Capitol Fax.com - Your Illinois News Radar » “Rauner opens door to higher income tax rate”
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
“Rauner opens door to higher income tax rate”

Monday, Jul 21, 2014

* Way to go, Rick Pearson

Republican governor candidate Bruce Rauner today opened the door to a potential income-tax hike, saying the 3.75 percent personal rate he would inherit if he wins this fall would be subject to negotiations with a General Assembly that’s expected to remain in Democratic hands.

Rauner, elaborating on the tax plan he unveiled last week, said voters shouldn’t get hung up on short-term budget issues and tax rates. Instead, he said, the overall goal is to make structural changes in state government that would lead to a rollback of the income tax to 3 percent by the end of his first term in office.

In releasing his proposal, Rauner called for a four-year phase out of the 2011 state income tax increase approved by Democrats and signed into law by his general election challenger, Democratic Gov. Pat Quinn. That increase, which bumped the personal rate from 3 percent to 5 percent, is scheduled to roll back to 3.75 percent on Jan. 1, before the next governor is inaugurated.

“Well, I think we’ll work out the specific rate with the General Assembly like we’re going to work out the entire budget with the General Assembly. My personal goal, (the) 3.75 (personal rate) I think is good, but we need to work out the overall plan and how we transition,” Rauner said during a campaign event at a River North restaurant.

“What we need to do is make major structural change over time so we become a growth state again. That’s the critical thing. And here’s what my commitment is. We need to roll the (personal) income tax rate back from 5 percent back to 3 percent where it started within a four-year period and I think 3.75 is a good place to step to next but we’ll work out those details with the General Assembly,” he said. [Emphasis added]

It’s just not possible to immediately get a brand new service tax up and running. No way could businesses comply right away. So you can’t use money from the service tax to plug the second half of this fiscal year’s budget. He’s gotta raise that rate from 3.75 percent. And he all but admitted he’d have to start at five. And that means a post-inaugural vote. And a bipartisan vote at that.

That’ll be fun to watch.

- Posted by Rich Miller        

27 Comments
  1. - Snucka - Monday, Jul 21, 14 @ 4:23 pm:

    Mr. Rauner: Please tell us what the state budget would look like if the income tax were 3%. Even assuming you could get the sales tax through, from where would the $7.4 billion in savings come? Please be specific.


  2. - 47th Ward - Monday, Jul 21, 14 @ 4:27 pm:

    ===we’ll work out those details with the General Assembly===

    Details schmetails. Rauner’s a big picture guy, he’s not going to get bogged down in the details.

    On the other hand, at least he recognizes there’s a whole ‘nother co-equal branch of government he’ll need to win over.


  3. - NotRMiller - Monday, Jul 21, 14 @ 4:29 pm:

    First admission that the Constitution calls for a Legislative branch..Maybe the candidate has a clue..


  4. - Wensicia - Monday, Jul 21, 14 @ 4:35 pm:

    If he wins, he’ll be quietly hoping for the GA and Quinn to extend the 5% rate during the lame duck session. Not likely.


  5. - ChinaTown - Monday, Jul 21, 14 @ 4:37 pm:

    Interesting development.

    Let’s be honest… Rauner’s been running the state for months. The chickens and costumes are just what fill the vacuum as the PQ people and media wait for his next move.


  6. - Grandson of Man - Monday, Jul 21, 14 @ 4:50 pm:

    It’s time that at least some realism creeps into the Rauner Campaign and the candidate. I’m glad he realizes that the state desperately needs the tax revenue.

    I don’t see how a state can be “pro-growth” when its finances are collapsing, which would happen without stronger revenue.

    As far as phasing out a future income tax increase, that can be a political battle for another day, just like the current tax increase was a battle this year. What else can we do? At least we would be kicking the can down the road in a more-responsible way.


  7. - DuPage - Monday, Jul 21, 14 @ 4:58 pm:

    A new tax plus not eliminating the income tax increase is a bad idea. A NEW tax of any kind is a bad idea. Once a new tax is established, it will not go away. Keep the income tax at the present rate, and a new tax will not be needed.


  8. - Wally - Monday, Jul 21, 14 @ 5:00 pm:

    How much buying power was taken away from the citizens of Illinois the past 3 1/2 years? How much buying power is taken away when gas costs $3.50- $4.25?


  9. - steve schnorf - Monday, Jul 21, 14 @ 5:07 pm:

    Wally, do you have a point, or are you asking a serious question? If the latter, you’ll have to be more specific; by inflation or what?


  10. - RNUG - Monday, Jul 21, 14 @ 5:08 pm:

    Maybe I have too much of an anti-Rauner bias, but to me his language implies more of a negotiation where he believes he is either an equal to the GA or that he will have the upper hand over the GA.

    Even after winning I don’t think he will be in a position of strength vis-à-vis the GA. He MIGHT get there if he learns to effectively horse trade with Madigan or he vetoes enough bills, but he won’t start out equal. I predict a rough first year if Rauner wins the election.


  11. - Steve - Monday, Jul 21, 14 @ 5:11 pm:

    Bruce Rauner is another name for Jim Edgar-Jim Thomspson: he wants to raise taxes. This is great news for Pat Quinn.


  12. - wordslinger - Monday, Jul 21, 14 @ 5:11 pm:

    I’m very surprised by this. I figured Rauner would just beat Quinn like a rented mule on the tax increase, then, when he won, claim “things are much worse than I thought” and ask for more money.

    The fact of the matter is both candidates are now on record as saying that that the tax hike needs to be extended. And Rauner wants new taxes, to boot.

    Didn’t see that coming.


  13. - LIncoln Lad - Monday, Jul 21, 14 @ 5:20 pm:

    Maybe Bruce has a conscience. Doesn’t want to promise what he knows he can’t deliver.


  14. - Oswego Willy - Monday, Jul 21, 14 @ 5:30 pm:

    ===“Well, I think we’ll work out the specific rate with the General Assembly like we’re going to work out the entire budget with the General Assembly. My personal goal, (the) 3.75 (personal rate) I think is good, but we need to work out the overall plan and how we transition,” Rauner said during a campaign event at a River North restaurant.===

    “Mike Madigan never had to deal with me.”

    “I would say 1/3 of the GOP GA is corrupt”

    “Career Politicans”

    “Bribed by Union Bosses”

    There is no other job, hands down, that will be more fascinating to see being done than the Legislative Liaison positions directly out of the Governor’s Office.

    Maybe a close second, maybe, might be “Governor Rauner’s” floor leaders.

    One-third of the a Republican General Assembly is corrupt; the Democrats lead by Speaker Madigan, those Career Politicians, and President Cullerton, calling into his district to STOP the original tax from sun-setting…

    I have not typed one letter…to the plan… and yet the hurdles seem high.


  15. - circular firing squad - Monday, Jul 21, 14 @ 5:30 pm:

    Wow…glad we did vote for Mitt in the Crossover orimary….This flip made Big Jim and Blink Jim look honest
    He should have never fell for the media taunting about no details…tsk tsk


  16. - VanillaMan - Monday, Jul 21, 14 @ 5:46 pm:

    Smart move by the challenger. Rauner continues to show that he is willing to lead even when he knows his decision won’t be easily accepted. He continues to fill the vacuum Quinn leaves wide open.

    Quinn is going to bleed independents and RINOs by displaying a level of realism they’ve been demanding.


  17. - Oswego Willy - Monday, Jul 21, 14 @ 5:55 pm:

    ===Quinn is going to bleed independents and RINOs by displaying a level of realism they’ve been demanding.===

    How, by admitting he is going to try to raise the tax rate the first day he is inaugurated? I bet those Conservatives, and low tax Republicans won’t mind walking away from Rauner.

    Quinn will veto any raise if he’s a lame duck. There won’t be enough votes to override that.

    So - VanillaMan -, the voters are going to be lemmings to a man whose main campaign themes have been hammer and shake, and now wants cooperation and compromise?

    I give you it takes “stones”, but stones sometimes don’t mean votes.


  18. - circular firing squad - Monday, Jul 21, 14 @ 6:13 pm:

    We also wonder if Mr & Ms Reboot want their cash back from Flip


  19. - steve schnorf - Monday, Jul 21, 14 @ 6:53 pm:

    you got it Steve, the way Thompson and Edgar got whipped. JRT, the longest serving gov in the state’s history and JE, last R to win Cook County and 102 counties. You sure can spot the ones who were easy to beat.


  20. - Cheswick - Monday, Jul 21, 14 @ 8:43 pm:

    Will conservatives, seeing the handwriting on the wall, just stay home on election day?


  21. - Now What? - Monday, Jul 21, 14 @ 9:12 pm:

    Trying to get my brain around the pseudo Machiavelliian move here by Brucey. Is he now defining the election as a straight up personality difference between him and Quinn? Is he just assuming that voters don’t want to be bothered with details of budgets and percentages and just want Quinn out? Is he assuming that public employees and public pensioners hate Quinn so much that they’ll hold their nose and vote for Brucey? They did for Blago in 06 and one could argue for Quinn in ‘10.

    If Brucey reaches out to the unions next, I’m buying a Harley!


  22. - Michelle Flaherty - Monday, Jul 21, 14 @ 9:32 pm:

    So Rauner wants to re-enact the temporary tax increase so he can make what’s already going to have gone away go away again?


  23. - Chicago Cynic - Monday, Jul 21, 14 @ 10:17 pm:

    Only took three days for someone in the press (other than Rich) to finally report this correctly. This is exactly the point 47, soccermom, me and many others made when this tax plan came out. He’s for extending the existing tax and a whole new tax. That should go over big with the base.


  24. - Norseman - Monday, Jul 21, 14 @ 10:35 pm:

    Michelle, I wish this was one of your excellent snarky comments. However, you perfectly described this goofy paradox.


  25. - DuPage Bard - Tuesday, Jul 22, 14 @ 12:11 am:

    Big question- how do his lemmings, such as Ives and Duffy spin this one? They scream about lowering the income tax and letting it expire. How are they going to justify his comments now? This is going to be interesting watching the “new age” Republicans take hold of the Illinois savior.


  26. - Yellow Dog Democrat - Tuesday, Jul 22, 14 @ 7:19 am:

    Michelle -

    But - and this is very important - Rauner wants you to understand that reinstating the tax hike was not his idea.

    PERSONALLY, he would prefer it if the rate schedule went something like this:

    2015 - 3.75%
    2016 - 3.03%
    2017 - 3.02%
    2018 - 3.01%

    Look, I get it. Policy wise, Rauner really goofed by attacking Quinn for making the tax hike permanent. Math is forcing Rauner to embrace more or less the same policy.

    Politically, it could be troublesome.

    Five years ago, Quinn thought a temporary tax increase and expanding the sales tax were good ideas. Rather than deny those things, he should admit them.

    “Yes, I supported modernizing the sales tax five years ago — business owners across Illinois told me the Rauner Tax would crush small business, which drives job creation, and unlike Bruce Rauner, I listened.”

    Might as well own it like you did term limits.


  27. - NO SENSE ! - Wednesday, Jul 23, 14 @ 8:50 am:

    Listen to Mr.Rauner he knows what he talking about he pays less taxes then most everyone if the commercials are true. If true that is on your past government that allows people making so much money to get off by paying less taxes.


Sorry, comments for this post are now closed.


* Memorial Day on social media
* It's just a bill
* Get in the game or go home
* "Right To Know" Is Wrong For Illinois. Vote No On SB1502
* *** UPDATED x3 - Madigan office begs to differ - Rauner: Not enough *** Madigan crows about procurement bill passage, urges Rauner to negotiate budget with HDems
* This Is Illinois
* Unclear on the concept
* Today's number: $484.5 million
* Board of Elections promotes doomsday scenario over $9,000 bill
* Civic Federation defends Civic Committee against Tribune attack
* HDems take tax hike bill away from Rep. Ives
* A closer look at the GOMB memo
* House Dems still can't find enough support for their own budget
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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

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

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


Loading


* Superintendents to Call For Full Budget in Spri.....
* *** UPDATED x3 - Madigan office begs to differ .....
* Our View: Are Democratic candidates for governo.....
* House moves Rauner/Madigan-Backed procurement r.....
* Automatic voter registration bill passes Illino.....
* The Latest: Illinois House approves TRUST act f.....
* Chicago-Area Mayor Joins Rauner Push for Proper.....


* The Latest: Illinois House OK's state purchasing changes
* Military vets hope 74-hour baseball game breaks world record
* Arrest made in slaying of Illinois man in Wisconsin
* Holiday weekend shooting kills 15-year-old Chicago boy
* Illinois Legislature OK's automatic-voter registration
* Superintendents to call for full budget in Springfield
* Chicago-area mayor joins Rauner push for property tax freeze
* Fewer grads from public medical schools staying in Illinois
* Fewer grads from public medical schools staying in Illinois
* Springfield police blame 2 rival groups for shootings

* Illinois legislature OKs automatic-voter registration
* Superintendents to call for full budget in Springfield
* Odds against Springfield casino after amendment blocked
* All options remain on table as budget talks continue
* Illinois farmers may soon be growing industrial hemp
* U of Illinois trustees' retreat to address free speech
* Big retirement payouts tiny part of big pension mess
* Big pensions tiny part of big pension mess
* Senate approves workers' comp changes
* Push for downtown Springfield casino taking shape

* Like our roundup? Share it around.
* The place where media pain hurts most: Springfield
* For the GOP, it's all about the Benjamins
* Online lender Avant's reboot still hasn't yielded profit
* Mike Keiser knows where golf is alive and well. (It's not Illinois)


* 30-year-old man dies more than a week after shooting in Lawndale
* 2 people shot in Elgin
* AP exclusive: Suspected drug thefts persist at VA centers
* 41-year-old man shot in Canaryville
* Cabrera homers, has go-ahead single as White Sox slip past Boston 5-4
* Cubs bring in Chicago’s top chefs to redesign ballpark cuisine
* President Barack Obama library’s real estate buzz
* 16-year-old girl missing from South Shore
* Police: 52-year-old man killed in Austin domestic shooting
* Man, 42, shot in West Town


* All aboard: Joliet Rocket steamin' into town
* Cheap out: Five fun things to do for free
* Quigley says Russia probe is 'in its infancy'
* Oak Lawn woman who lost fiance to Vietnam, never wed mourns on Memorial Day
* Red Sox not fretting over dealing potential stars to White Sox for Chris Sale
* Monday shootings leave 3 dead after domestic incidents
* Venus Williams looking for first French Open title in 20th appearance
* This is what Betsy DeVos thinks about people who oppose her school-choice vision
* Cubs lead Padres 2-0 in 4th
* Snubs and slights are part of the job in Trump's White House


» Illinois Budget Fight Could Affect 2018 Elections
» New Lawsuit Accuses Imprisoned Former Speaker Of Sex Assault
» 17-Month Old Semaj Crosby’s Death Linked To Systemic, Family Failures
» 17-Month-Old Semaj Crosby’s Death Linked To Systemic, Family Failures
» Senate Passes Workers' Compensation Bills — Most Republicans Reject It
» State Week: Tax Hike Getting Cold Shoulder
» Popular Music Store Finds New Home On Navy Pier
» For West Side Students, Playing Outside Is Protesting Against Gun Violence
» Offline And On Paper: Chicago Teens Make Zines In An Ephemeral World
» Judge Refuses To Dismiss Murder Case Against Chicago Cop Who Shot Laquan McDonald


* Illinois legislature OKs automatic-voter registration
* Superintendents to call for full budget in Springfield
* Odds against Springfield casino after amendment blocked
* All options remain on table as budget talks continue
* Illinois farmers may soon be growing industrial hemp
* Our View: Remember the reason for Memorial Day
* Responsible Budget Coalition: Illinois needs revenue to thrive
* George Will: How to restore American self-reliance
* U of Illinois trustees' retreat to address free speech
* Bernard Schoenburg: Lawmakers taking heat, but is a charity announcement so bad?


* Moline man hits light pole, faces four misdemeanor charges
* 'They are our best and brightest': Memorial Day observances at Rock Island National Cemetery
* Belleville man charged in Family Dollar armed robberies
* Cubbie Conversation, May 29, 2017
* Rodgers: Community support 'restores your hope in the human spirit'
* Sights and sounds from Belleville's 2017 Memorial Day Parade
* O’Fallon honors fallen heroes at Memorial Day ceremony
* Royal Lakes clerk, 4 trustees abruptly resign in wake of election
* O’Fallon, Shiloh students graduate from SIUE
* O’Fallon women win awards at SWIC art show


* Cabrera's 4 RBI lift White Sox past Red Sox
* Budget talk in Island Lake
* Palatine parks co-hosting fishing derby:
* Inaugural Fox Lake Sprint Triathlon
* Arlington Heights bike plan open house Thursday

* Teacher raised in Yorkville running agains...
* Protesters continue die-in at U.S. Rep. Ra...
* Jim Walz Will Challenge Randy Hultgren for...
* PHOTOS: Protesters stage die-in at Randy H...
* U.S. Rep. Randy Hultgren's office the scen...
* Second Democrat announces bid to unseat Hu...
* Sweet: Hultgren, Roskam, Kinzinger avoid b...
* Local Republicans, Democrats praise appoin...
* Dems shift financial debate to spotlight T...
* Batavia resident announces candidacy for 1...

* Trump says he favors more money for health......

* 'Inexcusable:' Durbin, Duckworth slam HUD ......

* EXTRA: How time passes
* The Weekend In Chicago Rock
* The wheels of justice turn slowly for Laquan McDonald. Nearly three years and counting.
* In Jefferson Park the opposition isn’t about density. Here is a test about the issue of density: What ward do the richest people in Chicago live in and how does it compare in density to the ward where the poorest people in Chicago live?
* Republic Steel Memorial Day Massacre. Chicago. 1937.
* Chicago is a union town, charter schools are no exception.
* HB 2808 will do to the rest of the state’s special education what already happens in Chicago.
* Pie & Brand: Hate, Anger, Violence & Carrying On
* TrackNotes: Clouds Over The Preakness
* Losers!


* 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

  
* Join Talk Android as a writer!
* LG working with Qualcomm on Snapdragon 845 for LG G7
* Join Talk Android as its assistant video editor!
* Apple Neural Engine will put AI to facial, speech recognition
* Latest OnePlus 5 teaser asks you to decide which picture is from the 2017 flagship
* LG and Qualcomm working to get Snapdragon 845 on G7
* [Video] Unboxing the Honor 6X

* Late rally gives White Sox edge over Red Sox
* Sale's next opponent knows his best the best
* 2 White Sox make Prospect Team of the Week
* Sale 'appreciative' of White Sox tenure
* Shields working toward Minor League start
* Sale 'appreciative' of White Sox tenure
* White Sox call on Holmberg vs. Boston, Price


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

Archives
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