Madigan denounces “corporate pay-to-play”
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* House Speaker Michael Madigan has issued a statement about corporate tax break legislation which stalled in his chamber last week…
We must resist the temptation to cave to corporate officials’ demands every time they impose a deadline for payment in exchange for remaining in Illinois, and end the case-by-case system of introducing and debating legislation whenever a corporation is looking for free money from Illinois taxpayers. This practice creates an unsettling and worrisome appearance of some new kind of corporate pay-to-play, which should be troubling to other business leaders and their shareholders, public officials and Illinois taxpayers. We should instead take a more long-term approach to helping all job-creating businesses in Illinois thrive and succeed, including thoroughly reviewing how we currently provide incentives to big corporations.
Presently, four Illinois corporations are seeking the General Assembly’s approval for tax breaks or incentives. If their requests are approved by the Legislature, these corporations would, collectively, see their tax burdens decrease by approximately $67 million.
The companies requesting these taxpayer-funded breaks currently pay little to no corporate income tax to the state, contributing little or nothing to help fund the very services from which they benefit significantly. Meanwhile, middle-class families continue struggling through a recession and job loss. So I find it very difficult to support tax giveaways for corporate CEOs and millionaire shareholders whose companies pay little in state taxes. I question our priorities when corporate handouts are demanded by companies that don’t pay their fair share while middle-class families and taxpayers face an increasing number of burdens.
According to the 2011 census data, the per capita income for an Illinois resident is $29,376. Assuming a 5% state tax rate, more than 45,000 new individuals would need to begin paying income taxes to make up for the lost revenue that would result from the most recent incentives that corporations now want the General Assembly to bestow upon them. Lost in the discussion of this topic is that without new revenue, these giveaways are only possible by making additional cuts to crucial programs that impact working men and women across Illinois.
As more companies have begun seeking incentives from the state, the Illinois House has held hearings on developing criteria for how future incentives should be awarded – a new process that values the jobs preserved or created instead of the tax breaks granted, and acknowledges that for each incentive given, individual taxpayers will have to pay the difference. We will continue holding these hearings in January when the Legislature reconvenes during its normally scheduled session.
Emphasis was in the original.
Discuss.
52 Comments
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Yep, they’re just exactly like Mandela
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* I saw this Illinois Review post a few minutes ago and cannot stop laughing…
What could downstate GOP conservative House members Bill Mitchell, Michael Unes, David Reis and DuPage County’s Jeanne Ives possibly have in common with the late South African President Nelson Mandella?
All five agree those that register to vote should provide ID. South Africa demands its voters show an ID before entering the polling booth. […]
How do we know Nelson Mandela agreed with showing IDs? Here’s a photo taken at a 1998 rally at the start of the African National Congress 1999 election campaign wearing a T-shirt with the instructions: “Get an ID. Register. Vote.”
Actually, the bill introduced by the above legislators required already registered voters to show a state ID before they could vote. You already have to show some proof of residence to register in Illinois. If you register by mail, you’re supposed to show ID the first time you vote.
But, yeah, other than that, Mitchell, Unes, Reis and Ives are just like Nelson Mandela.
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A message from your buddy Bruce
Wednesday, Dec 11, 2013 - Posted by Advertising Department
[The following is a paid advertisement.]
I’ve noticed a few of you may have a few opinions about my campaign.
So is there a better forum for you to actually vote on what ad I put on TV next? I think not! Click here to vote!
And by the way you folks don’t know how either: A) painful; B) hilarious; or C) both it is for me to read Miller’s comment section! Nothing keeps me humble and grounded quite like this crew!
- Your buddy (or not),
Bruce
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Quinn dawdles while Rauner burns it up
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* Lynne Sweet interviewed Gov. Pat Quinn…
Quinn’s political operation is skeletal, which has some of his backers worried. Quinn sees no need at this stage to put together a data-digital-social media-driven operation that is the hallmark of many campaigns because, he told me, he has an army of foot soldiers.
“There is no substitute for folks who go door to door. We did our petition drive in 10 days, got 55,000 names to activate that,” Quinn said.
OK, he can delay the social media stuff if he wants, but he needs to start ramping up his campaign apparatus soon. Believe it or not, Quinn doesn’t yet have a campaign manager, and that field operation of his is basically just a loose conglomeration of existing county, township and ward organizations.
Meanwhile, Bruce Rauner reported another $100,000 contribution today and $95,000 in contributions yesterday afternoon. He’s now at $6.2 million and rising.
But, yeah, no hurry or anything.
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More Golden Horseshoe Awards
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* The nominations for our Golden Horseshoe Award for Best campaign staffer - Senate Democrats were focused on two people. But since this is a non-election year and since Giovanni Randazzo deservedly won it last year, we should definitely go with SDem fundraiser Dovile Soblinskas…
Vibrant, motivated, and one of the key components in the political organization of the Senate. She runs a well organized operation, able to coordinate events for the President and caucus as a whole as well as individual members. Finally, she’s a master of motivation, forcing members to set reasonable goals and providing them with the tools and support to get there. People wondered about how much the SDems raised so much in 2012? Obviously Nicholson is the architect, but Dovile was the blueprint.
Dovile started as an intern and her hard work has made her a key member of Senate President Cullerton’s campaign staff.
* The Golden Horseshoe Award for Best campaign staffer - Senate Republicans goes to overwhelming favorite Pat Barry…
He gets the process and understands how to build coalitions. He helped Sam McCann unseat Deanna Demuzio which was considered a long shot until Pat showed up and got them pointed in the right direction. As somebody who worked with the Chamber I saw plenty of campaign workers up close and Barry’s work was exceptional. .
Congrats to both. They earned it.
* And now, let’s move to today’s nominations…
* Best campaign staffer - Illinois House Democrats
* Best campaign staffer - Illinois House Republicans
As always, it’s about intensity far more than the number of votes. So, please, fully explain your nominations or I won’t give them much weight. Also, do your best to nominate in both categories if you can. Thanks!
34 Comments
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The mystery deepens with resignation
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* One down…
The Regional Transportation Authority’s top administrator, one of two agency executives facing a state harassment probe, announced his retirement Tuesday.
The transit agency said Joseph Costello, the RTA’s executive director since December 2010, intends to step down at the end of February “to pursue the next chapter in his life.” […]
The announcement did not include any mention of an investigation by state Executive Inspector General Ricardo Meza’s office into allegations of sexual and racial harassment directed at Costello and his chief of staff, Jordan Matyas, who is House Speaker Michael Madigan’s son-in-law.
The Chicago Sun-Times reported in September that the Meza probe is focused on anonymous sexual and racial harassment complaints against Costello and Matyas that allegedly were made at meetings and were lodged more than a year ago. […]
“These accusations are part of a smear campaign orchestrated by those who would rather that the RTA not be empowered by law to provide the real, effective oversight that is so desperately needed to ensure that northeastern Illinois has an efficient and world-class mass transit system,” Matyas said in a prepared statement earlier this fall.
* More…
The announcement came just two hours after the RTA canceled a special meeting Wednesday of its Compensation and Human Resources committee. The purpose of the meeting, which had been called Monday, was unclear but members were scheduled to have a closed session to discuss “personnel.”
13 Comments
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Boeing next in line
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* The widely expected decision to consolidate the newly merged Office Depot and OfficeMax headquarters in Florida means the loss of up to 1,600 well-paying jobs for Illinois. The company had sought a state tax break, but none were approved last week…
Office Depot spokeswoman Karen Denning said Illinois’ lack of an incentives package was partly behind the company’s decision. Other factors included taxes and the ability of the existing 625,000 square-foot facility in Florida to accommodate all of the new company’s employees. That facility is almost twice as big as the OfficeMax facility in Naperville.
Office Depot doesn’t yet have a timeline for moving its operations in Naperville and other headquarters staff in the Chicago suburb of Itasca to Boca Raton, Denning said.
The company has an existing incentives package from the state of Florida but officials there have not commented on any potential new tax breaks or other perks.
Dave Roeder, a spokesman for Illinois’ Department of Economic Opportunity, said the agency offered to work with the company on incentives that didn’t require lawmakers’ approval, but “the company did not pursue those options with us.”
* ADM is expected to announce soon whether it will locate its new “world headquarters” in Chicago without a state tax break…
ADM reiterated its statement from last week, saying it is reviewing its options in the wake of inaction in the House.
“We expect to make an announcement soon,” a company statement noted. […]
However, a spokesman for House Speaker Michael Madigan, D-Chicago, said the speaker would like to implement a more intensive process to help guide the state through the economic development process.
“We’re hopeful of putting together some kind of evaluation plan,” Brown said.
* And now Boeing is putting a new factory out for bids…
Boeing had conditions from the beginning on the 777X [production factory]: big incentives from the State of Washington and big givebacks by its largest union here, the International Association of Machinists and Aerospace Workers. The state came through, delivering in a special session of the Legislature a package worth $8.7 billion through 2040. But union members balked, voting down a contract extension last month that would have frozen their pensions. So Boeing began sending out requests for proposals to more than a dozen states and cities around the nation.
State legislators in Missouri last week delivered a $1.7 billion Christmas gift should Boeing come their way. Economic development officials in Alabama, Kansas, North Carolina and Utah — Boeing has declined to provide a full list of suitors — were putting together bids, too, and bragging about their respective environments of can-do optimism. […]
But [Washington{ state officials said they believed the region had aces in the hole that would ultimately prevail: experience in producing airplanes under deadline conditions and closer proximity than most of the competition to Asian suppliers and customers, an important consideration for ocean-borne freight shipment.
* St. Louis already has some big aircraft facilities, so Illinois could tap into that local expertise and was also invited to submit a bid…
Illinois is assembling its own package, according to Illinois Department of Commerce spokesman Dave Roeder. “Illinois is responding to Boeing’s call for proposals regarding its 777X manufacturing center, which has the potential to create thousands of jobs,” he said. He added that the proposal will be submitted electronically today and a hard copy will be delivered to Boeing tomorrow.
“We believe our proposal is compelling for a company that already has its headquarters in Illinois. However, a confidentiality agreement prevents us from discussing details at this time,” Mr. Roeder said.
Boeing does have a plant in the Metro East area. But I’m really skeptical that Illinois could win this war.
A main reason Boeing moved its headquarters to Chicago was so that it could be the big cheese in its new home state rather than fight against its unions for political influence.
30 Comments
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Hardiman challenges Quinn sigs
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* He’s got spunk…
A little-known candidate for governor is hoping to take down Gov. Pat Quinn even before voters head to the polls next March.
Democrat Tio Hardiman and his running mate, lieutenant governor candidate Brunell Donald, filed a challenge to Quinn’s nominating petitions Monday, claiming the incumbent chief executive doesn’t have enough valid signatures to get on the ballot.
To qualify for a spot on the ballot, state law requires a candidate for governor to collect signatures from 5,000 registered voters.
Quinn says he’s just fine.
“We are confident in the number and quality of the governor’s nomination petitions,” campaign spokeswoman Leslie Wertheimer said Tuesday.
I highly doubt that Hardiman will succeed. But some Quinn allies have also challenged Hardiman’s signatures. That might be worth watching.
16 Comments
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Having their cake and eating it, too
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* The Tribune published an editorial today that took a shot at Republicans who voted against the pension reform bill. They specifically called out Tom Cross and Kirk Dillard in an editorial entitled “Why did Republicans reject pension reform?” This was the paper’s chief explanation of its headline…
Many of the Republicans depend on union support, even a few who describe themselves as backers of the tea party, shrink-government movement. They’ll tell you they’re all for curbing government spending — but given the chance, they voted “no.” They rail against the state’s fiscal woes, but they rejected the most significant cost reform legislation that had a chance of passing.
The nuances of the Dec. 3 roll call abound. Those nuances also explain long-standing weakness and division in this state’s Republican Party. If you can’t wrest your members from the thrall of public employee unions, if you can’t get them to support spending reform and limited government, how exactly do you distinguish yourselves from the other side?
Republicans by and large run for office in this state and nationally on a platform of fiscal conservatism. They pledge to improve Illinois’ business climate, to make this state more attractive for investment, to keep taxes low.
But when it was time to push the green button for pension reform, they turned into impostors.
The unions had nothing to do with Cross’ “No” vote. And while Bruce Rauner led the public charge against the bill, there was not a single mention of Rauner’s name in the entire Tribune editorial.
Instead, the Trib adopted Rauner’s rhetoric against the unions to rail against Republicans who took Rauner’s side.
Fascinating.
* The Tribune editorial board tipped its hand about Rauner in a December 2nd editorial that also pushed for pension reform…
Because they’ve owned state government through the Rod Blagojevich and Pat Quinn governorships, Democrats do own these problems. But Republicans in the past have been complicit in ruining Illinois’ finances — and in this campaign cycle, they should project the bold willingness to overhaul Springfield that might attract swing voters next year.
Will one of the Republicans running for governor emerge as Illinois’ answer to New Jersey’s Chris Christie, Wisconsin’s Scott Walker or Indiana’s Mitch Daniels and now Mike Pence, Republicans who persuaded their respective electorates to vote for revolutionary agendas?
We don’t know. Several of the Republicans come across as go-along-to-get-along candidates, proud that they know everyone in Springfield. In a state as blue as Illinois, that small-bore approach is all but guaranteed to be a dead-bang loser.
To my eyes, anyway, that looks like a preview of a Rauner endorsement.
Just sayin…
29 Comments
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Caption contest!
Wednesday, Dec 11, 2013 - Posted by Rich Miller
* House Speaker Michael Madigan shakes Rep. Carol Sente’s hand after last week’s pension reform vote…
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