Illinois House Deputy Majority Leader Lou Lang (D-Skokie) on Friday filed legislation, House Bill 689, that would reform the Illinois tax code, providing a tax cut to 99% of Illinois taxpayers while raising an additional $1.9 billion dollars to help fund essential state services.
Illinois is well into its tenth month without a budget, and while lawmakers and the Governor have long recognized the need for new revenue to invest in children, families and communities, our outdated tax laws mean that we cannot raise new revenue without raising taxes on those least able to afford it, Lang says.
“We don’t have to stay stuck in the past. There is another path forward that puts tax dollars back in the hands of hardworking families and eases the pain caused by recent budget cuts,” said Lang. “When my bill passes and the governor signs it, ninety-nine percent of taxpayers will get a tax cut.”
Lang’s bill works in tandem with State Rep. Christian Mitchell’s (D-Chicago) Constitutional Amendment resolution, HJRCA-59, which would allow Illinois voters to choose to reform our tax code by voting for fair tax where lower rates apply to lower incomes and higher rates apply to higher incomes.
Illinois is one of only a handful of states that has a flat income tax, which forces middle class families to carry the majority of the tax load. When Illinois amends its constitution to allow for a fair tax, the General Assembly will no longer be forced to raise taxes on the hard-working middle class families who can least afford it, Mitchell argues.
“The Fair Tax, where lower rates would apply to lower incomes and higher rates would apply to higher incomes, is long over due in our state. It is fundamentally unfair that our tax rate is the same no matter if you are a minimum wage worker or a millionaire, ” said Mitchell. “With a Fair Tax, we can provide tax relief for ninety-nine perfect of taxpayers, and reform our outdated tax code.”
State Senator Don Harmon (D-Oak Park), who is Chief Sponsor of the Fair Tax in the Senate welcomed the move by Lang.
“I’m delighted to work with Leader Lang and Representative Mitchell to help cut taxes on working families,” Harmon said. “We offer this as a serious solution to moving our state forward and we hope that our colleagues on the other side of the aisle will join us in effort to make our state more fair and to help provide revenue to the vital services we all care deeply about.”
Friday, Apr 15, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Clean Energy Trust just released their annual Clean Jobs Illinois survey and it shows a mixed bag. Illinois leads the Midwest in clean energy jobs, but is losing wind and solar positions to other states due to Illinois’ broken Renewable Portfolio Standard (RPS).
The Good News?
Clean energy jobs grew 9% overall in 2015, exceeding the previous year’s projection
At 113,918 jobs, clean energy employs more people in Illinois than the fossil fuel sector
The Bad News?
Wind and solar jobs were down 6.9% year over year because of Illinois policy headwinds
Fixing the Illinois RPS would solve this problem and help drive job creation in the state’s wind and solar sectors. Clean energy is a major job creator in Illinois, and smart policies can accelerate job growth in the state.
It’s time to act. To build Illinois jobs and keep pace with other states, let’s fix the RPS now. Don’t let Illinois fall further behind.
The majority party’s desire to skyrocket taxes is breathtaking. A progressive income tax would be the straw that breaks the Illinois economy’s back – sending our state even further into the economic doldrums. It’s beyond time for Democrats to come to the table and work with the governor to find common ground on real structural reforms that will get our economy moving in the right direction.
Best,
ck
Um, proponents claim it’ll reduce taxes for 99 percent of taxpayers, but the 1 percent will most definitely be upset.
The question will be if the Democrats can successfully portray this as a broad tax cut, or if cynical voters will just assume everybody’s taxes will rise. Rauner will obviously do his best to ensure the latter.
…Adding… As if on cue…
Today, Democrat state Rep. Lou Lang introduced a bill he said would increase taxes in Illinois by $1.9 billion. This comes just one week after Senate President John Cullerton proposed tracking Illinois drivers to tax them by the mile, and on the heels of news Illinois lost 105,000 residents on net to other states in 2015 – the largest exodus in state history.
The Illinois Policy Institute is staunchly against this tax increase proposal. CEO John Tillman issued the following statement in response:
“If Illinois Democrats were as creative on pension, economic and labor reform as they are on taxes, Illinois’ budget crisis would be solved by now. Instead, they resort to the same old tactic over and over again: Raise taxes, waste money, delay reform, raise taxes again.
“State Rep. Lou Lang’s proposal to increase taxes by $1.9 billion sends a clear message: Democrats want hard-working taxpayers to pay for their ineptitude. It’s doubly offensive because this proposal comes at a time when lawmakers have not even passed a state budget. How can they tell taxpayers they need more money without offering them an idea of how this money will be spent?
“Remember that in 2014, lawmakers attempted to implement a so-called ‘fair tax,’ which they claimed would only increase taxes on the ‘rich.’ The reality was the 2014 proposal would have increased taxes on anyone with more than $22,000 in taxable income. Rightly, this tax increase was rejected. Now the same crew of tax-hikers has come out with a new proposal they say will only raise taxes on those with more than $500,000 in income – but we know their real motive. They are trying to implement the same old tactic, just with a different sales pitch this time.
“We know from Illinois’ own history that tax increases will not solve Illinois’ persistent financial problems. In 2011, Democrats enacted a tax increase that raised $31 billion in taxpayer dollars over five years. They claimed the cash infusion would help pay down the state’s backlog of bills and restore Illinois’ fiscal health. Instead, 90 cents out of every $1 from the tax increase went to pensions – a pension system these same Democrats refuse to reform.
“Illinoisans already pay the second-highest property taxes in the nation, the high sales taxes, high income taxes and are facing an increase to the highest gas taxes in the nation. Businesses that employ taxpayers face steep barriers to success. Now the Democrats are proposing yet another tax increase to pay for their unwillingness to reform our state. It’s time for lawmakers to stop turning to taxpayers to bail them out, and to step up and enact the serious reforms this state needs.”
…Adding More… Illinois Chamber President and CEO Todd Maisch…
The Illinois Chamber is adamantly opposed to a plan for a graduated income tax envisioned in legislation which was introduced today. The plan would punish small business owners and would accelerate the documented flight of high net worth individuals out of our state.
The vast majority of small business owners pay taxes not at the corporate rate, but as individuals. Thus, any effort to “gauge the rich” is actually putting a target squarely on the backs of small businesses, the very entities we count on to provide the majority of new jobs in Illinois. Punishing successful businesses with higher taxes is a sure way to result in fewer of them in Illinois. Individuals with higher net worth are our citizens who are most able to move their success to other states. We are confident that if this plan were ever to become law, it would not generate anywhere near $1.9 billion for Illinois, but would generate millions in revenue for more welcoming states.
Illinois State Fair Manager Kevin Gordon is adding two accomplished rockers to the Grandstand line-up at this year’s Illinois State Fair. This co-headlining act combines two artists who have six Grammy awards to their credit, in addition to countless other awards and accomplishments. This year, fairgoers will be treated to the best of 80’s and 90’s rock when Pat Benatar & Neil Giraldo and Melissa Etheridge take the stage in Springfield.
Pat Benatar is a four-time Grammy award winning singer/songwriter who shot to fame in the 1980’s and has been touring for more than 35-years. Known as a rule-breaker and a trail-blazer, Benatar is revered as one of the most beloved female rock icons of all time. Benatar was the first female solo artist to have a music video played on MTV. The video for her song ‘You Better Run’ was the second video ever played on the new music video cable channel, and also was the first video to feature guitarists. Benatar is best known for hit songs such as, “Love is a Battlefield,” “Hit Me with Your Best Shot,” “Heartbreaker,” “We Belong,” and “Shadows of the Night.” To this day, Benatar and guitarist husband Neil Giraldo remain a rock’n'roll powerhouse, selling out concerts and wowing audiences.
Melissa Etheridge is a well-known signer/songwriter who came to fame in the late 80’s. Etheridge, known for her confessional lyrics and raspy vocals, has been a prominent force in the music industry for nearly 30 years with 12 albums, two Grammy awards, 17 Grammy nominations, an Academy Award and a star on the Hollywood Walk of Fame. Etheridge is best known for her songs, “Come to My Window,” “I’m the Only One,” “I Want to Come Over,” and “I Need to Wake Up.”
Not opposed to either. Liked them both back in the day. Just wish we could get some more recently popular acts.
Friday, Apr 15, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Your high schooler is ready to graduate and move on to an exciting phase in life. You have provided them with resources and tools to succeed, but have you overlooked an important part of their education? Financial literacy is a critical component to a successful future. Lack of financial education jeopardizes and limits economic opportunities for all consumers. Credit unions address this often overlooked topic of fiscal literacy for teens and young professionals by offering workshops and training sessions. Credit unions are proud to provide financial education to ensure a secure future for the leaders of tomorrow.
Visit ASmarterChoice.org for more information on the Credit Union Difference.
* The bill, Rep. Lou Lang’s HB 689, would take effect if voters approve a constitutional amendment allowing a graduated income tax…
(A) for taxpayers who are married filing a joint return or head of household:
(i) an amount equal to 3.5% of the portion of the taxpayer’s net income for the taxable year that is $200,000 or less;
(ii) an amount equal to 3.75% of the portion of the taxpayer’s net income for the taxable year that is more than $200,000 but not more than $750,000;
(iii) an amount equal to 8.75% of the portion of the taxpayer’s net income for the taxable year that is more than $750,000 but not more than $1,500,000; and
(iv) an amount equal to 9.75% of the portion of the taxpayer’s net income for the taxable year that is more than $1,500,000; and
(B) for all other taxpayers:
(i) an amount equal to 3.5% of the portion of the taxpayer’s net income for the taxable year that is $100,000 or less;
(ii) an amount equal to 3.75% of the portion of the taxpayer’s net income for the taxable year that is more than $100,000 but not more than $500,000;
(iii) an amount equal to 8.75% of the portion of the taxpayer’s net income for the taxable year that is more than $500,000 but not more than $1,000,000; and
(iv) an amount equal to 9.75% of the portion of the taxpayer’s net income for the taxable year that is more than $1,000,000.
*** UPDATE 1 *** From Emily Miller…
Hi Rich,
I noticed that you posted about the new fair tax proposal introduced by Leader Lang. This proposal is the result of years of negotiations and hard work. The bill introduced reflects feedback and input from members on both sides of the aisle, and should be viewed as an opportunity for lawmakers and the Governor to come together to reform our outdated tax code.
Most notably, the measure provides a tax cut for over 99% of Illinois taxpayers and provides $1.9 billion in new revenue to restore cuts to vital services.
Attached is a fact sheet from Voices for Illinois Children to help folks understand the impact of a fair tax on children and families in Illinois.
Lang’s graduated income tax proposal– ironically introduced on Tax Day- is merely the camel getting his nose in the tent and would likely result in greater job loss and continual tax hikes by a General Assembly that seems to be unable to control its appetite for more tax dollars.
Illinoisans should not trust the General Assembly enough to give them carte blanche ability to add brackets, increase the rates or lower the income threshold at which higher rates apply. It’s no accident a recent Gallup poll highlighted that a mere 25% of Illinoisans “are confident in their state government” – worse than any other state. Illinois has one of the highest outbound migration rates in the nation and higher taxes on job creators is not going to help that situation. It will exacerbate it.
Lang’s proposal is more about the election year politics we’ve seen on display across the nation. However, punishing job creators is not the answer to moving Illinois in the right direction, nor is removing legislative barriers that prevent continual tax hikes by a General Assembly that has an addiction to tax dollars.
Regards,
David From
Illinois State Director
Americans for Prosperity
So, he has a new column that rates Madigan. For “fiscal stewardship,” Zorn gives Madigan “the same F grade I gave Rauner.” He bases this on Madigan’s pension sweetening for special interests and for kicking the can down the road on paying for those pensions. He faults Madigan for not fixing structural revenue problems, like a flat income tax and a too-narrow sales tax. Zorn also complains that Madigan hasn’t fixed the school aid formula and blasts Madigan for allowing the income tax hike to partially expire on schedule.
Though he’s not as all-powerful as his critics believe, Madigan’s been powerful enough for long enough to have kept us from being a deadbeat state in the grips of Squeezy the Pension Python.
For political acumen, I’d give Madigan a solid B.
As chairman of the state Democratic Party and éminence grise of the General Assembly he’s built and maintained strong majorities in both chambers, in part by insulating his foot soldiers from having to take the tough votes necessary to run a responsible government. Under Democratic and, with the exception of Rauner, Republican governors he’s protected his flanks while cutting deals that compromise with the opposition and, occasionally, his own party’s principles.
I’d give him an A for political leadership, but he’s paid the price for having a public demeanor so icy and charmless that you’d think he was auditioning to be a Bond villain. Not being outwardly likable is a liability when you’re in a high-stakes PR war with a faux-folksy governor who drops his g’s and wears a cheap watch.
* Rep. Sandack begs to differ…
Meh. Giving Madigan same "F" 4 financial mess but "B" & "A" for how he maintains power to create mess is curious. https://t.co/hQpRyTvyRC
* Frankly, this whole thing is silly. Believing the governor is a failure doesn’t mean that you support Madigan. And believing Madigan is a fiscal failure, but giving him good marks for winning elections and jamming through an unconstitutional pension reform is more than a little odd.
And, yes, I fully agree that Madigan has passed plenty of bills over the years which were opposed by unions, trial lawyers and other staunch supporters. The problem is he won’t do it now.
Madigan has his reasons. He’s under intense pressure from a kabillionaire governor to raise taxes after whacking unions, trial lawyers, etc. Madigan will then be “rewarded” when Rauner and his pals spend their kabillions against Madigan’s candidates, who will be badly hobbled for raising taxes in an election year defined by voter anger and will have to fight off Rauner’s money without their prime contributors, who will be furious at what happened to them. That’s insane. Nobody in their right mind would ever agree to that.
* That’s why Madigan, who supposedly has the political acumen and leadership to make things happen, needs to help this inexperienced governor find another way to resolve this crisis on behalf of the state he has represented for so many years.
It’s not like the chad fiasco in Florida, but a suspected software malfunction believed to have failed to record the write-in votes of 3,200 voters in DuPage County election held on March 15.
According to Robert Saar, Executive Director of DuPage County Elections Commission, the touch-screen voting machines of DuPage County got more than 3,200 clicks for the Democratic Party’s candidate for DuPage Recorder. However, the machines failed to record the name of Moon Khan, who was running as a write-in candidate for DuPage Recorder in the Democratic Primary.
To secure the nomination, Khan needed 844 write-in votes in the March 15 primary, election officials said. He ended up with just 695, according to unofficial results, even though more than 4,000 Democrats voted for the recorder’s position. […]
“The touch-screen voting machines did not save the name written on the screen,” Khan said. “It was an overwhelming error.” […]
Robert Saar, the commission’s executive director, said it’s “very unusual” to have thousands of votes in a race go to no candidate.
But he dismissed Khan’s claim that there was a problem with the voting machines.
“There’s absolutely no possibility of that,” Saar said. “It is not a software malfunction.”
A growing number of candidates in DuPage County are raising questions about whether write-in votes were counted properly during last month’s primary election.
On Monday, former state Rep. Randy Ramey told DuPage Election Commission officials that six write-in candidates for Republican precinct committeeman in Wayne Township believe they received enough votes to be elected. But unofficial results indicate they didn’t.
In one precinct, for example, 47 Republicans voted for the committeeman position, but the lone candidate — a write-in — only received four votes.
Meanwhile, Ramey said he has received affidavits from several people who say they voted for the write-in candidates.
Two Republican precinct committeeman candidates on Wednesday were declared winners of last month’s primary after a court-ordered recount found errors in the vote totals compiled by the DuPage Election Commission.
Five write-in candidates for GOP precinct committeeman posts in Wayne Township sought the recount after initial results from the commission showed them getting votes from only a fraction of the ballots cast — even though they were running unopposed.
The recount found two of those five — Joan Mruk and Jeff Posadzy — actually received enough votes to win their seats. The other three candidates still fell short.
So, not only was there a “possibility” of problems, there were actual problems. Something most definitely happened, whether it was with software or elsewhere.
DuPage recorder candidate Moon Khan is suing county election officials to find out once and for all if his write-in campaign generated enough votes to secure the Democratic Party’s nomination.
In a lawsuit filed this week against the DuPage County Board of Election Commissioners, Khan is asking a judge to order a recount of the write-in votes cast in the March 15 Democratic primary. A hearing is scheduled for Tuesday. […]
Since the election, Khan and his attorney say they’ve found numerous precincts where people insist they voted for Khan even though the results don’t reflect it.
In fact, Khan got credit for only one vote in his own precinct, even though his wife, son and neighbor voted for him. Khan also voted for himself.
Illinois continued its fight against higher property taxes by launching a new online advertisement highlighting that Illinois homeowners have yet to be granted much-needed property tax relief.
The targeted online ad criticizes lawmakers who have yet to pass a property tax freeze through the General Assembly. For years, state legislators have discussed freezing property taxes for Illinoisans; however, a property tax freeze hasn’t become a reality, and Illinois now has the second highest property taxes in the country. […]
In addition to the online advertisement, AFP-IL activists have made more than 17,000 phone calls and hundreds of patch-thrus to legislators, urging that passage of property tax relief and giving local governments the tools necessary to control their costs - namely greater freedom over prevailing wage restrictions and collective bargaining - should be a top priority in Springfield. This week, AFP-IL has also begun the first phase of a petition circulation campaign in 18 municipalities.
Blah.Blah.
All talk. No results.
On property taxes, that’s the story in Springfield.
Year after year, state legislators talk about freezing your property taxes.
They talk and talk. And while they talk, property taxes keeping going up and up.
Illinois property taxes are crushing homeowners and all the legislators do is talk.
Let’s break this recurring circle.
Because Illinois families deserve real results and a lot less talk.
Blah.Blah.
* The Illinois Policy Institute parrots Gov. Rauner and likely gives us a preview of other attacks if the AG moves forward…
Only in Illinois.
As Illinois House of Representatives Speaker Mike Madigan locks horns with Gov. Bruce Rauner in a nearly 10-month long budget battle, a major power play has fallen into the lap of the speaker’s daughter Attorney General Lisa Madigan.
The Illinois Supreme Court ruled in March that thousands of state government workers were not entitled to back-pay raises owed to them because those funds were never appropriated by the General Assembly. This puts Lisa Madigan in a position to force the state to stop paying state workers, since lawmakers have not yet passed a bill funding their salaries. Rather, they have been funded under a court order from a St. Clair County judge. The attorney general’s office is currently reviewing the state Supreme Court’s decision.
If Lisa Madigan decides to argue in court that the state must cease paying state workers and succeeds, government operations will grind to a halt, putting major pressure on Rauner to sign off on another unsustainable state budget that would likely subject Illinoisans to massive tax hikes with no real reform, long the priority of Speaker Madigan.
Interestingly, while state workers would go without paychecks, lawmakers would still take home their salaries.
* Politico notes that the Supreme Court issue and US Sen. Mark Kirk’s avoidance of the national GOP convention aren’t the only differences that the incumbent is exploiting with his Republican Party…
Just this week, Kirk co-sponsored a criminal justice reform bill that would loosen some mandatory minimum sentences, despite complaints within the GOP that it would unwittingly release violent criminals early from prison. And he joined with five of the most liberal senators to urge the NBA to move its 2017 All-Star Game out of Charlotte, North Carolina, in response to the state’s controversial new law that bans anti-discrimination protections for gay and transgender people.
Kirk’s strategy is dictated by his home state’s leftward bent: His Democratic challenger, Tammy Duckworth, may need to do little more than emphasize her party label to oust him in November. Kirk has long been considered the most endangered GOP incumbent in an awful year for Republican senators trying to get reelected. The party is defending 24 seats, and one of two divisive figures, Donald Trump or Ted Cruz, is likely to be leading its ticket. […]
“When he breaks from Mitch McConnell, it helps him,” Durbin said. “At the end of the day, though, he has chosen Mitch to be his leader.”
Other Democrats are crying foul over Kirk’s attempts to straddle the middle. On some issues, the Illinois senator has found himself ardently touting the GOP’s position: Last week, he bashed a fiduciary rule proposed by Obama that Democrats say puts clients’ needs ahead of financial advisers. And the hawkish Kirk was one of the loudest critics of Obama’s Iran nuclear deal, which Duckworth backs.
Democrats are also calling out Kirk’s past support for a controversial Medicare blueprint crafted by now-Speaker Paul Ryan and free trade policies. His opponents are also seizing on Kirk’s vow – most recently made in an interview with NBC Chicago – to back Trump if he becomes the GOP presidential nominee.
Kirk was elected statewide during a very good year for the GOP. This year will likely be different, at least in Illinois, which trends D in presidential years.
A group of U.S. senators, including Sen. Mark Kirk, penned a letter to NBA Commissioner Adam Silver urging him to move the 2017 All Star Game from North Carolina after an “anti-LGBT” bill was passed in the state last month.
North Carolina passed legislation in March that centers around single-sex public restrooms and changing facilities in the state’s schools and public agencies. […]
“We cannot condone nor stand idly by as North Carolina moves to legalize and institutionalize discrimination against the LGBT community,” the group wrote. “Nor should the NBA allow its premier annual event to be hosted in such a state.” […]
“The NBA boasts one of the most multicultural and multiethnic groups of players of any sports league in the world with more than 100 international players on its rosters,” the group wrote. “The NBA also made history just two years ago this month when Jason Collins become the first openly gay athlete to play in a major American professional sports league.”
* Meanwhile…
In response to Republican Mark Kirk’s announcement that he will skip the Republican National Convention this summer, Duckworth deputy campaign manager Matt McGrath released the following statement:
“Whether or not Republican Mark Kirk is at his Party’s national convention in person, he will certainly be there in spirit. He has already shown he puts party loyalty first when he pledged he ‘certainly would’ support Republican frontrunner Donald Trump in the general election, and on issues like squeezing the middle class to pay for tax cuts for the wealthy and turning Medicare into a voucher program, Kirk’s as Republican as it gets. No amount of physical distance will separate Sen. Kirk from his Republican roots, nor from Donald Trump’s circus.”
As a May 1 deadline looms for high school seniors deciding where to attend college, students are thinking twice about universities in Illinois, where the worst budget crisis in state history has halted funding for higher education.
Public colleges haven’t received state aid for the year that started July 1 as Republican Governor Bruce Rauner and Democratic lawmakers fight over a spending plan. The strain has spurred colleges to furlough staff and cancel projects. State scholarships for low-income students haven’t been paid. High school counselors and some state schools say they’re hearing that more students are looking to private, community colleges or out-of-state options, because of the funding uncertainty.
“You’re having an upswing in students that just are not going to those schools” that are struggling financially like Chicago State University and Northeastern Illinois, said Amanda Andros, a counselor at Lane Technical College Prep, Chicago’s largest high school. “They’re not sure if the university is going to stay open.”
The number of people seeking student aid in the state is down by at least 10 percent, said Eric Zarnikow, executive director of the Illinois Student Assistance Commission.
“We know that students may simply be dropping out. We know that for FY17 (which begins July 1), our FAFSA (Free Application for Federal Student Aid) filing volume is down pretty significantly,” Zarnikow told the House Higher Education Committee. “And for MAP-eligible students it’s down about 14 percent. That’s really a very significant reduction.” […]
“What we don’t know yet,” Zarnikow said, “is are those students deciding not to go to school at all, or are they choosing to go out of state?”
