* 12:21 pm - Looks like a revamp may be coming…
Chicago Mayor Richard Daley said if income taxes go up under Governor Pat Quinn’s proposal, property taxes should go down. Quinn wants to raise the tax to four-and-a-half percent, but the mayor says if it’s going to happen, property owners need some tax relief.
For years, the mayor has advocated what some call a tax swap, wherein the income tax would be raised only if property taxes were lowered a corresponding amount. The mayor said his position on increasing the state income tax has been a long-standing one. […]
“Taxpayers are, first of all, losing their homes,” said Daley. “They are losing their homes. They are losing their jobs. Or someone in the home has lost their job. They are not getting overtime. Some have lost their pensions. There has to be property tax relief. You cannot increase (income) taxes without property tax relief, simple as that. People can’t pay these property taxes.”
Daley wants local governments to get their traditional slice of any income tax increase (Quinn uses that 10 percent share for his capital bill), so this property tax thing could be a negotiating ploy. But it also strengthens Sen. James Meeks’ hand while he negotiates for a tax swap. You can bet the house (and the Senate) that Chicago legislators and the governor and everyone else in politics in this state are taking note of Daley’s remarks.
The governor’s spokesman was surprised that Daley held a news conference to comment on the Quinn budget plan.
I’ll bet he was.
* 12:27 pm - From Lee Newspapers…
A day before the federal tax on cigarettes jumps $.62, a Senate committee voted to phase in another $1 increase for Illinois over two years.
* 12:49 pm - More Daley react…
“We get no benefit,” the mayor said at a news conference at a school on the South Side. “Then why should anybody be for it?”
The mayor called on the state to expand property tax relief if it is going to raise the income tax.
“You cannot increase the income tax without property tax relief,” he said, noting the high rate of foreclosures.
Daley also complained that the city would only get $54 million in new education funding from the state under Quinn’s budget, saying the schools need an increase of $200 million.