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* Gov. Quinn says he’s willing to sacrifice his own career to raise taxes and balance the budget…
Illinois Gov. Pat Quinn says he realizes that his proposal to raise income taxes could cost him another term, but he has to do what’s right.
Quinn said at a press conference Sunday that he thinks the state’s residents want a governor who levels with them. And he says that the tax proposal was the only honest and honorable thing to do.
Some have derided Quinn for taking a voluntary $25,000 pay cut as meaningless symbolism. They’re completely missing the point. He’s put his entire career on the line with this budget.
* The Sun-Times takes a look…
Voters hate tax hikes, which is why Gov. Quinn’s push for the state’s first income tax increase in 20 years is such an intriguing political gambit with the 2010 gubernatorial campaign ready to launch.
But do voters really hate tax hikes, or is this a media creation? The Paul Simon Public Policy Institute at Southern Illinois University conducted a poll last fall which showed voters were open to higher, more progressive taxes…
Interestingly, while 74.2 percent of respondents who make less than $50K annually favored a progressive tax, and 68.9 percent of those who make between $50K and $100K favored the tax, more than half of the people who make more than $100K and would presumably pay the higher rate still favored a higher rate for themselves. 57.5% of the respondents who make more than $100,000 support a higher rate for higher incomes.
My own opinion on this is that voters may support a tax hike in the abstract, but maybe not so much when a tax hike is imminent. And the world’s economic conditions are far worse now than they were when that poll was conducted.
Still, nobody in the General Assembly lost their seats after Gov. Jim Thompson increased taxes in the 1980s. And I don’t believe that any legislators lost after Gov. Ogilvie instituted the income tax after the constitutional convention. Ogilvie lost, however, so Quinn has that bit of history going against him.
And then there’s this story from New Jersey that’s worth a look…
New Jersey Governor Jon Corzine says his plan to shrink a $7 billion budget gap by raising taxes and cutting workers’ pay will create “a stronger footing for tomorrow.” By the time that tomorrow comes, Corzine may be out of a job.
The governor, a former chairman of Goldman Sachs and the only incumbent up for re-election this year, is trailing his likely Republican opponent amid voter anger over the economic crisis — and the steps he’s taking to deal with it: a fiscal 2010 budget that lops 9 percent from the current one, a wage freeze and unpaid furloughs for state workers, and possible cuts in property-tax rebates along with higher taxes on the wealthiest residents and on cigarettes and alcohol.
Keep in mind that New Jersey polling is notoriously inaccurate, but it certainly ought to give Quinn pause.
* And this Gatehouse story shows just how difficult Quinn’s task will be…
Pat Abney, a 63-year-old from Springfield, said that between buying medicines and paying monthly bills, many senior citizens are barely able to survive with their bills, let alone additional fees.
“Ninety-nine dollars for a little sticker every year is just a little too much,” Abney said. “But it is something that I’ll have to have to buy. I’ll have to pinch some pennies to pay for it and it could be kind of a tight squeeze.”
1) Not mentioned in the piece is that senior citizens don’t pay income tax on their pension incomes.
2) The governor’s proposed sticker vehicle registration fee increase is $20 per year, which isn’t mentioned anywhere in the story’s main body.
3) Expect many more misleading “woe is me” stories like this in the future.
* Meanwhile, the Tribune finally discovers the governor’s proposed sales tax expansion…
Buried deep within the massive budget proposal Gov. Pat Quinn presented last week to lawmakers was a caffeinated jolt to the bottled tea and Frappuccino crowd.
Quinn wants to apply the state’s sales tax on soft drinks to the coffee and sweetened tea products in grocery stores, adding a quarter for the state treasury for every $5 six-pack of sweet green tea.
* And the SouthtownStar has words of praise…
Former Gov. Rod Blagojevich once bragged of his “testicular virility” for standing-up to his father-in-law, Chicago Ald. Dick Mell, over a landfill deal.
We think Quinn, by introducing an income tax increase, earns that distinction.
* But Chris Krug makes an interesting point about why the voters elected Blagojevich twice and why Quinn finds the going so tough now…
I’m not sure that any of us wanted a governor who was all that interested in doing something. I’m almost positive we just didn’t want Blago in there doing anything.
* Related…
* Quinn shows ‘testicular virility’
* Lawmakers Speak Out In Opposition of Quinn’s Recovery Plan
* Critics: Budget plan fails to ‘cut, cut, cut’
* How the governor reaches $1.3 billion in proposed cuts
posted by Rich Miller
Monday, Mar 23, 09 @ 10:58 am
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I think that the governor is doing a great job thus far. He has inherited a horrible situation, but he is proposing bold steps to resolve it. He is asking everybody to sacrafice to benefit the whole state. This is the fairest way to do it and I give him all the dredit in the world for making the tough decisions.
Keep up the good work governor!
Comment by Anon Monday, Mar 23, 09 @ 11:15 am
Raising taxes gives Quinn testicular virility… and makes him the politically impotent…. All hale Queen Lisa!!!
Comment by Heartless Libertarian Monday, Mar 23, 09 @ 11:17 am
Stick a fork in Quinn. He’s done. His farcical budget which is “balanced” by stealing money from the pension funds again will never pass but the public will remember the attempt to raise taxes, give most of the revenue away, and do nothing about the state’s ever growing structural deficit.
Comment by Bill Monday, Mar 23, 09 @ 11:21 am
I take Quinn at his word re: doing the right thing even though it may cost him the election. That be the case, good for him. I think that by being honest and sincere about getting things straightened up after years of neglect and abuse, he will enhance his prospects rather than diminish. “Good Government is good politics”..lets try that for a change.
Comment by You Go Boy Monday, Mar 23, 09 @ 11:23 am
Note to GA & Guv, use a “zero” budget process, cut EVERYTHING and start over. Then justify why you want deeper in my wallet.
Comment by Dan S, a Voter, Taxpayer and Cubs Fan Monday, Mar 23, 09 @ 11:30 am
Never underestimate the deviously somnolent power of income tax withholding.
People hate the idea of an income tax increase, but when it’s spread out over 24 or 26 paychecks, the anger can dissipate. That’s especially true when the Illinois Income Tax is the smallest part deducted from your paycheck (who is that FICA guy, anyway?).
On the same note, I’ve found that folks whose property taxes are rolled into their monthly mortgage payment and escrowed are virtually unaware of how much those taxes are; on the other hand, those who don’t escrow and scramble to come up with the cash twice a year are generally furious about property taxes.
There are ways to skin a cat to keep it from howling.
Comment by wordslinger Monday, Mar 23, 09 @ 11:34 am
Quinn’s proposal is not good gov’t..It does not address the pension or medicaid debt. In fact, it makes it worse. There is no property tax relief. There is no school funding reform. It recycles the same old tricks that Rod and his cronies tried. People laughed at Filan when he tried to “close corporate loopholes”. None of those measures passed then and won’t now. They are up to their old tricks of balancing the budget by stealing from the pension funds and reneging on state employee contracts. It is not gonna happen. Let’s all send used tea bags to Quinn.
Comment by Bill Monday, Mar 23, 09 @ 11:35 am
Bill, the gov’s plan might not pass exactly as proposed, but taxes will be raised. Both Cullerton and Madigan are open to raises taxes so it will happen.
Comment by Anon Monday, Mar 23, 09 @ 11:36 am
I have decided to ignore any legislator, Republican or Democrat, who chooses to criticize Quinn’s budget but refuses to offer any SUBSTANTIAL alternatives. While I don’t agree with everything in Quinn’s budget, at least he has the guts to lay something significant on the table. This, in my opinion, makes him a statesman.
I am tired of hearing nickle and dime solutions to a several-billion dollar problem.
Comment by Old Shepherd Monday, Mar 23, 09 @ 11:39 am
If Quinn had testicular virility he would of stood up to Blago and ran against him in 2006 or got of the ticket and supported someone else but Quinn meekly followed Blagos lead and kept his mouth shut while Blago ran the state into the ground. Quinn should stick with keeping his mouth shut and his ideas to himself while cashing his paycheck just like he did for the last 6 years.
Comment by fed up Monday, Mar 23, 09 @ 11:41 am
I think Quinn is right: he will lose the primary because of this tax hike. By using the same Blago people (Filan, Lavin, et. al.) he is making the case for Lisa Madigan or any other challenger that he is nothing new. Just pull up some quotes from Quinn about Blago, note that Quinn ran with Blago twice, Quinn (at least) tried to increase your income taxes BY 50 PERCENT in a deep recession (not to fix anything like roads, school funding or property tax reform, just to keep the status quo), his bumbling and waffling on Roland Burris and he’s done.
The only consolation: at least he didn’t try to push off the income tax hike as a “temporary” one like Edgar did in the 80s…
Comment by Vote Quimby! Monday, Mar 23, 09 @ 11:57 am
As one of their reporters said to me over the weekend that encapsulates this issue of media coverage of the tax plan perfectly:
“To put it in perspective: at the Tribune, the editorial board will see a tax increase, the reporters will see a tax cut.”
Comment by George Monday, Mar 23, 09 @ 12:09 pm
Rich,
On the New Jersey comparison, keep in mind also that Corzine is the ex-chairman of Goldman Sachs (read leading financial services firm). With people’s current opinion of that industry and its leaders (who makes millions and millions of dollars), I wonder how much Corzine’s proposal is influencing the numbers vs. how much they are influenced by Corzine himself. Quinn has a much different background, and thus the comparison may not be valid.
Comment by Niles Township Monday, Mar 23, 09 @ 12:13 pm
Don’t the issues of school funding reform and property tax reform have to be decided together? The sides don’t seem to agree now on what constitutes reform. It’s a discussion that hasn’t happened. I don’t see how anyone can argue that this issue needs to be resolved before Illinois adequately funds its debts and programs.
I would like to see our elected officials show us their long-term thinking–eg a 10 year plan to catch up on our pension obligations, and how many years of a 4.5% income tax will be required before we catch up on our non-pension obligations and establish a 30-day turnaround on paying bills.
Comment by curly Monday, Mar 23, 09 @ 12:13 pm
Four furlough days for employees may be a start, how about lay-offs. I know I will hear how state employees have already been reduced, well keep going. Cut some services if necessary. The problem with furlough days is that they don’t affect some employees (public safety) and the savings isn’t enough. I will have a hard time believing that 5% of state employees could not be eliminated.
Comment by James the Intolerant Monday, Mar 23, 09 @ 12:46 pm
I give Quinn a lot of credit for trying to “do the right thing,”as he sees it regardless of the personal political consequences. Personally, I’ve had it with politicans who poll-test every policy position. Real leadership requires vision and risk-taking rather than proposing politically expedient policies. Playing it safe is equally likely to be self-defeating in terms of a primary challenge from Lisa Madigan.
Comment by Captain America Monday, Mar 23, 09 @ 12:47 pm
Quinn can push for whatever he wants. It still has to make it through the GA in some format. I would guess half of what he wants will be dumped or seriously changed, but the basic 4.5% issue will be there at the end. The ongoing demands to cut cut cut but make sure I have what I want for free simply do not balance. You want that road? What is the current price of asphalt/concrete. Need a new bridge? What is the current price of steel compared to five years ago. Our home values have dropped but the local school is collapsing. Who pays and where does the money come from? Increased taxes is coming. Quinn will be there because people realize the problem just keeps growing and it is more than him.
Comment by zatoichi Monday, Mar 23, 09 @ 12:59 pm
There is a difference between raising taxes for a government that has a recent track record of functioning, and raising taxes for a government that has been paralyzed since 2005.
There is a difference between raising taxes for a government lead by officials that are liked, have established competence in office, and display bi-partisanship, and raising taxes for a government lead by officials who hide from the Feds, are impeached, commit perjury and wouldn’t be elected to office if they faced an election today.
There is a difference between raising taxes for a government that finds itself short of funds due to unforseen economic circumstances, and raising taxes for a government that has destroyed it’s credit, sees state assets as eBay listings, and refuses to address a massive structural deficit.
So, enough with the generic punditry about generic tax increases. We’re not talking about New Jersey. We’re not talking about 1972 in Illinois. We are far worse off. Our state leaders have to recognize just how far they have fallen in esteem over the past four years to recognize the depths of disgust Illinoians have towards their government, and it’s demands for more of their wages.
Madigan is right. Citizens want to see a better government before they are forced to cough up more of their money!
Comment by VanillaMan Monday, Mar 23, 09 @ 1:09 pm
“…1) Not mentioned in the piece is that senior citizens don’t pay income tax on their pension incomes…”
They don’t pay State income taxws - they do, however, pay the much larger Federal income tax.
Comment by A Citizen Monday, Mar 23, 09 @ 1:20 pm
==They don’t pay State income taxws - they do, however, pay the much larger Federal income tax. ==
And so does everyone else.
Comment by Anon Monday, Mar 23, 09 @ 1:27 pm
- Anon -
Unless you are a Cabinet Appointee in D.C. :.)
Comment by A Citizen Monday, Mar 23, 09 @ 1:32 pm
Make all State Agencies take a hit or reduce their staff, take furlough days i.e. the Teachers Retirement System NEVER has!! This is a State Agency folks and I can’t remember when they had their budget cut or had to take employee reductions.
Why is Jon Bauman still the director after the mess with Levine and Resko? Fumigate these agencies and start saving money?
Comment by Fedup2 Monday, Mar 23, 09 @ 1:35 pm
==He’s put his entire career on the line with this budget.==
Hardly. With Madigan Jr. standing behind him, and Madigan Sr licking his chops, Quinn’s career is already over.
Comment by Leroy Monday, Mar 23, 09 @ 1:43 pm
My recollection from the distant past is that there is a circuit breaker for seniors on the sticker fee. Maybe I’m wrong.
Comment by steve schnorf Monday, Mar 23, 09 @ 2:14 pm
With respect to the politics of the Quinn proposal, a little more recent history–Jim Edgar was re-elected by a wide margin after making the most recent income tax hike permanent. And he worked with Mike Madigan to get enough Democratic votes in the House to make it happen. So I do not think Quinn is necessarily sacrificing his political future with this, although he is for sure betting his political future on it. Think of the alternative. If he did not do something bold, Lisa Madigan would take him out for sure in a Democratic primary. He may lose anyway, but if he did not do this, he would be sure to lose.
With respect to policy, I think Quinn’s plan is very well thought out. If you look at it in totality, almost every way that you could try to fix it, you would make something else worse. It asks almost everybody to sacrifice something, but it does not totally sacrifice anybody.
I used to think of Quinn as not very mature. But he is sure acting like a grown-up now.
Comment by jake Monday, Mar 23, 09 @ 4:07 pm
Isn’t it time to bring up a service tax, again? Laundry, massages, hair cuts, etc. I think we are killing the golden goose — how much more can we take in this economy — those of us who still pay taxes, anyway. I understand the mess we are in, and getting us here was done by both parties, so if we have to bite the bullet, let it be just until we are on a decent footing, again.
I’d like to know what impact the Obama earned income tax credit had on our budget — there was a time when everyone paid 3% if they paid federal taxes, and imo, that is a fair tax. You make more, you pay more, but nearly everyone pays something. No free rides.
Comment by jAXON Monday, Mar 23, 09 @ 5:03 pm
I’ve always thought the GA members were UNDERpaid. I’d take them all up to $100K, limit their ability to work on the side in potentially conflicting areas, limit campaign contributions, and stop the double dipping. I think that would save a lot of money for the State in the long run.
They’d still make much less than their federal counterparts.
The only way to deal with the budget situation is the ‘zero-out’ option. If a program is duplicative of federal programs (like most of the veterans programs Quinn is so in love with) eliminate them, and the state employees involved. But stop bashing all the State employees that are working in those areas that States are supposed to control.
Everyone reflexively believes that government employees are cruising on their dough. Quinn is milking this bias, and it’s not to his credit. He’s being tested. So far, he’s failing.
Comment by Bobs yer Monday, Mar 23, 09 @ 7:43 pm
===I’m not sure that any of us wanted a governor who was all that interested in doing something. I’m almost positive we just didn’t want Blago in there doing anything.===
You can say that again, Rich. It expresses how I feel [i]exactly.[/i]
Comment by Mighty M. Mouse Monday, Mar 23, 09 @ 10:34 pm