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Question of the day

Wednesday, Jan 12, 2011 - Posted by Rich Miller

* I’ve been working all night and I need some rest before the new General Assembly is sworn in today. You’ll find all you need to know in the posts below, including links to relevant news stories. I’ll post some other stuff later today. The governor is planning a 10:30 am press conference, so hopefully we’ll have some video of that as well.

* The Question: If you were the governor, how would you sell this income tax hike to the citizenry?

Try to avoid snark. I know many of you are upset about this, but a fact is a fact. The bill is passed and it will soon be the law of the land. Stick to the question, please. Thanks.

       

137 Comments
  1. - Newsclown - Wednesday, Jan 12, 11 @ 7:20 am:

    I would liken it to a parent cutting up their teenager’s credit card and putting them on a strict financial plan to avoid bankruptcy. That the teenager was given the credit card in the first place is another issue of bad parenting, but at least now we’ve (hopefully) stopped the bleeding


  2. - Hector - Wednesday, Jan 12, 11 @ 7:35 am:

    Illinois is still one of the lowest tax states in the union, with one of the smallest number of state government employees.

    With its educated workforce, infrastructure, and resources, it is one of the most sought after locations to do business in the country.


  3. - Returning Dog - Wednesday, Jan 12, 11 @ 7:36 am:

    You owe it to your grandkids. Pay it now, or have them pay 5X later.


  4. - anon sequitor - Wednesday, Jan 12, 11 @ 7:39 am:

    There is no sugarcoating it. Be straight forward about it. Without the increase, Illinois would be bankrupt. Immediately following the press conference announcing the signing, I’d announce the formation of a cost cutting panel and then start whacking away at the current budget as well as future budgets. No sacred cows. Do the massive cutting before April 15th so when I curse the taxman a little more this year, I have some minor satisfaction that government is finally going on a cost cutting diet too.


  5. - Justice - Wednesday, Jan 12, 11 @ 7:41 am:

    This was a difficult decision, and I can assure you it wasn’t taken lightly, but there was no other alternative.

    In addition to the Income Tax hike, we are working diligently to cut expenses. That too will be painful but it must be done.

    With the help of our colleagues on both sides of the isle, we can finally start to dig ourselves out of debt and move our great state forward.


  6. - vole - Wednesday, Jan 12, 11 @ 7:46 am:

    You pay what you get for.


  7. - Steve Brown - Wednesday, Jan 12, 11 @ 7:47 am:

    The easiest message is the truth. The budget reforms — including the tax increase — prevent a shutdown of vitally needed government services, payless paydays and bond defaults. It will also prevent derivatives traders from actions that might lead to same consequences we saw in the housing market.

    The Illinois tax structure remain competitive with both surrounding states and states with the same quality of life as Illinois — two vastly different categories.

    BTW Rich’s newsletter contains a number of errors concerning Speaker Madigan and the gaming bill.

    The Speaker recused himself on that bill early on because a client of the law firm could benefit from the bill. He took role concerning the bill and therefore was not involved in the decision to not move the bill.

    Rich was asked to correct the incorrect information in the newsletter.


  8. - Waco Kid - Wednesday, Jan 12, 11 @ 7:50 am:

    Start talking about real spending cuts and pension reform that show Illinois is serious about reducing its deficit. Make this increase part of an overall plan instead of a money grab.


  9. - yinn - Wednesday, Jan 12, 11 @ 8:05 am:

    1) Stability is good for business

    2) Paying bills will save jobs

    3) This is one piece of a plan with real reforms


  10. - wordslinger - Wednesday, Jan 12, 11 @ 8:13 am:

    Life is full of lousy choices. This was one of them.


  11. - Caveat Emptor - Wednesday, Jan 12, 11 @ 8:14 am:

    Res Ipsa Loquitor


  12. - Wondering... - Wednesday, Jan 12, 11 @ 8:19 am:

    Given how this was done and the lack of transparency I don’t see how he sells it to those not willing to buy it. I can only guess that he/they will hope that better economic times will still come our way or that people will have short memories.


  13. - Honest Abe - Wednesday, Jan 12, 11 @ 8:21 am:

    By cutting every expenditure in sight and eliminating every possible instance of waste and redundant government agencies and freezing spending and government salaries, so that every single dollar and cent raised by the tax increases goes towards paying down existing debts and not for continued government spending on new programs and services.


  14. - One of the 35 - Wednesday, Jan 12, 11 @ 8:22 am:

    This is what you have to do after you have been irresponsible for many years. The GA and previous Governors brought it on themselves by repeatedly kicking the can down the road and not making the decisions they were repeatedly elected to make. Shame on all of us for repeatedly electing them and allowing it to come to this.


  15. - MJ - Wednesday, Jan 12, 11 @ 8:22 am:

    This is a balanced approach to increasing revenue and decreasing spending. Inflation and greater needs in education will require other hard choices and we have the courage to do it. But we need this state to pay its bills today. Schools, hospitals, medicare providers and others have been asked to supplement the state for too long.

    In essence, we have been providing services to every tax payer that are not paid for. You can argue about who did that and when it happened, but in the end it is something we have to stop.

    Finally, it is regrettable that people say that Indiana or Wisconsin are more responsible. Our tax burden in Illinois is less than theirs and has been for decades. If you use that argument, we should have kept pace with their tax changes over the last 25 years. No we have had to do it all at once, and I think in a responsible manner.


  16. - Anonymous - Wednesday, Jan 12, 11 @ 8:28 am:

    Try this: “I campaigned on a 1 percent ‘education surcharge’ and vowed to veto anything that was not my plan. Since this bill is double that amount and not dedicated to education funding, I will veto it as a man of my word.”


  17. - BackinTown - Wednesday, Jan 12, 11 @ 8:29 am:

    I would unveil a plan of additional spending cuts, reduce my own pay and set a clear priority of who the state pays (make sure the non-profit organizations owed so much money jump to the head of the list to be paid alongside the most vital state vendors).

    None of those things are a cure-all, but they reinforce the fact the Governor has a serious plan moving forward, and this is part of that plan.


  18. - BackinTown - Wednesday, Jan 12, 11 @ 8:29 am:

    Anonymous @ 8:28 AM - that works too… haha


  19. - Fan of Cap Fax - Wednesday, Jan 12, 11 @ 8:30 am:

    Two cents on the dollar. The reality is that I am proud to be from Illinois, we have a state full of people who are. I am proud of President Cullerton for making the hard decisions. I’ll stand behind him and work with our state government to make this a state that screams success. We are Illinois and damn proud of it.


  20. - downstate hack - Wednesday, Jan 12, 11 @ 8:36 am:

    There really isn’t any way to sell this. The tax increase was too large with no meaningful cuts or pension or education reforms that people expected. The Governor must now state is highest priorities will still be mange the budget and reduce spending so these increases can be reduced in the future.


  21. - Wondering... - Wednesday, Jan 12, 11 @ 8:52 am:

    Fan of Cap Fax… that is all well and good but when will there be some action behind the words? Quinn has been full of platitudes… but what else? Cullerton made a hard decision… it is about time!
    I am proud to be from Illinois too… but the jokers in Springfield have nothing to do with it.
    If this becomes a state that “screams success” I will be quite happy to be here to witness it but I am not very optimistic about things rights now. Not with the folks that are in charge in charge.


  22. - Fed-Up - Wednesday, Jan 12, 11 @ 8:54 am:

    I think he should describe it as an unfortunate necessity brought on by a combination of the economy and extremely poor fiscal leadership at the state level. If I were him I would also emphasize the temporary nature of the hike and promise the citizens of Illinois that he will run a fiscally tight ship during his current term.


  23. - BIG R. PH - Wednesday, Jan 12, 11 @ 8:54 am:

    You wanted it-you got it. I underpromised and overdelivered. I promised you 1 and gave you 2. What more could you ask for?


  24. - Grandson of Man - Wednesday, Jan 12, 11 @ 9:00 am:

    I can tell you that as a DHS worker with severe understaffing, it’s very difficult to weed out welfare fraud. I do my best to help keep ineligible and noncooperative (in regards to policy) people off of public assistance, because I care about how our money is spent, and since money is limited, I want to make sure it’s strictly utilized in accordance with policy.

    If I was Quinn, I would try to find the best cost-benefit situation and get state employees in the appropriate departments to reduce Medicaid fraud and budget people’s income that falls through the cracks of severe understaffing. If that means hiring more workers, it’s fine, as long as it’s done cost-effectively. Eligibility requirements and income standards for public assistance are already in place. We just don’t have enough staff to ensure better compliance, nor do we have adequate software that allows us to look at things like property ownership (unreported rental income) and business licenses. We had a worker who looked at this stuff who retired at the end of 2008. This worker’s position was phased out. This worker found lots of fraud, e.g., multiple bank accounts that conceal unreported income, property with multiple unreported rental incomes, etc. Public assistance is for the poor, not the corrupt.


  25. - Due Diligence - Wednesday, Jan 12, 11 @ 9:01 am:

    Downstate Hack: No pension reforms? Did cutting pensions for future employees not count? Or are you among those who think that pensions promised to longtime state employees should be pulled out from beneath them because the state failed to keep up on contributions.

    This tax increase should be accompanied with an explanation of spending cuts already carried out, since the public remains largely unaware, as well as planned cuts to come. The only way people will go along with this is if they know that spending will come down.


  26. - Mark G - Wednesday, Jan 12, 11 @ 9:03 am:

    He can sell it by spinning the truth.

    He can say that Illinois still has among the lowest taxes in the US, but that is no longer true (e.g., Indiana 3.4% flat rate on individuals, Illinois now the highest corporate rate in the midwest and 3rd highest in US, etc.).

    He can call the 2% caps on increases (after the increase from 2011 to 2012, of course) the equivalent of a cut, and some folks will believe that.

    He can sell it to his union supporters by saying that he got the funding needed without having them have to give up much of anything. Wait … there’s no spin involved in that.

    The truth is that this is a missed opportunity. The tax increase was the only leverage to get (i) complete revamp of current pension system for current employees, which since left unchanged will bankrupt the state, (ii) limit Medicaid eligibility rules to match those of surrounding states and (iii) make cuts in other spending, not just caps on increases. With the tax increase passed, there will be no incentive politicallsy for Gov. Quinn, Senate Pres. Cullerton and Speaker Madigan to make those other tough choices.

    What reporters should be watching for over the next year is what kind of deals were cut by the Gov and the leadership to get the votes from both continuing and departing legislators.


  27. - Steve Bartin - Wednesday, Jan 12, 11 @ 9:06 am:

    If you were the governor, how would you sell this income tax hike to the citizenry?

    Pat Quinn doesn’t need to sell anything. The tax hike passed. Maybe you should asked this question a couple of weeks ago. With Obama on the ticket in 2012 the good , little taxing hiking Democrats will get out the vote again.


  28. - Quiet Sage - Wednesday, Jan 12, 11 @ 9:10 am:

    Best argument: With the Social Security payroll tax cut, it’s basically a wash on your taxes.


  29. - just sayin' - Wednesday, Jan 12, 11 @ 9:10 am:

    This state was getting too crowded. We’ve just taken a big step in addressing our traffic congestion problems.


  30. - Anonymous - Wednesday, Jan 12, 11 @ 9:12 am:

    He could be honest: My singular priority as evidenced by the approved borrowing for pension payments is to continue to provide those benefits - no matter how corruptly obtained - and I am willing to further damage the economy of the state to do it.


  31. - wordslinger - Wednesday, Jan 12, 11 @ 9:14 am:

    –With Obama on the ticket in 2012 the good , little taxing hiking Democrats will get out the vote again.–

    Where does the fantasy that the GOP have been anti-tax, anti-borrow, cut-spending fiscal hawks come from? Reagan, the Bushes? No. Thompson, Edgar, Ryan? No.

    The fantasy does allow for constant complaining without offering any significant solution.


  32. - JN - Wednesday, Jan 12, 11 @ 9:15 am:

    > Quiet Sage

    That is a pretty lowsy argument. Spin: “Illinois corporations see tax increase to shoulder the State’s growing debt.”


  33. - Bond_player - Wednesday, Jan 12, 11 @ 9:20 am:

    Our state employees are underpaid and deserve raises. We need to continue to provide good pensions and annual raises to our retired state employees and elected officials. Most importantly the teachers need more money as well, it’s for the children you know. What more explanation do ya need?


  34. - Peter Snarker - Wednesday, Jan 12, 11 @ 9:21 am:

    When does the increase take effect in paychecks?

    And will it be retroactive to Jan 1?


  35. - Jellybean - Wednesday, Jan 12, 11 @ 9:33 am:

    It’s simple enonomics, when you don’t have enough money to pay your bills, you need to increase your income and/or reduce your spending. Since no one in Springfield can agree on where to cut, it is easier to increase income. Since every other fee has been raised over the past few years, an income tax hike was about the only thing left.

    Now, “We the People” need to hold our elected officials responsible for insuring that the new revenue is used appropriately.


  36. - Grandson of Man - Wednesday, Jan 12, 11 @ 9:33 am:

    I digressed in my previous post, sorry. If I was Quinn, I would defend the facts, that Illinois was the state with the lowest personal income tax, and that we have gobs of unpaid bills. I would give people examples of how those relying on state payment who do vital work, like medical providers, need to get paid for services previously provided. Tell some stories of how doctors continued treating their patients even though no payment was coming. I would remind people of pension reform for new hires and talk about future cost savings, and I would defend my employees who didn’t cause the pension mess and who were shortfunded for years due to no fault of their own.

    I would give budget specifics and ask that voters stay politically involved and hold us all accountable.


  37. - Moderate Repub - Wednesday, Jan 12, 11 @ 9:38 am:

    Not only does he have to sell it, it has to explain why he went back on promise to only raise income taxes by 1%. I would concentrate more on why we had to go two percent instead of one. Blame the economy, talk about the temporary and talk about cuts. Even if you have not cut talk about what will be cut. He better balance quick or this is going to be an anchor around his neck before the spring session finishes and will never come off. He better work to make sure this thing is not permanent. Hes got to give part of it back befoer the next election or he is doomed. We will be able to run a wet suit against him (or Brady) and win this time around.

    Rich, When you get a few winks let us know what the status of Rep. Miller is. Thanks!


  38. - Bigtwich - Wednesday, Jan 12, 11 @ 9:39 am:

    And I went down to the demonstration
    To get my fair share of abuse
    Singin’, ‘We’re gonna vent our frustration
    If we don’t, we’re gonna blow a 50-amp fuse’
    Sing it to me, now

    (You can’t always get what you want)
    (You can’t always get what you want)
    (You can’t always get what you want)
    But if you try sometimes, well you just might find
    You get what you need
    Ooh baby, yeah, ooh


  39. - dupage dan - Wednesday, Jan 12, 11 @ 9:40 am:

    I won the election with a mandate so this is what I know you want. The dems also retained the GA so I doubly know that this tax increase is what you want. I also know you want the same level of services that you have been accustomed to so I will do what is necessary to provide that. Everything is fine now so go about your business.


  40. - Jo - Wednesday, Jan 12, 11 @ 9:41 am:

    Like I mentioned earlier - the income tax hike is effectively the 1% increase he asked for in the campaign. He can say he will work to put new money into education once we pay down our bills.

    But then it adds in a 4-year temporary 1% tax hike to pay down our bills.

    Fiscal crisis. Brink of disaster. Compromise. All that.


  41. - JN - Wednesday, Jan 12, 11 @ 9:45 am:

    “You’ll get over it.”

    That would be the best-ever presser.


  42. - Irish - Wednesday, Jan 12, 11 @ 9:49 am:

    I would briefly and succinctly give a factual chronological history of deferred pension payments going back to Edgar. I would give a short budget lesson specifically pointing out how the deficit grew under past administrations and specifically point out how Blagojevich used hocus pocus economics to declare a balanced budget when there was actually a deficit.

    Since PQ cannot speak specifics without going off into “Land of Lincoln” and Veteran’s issues someone has to write this down for him so he can read it without rambling.

    In other words, he has to tell the real truth.


  43. - davidh60010 - Wednesday, Jan 12, 11 @ 9:49 am:

    Tone - sobriety and humility
    Message - There are no easy solutions. To get out of this hole the state needs both real spending reductions and revenue increases. Choosing the difficult solutions is what’s best for the state.
    Second message - the job doesn’t stop here, I will work tirelessly to get Illinois’ fiscal house in order, etc.
    Follow through - Quinn needs to stay focused; mental vacations or flights of fancy will not help him…


  44. - Boone Logan Square - Wednesday, Jan 12, 11 @ 9:59 am:

    “For the first time this century, Illinois is actually governed. We are making a real attempt at getting our finances in order. What happened this week was necessary to the long-term health of the state.”

    “For those who say differently, I would ask: Where is your plan? What specific cuts are you willing to make to get the state out of its hole? We have gone on far too long believing we could keep taxes down without consequence to the basic services a state provides its citizens. I want to work with all of Illinois to protect the state’s future; this revenue increase was the first realistic step in doing so that we have achieved in a very long time.”


  45. - Judgment Day - Wednesday, Jan 12, 11 @ 10:00 am:

    Quinn doesn’t need to “sell it”. It’s all about time, and where he goes from here - probably over the next 24 months. If this tax increase actually works as intended (to pay down our existing indebtedness and stacks of unpaid past due bills), he’ll be golden.

    If the tax increase turns into a source of more revenue and “business as usual”, with minimal cuts and just more growth in government, then he’ll be toast.

    IMO, it really comes down to this - Is Pat Quinn as Governor going to revert back to being a “Tax and spend” politician or is he going to turn into a responsible fiscal manager and gatekeeper for state government operations?

    We’ll likely know for sure over the next 24 months.


  46. - Yellow Dog Democrat - Wednesday, Jan 12, 11 @ 10:11 am:

    We’ve cut 18,000 state workers from the payrolls since 2003, and implemented deep and significant cuts to the public employees pension system.

    We’ve cut general revenue spending in the state budget by billions, and we will have to cut more.

    But for years economists and experts have told us that we cannot balance the state budget through cuts alone.

    For years, Illinoisans have enjoyed the lowest income tax rate in the country, but the cost was a growing mountain of debt, including billions in unpaid bills to the non-profit organizations in every community of our state that care for the disabled and our seniors, protect our children, and provide life-saving services to families rocked by the worst recession since the great depression. Those delays in paying our bills have only worsened our state’s economic picture, forcing lay-offs in every county of the state totaling in the tens of thousands.

    There are hopeful signs in our economy — 200,000 private sector jobs created in Illinois over the last year, more than any surrounding state — but we are not out of the woods yet. No one relished voting for this temporary tax increase, and I do not relish signing it. But we have a shared responsibility that we must answer.


  47. - You've Got to be Joking - Wednesday, Jan 12, 11 @ 10:12 am:

    “As I begin my final term as your governor . . .”

    Really, this was inexcusable. Rather than focusing on policies that would have enlarged the pie by drawing jobs and businesses back to the state, in the dark of night and without any understanding of the consequences their midnight increases will have, Madigan has again used the opportunity to grab a larger share of what will beome a faster shrinking pie.

    And enough with the urban myths about IL relative tax status. It is not one of the lowest. See: http://www.taxfoundation.org/news/show/335.html and http://www.taxfoundation.org/files/bp60.pdf.

    No one can tax their way to prosperity. It was a mistake to assume that the political leaders who got us into this mess could get us out of it.


  48. - Plutocrat03 - Wednesday, Jan 12, 11 @ 10:13 am:

    He needs to build a comfortable place for himself to broadcast the news of the streams of business closing that will slow the rate of recovery from the economic downturn. He will be there a lot.

    Since there is no spending discipline in the tax bill, the legislature will continue to spend more money than it takes in and the State will be no better off by the end of this ‘temporary tax’ period.

    Perhaps he can offer Illinois grown sparkling wine for the celebrations in Indianapolis, Madison and Des Moines. That would be a growth industry.


  49. - zatoichi - Wednesday, Jan 12, 11 @ 10:19 am:

    Something needed to be done and this is the least bad of several very bad choices. That story several weeks ago of not-for-profits laying off 13% of employees = 26,000 to 52,000 people. Not a joke. It would grow with no changes. The education layoffs. Not a joke. Organizations owed billions. Not a joke. Local govs cutting police and fire. No joke. Even with this increase the basic tax structure moves from low to middle of the pack nationwide.


  50. - Leroy - Wednesday, Jan 12, 11 @ 10:20 am:

    This was done because we value people with disabilities and mental illness in this state and we recognize we’ve not done nearly enough to address their needs.

    then he needs to actually do it.


  51. - Logical Thinker - Wednesday, Jan 12, 11 @ 10:22 am:

    No sell job can sell the unsellable.


  52. - Rahm's Parking Meter - Wednesday, Jan 12, 11 @ 10:23 am:

    So now that debt restructuring and cigarette tax failed, how do we catch up on our bills and fund education? That is my question to the governor. Plus why did he ever say the nothing above 1% line. If he said “we are looking at all options,” he wouldn’t have been so hypocritical.


  53. - Anon - Wednesday, Jan 12, 11 @ 10:24 am:

    Everyone that wants to move out of the State. You’ll pay more in personal income tax in Iowa, Missouri, Wisconsin and Kentucky.


  54. - Secret Square - Wednesday, Jan 12, 11 @ 10:25 am:

    We cannot kick the can down the road any longer because we have come to the end of the road. This is what comes of many years of electing governors and legislators (of both parties) who told us only what we wanted to hear and promised all sorts of benefits without explaining how they would be paid for. What were we thinking?


  55. - Yellow Dog Democrat - Wednesday, Jan 12, 11 @ 10:28 am:

    @Moderate Repub -

    Quinn proposed a 1% permanent tax increase, this is a 2% temporary increase. You’re comparing apples to oranges.


  56. - Davey Boy Smithe - Wednesday, Jan 12, 11 @ 10:29 am:

    Not that it matters, but do we have any hysterical quotes from former Governor Rod Blagojevich on this tax punishment? I could use a laugh today as I am now poorer.


  57. - North of I-80 - Wednesday, Jan 12, 11 @ 10:30 am:

    It’s a global economy and it is very important that we support the growth of business in our surrounding states.


  58. - Ray del Camino - Wednesday, Jan 12, 11 @ 10:32 am:

    Republican alternative plan that was voted on . . . wait . . . no Republican alternative plan? Really? Sell state cars? Present nothing and kvetch instead? Please. Pathetic. Whiners and losers.


  59. - Concerned Non Profit - Wednesday, Jan 12, 11 @ 10:32 am:

    Can anyone break down what the failure of the Bond deal means to the payment of the outstanding bills to human service vendors?


  60. - Loop Lady - Wednesday, Jan 12, 11 @ 10:34 am:

    Quinn never hid the fact that this was the plan to help get rid of the Blago enhanced boku back log of state debt…the voters elected him knowing full well of this eventuality…Kudos to Cullerton and a begrudged nod to Madigan for finally looking out for the long term financial stability of the State…for those of you who don’t think that Quinn has cut state expenses, I work at an agency that has lost 1/3 of its staff since Blago was inaugurated, has little travel money, and has cut vehicle miles travelled by 1/2 in the past two years. When folks ask me what I do, I reply anything that needs to be done that I am capable to do…IL needed to set the reset button after years of waste, fraud and mismanagement by Republican and Democratic administrations alike…

    The Republicans who sat on their hands and did nothing to assist the tax increase are hoping that Quinn screws up and they will be able to throw it in his face in a coupla years…if he doesn’t mess it up, they will continue to be an unecessary accessory in State government that just like to say no, and not offer up alternatives…


  61. - Reality - Wednesday, Jan 12, 11 @ 10:36 am:

    Newsclown - Wednesday, Jan 12, 11 @ 7:20 am WROTE:

    “I would liken it to a parent cutting up their teenager’s credit card and putting them on a strict financial plan to avoid bankruptcy. That the teenager was given the credit card in the first place is another issue of bad parenting, but at least now we’ve (hopefully) stopped the bleeding”

    That’s one way of looking at it I guess but a better analogy would be to say that all the legislature did last night was apply for another credit card! They didn’t solve anything.


  62. - Reality - Wednesday, Jan 12, 11 @ 10:38 am:

    The state payroll needs be cut by 50%.


  63. - Reality - Wednesday, Jan 12, 11 @ 10:38 am:

    And no pension at all for new hires.


  64. - Living in Oklahoma - Wednesday, Jan 12, 11 @ 10:39 am:

    You have to sell this by telling the story of people who are now going to be able to keep their jobs. You sell the tax hike by telling the story of the people who get treatment from state health facilities that are going to be able to continue that treatment. You tell the story in the way that it most positively effects real people. Quinn is smart enough to do that, and I assume that he will.


  65. - Retired from the State - Wednesday, Jan 12, 11 @ 10:39 am:

    I’ve read and followed the tax increase legislation……and I am glad that the tax rates will go up IF the legislators/leaders actually get Illinois’ financial house in orders. I don’t mind paying for government services if they are used wisely.

    I have one question? Did this tax increase legislation provide for the taxation on pensions/retirement income?

    Who knows and can you provide a link to the information?


  66. - D.P. Gumby - Wednesday, Jan 12, 11 @ 10:39 am:

    For the past 30 years Americans have been told that taxes are “bad” and that government is the problem. Taxes are neither “bad” nor “good” and government is neither the problem nor the solution, government is we the people. The myth that we the people can have everything we want from government without any taxes is as silly as going to a store and taking a product without paying for it. But for years we, all of us, have been going to the store without paying our full bill…we’ve just put it on the credit card. Now we will start paying the bill and put a cap on the credit card.


  67. - Living in Oklahoma - Wednesday, Jan 12, 11 @ 10:42 am:

    right on cue, here is Former Governor Rod Blagojevich’s statement on the tax increase.

    http://www.prnewschannel.com/absolutenm/templates/?z=4&a=3462


  68. - cassandra - Wednesday, Jan 12, 11 @ 10:44 am:

    Apologize profusely to the middle class citizens who will feel the brunt of this large income tax increase, a direct result of excessive Democratic spending over the last 8 years, and promise to ensure that the tax increase really is temporary.

    Promise to start now advocating for a progressive income tax in Illinois.

    Announce a hard state hiring freeze and pay cuts for your exec staff.

    Announce that each and every cabinet head really will have to submit his/her resignation. Those who get to stay will have to publicly confirm what they will do to save costs, what innovations they will implement this year and how much they will save annually on the state of Illinois website. What they will do to really earn their exalted pay (and almost certain pay increases).

    Promise that you will stand up to AFSCME when they come demanding big raises (they are already getting big raises before this contract ends in 2012, remember) and other concessions such as multi-year extension of the no-layoff agreement and lavish benefit increases. They are no doubt already waiting in your waiting room with their hands stretched wide. Kick them out before the speech.

    Announce that some of the new monies from the tax increase will fund a team of independent auditors who will begin today going through every single state contract and assess it for quality and efficiency and duplication. No special faves for contractors with Dem ties.

    Channel Mayor Bloomberg and announce that the new money will be used to fund a series of prizes for those who can solves certain of the many problems facing state govt and/or significantly save costs.

    Announce that unlike Barbara Flynn Currie you are concerned about Illinoisians’ health and you do not believe they should drink more “pop.”

    Hope strings eternal, but the guv won’t say/do any of these things. With all the new cash rolling in, the pressures for waste and and corruption at worst and complete lack of innovation at a minimum will overwhelm him stat.
    Same old state government–now more expensive. Much more expensive.


  69. - Focus on spending limits - Wednesday, Jan 12, 11 @ 10:44 am:

    It is important to focus on the spending limits that limit growth to 2%. This boundary will force the Quinn administration from hiring back managers, who receive full pensions and collect full state contract salaries. This practice has been a focus of the media on the local level, but the media has ignored all of the $200,000+ retirees working for the state on contracts. Many of these people do little or no work. The little if, any work, that they do could be done by union employees. I know one agency that could save over $350,000 from 3 contracts if these corrupt management practices ended. How do they get around the 75 day rule.


  70. - Jim - Wednesday, Jan 12, 11 @ 10:44 am:

    I would like to see the formal plan for AFSCME saving the city $100M in lieu of layoffs for 4 years and I want someone to track these savings.


  71. - NormalRedefined - Wednesday, Jan 12, 11 @ 10:49 am:

    Something like …

    I understand this is painful and unpopular. I understand it isn’t going to win many of those who voted for this votes from you.

    But sometimes the right thing to do isn’t popular. In fact, often the right thing to do isn’t popular.

    Ive heard the rhetoric about the State needing to cut spending like families and businesses. I agree. We have. And we will cut more.

    But in reality, families and businesses whomare hurting don’t just sell off assets, downsize and cut spending. They alsomtry to find ways to bring in more revenue. Dad mows lawns for extra cash, mom takes a second job, someone picks up extra shifts. Those things aren’t fun. They are painful and the require sacrifice. But they are often equally as necessary and important as cuts.

    You still have to pay the bills, fulfill your promises and commitments …

    We need to collectively dig ourselves out of this whole that it has taken nearly three decades to dig. And we need to do it quickly. We are going to do it with a combination of cuts and controls and spending and a tax increase. Then, when the defeci is gone and we are back to level, we can hav a serious look about what we do as we move forward, both to make sure we don’t find ourselves here again and to make sure we do the best for the people of Illinois.

    Yeah, something like that.


  72. - wordslinger - Wednesday, Jan 12, 11 @ 10:59 am:

    I’m surprised the sky-is-falling, “I’ve got a problem with this, but no real solutions” posters haven’t divined what’s really going on here.

    The increase is 6.66%. Now we know who’s really behind this.


  73. - S - Wednesday, Jan 12, 11 @ 11:03 am:

    Thanks for posting that Blago link.

    He was able to avoid raising taxes… why not his old buddy Quinn?

    Classic.

    D’s created this mess, D’s own it. Had they wanted R involvement, they would have included them in the negotiations.

    Regardless, let’s hope this works out for the betterment of our state.


  74. - booyeah - Wednesday, Jan 12, 11 @ 11:03 am:

    Does anyone know if the today’s swearing in will be available live stream? Thanks…


  75. - S - Wednesday, Jan 12, 11 @ 11:07 am:

    He should reduce his own pay and staff - a small gesture, but a signal he is willing to share the public pain of these difficult times.

    He should also ask Groupon to return the $3.5 million in taxpayer money he gave them just a few months before they raised $950 million.

    Those are small gestures, but show sincerity and can be combined with other suggestions above.


  76. - Eddie - Wednesday, Jan 12, 11 @ 11:16 am:

    He should add more unqualified political hacks into his agencies as he has be doing without any questions from the press.


  77. - Anonymous - Wednesday, Jan 12, 11 @ 11:18 am:

    What’s done is done. Time to move on to other important items. Specifically, time to work on eliminating the recall mechanism.


  78. - OneMan - Wednesday, Jan 12, 11 @ 11:21 am:

    Well one option would be to promote more cuts that get noticed. If more people see and experience the reduction in government services then it might make it easier to sell.

    Start closing more stuff one a day a week or something, no it isn’t a big help, but it will help with the perception.


  79. - Excessively Rabid - Wednesday, Jan 12, 11 @ 11:23 am:

    ==D’s created this mess, D’s own it. Had they wanted R involvement, they would have included them in the negotiations.==

    In general I have been in agreement with that. But you can’t negotiate with someone who doesn’t have a position.


  80. - NormalRedefined - Wednesday, Jan 12, 11 @ 11:24 am:

    S, are you that ignorant? Blago was able to avoid raising taxes because he spent what we didn’t have and he was a pure politician …. And tax hikes are not politically popular. It’s like someone claiming they have avoided having to get another job by paying their bills on credit.


  81. - soccermom - Wednesday, Jan 12, 11 @ 11:31 am:

    Cassandra, under the Illinois Constitution we have a flat tax. I believe it would require a constitutional convention to fix that one.


  82. - Any Mouse, Really - Wednesday, Jan 12, 11 @ 11:35 am:

    We’ve cut 18,000 state workers from the payrolls since 2003.

    This tax increase is necessary to pay for the 19,000 “workers” I have hired since August.


  83. - Tim - Wednesday, Jan 12, 11 @ 11:51 am:

    I caught the tail end of his presser a few minutes ago. He used the “what’s right is not always popular” line, said the State needs to pay its bills, and emphasized the “temporary” nature of the increase.


  84. - SouthernIL - Wednesday, Jan 12, 11 @ 11:54 am:

    With this new “light” of revenue, I still believe that the Gov. should announce that he has put together a “Commission” for check and balance ~ duel control, so to speak. A review board to find where cuts can be made to save future $$’s. Since Gov. Quinn is in the driver’s seat with discretionary ability to fund different programs…I feel his “Commission” should consist of the Comptroller, Treasurer, Atty. Gen., and the heads of the Appropriation Staff’s to advise the Gov. “if” his proposal of funds would be worthy of release. No extra pay for these individuals, as they are already on the payroll. This “Commission” would issue a monthly ~ even quarterly ~ report to the public, via the Comptroller’s office, as to where funds are being distributed and what the status of our deficit is. This, I feel, would definitely help in the professed “accountability” factor.


  85. - cassandra - Wednesday, Jan 12, 11 @ 12:04 pm:

    Yes, soccer mom, and the Democrats, those champions of the working classes, have had eight years to change the constitution. It can be done.


  86. - Nuance - Wednesday, Jan 12, 11 @ 12:10 pm:

    It will be real tough to sell this to the general public. Spending caps instead of defined cuts will render any attempt to sell the public that in addition to the tax increase that cuts will be made due to the caps will be met with skepticism from the public.

    I do not know the details and it may not be a fair comparison but Jerry Brown’s proposal in California to cut $12 billion while also extending previous tax increases, would be a lot easier to sell. At least it is in a short sound bite and that is what most in the general public will listen to.


  87. - cassandra - Wednesday, Jan 12, 11 @ 12:25 pm:

    The calculations I’ ve seen have been all over the place re how much this is going to cost various configurations of family size/income.

    Maybe with their newfound and dramatic increase in wealth this Democratic administration could put up one of those calculators where you can put in your income, family size, etc and find out how much this will cost ya.

    They should be sure to ask if you are living on pension income of course. If you are, no matter how much pension income, it’ll cost ya nothing.

    Ah, Illinois, Illinois, plus ca change..


  88. - Small Town Liberal - Wednesday, Jan 12, 11 @ 12:33 pm:

    - The calculations I’ ve seen have been all over the place re how much this is going to cost various configurations of family size/income. -

    Umm, it’s a flat tax, should be pretty simple for anyone to calculate how much this is going to cost them.


  89. - Katiedid - Wednesday, Jan 12, 11 @ 12:55 pm:

    Just a reminder - NO retirement income in Illinois is taxed. Whether you receive it from a 401(k), an IRA, or, even, yes, one of those baaaaad government pensions (yes, that’s sarcasm!), retirees do not pay state income tax on their retirement income (this obviously doesn’t apply to earnings that they may get if they have a job in retirement). This is true for people who retired from a private job or from a government job. The exemption does NOT just apply to government retirees or to people who are receiving a defined benefit “pension.” I could certainly be misinterpreting what people are saying, but I’m reading some of the comments to say that only “pensions” aren’t taxed in Illinois and that’s not true.


  90. - LincolnLounger - Wednesday, Jan 12, 11 @ 1:01 pm:

    I think the Governor should be straight-forward and tell the citizens of Illinois the truth. Something like:

    It is clear that the only voters who matter in this state are in Cook County. Those voters have made it abundantly clear that they do not hold elected officials accountable for corruption, government waste, or high taxes, as was evident by the results in this state in the last several elections.

    Given the enormous electoral advantage that Democrats have in this state, I am confident that there will be enough time between now and the next election that my political future nor that of the large Democrat majorities in the General Assemblies will not be imperiled.

    In spite of my credentials as a “reformer”, I will continue to be undisciplined, lack a coherent message, or keep any of the promises I made to the electorate without fear of reprisal.


  91. - Secret Square - Wednesday, Jan 12, 11 @ 1:09 pm:

    “it may not be a fair comparison but Jerry Brown’s proposal in California to cut $12 billion while also extending previous tax increases, would be a lot easier to sell.”

    Selling it is exactly what Brown is doing — the CA tax increase extension has to be approved by voters before it becomes effective. The only way he can sell it is to make drastic cuts first.


  92. - Way Northsider - Wednesday, Jan 12, 11 @ 1:21 pm:

    Lay out the comparisons to other states. Show we are not out of line. Explain how the spending caps will work and why they make sense.


  93. - cover - Wednesday, Jan 12, 11 @ 1:22 pm:

    Cassandra @ 12:04 pm, how could the Dems have changed the IL Constitution? It takes a 3/5ths vote in each chamber to put a graduated tax constitutional amendment on the ballot. Since that required GOP votes at all times during the last 8 years, it wasn’t going to happen, a vote like that would practically disqualify someone from today’s GOP. It’s the opposite of the Obama campaign slogan: “no, they can’t.”

    Quinn himself alluded to that 2 years ago when he proposed a tax increase with various offsetting credits in his first budget proposal as Governor. He recognized then, as well as during his primary race vs. Hynes, that a true graduated income tax is not a possibility in Illinois.


  94. - Jellybean - Wednesday, Jan 12, 11 @ 1:34 pm:

    Katiedid is correct, pension and other retirement income is not taxed in Illinois. Taxing retirement income over the Illinois median household income would provide a new funding stream. Unpopular, yes since seniors vote, but what tax increase is popular?


  95. - Anonymouse - Wednesday, Jan 12, 11 @ 1:39 pm:

    Great idea, Jellybean! It’s so regressive that the working poor will be hit with this tax hike, but not wealthy pensioners. Astounding, really. Where is the Democratic love and care of ‘the little guy’?


  96. - amalia - Wednesday, Jan 12, 11 @ 1:44 pm:

    With an additional 2% of your taxable income, the State will be able to provide better service to all the citizens of Illinois. I know this is an increase. In tough times we band together to make Illinois better, better schools, ensuring law enforcement services, keeping the state from debt that would bankrupt our future. Some wanted a greater tax, but two cents on a dollar will go a long way to preserving the good fiscal health of our state. I pledge to you that I will work hard to provide the best service possible in our State Government, including streamlining measures to make our work more efficient. It’s time for me to roll up my sleeves and get to work on the State of Illinois. Thanks for helping me do that.


  97. - Peter Snarker - Wednesday, Jan 12, 11 @ 1:46 pm:

    To the point about retirement income -

    - I think a couple things are relevant there -

    The first is that traditionally retirees were worse off than the rest of the population. That is, empirically, not the case anymore. Young people are worse off actually. So the first point would be the public-policy is outdated somewhat.

    The second, and perhaps more important in our current culture, is that retirees vote in far more reliable and consistent turn-out and numbers than young people. It’s a voting block with serious power.

    … this issue is only going to increase in inequity as the baby-boom continues to head over the cliff into their senility years.


  98. - S - Wednesday, Jan 12, 11 @ 1:52 pm:

    NormalRedefined @ 11:24 - “Are YOU that ignorant”?!?!?

    Did you read Blago’s statement? The comment paraphrased his release crowing about how he never raised taxes, etc.

    Sheesh… someone’s a little jumpy today.


  99. - Moving to Washington State - Wednesday, Jan 12, 11 @ 1:56 pm:

    I was elected with a mandate to avoid the economic disaster seen in states like Texas, Washington, South Dakota and the like. I believe we have accomplished this mission.


  100. - Double D - Wednesday, Jan 12, 11 @ 2:00 pm:

    I believe you need to make the public understand that the state has been living outside of its means for years…and the time to pay the piper has come.

    As far as taxing pensions…I agree that it should be considered (I even shared this with my reps as one who will receive a state sponsored pension) with the idea that this money should be used to make the state’s pension obligation payment.

    Rich…can you tell us how much per percent a retirement income tax could generate on the pension system.

    Finally, I share with people who complain that we have ourselves to blame partially because we have elected/allowed this poor leadership and budgeting to continue in Springfield. While it is not the greatest solution, at least for once “next year” finally came as structural deficit is being faced.


  101. - Anonymouse - Wednesday, Jan 12, 11 @ 2:09 pm:

    DD, you betcha. Tax the pension over a certain amount and devote that money to pension payments.I think a lot of folk could get behind that idea, from both parties.


  102. - Anonymouse - Wednesday, Jan 12, 11 @ 2:10 pm:

    Of course, we’d be touching the legislators’ goodies, so that will probably be a non-starter.


  103. - Templar - Wednesday, Jan 12, 11 @ 2:11 pm:

    quote: With its educated workforce, infrastructure, and resources, it is one of the most sought after locations to do business in the country.

    You’re kidding, right?

    Really, seriously, does it matter how Quinn’s going to try to “sell” this load of steamy, used horse food to the people? Regrettably, the half-life of their anger will leave the white-hot anger cooled to near room temperature by the time the 2012 election cycle arrives.

    Republicans will be trying to figure out where their districts went and there will be new issues to be upset with.


  104. - Anonymous - Wednesday, Jan 12, 11 @ 2:17 pm:

    ==… this issue is only going to increase in inequity as the baby-boom continues to head over the cliff into their senility years.==

    Gratuitous insults are supposed to be forbidden here. And that statement is as insulting and gratuitous as any I have read here.


  105. - chi - Wednesday, Jan 12, 11 @ 2:23 pm:

    Peter Snarker: “The first is that traditionally retirees were worse off than the rest of the population. That is, empirically, not the case anymore. Young people are worse off actually. So the first point would be the public-policy is outdated somewhat.”

    Can you point us to some of that empirical data?

    Also, Double D and Anonymouse; are you also in favor of taxing 401k’s and IRA’s, or are you just demonizing people with pensions?


  106. - soccermom - Wednesday, Jan 12, 11 @ 2:25 pm:

    Cassandra, the constitutional convention was on the ballot and got voted down by the taxpayers - many of whom would have benefited from a graduated tax rate.


  107. - Anonymouse - Wednesday, Jan 12, 11 @ 2:38 pm:

    Chi, hun: no demonizing, for pity’s sake!

    And yes, above a certain level, all retirement income should be taxable.

    These people use state services, no? Tax ‘em.


  108. - VanillaMan - Wednesday, Jan 12, 11 @ 2:38 pm:

    Imagine you are a airline flight passenger crammed in a middle seat between two 300 pound men. You try to stay calm knowing the flight would last only 30 minutes.

    Your plane is taxied but has to wait on the tarmac for some reason. After twelve hours the toilets are plugged. There is no food. The flight attendants left.

    Then the pilot announces that the plane has been out of gas for the past six hours. You will need to help push the plane back into the hangar. The plane is over weight limits so your two 300 pound flight passengers voted you off the plane.

    Finally Quinn the pilot tells you that your ticket price increased 60 percent.

    Quinn should tell us, “See the can? See the road? If we had a few more billions of your money, we could buy a shoe to kick that can down that road to Greece. They used sandals but we need something nicer. I know you are broke so lets buy ONE shoe.”


  109. - Retired Non-Union Guy - Wednesday, Jan 12, 11 @ 2:41 pm:

    This year, at the personal level, the State tax increase is basically the same as the Federal FICA decrease (2% up to the limit), so it is pretty much a wash for anyone working and paying into Social Security, especially the young / working poor. So Quinn, et al, didn’t decrease anyone’s “net income” this year, they just negated the federal tax “holiday”. Now, when the FICA cut goes away, then it is a a “real” increase in that “take home” pay will decrease.

    Taxing pensions may or may not be a good idea, but my guess is it would be regressive. People with good pensions would just move to another state that doesn’t tax retirement income. People with poor pensions, and that includes the average state retiree at the $22 - $24K level, couldn’t afford to move. And if you structure a retirement tax to only hit the relatively better off, then you just increased the perception of unfairness and the likelihood of well off retirees fleeing the state.

    Talking about retirees and taxes, Illinois is NOT one of the top ten places to retire, tax wise, according to Kiplinger, which rank’s the states’ total tax load, including income, sales, property, etc. taxes. It’s also not one of the ten worst, which does include Indiana, Wisconsin, and Iowa.


  110. - Katiedid - Wednesday, Jan 12, 11 @ 2:43 pm:

    I think we absolutely should be taxing retirement income above a certain amount (I would, however, set the exemption amount higher than for other types of income). Is it fair that a single working mother making $30,000 is paying taxes on that amount while the law firm retiree making $500,000 per year in retirement income does not? Many of the same arguments that people used to say that seniors should not have been given a blanket free ride pass on public transit without an income test holds here as well.


  111. - He Makes Ryan Look Like a Saint - Wednesday, Jan 12, 11 @ 2:43 pm:

    VanillaMan, You totally lost me on your comment!! WOW!


  112. - Peter Snarker - Wednesday, Jan 12, 11 @ 2:44 pm:

    Sorry about the “senility” comment… was meant to be slightly cheeky but I guess it came off worse than that to some. I just meant that a very important voting block is about to become even more important b/c it is going to be getting really, really, really big.


  113. - wordslinger - Wednesday, Jan 12, 11 @ 2:45 pm:

    –quote: With its educated workforce, infrastructure, and resources, it is one of the most sought after locations to do business in the country–

    Is that incorrect? Did history, geology and geography change overnight? Back it up.

    The Chicago MSA is the fourth-largest metro economy on planet Earth, behind Tokyo, New York and L.A. Moody’s classifies it as the most diverse economic region in the United States.

    Government had nothing to do with that. It was luck and private enterprise.

    I think the latest recession has aggravated the historical schism between Downstate and Cook and the Collars. It was bad up north, but it was so much worse Downstate.

    I was born and raised in farm country. People and capital have been flowing out of rural areas all over the country for decades.

    Long story short, Downstate and rural America are hurting. I sympathize, because those are my folks.

    Let’s get over the victimization complex and get to work on a statewide commitment to build on those resources we do have to keep our kids in their communities and attract capital.

    On the state level, I’d start with leveraging our public and private educational institutions better than we do know. Why the heck can’t some Braniac in Flora or Milan sit in on, online, on an Advanced Calculus Class originating out of New Trier or U of I? The technology is there. The opportunities should be as well.

    On the national level, let’s stop being chumps at the holy altar of Free Trade. We have great workers, the resources and the capital to make our own stuff. We’re the biggest consumer market in the world. Why the heck we let ourselves get undercut by virtual slave labor in Asia is beyond me.

    Illinois farmers know what I’m talking about. If they had to compete in an unfettered free market they’d be out of business.

    We’ve used tariffs and price supports throughout our history to better the lot of Americans. Don’t believe the nonsense you hear from the Money Honey, Crazy Jim Cramer and the corporate shills from both parties. Start looking out for your own.

    And get over this state-by-state, U-Haul nonsense when it comes to economic development. You’re just being played by the next corporate hack looking for a handout.


  114. - Responsa - Wednesday, Jan 12, 11 @ 2:51 pm:

    Man, the corpse of the income tax hike is not even cold yet and already folks here are working overtime on finding and selling the NEXT tax increase (retirement income) to take even more money out of the wallets of Illinois citizens. Maybe a moratorium or cooling off period of at least a week would be in order before the next state aid on income begins?


  115. - Cheryl44 - Wednesday, Jan 12, 11 @ 2:52 pm:

    It would also be great if we would limit state office holders to one pension. They get to pick which one, but they can only draw one pension.


  116. - Rich Miller - Wednesday, Jan 12, 11 @ 2:55 pm:

    ===Maybe a moratorium or cooling off period of at least a week would be in order before the next state aid on income begins? ===

    LOL.

    You’re most likely right.


  117. - Peter Snarker - Wednesday, Jan 12, 11 @ 2:59 pm:

    Chi @ 2:23:

    I have no idea if you are going to reject this as being from too progressive of a source (I can find similar from the other side of the aisle), but I would recommend you start googling here (I dont want to start putting links in posts here at Capfax):

    Democracy, A Journal of Ideas
    Issue #9, Summer 2008
    Old News
    It’s time to tear up the intergenerational contract and construct public policy around the one core group of people for whom social investments really pay off: kids.
    by Isabel Sawhill and Emily Monea

    If you want specific numbers and dates, again, I suggest a google search.

    Honestly, I have no agenda here - it is what it is. We as a society are not going to take free rides from seniors on the CTA b/c it is too controversial, and we sure as hell arent going to start taxing their retirement incomes. That’s crazy talk!


  118. - cermak_rd - Wednesday, Jan 12, 11 @ 3:11 pm:

    wordslinger,

    I’m from a rural town in central IL. So I know what you mean about flight from these areas. But that’s been going on for generations. In some cases, it has now gone to the point where some of these small towns (and here I’m thinking of towns like Toledo, IL or Strasberg, IL) are hosting what is likely the last generation ever to live in them. It’s lamentable in some ways, but it is probably not reasonable to try to prop them up artificially.


  119. - cassandra - Wednesday, Jan 12, 11 @ 3:11 pm:

    Umm, small town lib, not if you do it right. Salary, number of kids/exemptions, pension income if any (not all pensioners are ancient), pre and post payroll tax holiday figures.

    But I can see how the liberal Dems who ardently supported this income transfer out of the middle class would want to keep the numbers as fuzzy as possible for as long as possible for individual taxpayers.

    As to the progressive income tax, the Dems should keep trying. They kept trying for the income tax increase. Maybe folks will pay attention after they run the numbers and the numbers of their wealthy fellow Illinoisians in, say, Lake Forest and Glencoe. Not to mention the well-off pensioners up the block.


  120. - Jaded - Wednesday, Jan 12, 11 @ 3:20 pm:

    What it there to explain? The state either needed lots of money, or a 25% cut in government services (or a comibination of both which would have caused real pain). Quinn and the Democrats in the GA chose the revenue side with a half hearted attempt at capping spending (I would bet right now those caps won’t hold for four years).

    My guess is that the 47% of the voters who voted for him in November knew this (or something like it) would happen if he won in November, so his base can’t complain.

    Voters might stay mad through the 2012 elections, (especially after the federal payroll tax roll back sunsets next year and the tax increase actually shows its full affect) so legislators should be worried, but does anyone really think the electorate will stay angry for 4 years? Not likely unless we are still in bad shape in 2014 in which case he loses no matter what he says. In four years this increase will just be a part of the higher withholding and will hardly be noticed. In fact Quinn can say when running in 2014 “elect me and I’ll guarantee your state income taxes will decrease by 25% next year (from 5% to 3.75%)!

    Quinn has four years to prove whether or not he should be re-elected so, in the long run, it really doesn’t matter what he says about the tax increase.


  121. - Peter Snarker - Wednesday, Jan 12, 11 @ 3:21 pm:

    Chi @ 2:23

    If you want a graphic of the change since 1959 in the relative positions of poverty by the age demographic, google as follows, you’ll get a neat little chart:

    Poverty Rates by Age, 1959 - 2009 +”US Census Bureau graphics”

    Anyway. Not like the numbers mean anything, c’mon, we’re Illinois!

    Oh, and to appease Rich and comply with his request to be on-topic, here is how I “sell” this:

    “This is not the popular choice perhaps, but it is the right choice… it allows Illinois to get back on its feet fiscally and to turn the page for the future. In the last year we have tackled public pensions (ok ok for go-forward employees, but I dont mention that), we have now tackled revenue. That’s more reform and action than this state has seen in the past decade, and I’ve only been in office for not even 2 years.

    This is going to provide Illinois to be on sound footing going forward if we make more hard choices about spending, which I am prepared to make. Businesses and individuals will feel secure in the future of our State b/c we are making the tough decisions that need to be made.”


  122. - Small Town Liberal - Wednesday, Jan 12, 11 @ 3:28 pm:

    - Salary, number of kids/exemptions, pension income if any (not all pensioners are ancient), pre and post payroll tax holiday figures. -

    Yeah, and the only thing this law changes is the state’s percentage. There is no conspiracy to make it difficult to calculate, only in your mind.


  123. - titan - Wednesday, Jan 12, 11 @ 3:35 pm:

    Sell it?
    Why bother to sell it?
    There isn’t any need to sell anything to the voters, they’ve had our credit card for years (decades?) and we’ve let them run roughshod over us with essentially narry a peep (or rather, narry a defeated incumbent).


  124. - wordslinger - Wednesday, Jan 12, 11 @ 3:39 pm:

    –I’m thinking of towns like Toledo, IL or Strasberg, IL) are hosting what is likely the last generation ever to live in them. It’s lamentable in some ways, but it is probably not reasonable to try to prop them up artificially.–

    Not artificially. Leveraging their existing resources (schools, brains, labor) via communications and technology. Plus, not being a chump on free trade.

    When I was a kid, my farm community had loads of factories, from heavy industry to consumer goods. It doesn’t any more. The ability and need are still there, the only thing that has changed is that corporate America is chasing a better margin overseas. Take that away, and let’s see what happens.


  125. - wordslinger - Wednesday, Jan 12, 11 @ 3:49 pm:

    Vman, that was trippy, man. Incomprehensible, so it must be deep.

    But hey, no fat man and toilet references. You don’t need to work blue. You have too much talent, like a young Frank Gorshin.


  126. - Responsa - Wednesday, Jan 12, 11 @ 4:19 pm:

    Word,

    I can relate to what you are saying. The small Central Illinois community in which I was raised was a self sufficient society, provided a safe and rewarding environment to live, to grow and learn, and produced generations of reliable, contributing citizens within the richness of extended family. Many of them stayed local to work and farm while others went forth to become Annapolis graduates, a PHD NASA scientist, business people, several respected doctors, an airline pilot, university professors and professional musicians–all of which made the town proud.

    The people’s talents and their native intelligence remain, but in the past two decades so much else has changed and there are now so few job opportunities. Going back for class reunions and to family funerals I find the area a shell of its former self both physically and psychologically in a way that is heartbreaking.

    Several of your points about leveraging technology and communications to help these areas revitalize deserve serious consideration. Unfortunately, I fear it may be too late to save many of the heartland’s treasure towns.


  127. - nieva - Wednesday, Jan 12, 11 @ 4:46 pm:

    A five percent reduction in my pension would be no different than taking five percent from A social security recepient. My wife draws a teacher pension an is not allowed to draw ss. would this be fair?


  128. - Capitol View - Wednesday, Jan 12, 11 @ 5:07 pm:

    I agree that raising the income tax is the simplest strategy, but not the best.

    As the tax goes down to 4%, that year should also feature the constitutional amendment to go to a graduated income tax rather than a flat tax, implement an expansion of sales taxes onto many services as part of our modernization of our revenue system, and begin to apply state income tax to retirees on pensions making over $50 or 70,000 - not their whole pension, just that amount over whatever threshold amount is set. Otherwise, there will be no rate equity for health and human services direct service providers or for expanded funding for public education at both the K - 12 and university levels.

    I see Quinn as the new Ogilvie - willing to fix state government’s financial base at the price of probably never winning re-election.

    Thank you, Gov. Quinn, and thank you Speaker Madigan for addressing revenue base sufficiency for essential services so quickly after confirming control over 2012 redistricting.


  129. - Retired Non-Union Guy - Wednesday, Jan 12, 11 @ 5:16 pm:

    Capitol View … some of the money I put into the State pension system (40 yrs ago) and my Roth IRA’s (8 - 15 yrs ago) was already taxed once … so you want to tax it again?


  130. - wordslinger - Wednesday, Jan 12, 11 @ 6:27 pm:

    –Unfortunately, I fear it may be too late to save many of the heartland’s treasure towns.–

    I don’t think they need to be “saved,” and I also don’t give up easily.

    Rural America has been on an arc from a labor-intensive society to a capital-intensive one for some time. Adjustments are always being made, but not necessarily in the best interests of the folks who live there.

    We’re a capitalist society. They need access to capital and, yes, protection from cheap labor.

    Again, on the state level, I think we should try to leverage our obvious assets.

    On the national level, I think we’re out of our minds. We’re, by far, the largest market on the planet, yet we have an enormous trade deficit and high unemployment.

    I’m happy that the folks in Mexico, China, Brazil and India are starting to experience the wonders of a protein diet and consumer goods. That’s what we used to pray for in Sunday school. But we don’t have to be chumps and we can look out for our own first.

    The dirty little secret is that “American” corporations have been abandoning this country for decades. They want the protection of the rule of law from American justice, but the profits of cheap (including child) labor in the rest of the world.

    And they sell it as a benefit to the consumer, because the goods are cheaper. Don’t be a chump. Slap tariffs on imports and watch small business in America grow.


  131. - Jake - Wednesday, Jan 12, 11 @ 6:32 pm:

    I agree with Capitol view that this is the time to start the push for a graduated income tax amendment. See fairtaxillinois.org for facts on how regressive the Illinois tax system is and a strategy for fixing it


  132. - Capitol View - Wednesday, Jan 12, 11 @ 6:39 pm:

    to retired non-union guy — if your income in retirement is over $50 - 70,000, then yes, I expect you (and myself) to kick in a few tax dollars to the state for all that it does for all of us, including seniors.


  133. - Just The Way It Is One - Wednesday, Jan 12, 11 @ 7:03 pm:

    Like George Bailey in “It’s A Wonderful Life,” he can say “We can get through this thing but we all have to stick together,” AND, i.e. SACRIFICE, each of us, according to our means, in order to get by, but the emphasis is that the BIGGER increase, to 5%, is TEMPORARY, unTIL we “get through this thing,” i.e. approx. 4 years, then the only permanent increase will 3/4ths of 1%, i.e. modest indeed, and we’ll ALL benefit in the end, like in the ongoing creation and growth of “Bailey Park,” where we all can live together with mutual respect, dignity, and decency…


  134. - Moving to Washington State - Wednesday, Jan 12, 11 @ 8:33 pm:

    I’ll be “sacrificing” by leaving Illinois in my rear view mirror. I suspect I will be comforted by my many friends and neighbors who will be joining me.


  135. - wordslinger - Wednesday, Jan 12, 11 @ 8:55 pm:

    –I’ll be “sacrificing” by leaving Illinois in my rear view mirror. I suspect I will be comforted by my many friends and neighbors who will be joining me.–

    Would it kill you to say U-Haul? Getting kind of thirsty here.


  136. - Retired Non-Union Guy - Wednesday, Jan 12, 11 @ 10:11 pm:

    Capitol View … even the feds don’t tax you twice on retirement money … they let the part of my pension that was already taxed back in 1970 or whenever it was be tax free now … and the same for Roth IRAs, they got the money up front on them, I shouldn’t have to pay taxes twice on the same money. I may be in the range you quote but it isn’t all pension … it’s savings and investments like rental property on top of the pension.

    I might, repeat, might go along with taxing pensions above a certain level … but you better be able to add in the already taxed amount to the exemption level and it better include property tax relief like Georgia does (which is looking better every day); in some counties in Georgia you don’t have to pay the school portion of the property tax as a senior citizen


  137. - Retired Non-Union Guy - Wednesday, Jan 12, 11 @ 10:13 pm:

    And oh yes, the (non-pension) investments are already taxed …


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