* Greg Hinz has a pair of poll results on Mayor Rahm Emanuel today. One was taken of Chicagoans in US Rep. Mike Quigley’s district which showed a 57 percent favorable rating and a 41 percent unfavorable rating. Emanuel’s job performance was a net positive, at 52-46. The sample for both polls was of likely Democratic primary voters for next March. So, it doesn’t include the smallish number of Chicagoans who take Republican ballots (about 11 percent last year) and those who may not vote in the mayoral race.
The other one…
The other survey—actually, results of two polls of 584 likely [Chicago Democratic primary] voters conducted in late October and then late November—was conducted by a national firm that has done previous work in Illinois. The pollster involved asked questions about Emanuel as part of his survey for a statewide candidate and while neither will allow their names to be used, I spoke with the pollster directly.
In this survey, Emanuel citywide got a personal favorable rating of 50 percent positive and 40 percent negative. His rating from African-Americans was slightly better than among whites, 51/37 as opposed to 51/42, due mostly to a strong 56/32 rating from black women.
Emanuel’s rating on the North Side was 53 percent favorable to 38 percent unfavorable, fairly close to the results in Quigley’s district. The split was narrower on the South Side, 49 percent to 40 percent, and almost even on the West Side, 47 percent to 44 percent.
Those numbers collectively “look like the coalition that elected him last time,” said the pollster, asserting that Emanuel’s public efforts to get more state school aid for Chicago Public Schools, hire more police and help immigrants are having an impact. And overall, Emanuel’s numbers probably are stronger than they appear because the survey excludes Republicans, who likely would lean toward the mayor in a challenge from a progressive on the political left such as Garcia, the pollster said.
Take it for what you will.
…Adding… More results on Quigley from the Quigley campaign…
Very Fav 37% Somewhat Fav 34% Somewhat Unfav 7% Very Unfav 3% Name ID 81%
How would you rate the job Mike Quigley is doing in Congress?
Excellent 28% Good 41% Not so good 11% Poor 5%
If the Democratic primary election for Congress were held today, would you vote to re-elect Mike Quigley, or would you vote to replace him with another Democrat?
Definitely re-elect 35% Probably re-elect 26% Total re-elect 61% Probably replace 11% Definitely replace 7% Total replace 18% Undecided 21%
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* I was waiting on her letter so I could post it, but yeah, this also happened today…
Not a banner week for the governor and it’s only Tuesday.
* Rep. Greg Harris on Facebook…
Illinois’s Chief Procurement Officer has just voided the multi-million dollar no-bid Medicaid consulting contract issued by the Rauner administration that was subject of our hearings last week. This Thursday we will be having hearings on the much larger $60+ billion dollar Medicaid MCO contracts.
*** UPDATE 1 *** Here’s the pertinent part of the letter. Click the pic for a much better image…
Seems pretty clear that the contract was not exempt.
*** UPDATE 2 *** From the comptroller’s office…
As Comptroller Mendoza mentioned the last time she appeared before the Human Services Committee, our office has had these matters under review for some time and we are not surprised by the Chief Procurement Officer’s decision to void the contract. We will watch the committee’s hearings with great interest.
* Also…
*** UPDATE 3 *** Press release…
The cancellation of a no-bid consulting contract inked by the Rauner administration in violation of state procurement law raises other red flags about the state’s Medicaid managed care program, Senator Andy Manar said today.
“In my mind, all this does is raise more questions about the Rauner administration’s handling of the overall $60-plus billion managed care contract. I think taxpayers are owed some explanations,” said Manar, a Bunker Hill Democrat and chairman of a Senate appropriations committee.
The state’s chief procurement officer on Tuesday voided the multi-million-dollar no-bid consulting contract between the Rauner administration and Chicago-based McKinsey & Co. The contract was for services related to the state’s Medicaid managed care program.
The process of contracting with insurance companies to be part of the state’s Medicaid managed care system has been cloaked in secrecy while costs ballooned without explanation. Manar said he and other state senators will be looking for answers from the administration during a Senate hearing at 11 a.m. Friday in Chicago.
The hearing will be streamed live at www.ilga.gov.
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* Today, Gov. Rauner brought up former Rep. Ken Dunkin’s Democratic primary defeat last year after Dunkin sided with Rauner on the AFSCME bill. The governor even bemoaned the fact that House Speaker Michael Madigan convinced President Obama to campaign against Dunkin (without mentioning that Dunkin had foolishly run ads which made it appear as if Obama supported him). Anyway, Rauner then turned his attention to Rep. Scott Drury, who is now running for attorney general…
One member of the General Assembly here recently, just one, voted Present, I think, or abstain in the last election for Speaker Madigan to be Speaker. One. You see he’s not running again for the House. What a coincidence. They made his life holy heck. And, basically, push him out. This is rule by fear. This is not democracy.
This is the example he uses? Seriously?
* Remember this statement from the chairman of the almost totally Rauner-funded Illinois Republican Party moments after Rauner’s tax hike veto was overridden?…
“I am extremely troubled by the decision of 10 Republicans to again stand with Mike Madigan. Republicans in Illinois fought Madigan’s machine in 2014 to elect Gov. Rauner and won. In 2016 we beat Madigan again and made historic gains in the House and the Senate. After all we have accomplished together, it is astonishing that these legislators would now turn their backs on taxpayers across the state. I am confident voters will hold those politicians accountable for choosing Mike Madigan over the people of Illinois.”
* And nine of the eleven retiring House Republicans on this list voted for the tax hike…
All but one of the 15 who initially voted for the tax hike and stuck around is facing a Republican primary opponent.
* From Rep. Chad Hays’ retirement announcement…
“Legislators who care deeply and have the courage of their convictions and the intestinal fortitude to do what is right regardless of consequences are increasingly silenced. I believe we are in serious jeopardy of independent thought being a relic in our public discourse.”
So, spare me, governor.
…Adding… Wordslinger in comments…
Let’s not forget McCann’s one meaningless vote bucking Rauner that earned him a well-funded primary opponent.
Yep. And it was gonna be two well-funded primary opponents in a row, but he also bailed.
*** UPDATE *** From Rep. Scott Drury…
While Governor Rauner has admitted that Mike Madigan controls him, he incorrectly states that Madigan controls me. To the extent Madigan has unsuccessfully spent time trying to figure out how to thwart me, it merely shows that I am controlling him. As a federal prosecutor and a legislator, I have been working to clean up Illinois at all levels. As Attorney General, I will clean up our state once and for all – which includes putting a stop to no-bid contracts that harm taxpayers, ending the patronage that keeps the Machine in power and prosecuting politicians at every level of government engaged in the corrupt practice of “pay-to-play.”
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Question of the day: Golden Horseshoe Awards
Tuesday, Dec 5, 2017 - Posted by Rich Miller
* I planned to start this yesterday and then forgot. Oops. Our first two categories…
* Best Statehouse-area bartender
* Best Statehouse-area waiter/waitress
As always, keep in mind that this is about the intensity of the nominations, not the number of the nominations, so make sure to fully explain your votes. And, please, do your best to nominate in both categories. When lots of people focus on just one award, I figure it’s an organized conspiracy and discount those votes.
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Oppo dump! Pritzker’s New World Ventures
Tuesday, Dec 5, 2017 - Posted by Rich Miller
* Earlier today, Gov. Rauner told reporters this about JB Pritzker…
And if you want to see how good a businessman he is, go look up how he did with his New World Ventures, you can really see some truth about how good a businessman he is.
* The Pritzker campaign responded…
JB decided to cap new investments from a New World Ventures fund in the aftermath of the national collapse of the tech industry in the early 2000s. He refunded money that had been invested in the fund by those outside of his family and personally reached into his own pocket to pay them back. Since that time, JB Pritzker and New World Ventures, which is now called Pritzker Group Venture Capital, have invested in startup companies that have created thousands of jobs. JB is running on his record of getting big things done for Illinois families and communities, and unlike Bruce Rauner, he does not believe people should be treated like lines on an excel spreadsheet and when you are the governor of a state, you are actually in charge.
As mentioned above, New World Ventures was later renamed Pritzker Group Venture Capital. Click here for more info.
* OK, with that being said, on to the oppo. All emphasis was in the original document…
J.B Pritzker: Investment Genius
J.B. Pritzker Raised His First Outside Investment Funds In The Late 90s
J.B. Pritzker Launched His First Investment Fund – New World Ventures – In 1998 With $10.8 Million From Outside Investors. “Born with one of the most famous names in business, Jay Robert Pritzker is making a name for himself. Outside investors put up the majority of a $10.8-million high-tech investment fund raised last year by New World Venture Partners LLC, the successor to a private venture capital firm Mr. Pritzker launched in 1996 with a $6-million stake from the billionaire Chicago dynasty.” (Paul Merrion, “Venture Vanguard: Pritzker’s At Head Of Class Of Young Fund Teams,” Crain’s Chicago Business, 5/17/99)
In 1999, Pritzker Partnered With William Blair & Co. To Launch His Second Investment Fund – William Blair New World Ventures – With $100 Million From Outside Investors. “Two prominent Chicago financiers — J. B. Pritzker and William Blair & Co. — are teaming up to invest $100 million in the sizzling technology- startup arena. Mr. Pritzker’s New World Ventures has formed a partnership with William Blair Capital Partners LLC to invest in technology firms at their riskiest but potentially most lucrative stage — often before the companies have rung up any sales. The partners’ fund, William Blair New World Ventures, will target emerging Internet, software, telecommunications and networking companies with initial investments between $2 million and $4 million.” (Barbara Rose, “Blair, Pritzker Launch Tech Startup Fund,” Crain’s Chicago Business, 12/20/99)
By 2003, Both Of Pritzker’s Funds Had Suffered Catastrophic Losses
In 2003, New World Ventures Was Down 90 Percent, And William Blair New World Ventures Given Investors Half Their Money Back To Avoid Additional Losses. “Market bubbles don’t distinguish between new money and old money. Whether your name is Andrew ‘Flip’ Filipowski–a self-made software guru starting an Internet incubator–or J.B. Pritzker–a billionaire scion turned venture capitalist–the results of an investing mania can produce similar results… At Pritzker’s New World Ventures, which held limited partners meetings Tuesday, the Evanston firm’s wealthy private investors have been luckier. One of the firm’s funds is down an estimated 90 percent, according to a report from the meeting, while a second fund is giving investors half their money back rather than risking more losses.” (Barbara Rose, “Divine Considering Chapter 11; Pritzker’s New World Ventures Gives Back Funds,” Chicago Tribune, 2/19/03)
• Pritzker Had Raised $10.8 Million In 1998 For New World Ventures – By The End Of 2002 It Was Down To $1.8 Million. “New World’s first fund open to outside investors launched in late 1998: a modest $10.8 million pool with about 60 limited partners. Like Divine, New World was a pioneer: one of the area’s few firms to focus on start-ups with scant financial histories. But like Divine and some other early-stage venture funds, New World has sustained big losses. The first fund’s value at the end of 2002 was an estimated $1.8 million.” (Barbara Rose, “Divine Considering Chapter 11; Pritzker’s New World Ventures Gives Back Funds,” Chicago Tribune, 2/19/03)
• Pritzker Had Raised $80 Million For William Blair New World Ventures In 1999 – In 2003 He Released His Investors From $40 Million In Funding Commitments To Avoid More Losses. “For his second fund, Pritzker teamed up with an old-line Chicago name–an affiliate of regional brokerage William Blair & Co.–to raise about $80 million. Now, New World is releasing limited partners from about $40 million in funding commitments because of what Pritzker terms a severe market ‘downdraft.’” (Barbara Rose, “Divine Considering Chapter 11; Pritzker’s New World Ventures Gives Back Funds,” Chicago Tribune, 2/19/03)
Pritzker Claimed He Had Gotten A “Good Reaction” From His Investors; His Investors Disagreed
Pritzker Claimed He Had Gotten “A Good Reaction From The Vast Majority” Of His Investors. “I think we’ve gotten a good reaction from the vast majority” of investors about the givebacks, Pritzker said Tuesday.” (Barbara Rose, “Divine Considering Chapter 11; Pritzker’s New World Ventures Gives Back Funds,” Chicago Tribune, 2/19/03)
New World Ventures Investors Disagreed With Pritzker’s Characterization, With One Saying “People Are Very, Very Unhappy…They’ve Lost Almost All Their Money. “An investor in the first fund offered a different view. ‘People are very, very unhappy,’ he said. ‘They’ve lost almost all their money.’” (Barbara Rose, “Divine Considering Chapter 11; Pritzker’s New World Ventures Gives Back Funds,” Chicago Tribune, 2/19/03)
* Excerpt from a Rauner campaign press release this afternoon..
Today, Governor Bruce Rauner called out JB Pritzker’s spectacularly bad business record and questioned his taxes. When asked by reporters why JB Pritzker only reported $15 million in income despite his $3.4 billion net worth, Governor Rauner responded by saying “he has to be the worst investor on the planet.”
Here’s a history lesson: In 1998, JB Pritzker started New World Ventures. By 2003, that fund had lost 90% of its value.
In 1999, JB Pritzker started William Blair New World Ventures with $80 million in investments. By 2003, Pritzker returned only half that money ($40 million) to investors after the fund produced poor returns.
(“Divine Considering Chapter 11; Pritzker’s New World Ventures Gives Back Funds,” Chicago Tribune, 2/19/03)
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* Lynn Sweet…
House and Senate negotiators will be meeting to resolve differences in the Republican tax overhaul bills, and an outstanding item is whether a tax-free college savings account can be opened for a fetus.
Will this legislation about unborn children and 529 plans — named after a section of the IRS code — survive?
One needs a Social Security number to open up a college savings account. That’s ostensibly all that this is about, letting a fetus be eligible for a Social Security number.
It is really an anti-abortion related ploy in disguise.
* Press release…
Illinois State Treasurer Michael Frerichs today condemned Congressional Republicans for quietly inserting language into tax reform legislation that would allow a fetus to receive a social security number, a long-time goal of anti-choice advocates who believe such an action can help overturn Roe v. Wade.
Frerichs also called upon Republican Gov. Bruce Rauner to lobby Illinois’ Congressional delegation to eliminate this attempt to grant personhood to a fetus under the crass disguise that it makes it easier for families to save for college. Rauner has said that he is speaking with unnamed federal officials regarding the tax plan.
“Congressional Republicans hope the barking of a false tax cut will hide their attempts to undermine a woman’s right to choose,” Frerichs said. “Abortion is a deeply personal decision and treating it as a slight-of-hand parlor game diminishes women and disrespects their right to self-determination.”
The House tax plan, written exclusively by Republicans behind closed doors, includes language that would allow a 529 college savings plan to be opened for a fetus at any stage of development inside a woman’s womb. IRS rules currently require a 529 beneficiary to have a social security number. Therefore, if the in utero language stays in the proposal, Republicans will have created a path to grant personhood to the unborn.
“The Republican proposal to assign a social security number to an unborn fetus addresses a problem that does not exist,” Frerichs said.
Currently, an individual can open a 529 college savings account without immediately naming a beneficiary by using their own social security number. Later, the account owner can transfer it to a family member using the newly named beneficiary’s social security number. This has been allowable since its inception in 1997.
Among Frerichs’ duties as treasurer is to manage and serve as the sole trustee of Illinois’ two award‑winning 529 college savings programs. The Bright Start and Bright Directions investments have more than 450,000 beneficiaries with a value exceeding $10 billion. Each is considered among the best in the country, according to an independent analysis by Morningstar.
Bright Start and Bright Directions are investment programs and should not be confused with College Illinois!, a pre-paid college tuition program also under the 529 umbrella that is managed by Gov. Rauner.
Standing with Frerichs today was Terry Cosgrove of Personal PAC and Paula Thornton Greear of Planned Parenthood. Each called upon Gov. Rauner to use his influence with Illinois’ Congressional Republicans to strip the personhood language from the bill.
“This insensitive maneuver is a needless attack on women that not only would threaten reproductive freedom, but also could call into question the legality of commonly used birth controls,” Cosgrove said.
“The only purpose for this language can be to advance a relentless agenda to undermine access to safe, legal abortion by furthering notions of “personhood” through the tax code and other legislative vehicles,” Thornton Greear said. “In fact, this benefit for pregnant, and even non-pregnant, people already exists; they are simply changing the language of a benefit to build a foundation toward their goal of banning abortion. And we aren’t having it.”
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* Yesterday, Gov. Rauner said this about House Speaker Michael Madigan, among other things…
He controls, he’s rigged his primary. He has rigged his Democratic primary. He has rigged it, ladies and gentlemen. If you guys won’t report it, shame on you. He has rigged the system, he controls it. It’s a Mafia protection racket. And until he’s gone, we aren’t going to fix Illinois and we aren’t going to have a good future.
* Tina Sfondeles checked in with Brownie…
Madigan spokesman Steve Brown called the governor’s “mafia” comparison “incoherent.”
“I don’t know how that could be rigged if you got many, many candidates running,” Brown said. “It would seem to be incoherent.”
And asked about the speaker being “in charge,” Brown questioned state contracts and Rauner’s role in them, including controversy over the state renting out a Springfield warehouse to store records from the Department of Human Services and a consulting contract the Rauner administration doled out regarding the state’s Medicaid overhaul.
“If he’s not in charge, we got to find out who gave out the kinky contract to the guys who lease the Barney’s furniture warehouse. And who gave out the kinky contract to McKinsey to do God knows what,” Brown said. “If he didn’t do it, there’s someone handing out and spending a lot of money. It’s kind of crazy.”
Um, OK. Maybe it’s not “rigged,” but somebody is most certainly putting his apple-peeling finger on the scale, if not his whole body.
* Tribune…
Madigan spokesman Steve Brown said he didn’t know “what to make” of the governor’s comments.
“If he’s not in charge, we’d better figure out who is,” Brown said.
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* From a pal’s text message today…
You checked out the South Dakota Pritzker trust stuff yet?
Um, no, but I just Googled it.
* Bloomberg, 2014…
Among the nation’s billionaires, one of the most sought-after pieces of real estate right now is a quiet storefront in Sioux Falls, S.D.
A branch of Chicago’s Pritzker family rents space here, down the hall from the Minnesota clan that controls the Radisson hotel chain. Other rooms are held by Miami and Hong Kong money.
Most days, the small offices of this former five-and-dime are shut. But even empty, they provide their owners with an important asset: a South Dakota address for their trust funds.
In the past four years, the amount of money administered by South Dakota trust companies such as these has tripled to $121 billion — almost all of it from out of state. The families needn’t move to South Dakota, deposit their money at a local bank, or even touch down in the private jet. Little more than renting an address in Sioux Falls is required to take advantage of South Dakota’s tax-friendly trust laws.
States such as South Dakota are “creating laws that are conducive to a massive exploitation of a federal tax loophole,” said Edward McCaffery, a law professor at the University of Southern California. “We have a tax haven in our midst.”
South Dakota’s sudden popularity illustrates how the wealthiest Americans are embracing ever more creative ways to reduce taxes legally. Executives at South Dakota Trust Co., one of the state’s biggest, estimate that one-quarter of their business comes from special vehicles known as dynasty trusts that are designed to avoid the federal estate tax. Creation of such trusts has surged in recent years as changes in federal law have enabled more money to be placed in them.
While the super-rich use various tools to escape the levy, the advantage of dynasty trusts is that they shield a family’s wealth forever. That defies the spirit of the estate tax, enacted almost 100 years ago to discourage the perpetuation of dynastic wealth. […]
In 2010, the Pritzker family, whose members include Commerce Secretary Penny Pritzker, revealed in a securities filing that one branch had moved $360 million of Hyatt Hotels stock to trusts overseen by a native South Dakotan named Thomas Muenster. Muenster, whose sister married [JB] Pritzker, maintains an office in the Kresge building. […]
Jay Robert [JB] Pritzker, his sister Penny Pritzker and his brother-in-law Muenster didn’t respond to messages seeking comment
By the way, Thomas Muenster, the brother-in-law, was also involved with that hugely controversial and successful attempt to lower JB Pritzker’s property tax bill in part by removing the toilets from an empty mansion…
Pritzker’s name isn’t mentioned in the documents the assessor’s office released for the mansions. Both are owned by a limited liability company managed by Thomas Muenster, whose sister is Pritzker’s wife. But the Pritzker campaign acknowledges that the LLC is owned by a trust for Pritzker. Muenster and the law firm Schmidt Salzman & Moran filed the appeals with Berrios.
* MarketWatch, 2014…
In the 1990s, most states limited the duration of family trusts to the lifetime of a living heir, plus 21 years; South Dakota, in contrast, had no limits at all. That made it possible, in theory, for a wealthy benefactor to create a trust that could benefit not only her kids, but her great-great-great-great-grandkids.
Since then, more states have removed their duration limits, but the Mount Rushmore State has stayed ahead of the competition. South Dakota laws go the extra mile to shield trust assets from creditors and spouses, and let families control their own trust investments, rather than hiring trustees. What’s more, the state levies no income tax on investments.
Trusts in the state became particularly popular toward the end of 2012, when wealthier families feared that Congress might make more of their assets subject to estate tax (a fear that wasn’t realized). According to regulatory filings, wealthy folks who have taken advantage of prairie generosity in recent years include the Pritzker family, who moved $360 million worth of Hyatt Hotels Corp. stock to the state in 2010
* Quartz Media, 2014…
Most recently, McDowell and his crew persuaded the state legislature to pass laws that make it harder for the former spouses of wealthy people and their children to access assets hidden in South Dakota. That’s just the gravy, however, on laws that attract everyone from the billionaire Pritzker family to the heirs to the Wrigley fortune: They exempt dynastic trusts from federal inheritance taxes and income taxes, allowing generations of heirs to collect money tax-free. South Dakota was one of the first states to make such a law, but now almost a dozen others are following it in a race to the bottom.
The South Dakotans cite around a hundred jobs created by the trust industry, and figure that’s enough. But the state is also a net taker from the federal government, which supplies almost half its budget, even as its trusts drain perhaps billions of dollars from federal coffers and hundreds of millions from states where the beneficiaries of these trusts actually live.
* Financial Times, 2016…
Andy Holmes relocated from Kansas City last year to help his firm, the Great Plains Trust Company, increase its presence in South Dakota after clients, including celebrities and famous athletes, asked about the state’s benefits.
Great Plains worked with SDTC to learn the ropes, but last year leased a windowless office in a brick and glass building for its two employees. Down the hall is Maroon Trust, which manages the money of Chicago’s Pritzker family. Elsewhere on the floor is a roofing company. They share a receptionist.
Mr Holmes estimates that 90 per cent of the registered trusts in the state “are what I call shell companies where you basically have a PO box or an office and somebody will come here twice a year to have board meetings and meet regulatory requirements.”
*** UPDATE *** Pritzker campaign…
JB does not have any dynasty trusts; all of the trusts for his benefit have a rule against perpetuities so the “massive exploitation of a federal tax loophole” that is referenced in the article does not apply to JB.
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* Mary Ann Ahern asked Gov. Rauner about a press release his campaign sent out earlier today attacking JB Pritzker for hiding money in off-shore accounts. Doesn’t he do the same?…
Gov. Rauner: Not at all.
Mary Ann Ahern: You don’t have any off-shore accounts?
Rauner: I do not.
Ahern: That was reported in your first term.
Rauner: Yes, so, so Mary Ann, here’s the spin. This is, this spin is amazing. So, I have assets, I’ve worked hard, I’ve made all my money. I didn’t inherit money. Um, and, uh, uh, I worked hard for teachers and made teachers a lot of money for their retirement. I worked for police officers, made a lot of money for their retirement, and I made a lot of money. I’m proud of it. I’ve never apologized for it.
I have investments that I do not control. For example, investments in, in banks and insurance companies, etc. They manage some money. And what’s got reported, which is true, some of them, for their accounts, where I’m a tiny piece, I have no voice, I have no control over decision-making, they have investments in some operation in Bahamas, or somewhere. Tiny for me, tiny for them, I don’t control it, I don’t have a voice in it. That’s what got reported and spun.
Um, the candidate Pritzker, inherited over $3 billion. And he and his family has chosen, chosen, on a massive scale to hide hundreds and hundreds of millions of dollars of their money off-shore in accounts outside of the United States.
That is fundamentally wrong. That is gonna come out and it is outrageous.
Ahern: [Over cross-talk, made a point about how Pritzker made $15 million last year]
Rauner: Exactly. So get this. Mary Ann, great question [laughter]. Great question. So, you inherit, you inherit $3 billion. And if you want to see how good a businessman he is, go look up how he did with his New World Ventures, you can really see some truth about how good a businessman he is.
But, inherits $3 billion and he’s still got $3 billion years later, mostly. And, but he only reports $16 million of income. How do you do that? I mean, you, you have to be one of the worst investors on the planet to only generate $16 million of income on $3 billion of assets.
How do you do that? By hiding from taxes and tax avoidance. That’s how you do that.
* Pritzker campaign…
In response to the Worst Republican Governor in America’s comments at this morning’s press conference, Pritzker campaign manager Anne Caprara released the following statement:
“We’re not going to get in the way of the Bruce Rauner implosion tour.”
Nope. Not good enough. Not by a long shot.
It’s time JB Pritzker answered questions about his assets. Gov. Rauner made some very valid points today. The Democratic billionaire needs to stop hiding behind snarky statements and release the names of his trust funds. Period.
*** UPDATE 1 *** Pritzker campaign…
Bruce Rauner’s accusations are false and he is lying about JB Pritzker. In addition to releasing his personal tax returns, the total taxes paid by trusts benefitting JB, charitable contributions made personally and by his foundation, JB also filed a detailed Statement of Economic Interest that lists personal investments and assets as well as those held by trusts benefitting him. JB and trusts benefitting him have paid a combined $25 million in state taxes and $136 million in federal taxes over the last three years.
There are some trusts that were established by JB’s family a couple generations ago. JB did not set them up, has never received a personal disbursement from them, and he has directed that any disbursements from these trusts be given to charity. Those are facts, and Bruce Rauner’s attempt to distract from his disastrous campaign can’t change them.
ADDED: In regard to the offshore question, there are some trusts that were established by JB’s family a couple generations ago. JB did not set them up, has never received a personal disbursement from them, and he has directed that any disbursements from these trusts be given to charity. Those are facts, and Bruce Rauner’s attempt to distract from his disastrous campaign can’t change them.
They also claim that Pritzker inherited a bit over a billion dollars, not the three billion claimed by Rauner.
…Adding… From another campaign…
That “bit over a billion” is a red herring. That number is from before Hyatt got taken public and a lot of family owned [assets] got sold.
*** UPDATE 2 *** RGA…
Illinois Democrat candidate for governor and billionaire heir to the Hyatt fortune J.B. Pritzker is being called out for refusing to answer questions over reports that he is hiding his income sources from voter scrutiny in offshore accounts.
The multi-billionaire only reported $15 million in state taxable income this year, leading to questions over Pritzker’s use of offshore trusts to shield his income from taxation.
Illinois’ top political blog, Capitol Fax, slammed Pritzker’s campaign this afternoon for refusing to answer questions about his assets, including his refusal to list the names of the offshore trust he benefits from. “The Democratic billionaire needs to stop hiding behind snarky statements and release the names of his trust funds. Period.”
Pritzker’s primary opponent Chris Kennedy has already listed the names of the trusts he benefits from. Previous reports have detailed the Pritzker family’s “legendary use of hundreds of offshore trusts to protect its wealth from taxes and the prying eyes of the Internal Revenue Service.”
J.B. Pritzker’s refusal to answer questions about his offshore trusts shows he may have something to hide.
*** UPDATE 3 *** Biss campaign…
Today, Daniel Biss’ campaign released the following statement in response to Bruce Rauner and JB Pritzker’s astonishing attacks on each others’ financial interests and tax returns.
“Bruce Rauner and JB Pritzker are two sides of the same shiny gold coin,” said Biss spokesperson Tom Elliott. “Both billionaires lacking government experience. Both have private trusts they don’t control, and can’t disclose, and aren’t willing to report how much they’ve made from them. Both use their business acumen as reasons they should be governor, yet neither have released their full tax returns.
“If we’ve learned anything from the failures of Bruce Rauner and Donald Trump, it’s that success in business doesn’t equate to success in government, and that a candidate who isn’t being fully transparent with their financial interests can’t be trusted to have our best interests in mind.
“While Bruce Rauner and JB Pritzker attack each other in an astonishing battle of the billionaires, everyday Illinoisans are struggling to make ends meet. That’s why we need Daniel Biss, the only middle-class candidate with a record of getting things done, who we can trust to make government work for us, not the uber wealthy and the political elite.”
*** UPDATE 4 *** G…
At a press conference today, Bruce Rauner claimed that in his career in business he “worked hard” for teachers and police officers and “made a lot of money for their retirement.”
But the truth is Bruce Rauner tried to strip those same teachers and police officers of their hard-earned retirement money. In 2015, Bruce Rauner proposed massive cuts to benefits for police officers, public-school teachers, and firefighters with “little or no input from organized labor.”
“Bruce Rauner has never ‘worked hard’ for teachers and police officers and is only interested in their benefits when it lines his own pockets,” said Pritzker Communications Director Galia Slayen. “This is a failed governor who has worked to cut benefits and undermine working families to advance his special interest agenda.”
* Related…
* Fact Check: Do Pritzker and Kennedy Have a Tax Transparency Gap?: There is no law in Illinois requiring gubernatorial candidates or governors to release any tax information whatsoever, and Biss is clearly engaging in some campaign hyperbole when he refers to a Rauner standard and a Romney standard. That said, we find the essence of his statements to be True.
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Rauner doubles down on not being in charge
Tuesday, Dec 5, 2017 - Posted by Rich Miller
* From today’s press conference…
Reporter: Governor, do you want to revisit the notion that you’re not in charge? I know there might have been some push-back in the last 24 hours after you indicated that yesterday. It was kind of a strong thing to say. In hindsight, do you want to take another look at that and revise what you said?
Gov. Rauner: Hmm. No. Not really. I think, um, everyone in this state knows what I’m talking about. We’ve had one person in power. One person in charge of the vast amounts of the government for 35 years. And it’s the reason we’re in such big trouble. And I think most people in the state understand that. And, uh, there’s too much concentration of power in one individual. Um, and, uh, the Speaker has been in that position for 35 years. […]
Reporter: You ran on a platform of taking on the Speaker and reducing his power. If you have been unable to do that successfully, and are not in charge now, what is the argument for having four more years if the Speaker isn’t going anywhere?
Gov. Rauner: Ah, but the point is I believe he will be going somewhere. Into, uh, into retirement. And that’s what we’re working on. And this is, people around the state want this, and Democrats want this almost as much as Republicans when you talk with people around the state. And what I’m gratified to see is there is a strong movement from Democrats as well as Republicans to not have one person be Speaker for an extended period. […]
Reporter: So, are you saying that you envision a scenario where you get elected to a second term… and the Speaker is not the Speaker any more?
Gov. Rauner: I think there’s a very, very high probability of that and it would be a wonderful step for the state.
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* WTTW…
State Sen. Ira Silverstein, D-Chicago, who lost his position with Democratic leadership after having been publicly accused of sexual harassment, faces four primary challengers in the 8th District. His accuser, victim rights advocate Denise Rotheimer of Ingleside, is one of three Republicans hoping to win the Republican nomination for the 62nd House district; Democratic state Rep. Sam Yingling of Grayslake is the only member of his party to have filed.
* From yesterday…
Today, Caroline McAteer-Fournier announces that she will file over 2,800 signatures to be on the March 20 primary election ballot in Illinois’ 8th State Senate District.
Caroline announced her campaign after allegations of sexual harassment against State Senator Ira Silverstein emerged.
In just three weeks, Caroline was able to collect almost triple the number of necessary signatures to get on the ballot.
“I am energized and determined after the outpouring of support I have received in the past few days. If we want to change the culture in Springfield, then we need to elect more women.”
Caroline McAteer-Fournier is building a grassroots campaign that will bring a fresh voice in Springfield. Caroline was endorsed last week by Alison Leipsiger, who was also passing petitions for the IL 8th State Senate District.
* Also yesterday…
Today, Democratic Candidate for State Senate, Ram Villivalam (IL-8) announced the endorsement of U.S. Congresswoman Brad Schneider.
“I proudly and enthusiastically endorse Ram Villivalam for State Senate. Ram has long been a key contributor to my success as a Representative,” said Congressman Schneider. “As my Outreach Director, Ram demonstrated his ability to learn the key-issues and bring proven results to the community. As your State Senator, I know Ram will not only be an outstanding legislator but use those same skills to create a positive impact for hard working middle-class families in our community and throughout Illinois. Ram Villivalam will be an effective advocate for the 8th District and its range of diverse neighborhoods and I wholeheartedly endorse Ram for State Senate.”
“I am honored to have earned the endorsement of U.S. Congressman Schneider,” said Ram Villivalam. “Congressman Schneider has led efforts to protect the Affordable Care Act against Donald Trump and Congressional Republicans, protect and expand the rights of people in the LGBT community, ensure there is a strong U.S.-Israel relationship, and advocate for sensible gun violence prevention measures. If elected, I look forward to continuing the work we have collaborated on.”
Last Monday, Ram filed 2,700 petition signatures, more than 2.5 times the amount needed and which was collected by more than 50 grassroots volunteers to become an official candidate for State Senate in the 8th District of Illinois. Having banked more than $50,000 in donations in the first week of his campaign, Ram also announced the endorsements of U.S Congresswoman Jan Schakowsky, State Senator Laura Murphy, State Representative Theresa Mah, Metropolitan Water Reclamation District of Greater Chicago Commissioner Josina Morita, the Illinois State Association of Letter Carriers, and UFCW Local 881.
The other candidates are here. Zehra Quadri placed a distant third to Silverstein’s wife in the 2015 50th Ward aldermanic race.
* Also yesterday, from Denise Rotheimer’s Facebook page…
What an accomplishment! I just filed my petitions to be on the ballot. Remember to vote March 20, 2018. Also I am meeting with Eric Zorn tomorrow and am glad we were able to put aside our differences and move forward on a clean slate. Time for some coffee for the long drive home.
Rotheimer has yet to file any campaign finance disclosures. Also, publicly mixing her case with her campaign is either going to turn out to be a brilliant political move or not. We’ll see.
* Related…
* Don’t Rush New Sexual Harassment Policies, Some Women Lawmakers Warn: [Rep. Kelly Cassidy] herself, never knew who to report violations to. “That speaks to the culture of the building, that it never occurred to me to figure that out. Those complaints are the tip of the tip of the tip of the iceberg.”
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* Yesterday just wasn’t a good day for Gov. Rauner. He’s had a lot of those lately…
Gov. Bruce Rauner says the Republican attempt to overhaul the federal tax code “has a ways to go,” but it might not have as far to go as he thinks.
“I think they’re not there,” Rauner said during a question-and-answer session with reporters Monday. “I think there’s a lot of wood to chop on the tax policy reform, and I hope they get it done in a good way.”
The governor, however, was a few days behind on his news. Over a packed weekend welcoming Illinois National Guard troops home from Puerto Rico, riding his Harley in a Toys for Tots motorcycle run and attending the Illinois Bicentennial bash at Navy Pier, Rauner might have missed that Republican senators had voted for a sweeping tax bill early Saturday morning.
“First of all, the Senate hasn’t passed anything,” Rauner said on Monday when asked to explain what he thought Congress needed to do to get the tax code right. “And what the Senate is talking about is very different than what the House is working on. They have a long, long way to go.”
Indeed, distance remains between the House and Senate tax bills. But Senate Republicans’ approval of their own version was a big step forward and a sign they are willing to approve a tax overhaul even if it adds to the deficit.
Weird.
*** UPDATE *** DGA…
Governor Bruce Rauner has completely abdicated his responsibilities towards Illinois families on federal matters. From health care to tax reform, Rauner has either been complicity silent or openly supportive of President Trump’s policies. Last week, Rauner expressed support for Congress’ tax bill overhaul while acknowledging it did not help the middle-class. Rauner also would not elaborate on what he would change in the bill as he did not like to “negotiate through the media.”
Well, Rauner now has the perfect someone to negotiate with. Last night, the U.S. House Speaker’s office announced that Illinois Republican Congressmen Peter Roskam and John Shimkus named to the “committee to negotiate the differences between the House and Senate tax overhaul bills.” Roskam and Shimkus are two of only nine Republican House members on the committee, giving them, and Rauner, a great deal of influence in the final bill.
Will Rauner keep shirking from his responsibilities? Or will he call up his fellow Illinois Republicans?
“Illinois taxpayers need a fighter but Bruce Rauner won’t answer the call,” said DGA Illinois Communications Director Sam Salustro. “Many Illinois middle-class households will see their taxes rise to pay for cuts for the wealthy and Bruce Rauner has cheered Congress on. Time and again, Rauner has failed the people of Illinois and refused to protect them from President Trump’s policies, including this middle-class tax hike. Rauner’s failure to show leadership is exactly why he’s was named the worst governor by his own party.”
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* From the Rauner campaign…
JB Pritzker may call for higher taxes in Illinois, but what he pays might not be as big as expected.
Pritzker, whose family has a history of off shore holdings and avoiding taxes, refuses to release even just the names of his trusts.
With JB Pritzker in Springfield, Illinoisans will be paying higher taxes, but don’t expect Pritzker to be paying his fair share.
More from Rich Miller’s column ‘Rich Is As Rich Does’:
…He refused to divulge the tax returns for those trusts (which really would be “complex”) because, his campaign claimed, other members of his extended family also benefit from those trusts. OK, fine. But how about divulging the names of his trusts? Tracking down these trusts is a difficult business because they’re shrouded in such secrecy. Names would help.
When a politician refuses to divulge something, particularly after criticizing others for not doing so, you gotta wonder what that person is hiding.
The Pritzker family all but invented off-shore trusts. “No family in the U.S. can copy the Pritzkers in using offshore entities to gain tax advantages,” claimed Forbes magazine back in 2003.
In an attempt to pry Pritzker’s information loose, I reached out to Chris Kennedy’s gubernatorial campaign and asked if they would release the names of the trust funds Kennedy benefits from. They did.
…JB Pritzker’s sister Penny, who served as President Barack Obama’s Secretary of Commerce, is mentioned in the so-called “Paradise Papers,” a massive ongoing research project into the uber-wealthy and mega-corporations conducted by journalists all over the world. Ms. Pritzker transferred shares from two Bermuda companies to a company owned by trusts that benefit her children after she was confirmed for the Cabinet post. Her family’s myriad offshore trusts were a big issue during her confirmation hearing.
Alas, Kennedy’s decision to reveal his trust funds’ names did not move the Pritzker campaign one iota closer to disclosing the names of Pritzker’s trusts.
This ain’t over.
Discuss.
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Ives says she’s “ready to lead the charge”
Tuesday, Dec 5, 2017 - Posted by Rich Miller
* Nice pivot…
That “I am not in charge, I’m trying to get to be in charge” comment is gonna haunt this governor for a very long time.
* More from Ives…
“Our governorship is a very strong position,” Ives said Monday afternoon. “We have one of the strongest governorship positions because you can veto in several different ways, you run the executive branch, you have access to all sorts of… you have a bully pulpit to get policy through.
“While Mike Madigan runs the Illinois House,” Ives said, “the truth is there were a number of bills that were signed by Governor Rauner that he did not have to sign.”
Still, Ives acknowledged her own role in Springfield has largely been to play spoiler.
“My best work is actually getting traction on killing legislation that is bad, not necessarily passing legislation bad [sic], which is what my role is as a member of both first the super minority (2013-2016) and then the minority (2017-present).
After five years in office, Ives has seen just five of her 134 bills become law, according to the Illinois General Assembly records.
* And…
Among those endorsing Ives Tuesday was State Sen. Dave McSweeney, who called Rauner a “failed governor.”
“[He] is not in charge,” McSweeney told NBC 5. “You saw him admit it yesterday.”
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