Capitol Fax.com - Your Illinois News Radar » Question of the day
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Question of the day

Wednesday, Sep 28, 2011

* Sun-Times

Emanuel disclosed Wednesday that he plans to revive the most controversial idea he raised during his campaign: reducing the city’s portion of the sales tax from 1.25 percent to 1 percent, but broadening the base to include an array of services not now covered. […]

“I have to go to Springfield to do that,” Emanuel said at an unrelated news conference Tuesday. “ … I’ve talked to both the Speaker and the Senate President about lowering the sales tax by expanding what is, in fact, taxed because we tax too few things and … the working families of the city carry the burden and it’s one of the highest sales tax rates in the country.”

He added: “I wanted to do exactly what I think is the right thing: close loopholes, lower the rate, make sure other people are carrying the burden — not the working families of Chicago.”

* Crain’s

CME Group Inc. has received tax proposals from multiple states looking to lure it from Illinois, but so far, not one from its home state, CME Executive Chairman Terry Duffy said.

Nonetheless, Mr. Duffy said the Chicago-based company, which operates the biggest futures market in the country, aims to reach an agreement on a corporate tax revision with Illinois officials before the Legislature’s October veto session, or for consideration during a special session this year. […]

“I pay the most in state taxes,” Mr. Duffy said during a question-and-answer session following a speech Tuesday on business ethics at Xavier University. “Why is that? Because I don’t have a loophole. I don’t want a loophole. I want what’s fair and equitable.” […]

Mr. Duffy said he doesn’t want to set a deadline for reaching an agreement with Illinois officials because he doesn’t want to put pressure on them. But he thinks it isn’t unfair to expect an agreement to be reached within a year of starting negotiations, which began in January.

* The Question: What sorts of state tax reform could you support? Explain.

- Posted by Rich Miller        

35 Comments
  1. - Left Out - Wednesday, Sep 28, 11 @ 1:18 pm:

    I go for the ideas that new taxes, and Chicago needs to collect more taxes, do not have an adverse impact on the “working families of Chicago.” However, any flat rate sales tax by its very nature is a regressive tax. To make the sales tax apply to services will make it more regressive unless there are many exceptions (which would allow for abuse by any number of interest groups). I vote no on the idea.


  2. - Cincinnatus - Wednesday, Sep 28, 11 @ 1:19 pm:

    Remove all subsidies and deductions. Lower the rate.


  3. - Reality Check - Wednesday, Sep 28, 11 @ 1:25 pm:

    Amend the constitution to allow for a progressive income tax. Make the wealthy pay their fair share while holding current rates steady or reducing them for as many people as possible.

    Reform corporate taxes to make big corporations pay their fair share rather than leaving small businesses to hold the bag.

    Broaden the sales tax base statewide to include services - not just for Chicago as Rahm seems to be suggesting, which would seem logistically impossible.

    Have this comprehensive reform set to take effect in 2015 when the current rates would otherwise sunset.


  4. - PublicServant - Wednesday, Sep 28, 11 @ 1:30 pm:

    Agree w/ Reality Check


  5. - Linc - Wednesday, Sep 28, 11 @ 1:39 pm:

    We need to broaden the sales tax to cover services, a growing segment of our economy, and I’d strongly support a constitutional amendment for a progressive income tax.


  6. - anon - Wednesday, Sep 28, 11 @ 1:39 pm:

    Reality Check has got it right. My immigrant father raised us to believe in shared responsibility. I’m no Warren Buffet, but now that i’m making a bit more, I think I should be paying more to support my community. Im for a progressive income tax!


  7. - Ahoy - Wednesday, Sep 28, 11 @ 1:39 pm:

    I think reducing the sales tax and expanding it to cover more services should be a starting point.

    If this was done right, cities would benifit and the State might be able to reduce or eliminate the money sent to local governments.


  8. - D.P. Gumby - Wednesday, Sep 28, 11 @ 1:40 pm:

    Like Reality Check except would abolish sales tax and replace w/ a value added tax and, if possible, would incorporate the property tax into the progressive income tax. Not sure how that would work, but need to balance the McMansions w/ the property rich, cash poor suburban/rural imbalance.


  9. - reformer - Wednesday, Sep 28, 11 @ 1:47 pm:

    Add my vote for the progressive income tax and to expand the sales tax base to services while lowering the rate.

    Our state and local tax system is currently one of the most regressive among the 50 states. Both moves would make our tax system less regressive.


  10. - Northsider - Wednesday, Sep 28, 11 @ 1:47 pm:

    I’m another vote for the progressive income tax.


  11. - Chicago - Wednesday, Sep 28, 11 @ 1:52 pm:

    A progressive income tax is the only fair way to solve the budget problems. Sales taxes are a regressive tax on the poor.


  12. - MagLyons - Wednesday, Sep 28, 11 @ 2:03 pm:

    I agree that we need a progressive income tax. My boyfriend earns considerably more than I do and yet pays less in taxes. We don’t mind paying taxes because they pay for public services that are so essential to our way of life that we take them for granted, but the wealthy should be paying their fair share.


  13. - Dirty Red - Wednesday, Sep 28, 11 @ 2:04 pm:

    Service tax. Retirement income.


  14. - Arlingtonguy - Wednesday, Sep 28, 11 @ 2:06 pm:

    Progressive income tax and restructuring of local property taxes. Top 1 percent currently has a tax burden of 1/2 that of middle income folk.


  15. - Blue Eyes - Wednesday, Sep 28, 11 @ 2:13 pm:

    A Progressive income tax would be the best reform. It would cut taxes for about 94% of Illinois Taxpayers!!


  16. - dave - Wednesday, Sep 28, 11 @ 2:19 pm:

    I was going to write a bunch, but then I read Reality Check’s comment.

    Progressive income tax, expand the sales tax, balance the corporate tax structure by removing loopholes/incentives.

    All of this would likely mean lower income taxes for most, lower sales tax rate, lower corporate income tax rate.


  17. - TTWSYF - Wednesday, Sep 28, 11 @ 2:34 pm:

    Any service tax placed on industries where the tax cannot be passed along to the end consumer results in a business tax on many small businesses which are already struggling. Good examples are the coin operated amusement industry, car washes or Laundromats.

    These automated coin industries deal with pricing that is typically fixed in 25 cent increments. Increased costs are generally absorbed by the vendor until little or no margin exists, at which time the vendor is forced to look at a sales price increase that ranges from 25% - 100%. This huge price increase of course has a negative impact on sales volume. While the fixed costs remain the same, the only comfort to the vendor is that with the overall lower sales volume he would pay fewer taxes. But then again when he is forced to pick up his low earning equipment or close his doors, he would not have to pay any service tax.

    Additionally the State and many municipalities already charge extremely high license fees on these automated devices as well as the sales tax that is paid on these devices at time of purchase. These taxes are already being absorbed as well. I can easily see that in the case of the coin-operated amusement industry, the internal costs for a vendor to complete the filing requirements across multiple municipalities would exceed the actual tax collected in many cases. Of course the state would be able to hire some folks and give them huge pensions as additional staffing would probably be required to make sure that each municipality gets their fair share of the total tax collected. Let’s face it; the small town I live in would get about $5 each month and there are jobs and pensions to be created in collecting, accounting and disbursing this money.

    If any service tax is to be considered, then care should be taken to identify and exempt those industries that cannot pass the tax on to the consumer.


  18. - Common Sense - Wednesday, Sep 28, 11 @ 2:34 pm:

    It’s time for Illinois to enter the 21st Century - a modern state cannot survie without a progressive income tax system. With such a system we could raise more revenue and give an income tax cut to the vast majority of tax payers. The system would be fairer, more efficient, and less burdensome.


  19. - Dead Head - Wednesday, Sep 28, 11 @ 2:38 pm:

    Progressive income tax, those that can afford to pay more should.


  20. - soccermom - Wednesday, Sep 28, 11 @ 2:49 pm:

    Expand the EITC! It is an outrage that Illinois’ EITC is so stingy.


  21. - Cheryl44 - Wednesday, Sep 28, 11 @ 2:52 pm:

    Here’s another vote for a progressive income tax.


  22. - Ghost - Wednesday, Sep 28, 11 @ 3:01 pm:

    Put in a minimium tax amount a copr has to pay.

    You could elminate the federal scoial security problems if you removed the cap on social security :)


  23. - Truth Seeker - Wednesday, Sep 28, 11 @ 3:07 pm:

    The discussion should center on reducing taxes, not finding new ways to raise more. Reduce the scope of government and increase employment to expand the taxpayer base.


  24. - thechampaignlife - Wednesday, Sep 28, 11 @ 3:44 pm:

    Flat rate VAT tax with flat dollar refund. That’s how to make a regressive sales tax progressive since the flat dollar refund may be more than a low income person paid in tax, slightly less than paid in tax for middle income folks, and negligible to high earners. It’s also populist in that who can argue with the fairness when everyone pays the same rate and gets the same refund.


  25. - Bored - Wednesday, Sep 28, 11 @ 3:50 pm:

    Taxes wouldn’t need to be raised if more people were working (income tax) thus leading to more spending (sales tax). Lowering the rate looks good, but I would like some more information on what new services would be taxed.

    A Progressive state income tax would likely lead to even more people leaving the state, which is EXACTLY what we don’t need.


  26. - Jeff Park Mom - Wednesday, Sep 28, 11 @ 4:02 pm:

    Progressive income tax. My kids’s grade school is looking at another teacher layoff, state cuts to human services means we’ve got more homeless and folks with mental illness on the street, and the only way to solve this is state aid. We need more state revenue, not less, and a progressive tax is the politically smart way to get it done.


  27. - globalguy - Wednesday, Sep 28, 11 @ 4:13 pm:

    Agree w/ Reality Check - ’nuff sed …


  28. - hankster - Wednesday, Sep 28, 11 @ 4:15 pm:

    We need a modern, progressive tax system for the 21st century. A progressive income tax, because the only group of people with growing incomes are the wealthy. The progressive income tax should apply to retirement income. An expansion of the sales tax base to All services, because our economy is now more service-based than ever. Re-imposition of the sales tax on food and medicine, with a refundable tax credit to offset this hit on the poor and on working people. A way to tax internet, mail order, and other sales that now escape Illinois sales taxes, realistically with the help of the federal government to impose rules on all 50 states. These are the elements of a modern 21st century state tax structure.


  29. - Jean Wittman - Wednesday, Sep 28, 11 @ 4:20 pm:

    A progressive income tax where people pay income on what they make is what needs to be proposed. The rich pay more and the rest of us get a break!


  30. - Responsa - Wednesday, Sep 28, 11 @ 5:32 pm:

    As bored said so well, what we need is more people earning income in order to collect more income tax revenue, and more people able to buy things which generates more sales taxes. What we don’t need are new tax schemes and higher taxes on anybody. If retirement earnings are taxed, Illinois will lose population immediately–that is a given–including lots of the folks whose state pensions are a big part of the reason the state is in trouble. The state would still owe them their pensions wherever they live, but would no longer get the benefit of other taxes (sales, property, etc.) they pay in the state.

    The only service taxes I could consider are for certain currently untaxed professional services–such as barber and hairdresser, spa, health club, dog grooming, accounting, and architectural, for example.


  31. - 1776 - Wednesday, Sep 28, 11 @ 7:13 pm:

    I’m not quite sure where to begin except to provide an educated guess that the vast majority of posters today have never owned a business or had to meet a payroll.

    I’d love for anyone to define what “pay their fair share” means despite the current favorite phrase of liberals.

    Creating a graduated income tax means a tax hike for small and medium-sized companies who file at the individual rate (subchapter S corps, LLCs, partnerships, etc.).

    Companies don’t “pay taxes.” They are forced to raise prices for food, gasoline, clothes, and their products in order to meet their tax burden and other regulatory costs.

    Many posters and media stories have focused on the percentage rather than the tax bill. Let me be clear - the so-called “wealthy” pay substantially more in taxes. Three percent of $250,000 (Obama’s definition of millionaire in his proposal) is $7,500 in taxes under Illinois’ rate. The secretary earning $50,000 has a tax bill of $1,500.

    While the “wealthy” individual may get to claim a mortgage deduction, that means they own a home and pay property taxes. The low income person gets the same deduction. Same for dependent deduction and others. These “loopholes” are not created only for the wealthy.

    These “wealthy” individuals pay more in property taxes and sales taxes while generally consuming less of the state’s services generally. They don’t get food stamps, free lunches, day care help, and other social services and yet they pay for it at a much greater rate than others.

    I get it and understand the need for these services. But don’t sit and complain about people and businesses not paying their fair share. Most business operate on a margin of 2-3 percent.


  32. - Reality Check - Wednesday, Sep 28, 11 @ 8:33 pm:

    1776 claims “wealthy individuals don’t get social services yet they pay at a much greater rate than others.”

    Both claims are false.

    In Illinois, the higher one’s income, the lower one’s total effective tax rate. Our tax structure is upside-down.

    And everyone derives the benefit of those social goods and services we purchase through taxation, including public safety, roads and bridges, clean air and water, an educated citizenry (and workforce), and much more.

    Finally, while 1776 seems to claim that rich folks don’t derive any benefit from public spending on safety net programs, the fact is that state taxes support care for the disabled, mental health treatment, substance abuse and domestic violence services–none of which discriminate on the basis of wealth.


  33. - truthteller - Wednesday, Sep 28, 11 @ 8:55 pm:

    Amend the constitution to allow for a graduated income tax.
    Impose a financial transaction tax.

    Tax hedge fund managers and capital gains at a rate equal to the difference between the federal earned income top rate and the capital gains rate.


  34. - gg - Wednesday, Sep 28, 11 @ 9:28 pm:

    From gg

    The “progressive taxpayer’s” already have addresses in Florida.

    Please get a clue.

    gg


  35. - gg - Wednesday, Sep 28, 11 @ 9:46 pm:

    Free on my own

    That’s the way a used to be.

    Since I met you, loves got a hold on me.

    Alvin Bishop


Sorry, comments for this post are now closed.


* Question of the day
* Here we go again...
* Who raised what in AG race?
* Warning issued over putting medically fragile children in Medicaid managed care
* Schakowsky, Gutierrez endorse Lipinski's Democratic opponent
* Rauner tied to Greitens, Pritzker tied to Blagojevich
* Some states looking for ways around federal tax law
* *** UPDATED x2 - Pritzker, Rauner, RGA respond *** Watch Dem candidates appear at Sun-Times
* Poll: Rauner leads Ives 65-21
* Not the governor's greatest day
* *** UPDATED x1 *** Kennedy needs to dig deeper, but can he?
* The fight for second place
* Group offers possible fix to problems with Rauner's AV
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............
<


Loading


* 2 Illinois governor candidates spend $28M in pa.....
* Rauner on Medicaid to Work Idea - Alton Daily News..
* Tracking Miles Driven? - Alton Daily News..
* Tracking Miles Driven? | Alton Daily News - Alt.....
* 2 Illinois governor candidates spend $28M in la.....
* Man 'in charge' of state to visit Ottawa - MyWe.....
* 2 gov. candidates spend $26M in 3 months - The .....
* Man 'in charge' of state to visit - MyWebTimes.com..


* Chicago trader accused of killing friend, dumping body
* Illinois sheriff helping people find opioid antidote drug
* Judge keeping some documents secret in Hastert lawsuit
* Ex-Ataris bassist indicted, accused of telemarketing fraud
* Rock bassist indicted, accused of telemarketing fraud
* Suspect in terror-related case claims 'combatant immunity'
* 2 Illinois governor candidates spend $28M in last 3 months
* Chicago group sues US Steel over Indiana plant's discharges
* 2nd case of measles confirmed in person who was at O'Hare
* Illinois woman gets 15 years for crash that killed teen

* 2 Illinois governor candidates spend $26M in last 3 months
* 2 Illinois governor candidates spend $28M in last 3 months
* Statehouse bill would connect rural schools to high-speed internet
* Statehouse bill would connect rural schools to high speed internet
* Education officials want to double state budget for schools
* University of Illinois trustee seat has been empty a year
* Rauner campaign: 'Governor believes David Duke is a racist'
* Rauner defends amendatory veto of school funding bill
* Rauner signs bill to focus on needs of female prison inmates
* Rauner tours Lincoln prison, touts reforms helping female inmates

* Here's Latinicity's new sit-down restaurant
* Paul Vallas says he's 'seriously considering' running for mayor
* Poll finds Rauner way ahead of GOP challenger
* Dow set to close above 26,000 for first time
* Dow closes above 26,000 for first time


* Pair of burglaries reported at South Shore businesses
* Dear Abby: Boyfriend keeps stalling on popping question
* Mother of child killed in 2017 crash with CTA bus sues her driver, CTA
* Horoscope for Jan. 18, 2018
* Northwestern’s down year continues with 71-65 loss to Ohio State
* Bulls can try and copy the Warriors system, but talent remains a huge gap
* 2 burglaries in 2 days reported in same Grand Crossing block
* Schweinsteiger signs one-year deal to return to Fire
* Loyola stays hot with a 79-65 win over visiting SIU
* White House official: Trump immigration views have evolved


* Warriors down Bulls 119-112, tie team record with 14th straight road victory
* Fact check: Trump's 'Fake News Awards' focused on reports that were wrong — and quickly corrected
* Two shot in Albany Park
* Quarterback's death permeates NCAA convention discussions
* Bastian Schweinsteiger re-signs with Fire for 2018 season: 'I love this city, this sport and winning'
* Government shutdown threat remains with divisions over immigration, military dollars
* Trump allegedly told porn actress she reminded him of Ivanka during their affair
* Gay couple who ordered wedding programs got pamphlets about Satan instead, lawsuit says
* Archdiocese: 5 Catholic schools to close, several parishes merge
* Warriors respect talent and potential of Bulls' Lauri Markkanen


» A Prescription For Fruits And Veggies: One Solution To Food Insecurity in Illinois
» A Call For Transparency
» 2 Illinois Governor Candidates Spend $26M In Last 3 Months
» State Board of Education: Double School Funding Now
» Lawmakers Demand Fast Internet For Rural Schools
» 2 Dreamers Discuss Helping Other Immigrants Amid Uncertainty
» Rauner Spokesman: 'Governor Believes David Duke Is A Racist'
» Rauner Signs Law To Help Women Behind Bars
» A Poor Neighborhood In Chicago Looks To Cuba To Fight Infant Mortality
» Democratic Candidates In Lockstep At Justice Forum


* 2 Illinois governor candidates spend $26M in last 3 months
* Our View: Focus on cost-cutting, then turn to taxes
* 2 Illinois governor candidates spend $28M in last 3 months
* Statehouse bill would connect rural schools to high-speed internet
* Education officials want to double state budget for schools
* University of Illinois trustee seat has been empty a year
* Rauner campaign: 'Governor believes David Duke is a racist'
* Our View: Dubious tariff endangers newspapers' future
* Byron York: Paul Manafort has a point
* EJ Dionne: Will Trump exhaust our democratic capacities?


* LeClaire home offers beautiful views of the river
* Free workshop explains cancer
* David 'Hacksaw' Flannigan
* Paul D. 'Ike' Lincoln
* Jerrel Charles Mulvey
* Joe E. Boyd
* Eleanor Biley
* Doris Taylor
* Timothy Paul Cooksey
* Lloyd Higgs


* Russia probes come up against claims of executive privilege
* Clippers hang on to beat Nuggets 109-104 for 6th win in row
* Ducks score 4 in second period, hold off Penguins 5-3
* Lawmakers ask if states or feds should alert about missiles
* Australia PM says Olympic unity won't denuclearize N. Korea

* Hultgren makes strong mark on nation's new...
* Dissident artist Ai Weiwei and US Rep. Ran...
* Subcommittee on Financial Institutions and...
* US places Pakistan on special watch list f...
* Letters to the editor: Election commission...
* Hultgren makes strong mark on nation's new...
* Dissident artist Ai Weiwei and US Rep. Ran...
* Subcommittee on Financial Institutions and...
* Lawmakers back renaming Warrenville post o...
* This RSS feed URL is deprecated

* This RSS feed URL is deprecated...
* Durbin: Majority of Senate will support DA......

* This RSS feed URL is deprecated...

* Gutierrez offers Kelly an apology, and all it took was the White House chief of staff implying Donald Trump, misspoke
* At The Illinois Holocaust Museum | Speak Truth To Power
* Happy Anniversary, La Patisserie P!
* Watch a BellyQ bartender make a newfangled old-fashioned using dancing fish flakes
* Activists clash with aldermen over community benefits at Obama Presidential Center hearing, and other Chicago news
* The [Wednesday] Papers
* Fix Illinois by breaking the state apart? A gubernatorial candidate makes the case.
* Loy Webb shows us The Light
* Durbin says Trump's Haiti comments were "hate-filled, vile and racist"
* Di Leo: Setting the Record Straight on Israel


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Winter iPhone 8 and iPhone X demand forecast to be down
* Huawei integrating Android Messages app for SMS/RCS
* Apple’s future, iPhone addiction plans, Project Fi Unlimited & more – Pocketnow Daily
* Apple gives out $2,500 in stocks to most employees
* YouTube’s new monetization policies are cracking down on smaller channels
* Apple to Lease New Office Building in Culver City
* ASUS joins Project Treble with ZenFone 4 Android Oreo update

* Collins ranked MLB's No. 9 catching prospect
* With maturity comes lofty expectations for Eloy
* Pirates rebuild not met with enthusiasm
* Moncada guiding Robert during mini-camp
* White Sox announce player development staff
* Robert at ease during Sox hitters mini-camp
* Moncada guiding Robert during mini-camp


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller