Capitol - Your Illinois News Radar » Davis whacked over tax vote impact on Illinois higher education
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Davis whacked over tax vote impact on Illinois higher education

Tuesday, Nov 28, 2017

* News-Gazette

[US Rep. Rodney Davis], whose congressional district includes the University of Illinois, three other public universities, four private universities or colleges and several community college districts, said he was “cautiously optimistic” the tax break would be retained.

I think the total number of universities and colleges in Davis’ district is 13.


Rep. Rodney Davis knew that the GOP tax scam was going to hammer students in his district and increase the cost of college, but he voted for it anyway to deliver a tax break to millionaires and big corporations.

Here are just a few ways the GOP tax scam is going to hurt students, graduates, and their families:

These cuts to education assistance will cost students and families more than $71 billion over the next decade according to the Joint Committee on Taxation.

And it’s not like Davis didn’t know how harmful this bill was – students made their voices heard loud and clear, a local editorial spelled it out, and Davis himself wrote a last-minute letter acknowledging that eliminating tuition waivers would hurt grad students. Then when Washington Republicans ignored his letter, he voted for the GOP tax scam anyway.

“Rep. Rodney Davis’ many promises to help students ring hollow with his vote to raise their taxes and make it harder for them to pay off their loans,” said DCCC spokesperson Jacob Peters. “By voting for this GOP tax scam, Rodney Davis has made it clear he cares more about giving tax cuts to millionaires and big corporations than he does about reducing the cost of college and easing the burden of student loan debt on students and their families.”

* Meanwhile

State and local government pension plans would be confronted with new costs and complications under the Republican tax bill the U.S. House approved last week.

Some, but not all, public pension investments would become subject to what’s known as the Unrelated Business Income Tax, or UBIT, if the current version of the House bill were to be enacted. The proposed change to how the tax is applied would make it so state and local government pension plans are treated in a way that is similar to private sector pensions, or nonprofit organizations.

Hank Kim, executive director of the National Conference on Public Employee Retirement Systems, said that if the House proposal were to go into effect, it would be the first time that state and local pension systems would have to pay federal tax on their investments.

“It’s a huge burden,” Kim added by phone this week.

Retired police, firefighters and teachers are a few examples of people covered by the state and local government pension plans that could be affected by the House proposal. Legislation the U.S. Senate Finance Committee has passed does not include similar UBIT provisions.

* Related…

* GOP tax plan rattles higher education: Congressional Republicans’ plans to slap unprecedented new taxes on higher education have left college leaders shocked and scrambling — the latest salvo in what some observers say is a growing culture war on a higher education system seen as elitist and out of touch.

* Tax bill reflects rift between many Republicans and higher education: In July, the Pew Research ­Center found that 58 percent of Republicans and Republican-leaning independents say that colleges and universities have a negative effect on the way things are going in the country. That was up from 37 percent two years earlier. By contrast, a large majority of Democrats and Democratic-leaning independents — 72 percent — said this year that colleges have a positive effect.

* Republican Tax Plan for Colleges Is a Self-Inflicted Wound: The U.S. university system is one of the country’s most important remaining economic advantages. Even as manufacturing industries have moved to China, the U.S. has retained its dominance in higher education. The research and technology output of American universities, and the skilled postgraduate workers they produce, are an important anchor keeping knowledge industries — Silicon Valley, the pharmaceutical industry and the oil services industry, to name just three — clustered in the country, instead of fleeing to places with lower labor costs. Degrade higher education, and the U.S. will become a much less attractive place for cutting-edge industries, and less important to the global economy.

- Posted by Rich Miller        

  1. - Anonymous - Tuesday, Nov 28, 17 @ 12:53 pm:

    Coooollll, good job looking out for your district, Rod

  2. - VanillaMan - Tuesday, Nov 28, 17 @ 12:57 pm:

    “Tax breaks to millionaires…”
    Blah, blah, blah.

    Voters don’t listen to broken records.
    Need a new argument.

  3. - Three Dimensional Checkers - Tuesday, Nov 28, 17 @ 1:00 pm:

    Good wack. Maybe connect it to Gov. Rauner’s assault on higher education too. Republicans are purposely making it harder for the middle class to access higher education.

  4. - wordslinger - Tuesday, Nov 28, 17 @ 1:14 pm:

    VMan, check the polls across the board on the House tax bill and you’ll discover what voters are listening to and think about it.

    The proposal is a wet skunk to the electorate, but is a Christmas tree to the GOP donor class.

    Why do you think guys like Davis would vote against their constituents and districts?

  5. - 47th Ward - Tuesday, Nov 28, 17 @ 1:20 pm:

    ===Why do you think guys like Davis would vote against their constituents and districts?===

    Lol, I know, right? Oh well, I’m sure Trump will insult someone soon to keep the chattering classes distracted from the dumpster fire of a “tax” bill.

    Normally a vote like this would be costly for someone like Davis. But these are not normal times so he’ll probably get a pass.

  6. - Ahoy! - Tuesday, Nov 28, 17 @ 1:20 pm:

    Davis is going to get hit pretty hard in next year’s election between the tax vote, the healthcare repeal vote, net neutrality, etc. In the past these items wouldn’t have hurt him as much, but he’s in a lean Dem district in what’s probably going to be a wave year as voters take out their frustration of Trump. These votes are going to get magnified in a way he has not seen since he was elected when Obama was president.

  7. - Don Gerard - Tuesday, Nov 28, 17 @ 1:20 pm:

    You know, Gov Rauner once told me “taxing the wealthy is a gimmick. It doesn’t work.”

  8. - Ray del Camino - Tuesday, Nov 28, 17 @ 1:41 pm:

    Are you listening, Mike Bost?

  9. - Anonymous - Tuesday, Nov 28, 17 @ 1:42 pm:

    Funny you folks are not attacking Durbin. You know, the guy who rails about the problems with student debt but didn’t do a thing with his party in power. He loved all the billions rolling in to the federal government from high interest rates. Didn’t give 2 hoots about how it was hurting families and causing higher education costs to zoom up.

  10. - Sir Reel - Tuesday, Nov 28, 17 @ 1:51 pm:

    Word gets it.

    This isn’t about the economy, helping the middle class, etc, as the Republican talking points say.

    It’s about the deep pocket Republican donors.

    Money and politics. Makes America great again. Not.

  11. - Keeping an eye on things - Tuesday, Nov 28, 17 @ 1:53 pm:

    We need more statesmen and fewer politicians….people who will represent their constituents, not their party.

  12. - Anon221 - Tuesday, Nov 28, 17 @ 1:58 pm:

    Davis votes and works to “fix” things, all right, just not for his constituents.

  13. - Ahoy! - Tuesday, Nov 28, 17 @ 2:00 pm:

    –Funny you folks are not attacking Durbin. –

    Pretty sure Durbin get’s attacked as well, although it’s probably more likely in a post about him. Just waiting for how this is all Nancy Pelosi’s fault in 3..2…

  14. - 47th Ward - Tuesday, Nov 28, 17 @ 2:00 pm:

    ===Didn’t give 2 hoots about how it was hurting families and causing higher education costs to zoom up.===

    Huh? Stop making things up, and please stick to the topic at hand.

    Also, kindly pick a nickname so I can skip over your future comments.


  15. - JS Mill - Tuesday, Nov 28, 17 @ 2:02 pm:

    Loud noises!

    That is really all it is anymore. Even some of the most ardent Madigan haters (not the folks here of course) are getting pretty tired of the same old thing.

  16. - Sue - Tuesday, Nov 28, 17 @ 2:22 pm:

    This UBIT arguement makes no sense. Public Plans today need to pay tax on investments which generate UBIT income. All plans who have decent tax legal advice structure around this issue without jeopardizing their tax free status

  17. - hisgirlfriday - Tuesday, Nov 28, 17 @ 2:28 pm:

    @Anonymous - As someone who has a lot of student loan debt I can tell you that Dems like Durbin did make life better for students.

    Dems and Obama passed legislation that lowered the interest rates for federal-backed loans in the student loan reforms that got tacked on to Obamacare. Dems also stopped the pointless federal subsidies to bankster middlemen for the servicing of student loans.

    I will not forget on election day that Republicans like Rodney Davis are raising my taxes by eliminating the student loan interest deduction so that billionaire heirs and heiresses get out of paying estate tax.

    $2,500 a year may not matter to the donors Rodney cares about but as someone who makes mid-five figures it’s a big freaking deal. And that’s on top of his betrayal of Illinois taxpayers by pushing for us to face double taxation on our income by eliminating the state and local income tax deduction. Can’t wait to knock doors and phone bank next year to send him home.

  18. - Lester Holt’s Mustache - Tuesday, Nov 28, 17 @ 2:56 pm:

    ==“Tax breaks to millionaires…”
    Blah, blah, blah.==

    ==VMan, check the polls across the board on the House tax bill and you’ll discover what voters are listening to and think about it.==

    I’m actually going to have to agree with VMan, prolly for different reasons than he has. He’s right! For years Dems have been using this same canned response on tax policy and it hasn’t gotten them anywhere - even when the national GOP goes out of their way to prove this correct.

    The DCCC and their counterparts need to stop talking in press-release legalese language all the time. It’s one of the reasons I’m quickly falling in love with Jordan Abudayyeh with the Pritzker campaign. Frankly, I also think this had a lot to do with Trumps vote numbers last year.

    Better to point out specifics - repeat over and over the fact that Rodney voted for a bill that gives breaks for training private jet staff, but voted to take away tax breaks for teachers buying school supplies for students. Repeat over and over the fact that Rodney voted to give huge corporations a 20% tax rate, but makes small businesses pay 25%. Repeat over and over the fact that Rodney voted to make tax brackets for rich folks lower forever, but temporary for the rest of us. At the very least use phrases like “for the rest of us” and other terms of inclusion. It’s not that hard - “Why did Davis vote to raise almost all of our taxes in 5 years, but makes Trumps (or Rauner’s) tax cut permanent?”

    Both national and Illinois dems need to get their act together on messaging. It makes me seriously wonder what all these high dollar campaign advisers the dems buy are doing for the money.

  19. - Downstate - Tuesday, Nov 28, 17 @ 3:14 pm:

    I hope Davis staff is bringing this to his attention. All my middle class co-workers are incensed. Most will receive nothing, and I’m looking at a tax increase because of the removal of personal exemptions, yet rich folks across the board are receiving massive tax breaks. We will not forget this at the ballot box next year. He is badly misjudging the mood of the people, and his political future is looking grim.

  20. - Arthur Andersen - Tuesday, Nov 28, 17 @ 3:33 pm:

    Sue, the new UBTI provisions affect pension investments not directly owned by the fund, like REITs or Real Estate Commingled Funds, where the ownership instrument is in the form of shares. Agree that directly owned real estate is/should be covered by LLCs or other “blockers.”

  21. - Sue - Tuesday, Nov 28, 17 @ 3:53 pm:

    AA- those taxes are always paid at the partnership level. I still don’t see the issue people are raising. Most PP’s avoid UBIT like the plague since it can disqualify the plan’s tax free status. It’s an easy issue to deal with and nothing I have seen in the pending legislation is contrary?

  22. - Arthur Andersen - Tuesday, Nov 28, 17 @ 5:36 pm:

    Sue, fwiw, the public pension lobby groups are raising two concerns. One is the one I mentioned (and I agree with you about current tax treatment) and the other is a change to taxation of gains on investments held less than three years. This is aimed at hedge funds, but could drag private equity and real estate into the mix. I have not read this language yet.

  23. - VanillaMan - Tuesday, Nov 28, 17 @ 10:07 pm:

    Pass the tax bill. Enjoy the tax cuts. That’s how he’ll get reelected.

    Find a better argument, guys.
    Acknowledge that the tax cuts are real for every tax bracket. Middle class saves 7%. CBL had no problem scoring it as true. Find a new argument.

    I stopped listening to the “tax cuts only for the rich” hoo-haa decades ago.

    As for Davis, this only hurts him if it doesn’t pass. If it does pass, voters will move on to the next argument. Don’t believe the polls. They’re only reflecting the negative bias dumped on this issue up to now. That all changes when a tax cut passes.

Sorry, comments for this post are now closed.

* Feds OK safety net hospital plan
* Motion to place SIU's Dunn on leave fails
* On teacher salaries, Rauner says answer is mandate relief
* Yingling launches targeted cable ad buy for Lake County Assessor bill
* Poll: Pritzker leads Rauner by nine points
* Our sorry state
* *** UPDATED 4x *** Illinois to benefit from Supreme Court ruling in online sales tax case
* Rate the Ad: Pritzker's "Silent Partner"
* *** UPDATED 1x - Pritzker responds *** Rauner up with "Pritzker Plumbing" billboards
* They're here
* Yesterday's stories

Visit our advertisers...






* Melania's Jacket Causes A Stir..
* Juliana Stratton: Black community wants more th.....
* Thumbs Up: To Illiopolis boy for helping shephe.....
* Rauner says higher education need 'signific.....
* Rauner signs bill to extend uptown TIF district..
* Rauner's Jab At Pritzker Centers Around Plu.....
* The Mincing Rascals 06.21.19: Separating famili.....
* The Mincing Rascals 06.21.19: Separating famili.....
* Rauner Tours ISU's Fine Arts Complex, Signs.....
* Governor Rauner approves Uptown Normal TIF Dist.....

* Pace buses to advertise Illinois Baby Safe Haven lawn
* Protest marches no longer need famous face to rally crowds
* Today's protests: Many voices, social media, not 1 leader
* Renee Fleming to give commencement address at Northwestern
* SUV fleeing Chicago police hits taxi, killing passenger
* Judge to rule whether to free on bond killer of 2 officers
* Father of slain teen testifies in wrongful death lawsuit
* 3 men face hate crimes charges in Minnesota mosque bombing
* Demolition begins at Star Plaza Theatre in Merrillville
* Deadlocked vote prevents suspension of SIU president

* Illinois stands to gain from Supreme Court decision
* Records: Mansion used in Rauner's 'Porcelain Prince' ad got its own tax reduction
* Illinois politicians seek answers to family separations at border
* 80+ years later, Meredosia woman sees the opening of another new bridge
* Chatham man wins Illinois Bicentennial coin design contest
* Rauner to consider allowing medical cannabis for opioid patients
* Bipartisan work yields gun bills, fate rests with Rauner
* Rauner names Justin Blandford curator of Governor's Mansion
* Rauner names Williamsville woman interim HFS director

* Fight Russian hackers with American hackers, Chicago congressman says
* How Illinois is already spending that Supreme Court web tax windfall
* Amazon, JPMorgan and Berkshire crown Gawande: Does he have the business chops?
* Does Atul Gawande have the chops to lead Buffett-Dimon-Bezos health venture?
* Auditorium Theatre's CEO departing post

* Attempted child abduction reported in Gresham
* Man, 49, shot in Chatham
* 1 killed, 7 wounded Thursday in city shootings
* Man shot, robbed in East Garfield Park
* Man, 26, shot near Humboldt Park
* Man walks into hospital with gunshot wound on NW Side
* Man gets 55 years for role in 2014 killing of Bensenville store owner
* Dear Abby: Neighbor drops by uninvited, acts rude
* Horoscope for June 22, 2018
* Reds beat Cubs, Kyle Hendricks on walks, slam in big sixth inning

* 7 shot Thursday, including 4 in West Englewood attack
* Ichi-who? Suzuki sits on M's bench in fake mustache disguise
* Asian stocks down as multiple trade disputes worry investors
* Stevenson's Jalen Brunson goes to Mavericks at No. 33 overall in NBA draft
* Bulls tout versatility of first-round picks Wendell Carter Jr. and Chandler Hutchison
* Wendell Carter Jr. well-suited for Bulls in ‘Black Panther’-inspired attire at NBA draft
* Jevon Carter, Jalen Brunson taken back to back in second round of NBA draft
* Confusion mounts at the border; Trump official says hundreds of families reunited since May
* Haley: 'It is patently ridiculous for the United Nations to examine poverty in America'
* Wendell Carter Jr. is not the sexy pick but the smart one for the Bulls

» Illinois Poised To Gain From Supreme Court Tax Ruling; Already Ahead Of Other States
» June 21, 2018 - Full Show
» City Colleges Wants To Place Half Its Graduates In Real-World Work Experiences
» Illinois Responds To Family Separation Policy; 11-Year-Old Cancer Survivor Gavin Waterman
» What Happens When You Age Out Of Foster Care In Illinois
» Fields Of Green: Illinois Considers Industrial Hemp
» Chicago Mayor Pitches Affordable Housing Plan For Priciest Neighborhoods
» June 20, 2018 - Full Show
» Lawmakers Hear Firsthand Accounts Of Sexual Abuse By CPS Staff
» Gov. Rauner Open To Changes So Disabled Prisoners Get Released On Time

* Point: Obamacare's constitutionality ends when its tax ends
* Counterpoint: Injustice reigns as Trump's Justice Department attacks Obamacare
* Juliana Stratton: Black community wants more than just proclamations from leaders
* Thumbs Up: To Illiopolis boy for helping shepherd bill through the Statehouse
* Illinois stands to gain from Supreme Court decision
* Records: Mansion used in Rauner's 'Porcelain Prince' ad got its own tax reduction
* Our View: A welcome start at cleaning House
* Our View: White Oaks Mall smart to diversify offerings
* Guest View: Addressing the higher cost of compliance with our ADA consent decree
* MArc Thiessen: But her emails? You're dang right her emails.

* Youths speak out: More youth programs, fewer guns
* HUD is failing to protect children from lead paint poisoning, audits find
* Area Calendar 6/22/18
* Births for Friday, June 22, 2018
* Robert W. Lipe
* Karl E. Keller
* Martha Mobley Mulkin
* Darlene Hancock
* David Lee Coleman
* Richard H. 'Dick' Whittenberg

* Thunder take Hall with 53rd pick, Hervey with 57th
* Timberwolves take Georgia Tech G Josh Okogie with 20th pick
* Blazers take guard Anfernee Simons with 24th pick
* Lakers land German big man Moritz Wagner with 1st-round pick
* Lawyer: No apparent justification for fatal shooting of teen

* Some Leaders in Chicago Protest Walmart Af...
* Time for a History Lesson About Gun Control
* Indian Consulate Says Thousands Attend 4th...
* Yoga Day in Millenium Park a historic event
* Shreejidwar Haveli celebrates Patotsav wit...
* ROLLING MEADOWS, Ill. – June 19, 2018 – No...
* Community Groups Demand Justice for Sherry...
* Vaishnav Samaj Of Midwest, Shreejidwar Hav...
* 'Food Desert' Amendment Proposed B...
* Bustos disagrees with Trump immigration or...

* Cdn Natl Railway (CNI) Market Valuation Ro......
* Tri-state lawmakers, business leaders appl......
* Trump wants a single federal food safety a......
* Chicago non-profit sheltering separated im......
* Online sales-tax ruling could mean nearly ......

* Rolling Meadows Post Office Petition 940-S......
* MIL-OSI USA: Duckworth Statement on Trump ......
* Durbin and Duckworth Weigh In on Immigrati......
* The US-North Korea summit was a step towar......
* New Zealand Prime Minister Jacinda Ardern ......

* Poet and rapper Tati wants to help you make your own love potion
* Singer welcomed by America's Got Talent—but not the CTA
* Soft Opening For Hong Ngu On Argyle
* Have any events to share with us?
* No more cries of “Jerry Jerry” echoing from our TV screens (except in reruns)
* Five masters of stop-motion animation
* Study: People Remember Information Better Through VR
* What do online students want
* Free MOOCs Face the Music
* New Tech Makes Mixed Reality More Interactive

* Chairman Fratianni selected for national workers' comp leadership role
* Unemployment Rate Continues Falling in All Metro Areas

* How to Stop WhatsApp Auto-Saving Images and Video to Your iPhone's Camera Roll
* Microsoft matches Google Lens with AI-powered visual search for Bing
* Galaxy S10 may ditch iris scanner for in-display fingerprint and 3D sensor tech
* The Nokia 7 Plus can now be upgraded to Android P beta 2
* Amazon employees protest sale of facial recognition software to police
* 11 fabulous futuristic robots from Automatica 2018
* Asus Zenfone Max Pro M1 with 6GB RAM and 16MP selfie shooter spotted on Flipkart

* White Sox Minor League Update: June 21, 2018
* White Sox Minor League Update: June 21, 2018
* Most Essential White Sox Vote: Round 33
* A's, White Sox kick off series with day-night twinbill
* Most Essential White Sox Vote: Round 33
* A guide to White Sox prospect promotion-palooza
* Rainout for White Sox doesn't mean off-day for prospects

Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

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


RSS Feed 2.0
Comments RSS 2.0

Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller