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Cullerton, Radogno “playing coy” about tax hike percentage

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* The Senate’s leaders are at today’s Daily Herald editorial board meeting…


Radogno, Cullerton say income tax rate in grand bargain, is at 4.95 percent, but they "want to make sure it's adequate."

— Kerry Lester (@kerrylester) January 20, 2017

It ain’t. Not alone, anyway. Subscribers know more.

* More from the Sun-Times editorial board meeting yesterday

As far as the revenue package, the leaders said there’s still room for changes, but Cullerton ruled out an expansion of the sales tax base [to services] for the package. Both leaders also said they’re in support of taxing six-figure retirement incomes but said that measure would be hard to pass, Radogno saying politically, it’s a “third rail.” […]

And the leaders are playing coy about saying the income tax hike would be capped at 4.95 percent.

“We’re taking input,” Illinois Senate Republican Leader Christine Radogno said when asked about a cap at a Sun-Times Editorial Board meeting on Thursday.

Illinois Senate President John Cullerton also refused to say whether the hike is set in stone.

“The principle here is we’d like it to be as low as possible. But the principle here is to make sure we have a balanced budget going forward for fiscal year 2018,” Cullerton said, adding he’s looking at a budget office analysis and is looking at its deficit and assumption of spending. “And we’re going to see where we are with our members on some of these other revenue provisions like the soda tax to see if we can get to the point where we have a sufficient amount of money to have cuts — but a balanced budget.”

* Related…

* Mark Brown: Rare and refreshing—Democrat, Republican working together: It’s very difficult to force Madigan’s hand, but in the interest of self-preservation for his members — and retaining the House leadership he covets above all else — it’s possible the Senate moves will motivate him to find common ground as well.

* Sun-Times Editorial: Listen to Illinois Senate leaders and say uncle: If approved by the Senate, the budget package will move to the House, dropping right into Madigan’s lap. The Speaker might then face a defining choice: Get behind this effort or be shown up as a man who, as his critics like to say, cares about nothing but power. The grand bargain contains much that should appeal to Madigan, such as a hike in the minimum wage to $11 by 2021 and Chicago-friendly changes to how the state funds schools. But it includes a few victories for Rauner, as well, including term limits for legislative leaders, a property tax freeze and workers’ comp reforms.

* Senate leaders want to grab momentum for massive budget plan next week: Radogno said she did not consider the release of the spending estimates as Rauner trying to tamp down the Senate’s progress. “I will take the governor at his word, his public comments have been that he wants to see this process continue and see where we can get,” she said. “And those have been his public comments. Those have been his private comments to me. He has never said, ‘Don’t do this.’”

* VIDEO: Cullerton, Radogno Discuss Budget ‘Grand Bargain’

* Voice of the Southern: Thumbs down to the 550 days the state has been without a budget, and to Gov. Bruce Rauner and the Illinois General Assembly for failing to reach a budget agreement. Forging a budget is one of the basic job requirements of our elected officials. They simply won’t, or are unable, to do their jobs. Their inability to perform that basic task is hurting everyone in the state. People are leaving the State of Illinois. Those of us staying are seeing our parks crumble, our schools left without funding and our services wondering how to foot the bill. We bounce from crisis to crisis, day to day. In the meantime, bills and debt service is piling up. If the state were a business, it would have been forced to close its doors. It’s time to go to work. It’s time to get things done.

* Tribune editorial board: ¯\_(ツ)_/¯

posted by Rich Miller
Friday, Jan 20, 17 @ 10:33 am

Comments

  1. More and more baby boomers will pack up and leave if they are able. They will establish residency in Florida, TN, Texas, etc.

    This state ‘aint coming back.

    Comment by Piece of Work Friday, Jan 20, 17 @ 10:38 am

  2. If a tax rate of 4.95% will not pay the backlog of bills, how much tax do we need to pay our bills?

    Comment by Mama Friday, Jan 20, 17 @ 10:39 am

  3. Springfield is going to be a ghost town once state workers are done being ravaged by whatever union contact they get stuck with on top of the mystery tax hike.

    Comment by CharlieKratos Friday, Jan 20, 17 @ 10:39 am

  4. 50/50 this package gets called for a vote next week

    Comment by Not Rich Friday, Jan 20, 17 @ 10:39 am

  5. Baby boomers go south for the Winter and come back in the Spring. Not all, but most boomers whom move out of state permanently do it to be closer to their family. Or better weather for health reasons.

    Comment by Mama Friday, Jan 20, 17 @ 10:43 am

  6. “More and more baby boomers will pack up and leave if they are able. They will establish residency in Florida, TN, Texas, etc.”

    It isn’t just the baby boomers who will leave. I was born in 1988, and every day there’s less reason to stay. I’m all for paying my fair share, but if I’m going to pay $6,000 a year in property taxes, plus roughly 8.5% sales tax, and then a 5% income tax, then I’m going to move to a state that I’ll get a decent return for those taxes (Minnesota, Colorado, etc).

    Comment by Romeo Friday, Jan 20, 17 @ 10:45 am

  7. The Rauner Tax will be cobbled from the discussions and structure Cullerton and Radogno can forge.

    I’m keeping in mind IPI and “others” will try to make this a truly Democratic push, and Tepubkicans should “hold firm”. That’s counter to the need of bipartisanship in governing.

    That’s why it’s going to be the Rauner Tax in 2018, instead of all sides taking their share, and keeping the state of Illinois and its health as the most important goal.

    Civility and cooperation is not this Governor’s strong suit and sadly that’s what’s needed most.

    Cooperation seen with such a critical eye, a skeptical and disappointed eye is not looking out for our state.

    This is why governors own. They own the good, the bad, even the best in governing when tough choices need to be made.

    Governors don’t use silent hands to foster a distrust or worry, especially within their own party.

    We will see how critical this administration sees this budgetary chance.

    Comment by Oswego Willy Friday, Jan 20, 17 @ 10:48 am

  8. Like you Rich, I’m intrigued by the Trib’s silence. Posted this in another thread:

    …trying to get a fee how the IPI/Tronc/Rauner troika is coordinating here. Looks like IPI is doing the infantry work while the Tronc artillery remains in reserve.

    Comment by Anonymous Friday, Jan 20, 17 @ 10:49 am

  9. Mike Madigan has been cut out of this process, you can’t blame him if this deal never makes it over to the House.

    Here’s what we have so far, the Rauner funded IPI is trying to torpedo the deal. Republican business groups have ginned up enough opposition to the soft drink tax that it might be eliminated. If it is (or possibly even if not) it will require a further increase in the tax hike, something that the two leaders are not ruling out in their quotes above. Republican Senators are giving anonymous quotes lambasting the tax hike. Republican business groups are making it known they’re not on board with this deal and that they think the workers comp stuff doesn’t go far enough.

    And publicly the Governor’s budget office is telling people that even after all of these unpopular features the proposal still leaves the budget out of balance.

    When this goes down it’s going to be awfully hard to blame Mike Madigan.

    Comment by The Captain Friday, Jan 20, 17 @ 10:50 am

  10. –And the leaders are playing coy about saying the income tax hike would be capped at 4.95 percent.–

    If they’re “playing coy,” what are Rauner and Madigan doing? “Playing possum?”

    The statement doesn’t make sense. Cullerton and Radogno by themselves can’t make definitive declarations on what the final deal will be. The House and governor have to weigh in.

    Geez, it’s finally, a real, bipartisan, public opening proposal. Given the disastrous failure of the last two years, Cullerton and Radogno should get a parade for sticking their necks out.

    Didn’t these deep-thinkers at the Herald have an eighth grade civics class? That whole shared powers thing was covered.

    Comment by wordslinger Friday, Jan 20, 17 @ 10:54 am

  11. If history is any guideline any tax hike will be quickly spent on assorted vote buying programs and the debt will still be there over all of our heads. Like it or not, the time has come for across the board cuts if for no other reason than to cut the outflow of taxpaying citizens from our State.

    Comment by Southern Illinois Citizen Friday, Jan 20, 17 @ 11:00 am

  12. –Mike Madigan has been cut out of this process,–

    Obviously, that’s not possible and makes no sense.

    Comment by Anonymous Friday, Jan 20, 17 @ 11:00 am

  13. == they’re in support of taxing six-figure retirement incomes==

    So a 59 year old worker earning $99,000 - about $40,000 than the median income in the state - pays the full tax, and a higher one at that. Meanwhile, a 59 year old retiree with a $99,000 pension continues to pay nothing?! Pray tell, what’s the difference?

    Comment by City Zen Friday, Jan 20, 17 @ 11:16 am

  14. If you want more weirdness from the Herald take a look to the right: Kerry Lester apparently thinks she’s informing her “followers” with tweets about what she sees and hears on the TV box today out of DC.

    Like they can’t tune in themselves, they need “insight” from some other schmoe watching the same thing TV.

    “Jimmy Carter, who looks great….”

    If that’s not supposed to be satire of a navel-gazing media type desperate to say nothing at all, it’ll do till the real stuff comes around.

    Lester, Katrina and Kass should see if Uncle Joe will let them use the barn so they can put on their own pretend “Rupert Pupkin” cable show, and spend hours being just as vacuous and useless the “real” cable yakkers.

    Comment by wordslinger Friday, Jan 20, 17 @ 11:20 am

  15. I believe at 4.95%, the tax rate will still be less than all surrounding states, except Missouri.

    If people haven’t left over property taxes, they aren’t going to leave over the hike in income taxes.

    Comment by Tommydanger Friday, Jan 20, 17 @ 11:23 am

  16. ==I believe at 4.95%, the tax rate will still be less than all surrounding states, except Missouri.==

    Missouri has a progressive tax rate structure with the highest rate, 6% on income above $9,000.00. One would have to make less than $7 thousand annually in Missouri to pay less than 4.95%

    Comment by Joe M Friday, Jan 20, 17 @ 11:30 am

  17. 6 figure retirements are a third rail, but property taxes, soda, etc. which disproportionally hit the poor harder are acceptable. Got it. Cool.

    Comment by Shemp Friday, Jan 20, 17 @ 11:36 am

  18. ===More and more baby boomers will pack up and leave if they are able. They will establish residency in Florida, TN, Texas, etc.===

    The will locate where the jobs that they’re qualified for are located, and they’re moving to Chicago in droves.

    Comment by PublicServant Friday, Jan 20, 17 @ 11:53 am

  19. Excuse the last. I was referring to Millenials. The baby boomers are retiring and Illinois doesn’t tax retirement income, so why would they leave?

    Comment by PublicServant Friday, Jan 20, 17 @ 11:54 am

  20. “….why would they leave..?” Um, it’s freakin’ Illinois!!

    Comment by Anonymous Friday, Jan 20, 17 @ 12:00 pm

  21. ===“….why would they leave..?” Um, it’s freakin’ Illinois!!===

    Meh, I’ve got a lot of family here. Love that we don’t have to name our bugs. Chicago is a world class city, and we’ll get through this mess just like we have in the past…regardless of the doom and gloom of IPI and their funders.

    Comment by PublicServant Friday, Jan 20, 17 @ 12:09 pm

  22. I can’t figure out why the folks at IPI don’t leave Illinois? They don’t seem to like it here.

    Comment by Joe M Friday, Jan 20, 17 @ 12:45 pm

  23. @tommydanger tough to just compare rates when taxes are calculated differently. IL uses a flat tax on AGI. MO for example has graduated rate with lots of deductions. For

    Comment by jeffinginchicago Friday, Jan 20, 17 @ 12:57 pm

  24. “If history is any guideline any tax hike will be quickly spent on assorted vote buying programs and the debt will still be there over all of our heads. ”

    Actually, if you knew your history, you would know that the last time the income tax was hiked to around this rate, we were making all our pension payments AND cutting back on the backlog of bills. Spending only increased because we were actually making the pension payments instead of signing IOU’s.

    Comment by Pelonski Friday, Jan 20, 17 @ 1:21 pm

  25. –I can’t figure out why the folks at IPI don’t leave Illinois? They don’t seem to like it here.–

    They struck gold when Rauner and Griff opened their wallets. The grift is better than ever.

    Comment by wordslinger Friday, Jan 20, 17 @ 1:25 pm

  26. If there is a poster who is out of touch, it has to be PublicServant.

    Comment by Piece of Work Friday, Jan 20, 17 @ 2:10 pm

  27. Oh boy…

    ===- Piece of Work - Friday, Jan 20, 17 @ 2:10 pm

    If there is a poster who is out of touch, it has to be PublicServant.===

    Hmm…

    ===I’ve got a lot of family here. Love that we don’t have to name our bugs. Chicago is a world class city, and we’ll get through this mess just like we have in the past…===

    So, Chicago isn’t considered a World class city as both the Mayor and Governor try to lure companies there with that distinction, and there’s a sense of optimism. And I guess being close to family is someone out of touch too?

    Like is said, “Oh boy”

    Comment by Oswego Willy Friday, Jan 20, 17 @ 2:16 pm

  28. @PieceOfWork - Bah Humbug

    Comment by PublicServant Friday, Jan 20, 17 @ 2:30 pm

  29. I’d like to point out how senate leadership is doing Rauner’s balanced budget job.

    Comment by Illinois O'Malley Friday, Jan 20, 17 @ 2:35 pm

  30. So I watched the WTTW Chicago Tonight show last night and then watched parts again today. First off I want to say Eddie Arruza who did the interview with Senators Cullerton and Radogno let them totally off the hook or was intellectually challenged by what was being said in front of him. He never explored with either Senator how much SB 1 was going to cost, that’s the shell bill for the new funding model for education coming out of the Governor’s commission.

    We know that based on GOMB analysis that bills 2-13 would result in an additional $2.3 billion deficit for FY 16, and a $4.3 billion deficit in 2017. Maybe GOMB’s assumptions are off somewhat, but probably not massively. Now we have to deal with the new school funding model which has a hold harmless component to it and the Commission admits for the present only a “pathway to adequacy” can be expected because to fully fund the model it would cost an additional $5 billion a year over the current k-12 budget (that from the minutes of the Commission by the way). But the new model will immediately cost something in addition to what the State appropriates currently, my guess would be at least $1 billion more a year.

    All of this adds up, and the Senate Republicans are tight with the purse strings and tight with tax increases. I think that is why Senator Radogno looked so stressed on the show. Here is the other odd thing about the show last night, Amanda Vinicky was assigned to do a local story last night related to violence, and clearly she has pretty good knowledge about the Illinois legislative process and funding. She seems like the logical choice to do the interviews, not Mr. Arruza.

    If President Cullerton and Senator Radogno push ahead next week without having a much better picture of the full fiscal impact of all the bills in the so called grand bargain, including SB 1, this could blow up. It won’t be the soda pop tax either that blows it up, it will be legitimate fear of the Senators about how much is all of this really going to cost.

    Comment by Rod Friday, Jan 20, 17 @ 2:50 pm

  31. Does the Senate plan include any specific cuts? I thought Fullerton and Radogno said there would be cuts when interviewed on Ch. 11 but I didn’t hear any specifics.

    Comment by JackD Friday, Jan 20, 17 @ 2:57 pm

  32. Well Willy, I was referring to PublicServant saying Chicago will get out of the mess just like they have in the past. WHAT? Chicago is a mess financially and it is getting worse.

    And this doozie—they don’t tax retirement income so why would boomers leave? If you have to ask that question, I don’t know what to say.

    Yes, family is important and one of the main reasons more don’t flee. And yes, Chicago is a world class city that has many, many serious problems.

    Good cherry picking Willy, but I expect that out of you

    Comment by Piece of Work Friday, Jan 20, 17 @ 3:20 pm

  33. ===Yes, family is important and one of the main reasons more don’t flee. And yes, Chicago is a world class city that has many, many serious problems.===

    But how is that out of touch if you see Chicago as a world class city and has problems, and family keeps people from leaving too…

    That’s not cherry picking if you agree… lol.

    Comment by Oswego Willy Friday, Jan 20, 17 @ 3:34 pm

  34. Jack D there are apparently funding line reductions, but not in the area I understand. I don’t know how big the reductions are as a percentage of the last full year appropriation. I don’t recall anything having been put out by the Senate leaders on that issue, maybe Rich has seen something.

    Comment by Rod Friday, Jan 20, 17 @ 4:15 pm

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