*** UPDATE *** Rep. Connie Howard (D-Chicago) said she favors a doubling of the state income tax from 3 to 6 percent…

[ *** End of Update *** ]

* A retroactive tax on PSLs? Appears so…

The city always planned to levy amusement taxes on Chicago Bears season ticket licenses, a city Department of Revenue spokesman said Thursday.

Ed Walsh also said a 7 percent amusement tax was paid by the Bears on the initial sales of the permanent seat licenses between late 2002 and early 2003. The amusement tax was raised to 9 percent this year.

“The amusement tax is applicable when a license is sold,” Walsh said. “The tax burden is on the purchaser. This includes initial sales and re-sales, as any amount paid for the right to witness a game is subject to the tax.”

His statements, made via e-mail after business hours, came a day after the cash-strapped city informed some PSL owners they might have to pay the amusement tax. In some cases, the taxes would be levied on 5-year-old sales

Controversial? You bet. Super. And this is coming at exactly the wrong time for the General Assembly, which may consider an income tax increase in the coming days. Thanks, Daley. Heckuva job.

* Here’s my Sun-Times column which talks about the difficulties of passing an income tax hike, among other things. If I’d known about the PSL tax, I would’ve include it in the piece…

Toward the scheduled end of the state legislative session every May, I’m usually chronically tired, sick, cranky and hungover.

In other words, I pretty much embody Illinois right now.

I shouldn’t joke like that. Things have never been worse here. People are losing their jobs, homes and businesses in depressing droves. The economic bust has taken a huge toll on the state government’s budget, which was already out of whack even before the economic meltdown because of mismanagement and destructive political games and abject cowardice — and is now in deficit beyond anything that anyone has ever seen.

And then, of course, there’s the not-fun fact that our previous governor was removed from office and appears headed for prison, perhaps to join his own predecessor in Indiana’s federal pen.

At a time when our leaders desperately need to pull the public together behind bold solutions, the public is so cynical and angry about the recent and not-so-recent past that they refuse to be led.

It’s not hard to blame them.

One of the “hottest” debates this past week was over whether the budget should be passed before legislators finished work on a massive public works bill. Gov. Quinn and a group of liberal House members angrily lined up in favor of finishing the budget first, while the legislative leaders and the Illinois Senate decided the other way was better. Never mind that, with just nine days left in the session, all of these bills will likely be passed within hours of each other.

There’s a reason why some folks refer to the Statehouse as an adult day-care center.

Then again, those who argue that the budget should take priority did ask one good question: If Republicans and Democrats in the Senate could overwhelmingly agree to fund the public works bill by expanding gambling via legalized video poker, raising taxes on alcohol, candy and beauty products and increasing fees on driver’s license services, then why has it been so difficult to raise the income tax by a single percentage point or so to make sure schools don’t close, poor people keep their health insurance, state cops stay on the job, prisoners aren’t released early and on and on and on?

The answer is that the public generally has faith in things they can see with their own eyes, like a new bridge or a rebuilt school. People just don’t believe that the budget deficit is as bad as it is, partly because they can see that the schools, hospitals, nursing homes and prisons are still open and functioning. The public works bill allows legislators to give voters something tangible for their money. Raising taxes to balance the budget just means that government continues to function in its “natural,” mostly unnoticed state.

I used to wonder how states allowed thousands of schools, hospitals and police stations to close during the Great Depression. I’m getting quite an education on that topic now. Only, in Illinois’ case, it’s even worse, because Rod Blagojevich’s and George Ryan’s corruption has exponentially deepened the loss of faith in the government.

Legislators are worried sick that if they vote to raise taxes to balance the budget they’ll get the same treatment as the hapless Cook County Board President Todd Stroger.

Understandably, nobody wants to be roasted alive. But their job sometimes requires them to do what’s right, not what’s easy or popular. And sometimes that means doing things that nobody appreciates, like making sure the government doesn’t collapse, even though a furious public doesn’t believe a collapse is imminent.

And if they get tarred and feathered, well, that’s just the price they pay for getting themselves elected at the worst possible moment in history. No sympathy here.

* Related…

* Taxpayer group chief disputes Quinn’s claim of crisis: “We don’t need state troopers at all. We have too many cops,” [Jim Tobin] said. “We have local, state and federal cops. That’s three layers of police. We have over 2,000 state police. It’s a waste of money. We could save a least $400 million a year.”

* Bears season ticket-holders are furious.

* Ald. Fioretti: Reduce or nix Chicago’s gas tax : The six-month break that Fioretti suggested at minimum would cost $27 million at a time when the city can least afford it.

* Is public transit getting shortchanged in capital bill?

* RTA allocated $2.7 billion in state capital

* Video poker, alcohol taxes sent to governor’s desk

* Capital plan passes both chambers

* State lawmakers send $28.3 billion construction plan to governor

* $29 billion capital plan sent to Quinn

* Ill. infrastructure plan goes to governor

* Illinois House approves tax increases and video poker to pay for $29 billion in construction

* House OKs construction bill, but tax hike in limbo

* Gaming Board chief: Video poker plan risky

* How it works

* Village gets say on slots, track fears being shut out

* Will video poker machines help or hurt? Depends on whom you ask

* Gaming Board chairman frets about enforcement

* Would the capital plan bring gambling to every corner?

* SJR Opinion: Video poker plan a loser all around

* Local governments can opt out of newly approved video gambling

* How your lawmakers voted

* Did Your State Rep. Vote for Neighborhood Tavern Slots?

* Ill. House Votes 86-30 To Legalize Video Gambling

* Once every decade …

* Capital plan would be local ‘blessing’

* Schools clamoring for capital bill

* $26B construction program contains $54M for fine-arts complex at ISU

* Stimulus Dollars Assigned to the South Suburbs

* It may be time to stock up on liquor, candy before taxes go up