Capitol Fax.com - Your Illinois News Radar » Martire: Tax hike still leaves Illinois $2.5 billion short
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Martire: Tax hike still leaves Illinois $2.5 billion short

Friday, Jul 28, 2017

* Illinois Issues

Q: One of the provisions of the budget package for Fiscal Year 2018 is an increase in the state’s personal income tax rate from 3.75 percent to 4.95 percent, while the corporate rate is boosted from 5.25 percent to 7 percent. Is this enough to generate the revenue the state needs?

Ralph Martire, executive director of the Chicago-based Center for Tax and Budget Accountability: One thing that my organization does is that we project whether or not the state’s current revenues will be able to maintain current expenditures into the future, if law doesn’t change. So if no programs or services are added or expanded, does your current revenue make, generate enough growth over time to sustain current level services, and pay off the debt you’ve already incurred at the state level?

So before the tax increase passed and the net tax increase was roughly about $5 billion a year, we projected the state really needed about $7.5 billion in new revenue to be able to maintain current expenditures. And that — if and only if —the state also dealt with its pension debt problem in a rational way because the other main pressure on state finances is the repayment plan for the money that was borrowed from the five state public employee pension system over the last few decades.

- Posted by Rich Miller        

24 Comments
  1. - Anonymous - Friday, Jul 28, 17 @ 12:18 pm:

    Gambling expansion and legalizing weed is a start….


  2. - Fixer - Friday, Jul 28, 17 @ 12:22 pm:

    But they aren’t maintaining current expenditures, if you consider the cuts to higher ed and agencies. I don’t know how much those amount to in $s, but would bear consideration.


  3. - 360 Degree TurnAround - Friday, Jul 28, 17 @ 12:23 pm:

    Quit worrying Ralph. The Governor is going to start a revolution, with rainbows and ponies, that will make everything better.


  4. - MOON - Friday, Jul 28, 17 @ 12:24 pm:

    Rauner could instruct his department heads to cut expenses by 5 or 10% and over several years that may alleviate Martire’s forecast.

    Such a plan would require Rauner to grow a backbone, but, after all he claims to have all the answers.

    I am sure his “Best Team In America” has the solution.


  5. - Truth Squad - Friday, Jul 28, 17 @ 12:24 pm:

    Well, time for the Dems to get to cutting. Because there’s no way you get 15 GOP members to do any more revenue.


  6. - the Cardinal - Friday, Jul 28, 17 @ 12:25 pm:

    Is he the same guy that promoted a service tax on just about everything (but lawyers and plumbers)5-6 years ago?


  7. - Sue - Friday, Jul 28, 17 @ 12:30 pm:

    Same headline out today about Chicago. All we are doing as taxpayers is working to pay the pension beneficiaries an ever increasing share of state revenue while services continue to shrink. Any wonder people are fleeing and business is expanding elsewhere


  8. - Oswego Willy - Friday, Jul 28, 17 @ 12:32 pm:

    I can’t remember…

    Did any of Rauner’s agency heads or the Governor’s budget office list any cuts, like $2.5 billion, or “one” when questioned by a GA Committee?


  9. - Lamont - Friday, Jul 28, 17 @ 12:34 pm:

    I agree with gambling expansion and legal marijuana, but a millionaires tax would help too.


  10. - Sue - Friday, Jul 28, 17 @ 12:37 pm:

    Lamont - CT learned the hard way on taxing the so called rich - GE left and now the Gov of CT is cutting deals to retain wealthy taxpayers all the while he has a huge deficit. Why don’t folks like you recognize the reality is we have a spending problem driving the structural deficit and doing things like Medicaid expansion sounds nice but backfires when the bills come due


  11. - RNUG - Friday, Jul 28, 17 @ 12:37 pm:

    No surprise. The Governor’s own agencies and bureaus said the 4.95% needed a lot of service taxes also to achieve the total revenue necessary. Without the service taxes, the income tax rate needed to be around 5.25% - 5.5%, something the Governor wouldn’t agree to (back when they thought there was a Grand Bargain). Most service taxes got left out of the final bill, so the State will come up short.


  12. - Ron - Friday, Jul 28, 17 @ 12:42 pm:

    - Anonymous - Friday, Jul 28, 17 @ 12:18 pm:

    Gambling expansion and legalizing weed is a start….

    Yep, too bad IL pols are far too reactionary to do those things.


  13. - Anonymous - Friday, Jul 28, 17 @ 12:43 pm:

    What about the $2 million plus in cuts to higher education and state agencies, including 5% cuts?


  14. - Rod - Friday, Jul 28, 17 @ 12:44 pm:

    This is not really news because effectively Mr. Martire has said this before in passing even on WTTW. But he is a good Democrat and played down the inherently unbalanced nature of what would likely pass the GA in terms of appropriations and revenues.

    The reality is the State will not have the revenue to maintain the higher level of k-12 funding to implement SB 1 over a ten year period of time unless cuts are continually made over the same period of time with or without the money for CPS.


  15. - Anon - Friday, Jul 28, 17 @ 1:01 pm:

    The tax rate really needs to be about 7-8% to reasonably keep up with the coming pension obligations the general fund is facing going forward.

    Even if we held everything else static on spending for the next decade (completely impossible) we would need billions in new revenue just to meet the ever growing pension obligations.

    Pension obligations (and increased interest expenses) have already accounted for every dollar of revenue raised during the last tax increase, and its just not enough.

    People need to wrap their minds around the fact that taxes have to go up alot, and that you are going to get absolutely nothing new in return for them because all new revenue will be going strictly to the ever growing pension obligations that are crowding out all new spending from the general fund.

    Any politician that tries to sell you on the idea of “investing…I mean new spending” is selling you a bill of goods because the state doesn’t have the money to appropriate to anything new. The new revenue is already accounted for, and will be for probably the next generation.


  16. - anon - Friday, Jul 28, 17 @ 1:09 pm:

    yep–civic committee of commercial club and civic federation said same–this was the result of the goofy idea of passing the gov’s introduced budget an all of its phony assumptions–next guy will have a mess to clean -up


  17. - Lucky Pierre - Friday, Jul 28, 17 @ 1:11 pm:

    Senator Cullerton and Speaker Madigan assured us less than one month ago that budget they passed was balanced and spends less than the Governor proposed.

    They also said now that the budget is passed they can start to address the needed reforms Illinois needs.

    Why does anyone take them seriously?


  18. - Oswego Willy - Friday, Jul 28, 17 @ 1:19 pm:

    ===Senator Cullerton and Speaker Madigan assured us less than one month ago that budget they passed was balanced and spends less than the Governor proposed.===

    Good thing Rauner vetoed it.

    Hurting seniors, hurting higher education, hurting agriculture, hurting prisons, hurting road construction.

    Rauner vetoed it all

    “Rauner vetoed that”

    You should be happy.


  19. - Fredo Corleone - Friday, Jul 28, 17 @ 1:24 pm:

    Sounds like we need to increase those pesky income taxes to 6%.

    I’m not sure that legalized weed and more gambling will help. By the time Madigan and Cullerton got through with that there would be another ten thousand union jobs created to oversee it.

    Have a great weekend.


  20. - Oswego Willy - Friday, Jul 28, 17 @ 1:39 pm:

    === By the time Madigan and Cullerton got through…===

    So you’re saying Rauner is so grossly inept… he can’t do anything, can’t be a governor… You’re probably right, lol


  21. - Grandson of Man - Friday, Jul 28, 17 @ 3:24 pm:

    Legalize marijuana, expand gaming and MMJ and pass a millionaire surcharge. Rauner came here trying to force middle class workers to make huge concessions. That’s wrong, and he himself has to pay more in taxes.


  22. - FLEA - Friday, Jul 28, 17 @ 3:53 pm:

    Ralph has had this figured out for about 10-12 years////go Ralph


  23. - blue dog dem - Friday, Jul 28, 17 @ 4:19 pm:

    Holy smokes. Who would have ever guessed.


  24. - Liandro - Friday, Jul 28, 17 @ 4:32 pm:

    Soooo…same as it ever was?


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* State Journal-Register endorses Rauner "with reservations"
* *** UPDATED x1 *** Pritzker campaign lawyer hints at defamation suit, claims campaign was never served
* Rauner says he's "trying to eradicate" the Madigan machine "cancer," but the "treatments are tough"
* Question of the day
* *** UPDATED x2 - Speaker Ryan to campaign for Davis *** Trump likely coming to Illinois to boost Bost
* Musical Interlude: Try (just a little bit harder)
* Tell me another fairytale, Grandpa
* Rauner again denies any delays at Quincy veterans' home
* "Speed dating" candidates
* Lawyer won't answer simple questions as some anonymous former Pritzker staffers speak out
* AFL-CIO launches "massive" digital ad buy
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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


Loading


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

Archives
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
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