*** UPDATED x1 *** Here we go again
Tuesday, Nov 1, 2011 - Posted by Rich Miller
* The stakes in the tax cut bidding war have been raised yet again…
…according to the top Republicans, Senate GOP Leader Christine Radogno and House Republican Leader Tom Cross, Mr. Quinn indicated he’d like to hike the earned-income tax credit as part of any deal to help CME Group Inc. and CBOE Holdings Inc.
Mr. Cross said expanding the earned-income tax credit would cost the state $90 million to $180 million a year.
So, Senate President John Cullerton wants $100 million to CME, House Republican Leader Tom Cross wants almost $500 million in additional corporate tax breaks, and now this. Add in EDGE tax credits for Sears and the total on the table is now as high as $800 million. A year. Every year.
This state can’t afford to buy new paperclips, and yet it’s trying to give money away hand over fist.
…Adding… Illinois EITC facts…
You may qualify for up to $5,666
If you are single and earned less than $13,400
Single with one child and earned less than $35,450 single with 2 or more children and earned less than $40,250
Married and earned less than $18,400 married with one child and earned less than $40,450 married with 2 or more children and earned less than $45,250
Over 600,000 families received earned income tax credits last year. It’s a good program. The question is the affordability of any of these plans, not just EITC.
*** UPDATE *** Stay classy, CBOT…
Someone at the Chicago Board of Trade issued another message to the Occupy Chicago protesters by blanketing them with these McDonald’s job applications. The protesters are understandably offended by both the message and by the hundreds of pieces of new litter around them.
…Adding… CME’s quarterly profits rose 29 percent…
CME Group Inc , the biggest U.S. futures exchange operator, reported a higher-than-expected quarterly profit on Tuesday as expense growth slowed and Chief Executive Craig Donohue said he would keep costs down. […]
The company, which operates the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Mercantile Exchange, said third-quarter net income rose 29 percent to $316.1 million, or $4.74 a share, from $244.3 million, or $3.66 a share, a year earlier. Analysts on average expected $4.69 a share, according to Thomson Reuters I/B/E/S.
- 47th Ward - Tuesday, Nov 1, 11 @ 3:53 pm:
Why do I have the feeling that soon I’ll be the only person in Illinois who isn’t getting a special tax break?
What am I doing wrong? Should I threaten to move? Hire a lobbyist? What?
- Quinn T. Sential - Tuesday, Nov 1, 11 @ 3:54 pm:
{This state can’t afford to buy new paperclips, and yet it’s trying to give money away hand over fist.}
With an increase in the EITC the money is going back to the people from whom the money was taken in the first place. Juxtapose that against the CME tax credit which raises the profitability of the enterprise, and the benefits go investor/shareholders, many of whom live nowhere near Illinois.
- Rich Miller - Tuesday, Nov 1, 11 @ 3:56 pm:
47th, I’ve been thinking about asking for a subsidy to move to another state. I might be able to make that case with the governor.
lol
- Arnold - Tuesday, Nov 1, 11 @ 3:57 pm:
“..$800 million. A year. Every year.”
Springfield has no problem swallowing annual interest payments that high without blushing.
Sounds to me like someone still isn’t paying their fair share.
Illinois needs to seriously re-examine its status as a state with notoriously low taxes. We can’t have the goods and services we all need and deserve without paying for them.
- Das Man - Tuesday, Nov 1, 11 @ 4:09 pm:
Fortunately Illinois has recently increased taxes on alcohol, candy, soft drinks and personal hygiene products to offset these special interest tax breaks.
I wonder what they are smoking under the Dome?
- Rich Miller - Tuesday, Nov 1, 11 @ 4:10 pm:
===a state with notoriously low taxes===
That ended in January. Ergo the uproar.
- Demoralized - Tuesday, Nov 1, 11 @ 4:23 pm:
I say this half tongue in cheeck and with no disrespect meant to those who could lose their jobs - at what point does it become “cheaper” for the state to let CME leave?
- Rich Miller - Tuesday, Nov 1, 11 @ 4:28 pm:
Demoralized, if they do all these tax breaks, it would be cheaper to let them go right now.
- OneMan - Tuesday, Nov 1, 11 @ 4:32 pm:
Well the trading and investing industry employs a surprising large % in cook county
http://online.wsj.com/article/SB10001424052970204618704576645220740008208.html
- OneMan - Tuesday, Nov 1, 11 @ 4:33 pm:
Also lots of non-CBOT folks have offices in that building.
- Rich Miller - Tuesday, Nov 1, 11 @ 4:34 pm:
OneMan, the building and HQ stays no matter what.
- hisgirlfriday - Tuesday, Nov 1, 11 @ 4:40 pm:
Guess the traders had a lot of free time yesterday to gather up McDonald’s apps while they were banned from the floor thanks to the MF Global bankruptcy/fraud?
But if Quinn wants an expansion of the EITC, how about he trades an expansion of that for the casino bill? Why not let a gambling stupid people tax pay for a tax credit for the hard-working, low-income folks?
- FYI It's not the "state's money" - Tuesday, Nov 1, 11 @ 4:41 pm:
Rich Miller said, “This state can’t afford to buy new paperclips, and yet it’s trying to give money away hand over fist.”
um, no. It’s not the state’s money, Rich.
Cutting taxes, even if the cut is a tax subsidy, is NOT “giving money away”. It’s not your money, Rich. It’s not the state’s money, Rich.
It’s the income earners’ money.
The money doesn’t belong to anyone else.
The money does not belong to the state, or the public, unless the state takes the money by taxing the money.
Presuming that money that does not belong to you is yours to take and use for your own desires is despiccable.
- PQ's Primary Opponent - Tuesday, Nov 1, 11 @ 4:44 pm:
dont forget to add the $100million state subsidy to the horse racing industry that Quinn offered up last week..
- OneMan - Tuesday, Nov 1, 11 @ 4:46 pm:
Got that, I was talking about the flyers…
Your firm finds out you did that it isn’t going to be pretty.
- Zeb - Tuesday, Nov 1, 11 @ 4:46 pm:
“We can’t have the goods and services we all need and deserve without paying for them.”
We are all tired of paying for corruption, fraud, waste, and expense on top of the costs for all the goods and services we DON’T “need”.
Pay for it yourself, Arnold. You don’t deserve one more penny from anyone.
- 47th Ward - Tuesday, Nov 1, 11 @ 4:50 pm:
===The money doesn’t belong to anyone else.===
In this country, where we the people form governments and elect representatives to provide for the general welfare etc. etc., the money the government collects in the form of various taxes belongs to us collectively. Our government collects and distributes this money (our money, not your money or my money) as its elected officials decide.
Or have you been living on the moon your whole life?
- Borealis - Tuesday, Nov 1, 11 @ 4:51 pm:
Like I said last week:
“Come one, come all to the great fire sale at the State of IL, until November 10th. There are a few
stipulations for eligilbility, check with your local State Rep or Senator. If they don’t reply to your query, call Pat Quinn or Mike Madigan asap before the spoils are gone”.
- Rich Miller - Tuesday, Nov 1, 11 @ 4:54 pm:
===Presuming that money that does not belong to you is yours to take and use for your own desires is despiccable. ====
I don’t presume tax money is mine.
Also if you want to live in a state that has no paved roads, schools, running water, etc. I can supply you a list.
- Ahoy - Tuesday, Nov 1, 11 @ 4:58 pm:
I’m going to ignore the FYI commenter for obvious reasons; it doesn’t even deserve more of a response.
To the “With an increase in the EITC the money is going back to the people from whom the money was taken in the first place” comment, if it’s a credit, it’s sometimes getting more back than what you paid. It’s the big reason people like credits instead of deductable.
In the case of the CME subsidy, it’s not a tax credit; it’s just a tax break.
All that being said, I’m still for transforming the tax code over all. Let’s look into reducing the tax increase to 2010 levels, lowering the overall sales tax and extending it to all services except medical. If we do this, we can also do away with the personal property replacement tax and any state money to local governments since they will see an increase in sales tax revenue. It’s not a solution, just an idea to look into.
- Illin in Illinois - Tuesday, Nov 1, 11 @ 5:00 pm:
Zeb - if you want to live in a place where there are no services that you are forced to pay for, might I suggest moving to Somalia?
That place should be a paradise to you.
- Rich Miller - Tuesday, Nov 1, 11 @ 5:08 pm:
===In the case of the CME subsidy, it’s not a tax credit; it’s just a tax break.===
Actually, it’s rewriting the tax code so that CME specifically pays a much lower percentage on its income.
- D.P. Gumby - Tuesday, Nov 1, 11 @ 5:18 pm:
What happened to the Green Party proposal to tax each trade at CBOT/CME? The amount per trade was de minimus but, taken together, could solve the whole budget mess.
- soccermom - Tuesday, Nov 1, 11 @ 5:31 pm:
I understand the budgetary implications of this, but I have to say I am happy that the Governor is including the people at the lowest end of the income scale in this deal for the CME fatcats. Illinois’ EITC is disgracefully low, and it’s time we started letting people who make almost nothing keep more of it, especially with the new higher income tax rate.
- Occupy My Mind - Tuesday, Nov 1, 11 @ 5:32 pm:
Gumby,
Some of the occupy groups are trying to rally around this exact idea. They call it the ‘Robin Hood Tax’. This is a Federal Transaction Tax (FTT). The concept is to tax financial transactions at a very small rate. The individual tax is quite miniscule but in aggregate is quite large. What you tax and to what amount drives how much money is raised. You could just do transactions like those at CME or CBOT. In its’ purest form, and one that most left leaning groups want, is to tax all electronic transactions. Imagine if you used your debit card, deposited money, withdrew money, moved money around, or bought stock you would get a small tax added on to the transaction. You get the picture.
- siriusly - Tuesday, Nov 1, 11 @ 5:32 pm:
Great points 47 (as usual I find myself agreeing with you) - the whole “that’s my money” argument is a total fallacy.
- Zeb - Tuesday, Nov 1, 11 @ 5:35 pm:
“Also if you want to live in a state that has no paved roads, schools, running water, etc. I can supply you a list.”
We’re also tired of stupid, phony arguments.
Illinois isn’t the most debt-ridden state in the nation because we have the best roads, the best schools, the best running water, etc.
Quite the opposite- we have a failing economy BECAUSE of too much government spending.
- Bill - Tuesday, Nov 1, 11 @ 5:42 pm:
Well, not exactly. We have a failing economy because our taxes are too low.
- Rich Miller - Tuesday, Nov 1, 11 @ 5:59 pm:
===we have a failing economy BECAUSE of too much government spending. ===
I’m not clear on that economic argument. Enlighten us.
- Rich Miller - Tuesday, Nov 1, 11 @ 5:59 pm:
Unless, of course, it’s just a bumper sticker slogan. In that case, you might wanna find another blog.
- Lakeview - Tuesday, Nov 1, 11 @ 6:39 pm:
I’m dying to see the memo that is going to be sent out to CME/CBOT/CBOE members, reminding them that it is bad form to taunt political activists while crying poor to the state. It’s got to be effing golden.
- CicularFiringSquad - Tuesday, Nov 1, 11 @ 7:44 pm:
CMEbies hadtime because they had blockcaded every one with MF accounts $ that $40 billion disaster needs some ’splaining…like who was watching who?
- Lemony Snicket - Tuesday, Nov 1, 11 @ 7:59 pm:
11. Historically, a story about people inside impressive buildings ignoring or even taunting people standing outside shouting at them turns out to be a story with an unhappy ending.
14 more, here:
http://files.neilgaiman.com/mirror/111017162300/occupywriters.com/by-lemony-snicket.html
- Anon - Tuesday, Nov 1, 11 @ 8:31 pm:
Man, the CME is writing the book on how not to draw public sympathy and shooting themselves in the foot.
Just curious, does anybody actually expect this to move during veto session or will this be considered later?
- Scoot - Tuesday, Nov 1, 11 @ 9:39 pm:
I enjoy the humor of those in the CBOT building!
- prol - Wednesday, Nov 2, 11 @ 10:35 am:
This is bad bad policy and tone deaf politics. The occupy movement has gained steam and support because of this exact kind of corporate welfare. I was part of a coalition that fought to raise our taxes to save schools and the safety net. Now that money is going straight from my pockets to the LaSalle Street 1%? http://iironblog.org/2011/10/26/make-wall-street-pay-illinois-fights-lasalle-street-taxpayer-shakedown/
- Noble - Wednesday, Nov 2, 11 @ 10:55 am:
So, this is a day late, but it’s important to know that the top EITC amount cited in the “EITC facts” listed above is for the federal credit, only. The Illinois EITC - the only one over which the General Assembly has any control - is statutorily set at only 5 percent of its federal counterpart right now, meaning an Illinois family’s state EITC couldn’t exceed $283. That’s one or trips to the grocery store, for a lot of families!