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*** UPDATED x1 Quinn backs away from tax and fee list *** Capital plan revenue falls short, Quinn wants more cash, legislators unwilling so far

Friday, Dec 14, 2012

*** UPDATE *** Gov. Pat Quinn told reporters today that some of the items on the tax and fee hike list weren’t his, except for the loophole closings, which he’s supported for a long time. The elimination of tax breaks for ethanol, for instance, came from the corn growers, Quinn said. Other tax and fee ideas came from members. He said he didn’t now much about some others, including the frack tax. But he did say that driver-related “loopholes” would have to be closed. Listen…

[ *** End Of Update *** ]

* The 2009 capital plan relied on several different revenue sources, including a sales tax on candy. Another of those sources was video gaming, which has just now got off the ground. Gov. Pat Quinn says the program is in need of more funding because of a $300 million shortfall, and he’s given legislative leaders some options

Several would hit motorists; including a higher sales tax on new cars, to bring in $250 million. Raising the car rental sales tax: $30 million.

Likely to raise prices at the fuel pump: eliminating current tax breaks for biodiesel and ethanol would raise $185 million to $230 million.

Other proposals targeting the energy industry would impose new natural gas-fracking fees on drillers downstate, to raise an estimated $55 million; a new oil drilling severance tax would raise $25 to $30 million; and closing a loophole specifically for the oil industry would bring in another $75 million.

The governor told legislators that he doesn’t need all of it and that they can choose any combination of new taxes and fees, as long as it comes close to $300 million.

There are other taxes on the list too, including $75 million on satellite TV subscribers, a fee on digital entertainment downloads and an internet sales tax.

Again, these are just proposals, and from what I’m hearing, they’re not going over very well in the GA. So it could be back to the drawing board for Quinn.

- Posted by Rich Miller        


26 Comments
  1. - western illinois - Friday, Dec 14, 12 @ 9:52 am:

    http://www.abetter54.com/
    We could improve our rural arterials for 1-2 million a mile instead of 10-20 million. We have a wish list of 250 miles so i just saved 2 Billion right there
    We could look at what Ohio did with the turnpike(they didnt sell it) but they are Sqeezing more money out of it.


  2. - cassandra - Friday, Dec 14, 12 @ 10:23 am:

    Well, when you are running for re-election already, it takes some measure of courage to make another bid to raise taxes. Especially when you are going to have to campaign on making your earlier tax increase permanent and maybe more bids for additional “revenue.”


  3. - Anonymous - Friday, Dec 14, 12 @ 10:30 am:

    Maybe Squeezey has an idea.


  4. - langhorne - Friday, Dec 14, 12 @ 10:37 am:

    WHAT?


  5. - langhorne - Friday, Dec 14, 12 @ 10:39 am:

    sorry, mistaken entry above.

    what? we need more revenue, and no one has mentioned to go-to, always dependable, cigarette tax that brings in money from stinky bad behavior, while decreasing consumption and improving health? say it aint so.


  6. - Looking in - Friday, Dec 14, 12 @ 10:48 am:

    More taxes for the Illinoisians…cool!


  7. - bman - Friday, Dec 14, 12 @ 10:52 am:

    How about not giving Illinois away to big corporations and fat cats!


  8. - unspun - Friday, Dec 14, 12 @ 10:57 am:

    If Quinn wants additional revenue, he needs to kick the Gaming Board in the rear and have them speed up the video gaming licence process. There’s no reason why applicants should expect to wait for seven months after submitting their applications and screenings. Again, don’t ask for more until you’ve exhausted current available avenues.


  9. - Dirty Red - Friday, Dec 14, 12 @ 11:00 am:

    = So it could be back to the drawing board for Quinn. =

    Is there a point? What interest do the incoming super majorities have in listening to any “options” the most unpopular governor has for them?


  10. - Arthur Andersen - Friday, Dec 14, 12 @ 11:17 am:

    More taxes on car sales? Ridiculous.
    The industry has barely recovered from the recession and Quinnie wants to offset the huge incentives offered on many new car sales with another lug for the State.
    Did Squeezy squeeze the oxygen supply to his brain?


  11. - CircularFiringSquad - Friday, Dec 14, 12 @ 11:29 am:

    Maybe PQ could ask Squeezie to wrap himself around the foot draggers at the gaming board …it only took 3 years for those masters of the universe to get the first coins plunked down.


  12. - Pot calling kettle - Friday, Dec 14, 12 @ 11:34 am:

    ==eliminating current tax breaks for biodiesel and ethanol would raise $185 million to $230 million==

    If you remove the tax breaks, who would buy E-85? Since the mileage is worse and the current price is only a little lower, it’s not really worth it as is. If the tax break were removed, I think most folks would just go back to regular gasoline.


  13. - wizard - Friday, Dec 14, 12 @ 11:40 am:

    my vehicle gets 18% less mpg on e85 so i look for a 20% price differential or i do not use it.


  14. - dupage dan - Friday, Dec 14, 12 @ 11:49 am:

    Let’s not forget that POTUS wants states to increase funding for Medicaid as part of the whole Obamacare package. I know it’s not part of capital spending programs but the money for that comes out of our pockets eventually (gas taxes, new/rental car taxes, gas-fracking taxes, etc).

    Not to worry. We are told we are some of the least taxed folks in the nation so we have room to grow in that area.


  15. - dupage dan - Friday, Dec 14, 12 @ 11:52 am:

    E-85 is a scam. Costs more to make than gasoline. Uses more fuel than it makes. Subsidies/welfare for agri-businesses.


  16. - PQ's Primary Opponent - Friday, Dec 14, 12 @ 12:33 pm:

    those are the same loophole closings that PQ told the mental health providers he was closing to increase their funding. And, I thought the satellite tax was for education funding.. me thinks PQ flunked Gen Math 101 at Fenwick


  17. - the Patriot - Friday, Dec 14, 12 @ 12:38 pm:

    Read my lips, “Tax Everything.

    How about we just tax dumb ideas. Bewteen Quinn, two Madigans, and the IL republican party I think we can probably payoff the pensions and have a few bucks to spare.


  18. - western illinois - Friday, Dec 14, 12 @ 12:39 pm:

    http://www.aaroads.com/forum/index.php?topic=8253.msg190709;topicseen#msg190709
    Some more on Ohio


  19. - Sir Reel - Friday, Dec 14, 12 @ 1:12 pm:

    Here’s an idea - don’t do any more capital projects. A lot of them were member initiative pork anyway. If the $ are needed to pay off bonds for already completed projects then good luck.


  20. - Demoralized - Friday, Dec 14, 12 @ 1:26 pm:

    @Sir Reel:

    Yes, that’s such a good idea. Don’t fix any state infrasture. Wait for it to completely fall apart so we can spend three times as much later to fix it. Smart thinking there.

    People that suggest we should let infrastructure wither on the vine never cease to amaze me.


  21. - Demoralized - Friday, Dec 14, 12 @ 1:26 pm:

    *infrastructure” Apparently I can’t spell today


  22. - Bill - Friday, Dec 14, 12 @ 1:59 pm:

    Hey Quinn,
    Just take it from the pension funds.


  23. - dupage dan - Friday, Dec 14, 12 @ 2:24 pm:

    Bill, Pleasepleaseplease don’t give him any ideas.


  24. - mokenavince - Friday, Dec 14, 12 @ 2:33 pm:

    Much ado about the guys in Springfield doing nothing.We are wasting taxpayers money,I feel
    nothing will ever get done there.

    Quinn is just lost.


  25. - Robert the Bruce - Friday, Dec 14, 12 @ 3:33 pm:

    ==Is there a point? What interest do the incoming super majorities have in listening to any “options” the most unpopular governor has for them?==
    The press release Pat Quinn wishes he could send - “As they’ll ignore me anyway and blame me, I’ve decided to stop sending the legislature ideas. Instead I look forward to hearing how Speaker Madigan wishes to raise the revenue to pay for the capital projects, and I look forward to signing his pension reform bill.”


  26. - Anon. - Friday, Dec 14, 12 @ 4:12 pm:

    ==Gov. Pat Quinn told reporters today that some of the items on the tax and fee hike list weren’t his ==

    Is that your final answer?


Sorry, comments for this post are now closed.


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