HGOPs propose tax amnesty plan
Thursday, Sep 24, 2009 - Posted by Rich Miller
* The House Republicans have proposed a plan to provide half the funding for the MAP grant program next semester. Their tax amnesty plan seems pretty good. But the proof in the pudding will be if the HGOP is willing to compromise on the other half of the funding. If they just stick by this, then it’s nothing more than a ploy.
From the press release…
House Republicans are proposing legislation that would allow delinquent taxpayers to pay what they owe in income and sales taxes to the state during a month and a half period in early 2010 with NO interest or penalty. The revenue would be used to help pay for college scholarships in the spring semester that were eliminated from the FY2010 state budget.
The Commission on Government Forecasting and Accountability estimates this amnesty program for individuals and corporations that didn’t pay their taxes on time between June 20, 2002 and January 15, 2010 could bring in approximately $104.9 million in revenue owed that would be deposited into the Illinois Student Assistance Commission Monetary Award Program fund according to the legislation.
In the proposal, the window to pay taxes without delinquency payments would open from January 1, 2010 until February 15, 2010. […]
The last tax amnesty program, established through legislation in 2003, collected $279.7 million in delinquent taxes for the State of Illinois.
The state needs to find $200 million to fund all the MAP scholarship grants for next semester, or a bunch of students will be caught up short. Gov. Quinn has proposed increasing the tax on cigarettes by a dollar a pack.
…Adding… As a commenter rightly notes, this is also a one-time, one-year proposal. No word yet on what they want for next year.
* Related…
* Poshard decries cuts in grants
* Students Plan To Protest MAP Grant Cuts
- bill washerton - Thursday, Sep 24, 09 @ 11:05 am:
Great idea, I’d vote for it.
- Deep South - Thursday, Sep 24, 09 @ 11:08 am:
That’s a one time thing, right? What about next year?
- wordslinger - Thursday, Sep 24, 09 @ 11:11 am:
Not a bad idea. It’s like digging in the couch for change when you’re broke, but there’s nothing wrong with that.
- Small Town Liberal - Thursday, Sep 24, 09 @ 11:11 am:
I think Quinn could get some support from the moderates if he worked with the GOP on this.
- Anon - Thursday, Sep 24, 09 @ 11:14 am:
I thought Republicans hated amnesty. Or is that only for undocumented aliens?
- montrose - Thursday, Sep 24, 09 @ 11:22 am:
It is not a bad idea, but it is like the FY10 budget overall - it is a one-time fix that does not cover the entire gap.
It would be great if they stepped up and said they are proposing this funding stream for this year, but are also supporting a overall revenue reform that will address the state’s fundamental problem - the structural deficit.
It ain’t going to happen, but it would be nice.
- TaxThePoor? - Thursday, Sep 24, 09 @ 11:23 am:
Cigarette tax revenue 2004 - $760 million
2005 TAX INCREASE
Cigarette tax revenue 2006 - $640 million
Is Governor Quinn lying or stupid?
Cigarette tax revenue will NOT meet Quinn’s ridiculous numbers and then what? Non-smokers start paying higher taxes to make up for incompetent revenue projections just like in 2006.
Wake up Illinois, there is no more money that can be bled from the people.
- 47th Ward - Thursday, Sep 24, 09 @ 12:37 pm:
This is a great proposal from the GOP, and kudos to them for bringing something tangible to the table.
But if they collect every penny they expect, it still comes up short. Something else needs to bridge the gap and I hope the House GOP keeps an open mind on cigarrette taxes or some other short-term solution.
But this is a positive step in the right direction. This is going to be a very interesting Veto Session.
- Unintended Consequences - Thursday, Sep 24, 09 @ 6:18 pm:
Tax amnesty in ‘03. . . . Tax amnesty in ‘10. . . . How long before dishonest taxpayers deliberately hide their income to wait for the next no-penalty, no-interest amnesty?
- Tom Joad - Thursday, Sep 24, 09 @ 6:28 pm:
So large corporations get a big tax break by having thier interest and penalties forgiven. These are the largest donors to the Republican Party, and they would benefit most by this plan. Gee,no wonder the Repubs are pushing this.
- steve schnorf - Thursday, Sep 24, 09 @ 8:26 pm:
It’s actually a little worse than a one time deal–more like borrowing part of next week’s allowance. Most of that money is going to come in in the future anyway, plus interest and penalties. But I take great heart from it, because it is a Republican proposal to at least somewhat address a problem, rather than simply saying no to D proposals. Guys, did any of us besides me notice Rove saying what’s missing from the health care debate is a Republican alternative?