* A change in attitude or just a change in state finances?…
As part of the [legislative tax cut deal] there’s a part pushed by Democrats that gives some relief for the working poor, too.
House Republican Leader Tom Cross of Oswego has opposed an increase in those credits, saying the package should be about jobs, not entitlements. And Republican opposition to that part of the plan was at least partly behind its overall failure a couple weeks ago.
But an observer who’s been watching this closely passed along the vote from 2000, when the Illinois earned income tax credit was originally approved. Cross voted yes, as did everyone else in the House, by a 117-0 margin.
Cross spokeswoman Sara Wojcicki Jimenez says Cross still supports the idea of the credit philosophically. But …
“He does not believe we can afford to expand the program at this time,” she said.
I received the same roll call. The bill passed unanimously in both chambers, even though the Senate was controlled by Republicans in 2000. It was signed into law by a Republican governor. Click here to see the House roll call. The Senate roll call is here.
* But, as subscribers were told earlier this week, not all is well on the Democratic side at the moment…
The approach to separate the business tax breaks from the ones affecting individual taxpayers still faces opposition from the joint chair of the Illinois Legislative Black Caucus, state Rep. Will Davis (D-Homewood).
Davis believes the earned income tax credit that Bradley wants to raise from 5 percent to 10 percent should increase to as high as 15 percent, though the south suburban lawmaker stressed that is his personal position and not a Black Caucus stance.
“It’s going to be an all-Democratic bill,” Davis said, referring to the legislation that will contain the earned income tax credit and standard exemption increases. “If there’s absolutely not going to be Republicans, and they know that walking in the door, why can’t we as Democrats pass a higher earned income tax credit to help more individuals?”
* Then again, one of the reporters for that story Tweeted this last night…
It sure looks like the CME package is gonna happen. Majority Leader Currie told me tonight she sees it passing.
Currie sponsored the amendment with the EITC upgrade and indexing the personal exemption to inflation. Instead of three bills, they’ll have two. One for mainly corporate taxes and one for personal taxes. More…
With the separation, “It looks like there’s the basis for agreement,” said House Majority Leader Barbara Flynn Currie, D-Chicago.
While there is some reluctance to confer tax breaks on corporate behemoths that threaten to leave, “the reality is that everyone feels like we’re over a barrel,” she said. “It may be bad public policy … but as long as there’s an opportunity for blackmail and poaching, the proposition is difficult to say ‘no’ to.”
The House Republicans put together a chart on the corporate tax provisions. Click here to read it.
* The House Democratic negotiator remained positive…
Lawmakers may be less willing to vote “no” when facing a specific question: Do you support this particular tax incentive for businesses? Should poor families get a break on their tax bill?
“We have a better chance of passing it this way,” said Rep. John Bradley of Marion, the lead negotiator for House Democrats. “If somebody was reluctant to vote for one piece or another, they would have the option of not voting on one of the pieces.”
The other advantage is that one part could pass even if the other fails. It’s not all-or-nothing. The risk, however, is that neither will pass when the House convenes Monday.
The Senate has already approved a version of entire package. A spokesman said President John Cullerton has no objection to the idea of voting again on separate pieces when it meets on Tuesday.
If the House doesn’t pass both of those bills, it’s doubtful there will be any Senate action.
* From Reuters…
CME declined to comment.
Sears said it was encouraged lawmakers were “returning to Springfield to consider a package that will help us remain an Illinois company.”
The agreement is bad news for other states that have been wooing the Illinois companies. Ohio made a pitch for Sears, while CME officials recently met with the mayor of Indianapolis about potentially relocating to the city.
The agreement also will “lessen the tax burden on our family farmers and small businesses,” Cross said.
* Related and a roundup…
* U.S. household wealth takes biggest hit since 2008
* Illinois turns to private sector to cover old bills
* Statewide hospital group hires PR firm
* Ousted Alderman Lands State Job: Months after voters on the Northwest Side bounced him from the City Council, former Ald. John Rice has found a job in the administration of a fellow 36th Ward Democrat—Gov. Pat Quinn.
* Laid off state workers heading back to work
* ‘Right to work’ law leads to lower wages for all
* Coal gasification plant approved by Senate
* Amid Environmental Worries, Tenaksa Plant Proposal Endures
* Fed crackdown on online food stamp fraud empowers IL
* Group: More than 3,700 Illinois civil unions in 6 months
* AT&T Starts Throttling Heavy iPhone Data Users To 2G Speeds
- hisgirlfriday - Friday, Dec 9, 11 @ 7:40 am:
Nothing on the impending hire of the new highest paid public employee in Illinois - new football HC at Illinois Tim Beckman?
- wordslinger - Friday, Dec 9, 11 @ 8:20 am:
–House Republican Leader Tom Cross of Oswego has opposed an increase in those credits, saying the package should be about jobs, not entitlements. –
Are those Cross’ words or the reporters?
If EITC is an entitlement, then so too are mortgage interest and property tax deductions, child credits, and section after section after section in the tax code in business tax credits and deductions.
When it comes to EITC, when did the House GOP decide to abandon the principles and policies of Milton Friedman and Ronald Reagan, anyway?
- so... - Friday, Dec 9, 11 @ 9:34 am:
Republicans SHOULD support the earned income tax credit. It doesn’t create a culture of dependency because it’s only available to people who have a job. “Welfare queens” need not apply. It is a very successful program that has helped to lift thousands or even millions of people out of poverty.
Heck, the earned income tax credit was initially proposed by Milton Friedman (and he didn’t even want to require that people work to receive it), hardly your typically liberal/progressive do-gooder.
- Bill White - Friday, Dec 9, 11 @ 9:50 am:
Q:When it comes to EITC, when did the House GOP decide to abandon the principles and policies of Milton Friedman and Ronald Reagan, anyway?
- Bill White - Friday, Dec 9, 11 @ 9:51 am:
A: Several years ago?
Sorry for the premature post.
- Anonymous - Friday, Dec 9, 11 @ 10:59 am:
To all the posters supporting the EITC increase (or the tax cuts for Sears etc. for that matter): how do you propose to pay for the $350MM cost?
- Bill - Friday, Dec 9, 11 @ 11:17 am:
Who could be better for a Dep Director at IDOT than Rice? After decades of driving to Mr. Beef to pick up Billy’s lunch and that treacherous round trip to the Hall every day without an accident, Rice knows a lot about traffic safety. $85 K is a little light for a man of his experience but I’m sure they’ll tighten him up after a couple of months on the “job”.
- wordslinger - Friday, Dec 9, 11 @ 11:22 am:
–After decades of driving to Mr. Beef to pick up Billy’s lunch and that treacherous round trip to the Hall every day without an accident, Rice knows a lot about traffic safety.–
Mr. Beef on Orleans for City Hall, I would presume. Much better than the one on Harlem in the ‘hood.
- jake - Friday, Dec 9, 11 @ 11:26 am:
Re: “Nothing on the impending hire of the new highest paid public employee in Illinois - new football HC at Illinois Tim Beckman?”
Presumably the salary for the Illinois comes entirely from the revenue from the football program, and is not public dollars. Not that I don’t think such salaries are ridiculously disproportionate, but it is more in the category of ridiculous incomes for entertainers, rather than ridiculous salaries for public employees.
- Way Way Down Here - Friday, Dec 9, 11 @ 12:17 pm:
===A website for former 50th Ward alderman Bernard Stone states that he is now a political analyst who is “available for interviews and media consultation.” Stone did not reply to an email request for an interview.===
That’s priceless. You gotta send a car for Bernie, silly.
- Jim - Friday, Dec 9, 11 @ 12:22 pm:
Obviously, the EITC has its place in the tax code.
But the references to Reagan and Friedman are inapt because the real question is whether a state as deeply in debt as Illinois would be foolish to pass legislation optional containing tax cuts. Illinois is being pushed by CME and Sears, but increasing the EITC is entirely optional and, to put it more bluntly, absolutely crazy under the current fiscal circumstances.
- AnonieMoose - Friday, Dec 9, 11 @ 12:30 pm:
CHICAGO, Dec. 7, 2011 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today declared a fourth-quarter dividend of $1.40 per share, payable December 29, 2011, to shareholders of record December 19, 2011.
- jake - Friday, Dec 9, 11 @ 12:55 pm:
Re: ” Illinois is being pushed by CME and Sears, but increasing the EITC is entirely optional and, to put it more bluntly, absolutely crazy under the current fiscal circumstances.”
One could be pushed to increase the EITC by one’s conscience. Although it is not fashionable to say so, elected officials do have consciences. In order to get anything done they have to work with, and compromise with, people who have different values, but the best of them retain their values in spite of that.
- Rich Miller - Friday, Dec 9, 11 @ 1:05 pm:
=== increasing the EITC is entirely optional ===
Only if you don’t want to pass a bill.
- bigdaddygeo - Friday, Dec 9, 11 @ 1:41 pm:
Barbara Flynn-Currie should sponsor only the EITC and deduction increase if she thinks its good policy. If she thinks breaks to CME and SHLD are blackmail and bad public policy then she should block it from coming to the floor or convince her caucus to defeat it and thereby saving Illinois taxpayers and burdening states that we compete against. (Wouldn’t that be a double WIN?)
Sorry guys, but this makes me crazy. Illinois is a sovereign entity and would rank as the 19th largest economy in the world. Statehood in 1818 would rate Illinois as one of the oldest modern representational democracies in the world. Through rules and customs the individual leaders of the GA and the governor can stop or advance any almost any state government action. Half the time these leaders sound like they are in high school student government.
- reformer - Friday, Dec 9, 11 @ 1:46 pm:
The Sears package doubles the exemption on the estate tax, from the current $2 million to $4 million. Republicans don’t seem worried about the lost revenue from sweetening that tax break for the 1%. It’s only a modest hike for the working poor that the GOP says we can’t afford. Typical.
- Robert - Friday, Dec 9, 11 @ 2:06 pm:
is Rep Davis wrong? Would an up-down vote on only the EITC not pass?