Capitol Fax.com - Your Illinois News Radar » Chamber could back larger income tax hike, while new EDGE plan introduced
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Chamber could back larger income tax hike, while new EDGE plan introduced

Tuesday, Jun 27, 2017

* Greg Hinz reported yesterday that the Illinois Chamber doesn’t want to expand the sales tax to services, but can support an income tax rate above 5 percent

[President and CEO Todd Maisch] said his members dislike both the idea of a wider sales tax and the “unconstitutional” aspects of applying it to some types of entertainment but not others. He conceded that eliminating the service tax extension could bump up the individual income tax, which under the GOP proposal would go from 3.75 percent to 4.95 percent, but he said the shift would be worth it.

“Most people get that game” of holding just below 5 percent, he said. “You might as well get to 5.02 or 5.03, if you’re at 4.95 or 4.99.”

The chamber also wants more money for roads, with a new dedicated revenue stream—Maisch leans against a gasoline tax hike in favor of something broader—and is vigorously against a pending clause in a proposed budget pushed by Republicans that would shift $266 million next year in road funds to public transit, mostly in Chicago.

Maisch conceded that shift aims to avoid making cuts in spending for the Chicago Transit Authority, Metra and other agencies that easily could translate into politically unpopular fare hikes. But diverting such funds “upsets a fragile consensus about how you divide transportation money.”

Maisch’s full letter to legislators is here.

* Also from Greg Hinz

A new effort to revive the state’s Edge payroll tax credit has surfaced in Springfield, and while this one lacks the poison pill that made business groups hate an earlier version, there’s no guarantee it will pass amid the larger Capitol budget war.

The new version comes from Rep. Mike Zalewski, D-Chicago. It would extend the program, which expired April 30, but trim benefits for qualifying companies.

For instance, Edge recipients now are able to claim 100 percent of the cost of payroll taxes as a credit against their corporate income tax liability. Under the bill, the credit for net new employees in the state would be 50 percent of their payroll tax plus up to 10 percent for training costs. The 50 percent figure would jump to 75 percent if the facility involved was in an economically depressed area. The credit for retained employees generally would be 25 percent (plus the 10 percent for training).

The plan also toughens language to qualify, saying that applicants must provide evidence that the incentive was “essential” to making an Illinois facility price-competitive with locating in another state.

The June 30th clock is ticking loudly, but this amendment was filed to a House bill on 2nd Reading today. If they get a new Senate vehicle or zip this along right away, it’ll be worth watching.

* Related…

* Retailers sue to stop Cook County soda pop tax

* Why States Are Struggling to Tax Services

* Press Release: IRTBA, Members of Industry to Testify on the Illinois House Floor Regarding Impact of Transportation Construction Project Shutdown - $345 Million and 43,000 Jobs in Jeopardy, New Analysis Shows

- Posted by Rich Miller        

19 Comments
  1. - Honeybear - Tuesday, Jun 27, 17 @ 1:41 pm:

    Corporate welfare plain and simple

    Hundreds of millions

    Not going into our coffers

    Money we desperately need

    Forgiven poof just like that.

    49,000,000
    Last year to a car company that has never made a car and will only have 32 employees in illinois for the next three years.

    Fiscal conservatives if you aren’t howling

    Then I call you a perfidious hypocrite

    Go to DCEO website to see the
    hundreds of millions unaccountable and in audited

    That we PREVENTED
    From coming in

    Means you taxpayers pay more


  2. - Amalia - Tuesday, Jun 27, 17 @ 1:42 pm:

    oh, right, an income tax increase, but still a flat tax. combine that with the national Republican healthcare changes and you will leave those of poor and moderate means with very little. Graduated income tax if you want to increase the income tax.


  3. - City Zen - Tuesday, Jun 27, 17 @ 1:46 pm:

    ==Graduated income tax if you want to increase the income tax.==

    Don’t forget retirement income.


  4. - Ratso Rizzo - Tuesday, Jun 27, 17 @ 1:52 pm:

    A flat tax with high property taxes along with higher taxes on services while corporations pay virtually no taxes. Sounds like Illinois is looking out for the middle class…NOT! And as a soon-to-be retiree, I’m all for taxing pensions and all forms or retirement—as long as we are using a graduated tax that applies to all. It not fair that a $30k a year retiree would pay 5% like a $100k a year retiree.


  5. - Maximus - Tuesday, Jun 27, 17 @ 1:57 pm:

    If the gasoline tax is how we have funded our roads and infrastructure then why not increase it to the appropriate level? I never understood why it cant be raised to support the purpose it was designed for: fixing roads.


  6. - Pelonski - Tuesday, Jun 27, 17 @ 2:19 pm:

    Both the gasoline tax and sales taxes have failed to be updated with the changing economy. For example, motor fuel taxes are a set amount per gallon. The number of miles driven per gallon has gone down considerably, so the amount of taxes available for infrastructure repair has also gone down in relative terms.

    With sales taxes, the shift from a product to a service based economy has caused a reduction in taxable economic activity. The only way to keep the amount of tax collected equal in relative terms is to increase the rates on the limited amount of activity we do tax. Right now, sales of products are over taxed and sales of services are under taxed. We would be better off lowering taxes on products and raising taxes on services to reduce the economic distortions which our current tax policy creates.


  7. - DuPage - Tuesday, Jun 27, 17 @ 2:27 pm:

    They could start making giant truck-cranes buy license plates, like most states do. Jesse White considers them “exempt”, a classification that was meant for farm tractors. They certainly tear up the roads, but pay nothing for license plates.


  8. - Ron - Tuesday, Jun 27, 17 @ 2:29 pm:

    I say we eliminate the state corporate income tax altogether and increase personal rates through a progressive income tax. Of course we should eliminate government employee benefit protection as well.

    Illinois will become a lot more competitive with no corporate income tax.


  9. - Ron - Tuesday, Jun 27, 17 @ 2:30 pm:

    Maximus, doesn’t IL have one of the highest gas taxes in the nation already?


  10. - Ron - Tuesday, Jun 27, 17 @ 2:32 pm:

    Pelonski, if the sales tax on goods was reduced significantly, I could get on board with that.


  11. - Really - Tuesday, Jun 27, 17 @ 2:37 pm:

    Did I miss the GOP have a tax increase plan?


  12. - Kevin Highland - Tuesday, Jun 27, 17 @ 2:46 pm:

    Eliminate property taxes, go for 10% income tax but make the federal poverty level for your family size (or some other amount greater than that) the exempt amount Provide the appropriate levy back to the local government units to fund what property tax used to fund. No constitution changes needed. Property Tax Relief provided and Millionaires carry a heavier load while poverty level and maybe middle class actually have an overall lower tax load.

    Most importantly once you own your property, you own your property.


  13. - sulla - Tuesday, Jun 27, 17 @ 3:34 pm:

    “The plan also toughens language to qualify, saying that applicants must provide evidence that the incentive was “essential” to making an Illinois facility price-competitive with locating in another state.”

    In other words, us economic developers have to tell our clients to go check out other states and other localities before we can make them an offer.

    A little analogy here:

    Imagine you’re a shlubby guy about to marry a gorgeous girl who is way out of your league. You’ve chased after this girl for years. Finally you’re in a relationship together and you pop the question and against all odds she says, “yes”!

    Two weeks away from the ceremony, you decide to force your fiance to go on dates with three other better-looking, funnier, more intelligent and wealthier single guys. Just to be sure.


  14. - tberry - Tuesday, Jun 27, 17 @ 3:40 pm:

    Lots of people/organizations seem to have ideas on how to best raise taxes…how about the tax rate goes to 100% and Madigan and company provides residents with a monthly allowance? If the allowance doesn’t seem to be enough, you could hire his law firm to negotiate a better rate.

    It’s a good thing there aren’t any spending problems because nobody has any ideas on how to spend less.


  15. - blue dog dem - Tuesday, Jun 27, 17 @ 3:52 pm:

    Honey. Spot on. Not only fiscal conservatives, but OW type Repubblicans. Progressives like wordsling. ….like Lucky Pierre. Like Ron. Like Sue. Like MrMJM.DEFINitly RNUG. In fact I don’t know anybody who who would like this…
    I think?


  16. - Ron - Tuesday, Jun 27, 17 @ 4:36 pm:

    If there were no state corporate income tax as is rational, there would be no need for EDGE.


  17. - RNUG - Tuesday, Jun 27, 17 @ 4:43 pm:

    == - blue dog dem - ==

    Never did think much of DCCA, as it was known in my days. It hasn’t gotten any better with name changes and age.


  18. - blue dog dem - Tuesday, Jun 27, 17 @ 4:49 pm:

    Ron. Here’s my problem with EDGE. its let’s government pick winners and losers. I think corporate income tax a bit silly at high levels, but the playing field should be level for all. Isn’t that what America is all about?.


  19. - Ron - Tuesday, Jun 27, 17 @ 5:10 pm:

    Yep, I agree. Just eliminate it and tax people’s income.


Sorry, comments for this post are now closed.


* *** UPDATED x2 *** How independent is Madigan's new independent counsel?
* Fourth Legionnaires’ case confirmed at Quincy veterans' home
* Biss endorsed by Sierra Club
* Question of the day
* Two Metro East GOP primaries take sharp turns toward weirdness
* Rotheimer becomes issue in Rep. Hammond's primary
* Agencies a no-show for Senate hearing on Quincy veterans' home
* SUBSCRIBERS ONLY - Supplement to today's edition and other campaign news
* Rauner on pension cost-shift's impact on property taxes: "It'll help bring them down"
* *** UPDATED x4 - Cassidy explains - Madigan responds - Mendoza, Bustos and Ammons issue statement - Sen. Bush echoes demand *** Rep. Cassidy wants independent probe into "culture that appears to pervade the organizations led by Speaker Madigan"
* Ives, Kennedy up with two new ads
* Raoul donates Decremer contribution to TIME’S UP Legal Defense Fund
* Candidates lash out at Pritzker after WCIA cancels debate
* More on Gov. Rauner's budget proposal
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** UPDATED x1 - Madigan responds *** Madigan operative removed from campaigns after complaints, Biss demands resignation of party chairmanship
* *** UPDATED x1 *** Rauner slammed from the right over Janus case
* *** UPDATED x3 - IDCCA clarifies - Biss buy - Quinn responds *** Holiday Monday quick takes: Rotering's new ad slams Quinn; Biss is up on Downstate TV; Pritzker reloads; Daily Journal endorses Ives; IDCCA unveils zero-tolerance policy and pledge
* Konkol out at Chicago Reader after "tumultuous ten days"
* Madigan asks Bustos, Mendoza and Ammons to "develop a plan for elevating the status of women in the party"
* Saturday quick hits: Mendoza wants Quincy veterans moved; Biss and Raoul report big bucks; Reader cover fallout intensifies
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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


Loading


* Tom Kacich | 3 Libertarians think they're bette.....
* Slowik: Assessor candidate Kaegi calls for more.....
* Gubernatorial candidate Jeanne Ives defends ‘ed.....
* Morning Spin: Candidate kicked off ballot, but .....
* SIU chancellor, facing probes for hiring family.....
* Madigan’s leadership becomes Democratic primary.....
* Duckworth promises to work for federal aid for .....
* Democrats take the capital city stage for gover.....
* Duckworth promises to work for federal aid for .....
* Duckworth promises to work for federal aid for .....


* Duckworth promises to work for federal aid for veterans home
* No bond for man who broke judge's window with snowball
* Woman sues Twitter, Facebook, Google over 2015 Paris attacks
* Storm system brings flooding, freezing rain, snow to Midwest
* The Latest: Weather officials: 3 twisters hit North Texas
* Chicago-area woman sues social media sites over Paris attack
* Illinois to pick state's '200 greatest' to mark bicentennial
* Appeals court reinstated jury award in fatal police shooting
* Illinois sees flood warnings as snow melts, heavy rains fall
* Senate plan would require rear-facing car seats until age 2

* Madigan's leadership becomes Democratic primary litmus test amid handling of harassment complaints
* (No heading)
* Another Legionnaires' case found in Quincy as lawmakers meet
* Illinois Senate plan would require rear-facing car seats until age 2
* Gov. Rauner accused of politicizing Janus union dues case
* Democratic candidates for governor debate Wednesday at UIS
* Madigan parts ways with second operative after female lawmaker alleges 'abuse of power'
* Opponents: Rauner insurance changes would hurt state workers, retired teachers
* Can middle-class candidate Daniel Biss defeat millionaires in Illinois?
* Speaker Madigan: 'I take responsibility' for not doing enough on sexual harassment issue

* Tax overhaul sideshow: Long on gimmicks, short on solutions
* Man bites dog: A CEO who rejected a higher offer for his bank
* Loyola health system CEO takes job out west
* Hospital accounting error adds up to $92 million
* Rite Aid was Albertson's last best hope


* Peter Oswald’s ‘Mary Stuart’ takes on timely new meaning
* Resurrecting David Bowie — New tour features original band members in tribute
* Dispelling the stigmas: Changing the way we look at dementia
* Rev. Billy Graham is dead at 99; ‘America’s pastor’ had roots in Chicago
* Stomach, digestive system health: What’s your gut telling you?
* Purple line trains to Loop operating with residual delays
* Smallmouth, rock bass, perch: Prospecting on Illinois record fish around Chicago
* 2-Minute Drill: Hoiberg rewrites script; wear it, Pitino; and, Vonn gets bronze
* Woman, 19, suffers graze wound in Lake View
* Man shot in South Austin


* A nice idea for Blackhawks fans angry over the racist treatment of Devante Smith-Pelly
* Blanked by the Czechs in a shootout, U.S. men's hockey team is out of the Olympics
* After record rainfall, icy roads for morning commute
* Bradie Tennell 11th after shaky starts for U.S. women in short program
* Florida shooting survivors in capital, demand action on guns: 'We're what's making the change'
* Renowned evangelist Billy Graham dies at his home in North Carolina at 99
* Mark Cuban 'embarrassed' by allegations of 'corrosive' Mavericks workplace culture
* White Sox's Eloy Jimenez a big hit in any language
* U.S. women win 1st-ever Olympic gold medal in cross-country skiing
* 'Criminal activity' by key informant doomed drug ring case against ex-Schaumburg cop, prosecutors say


» Lawmaker Rips Rauner On Legionnaires' Response At Vets' Home
» Illinois Lawmaker Looks To Ban AR-15, 'Ghost Guns'
» After Husband's DUI, Supreme Court OKs Seizure Of Wife's Harley
» Setting the Record Not-So-Straight: Rights Group Pushes Inclusive History in IL Classrooms
» Mourners: Slain Chicago Officer Was 'One Of The Good Guys'
» Madigan Says He's Taking Steps To End Harassment, Abuse
» 2016 Report Put Quincy Plumbing Fix At $8M
» State Week: Governor Rauner Presents His Budget
» Rauner Budget Doesn’t Use 'Pixie Dust,' But It’s Fanciful Nonetheless
» Dem Candidates Dissatisfied With Madigan's Response To Sexual Harrassment Claims


* Madigan's leadership becomes Democratic primary litmus test amid handling of harassment complaints
* Our View: Illinois Democrats, tell Madigan to step aside
* (No heading)
* Another Legionnaires' case found in Quincy as lawmakers meet
* Ralph Martire: Rauner's budget proposal fails our schoolchildren
* Catherine Rampell: Don't blame 'Washington.' Blame the GOP.
* Marc Thiessen: Stop politicizing the Russia investigation
* Byron York: A non-alarmist reading of the Mueller Russia indictment
* Illinois Senate plan would require rear-facing car seats until age 2
* Gov. Rauner accused of politicizing Janus union dues case


* Unit 5, Olympia schools start 1 hour late; outages throughout area
* Forecasters warn of icy roads during metro-east commute
* Worth the wait
* DACC adds armed officer on campus
* DACC to discuss tuition increase
* Area under flood watch
* Owners of burned apartment building face almost 800 violations at multiple sites
* Area Calendar 2/21/18
* Fire calls
* Police reports


* The Latest: Dutch claim Olympic bronze in men's team pursuit
* UK jobless up for first time since Brexit vote aftermath
* Japanese father of 13 surrogate children veiled in mystery
* Dawn Patrol: Berlin explains dropping case against ex-Schaumburg cop
* National Weather Service issues ice advisory into Wednesday

* This RSS feed URL is deprecated
* Duckworth taps downstate principal as Stat...
* Reps Question DHS's Decision to Deny Asylu...
* House passes bill boosting funding to Illi...
* ELECTIONS 14TH CONGRESSIONAL DIST. Victor ...
* Members of Congress Advocate for Prisoners...
* Before the State of the Union, a chance to...
* Gun-rights groups giving to Illinois Repub...
* Endorsement: Underwood for the Democrats i...
* Letter: Gun debate prompts need to know yo...

* This RSS feed URL is deprecated...
* Duckworth promises to work for federal aid......

* This RSS feed URL is deprecated...
* Duckworth promises to work for federal aid......

* Have a happy Valentine's Day with the Venus II, the greatest masturbation machine ever invented in Illinois
* Early Man is an unexpected dud from the creators of Wallace and Gromit
* Former JJ Pepper Storefront Available For Lease
* CBS Chicago: Why Are CTA's Train Lines Color-Coded?
* Posting pictures at United Center entrances -- how else to ban them?
* Learn about Connections Between Health and Nature at ICA’s Mental Wellness & Uptown’s Coast
* "Coverage Where It Counts" -- In Uptown
* GoGrocer Coming To Imperial Towers
* Breitbart: ‘Black Panther’ Criticized for Lack of LGBT Representation
* Where is Tim Cunningham? #ATL #Morehouse #Blackandmissing


* 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

  
* Qualcomm unveils Snapdragon 845 VR reference design, AI Engine and more
* 'Alto's Odyssey' Launches One Day Early on iOS and tvOS App Stores
* Galaxy S9 leaks some more in AR and hands-on pics, release date also confirmed
* Xiaomi ‘Blackshark’ benchmark and Mi 7 rumors include plenty of high-end features
* We may now know a number of Xperia XZ2 and XZ2 Compact specs, as well as prices
* Key Moto G6 Play specs confirmed in benchmark, G6 family codenames also revealed
* Apple in Talks to Buy Key Battery Ingredient Cobalt Directly From Miners

* The Game I’ll Never Forget: Chet Lemon
* New South Side Sox Instagram Account: @southsidesoxsbn
* If you’re a writer, and you see good writing, sometimes, or mostly,...
* Robert finding comfort zone at first spring camp
* All clubs to don Stoneman caps for ST openers
* All clubs to don Douglas caps for ST openers
* All clubs to don Stoneman caps for ST openers


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

Archives
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
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