes
* SportsTalk 10-06-15
* Street closures listing
* Field & Stream Store
* Officials seek person who caused Frontier outage

* Classes off in McHenry again Wednesday as negotiations continue
* 8 ways the world has changed since the Cubs' last one-game playoff
* Freight train possibly leaking hazardous substance in Wheeling
* Duckworth, Kirk trade barbs over Letterman fundraiser
* Huntley teacher stands out among peers in state

* 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

* Durbin supports bill to boost regulation o......
* Senator Durbin Discusses Landmark Sentenci......

* Duckworth, Kirk trade barbs over Letterman......
* Today's quotable - The Capitol Fax Blog (b......

* Kotowski's Replacement To Be Sworn Into State Senate
* Americans Receive Out-Of-Network Medical Bills That Reach 'Exorbitant' Heights, Report Finds
* Report: Many U.S. States Fall Short On ID Card Access For Homeless LGBT Youth
* Legislative Panel Recommends Mautino For State Auditor General Post
* Chicago Alderman Stalls Charter School Moratorium Resolution
* Emergency Meeting Held With Electeds To Discuss Chicago Violence
* U.S. Supreme Court Could Take Up Controversial Cases On Abortion, Union Fees
* CTU's Karen Lewis To Run For Re-Election
* Peoria Council Member Selected To Fill LaHood's Illinois Senate Seat
* Advocates: TPP Deal Could Hurt Illinois Jobs And Health

* IEMA Announces Elgin Community College Attains ‘Ready to Respond Campus’ Designation - Elgin one of five Illinois campuses to receive distinction
* New Mortgage Loan Interface Increases Efficiency, Compliance
* State Fire Marshal Ushers In Fire Prevention Week - “Hear the Beep Where You Sleep!”
* October Is Illinois College Application Month! - Over 130 High Schools Will Hold Events to Help Students Get to College
* Illinois Takes Part in Nationwide Community Banking Study, Findings Announced

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