Capitol Fax.com - Your Illinois News Radar » Kennedy’s “Florida tax” idea
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Kennedy’s “Florida tax” idea

Monday, Mar 12, 2018

* From Chris Kennedy’s appearance on Rick Pearson’s WGN Radio show yesterday

When we look at revenue options, let’s look at the tax cheats that are operating in Illinois. Let’s look at the people who say they live in another state and continue to have their jobs here and take income in Illnois and don’t pay income tax here.

The state of New York, the state of California started taxing those people. I talked to the fellow who helps collects those taxes in New York just last week and he said it’s billions of dollars in tax revenue that they get in New York from people who visit there and work, take meetings and work. And we should tax those people here.

If you look at Kennedy’s infrastructure plan, he says Illinois should pass a “Florida Tax to tax people who live out of state but earn income in Illinois.”

* Greg Hinz explains

According to Taxpayers’ Federation of Illinois President Carol Portman, the current tax code is pretty good at collecting money from professional athletes when they play in town—that provision sometimes is called the “Michael Jordan” clause, after the former Bulls star—but largely lets visiting accountants, lawyers, consultants and others off the hook unless they exclusively work here or their business is based here.

“States like New York are more aggressive and tax nonresidents spending just a few workdays there,” Portman says.

In fact, some businesspeople abuse the loophole, intentionally maintaining their official residence in a low-tax state while working here most of the time, says the sponsor of the Senate bill, Chicago Democrat Kwame Raoul. Still, “This is a complicated subject. We have to do it the right way,” he says.

The Civic Federation’s Laurence Msall agrees with Portman that Illinois should consider following the lead of New York, which “taxes you on your first day of working there.” Potentially, the state could net tens of millions of dollars a year in revenue by fully collecting such a tax, he adds.

But both Msall and Portman say there would have to be either reciprocity with other states—we’ll exempt your road warriors if you exempt ours—or a provision creating an Illinois tax credit for taxes paid to other states. That would cut down on the income.

Thoughts?

…Adding… Rep. La Shawn Ford (D-Chicago) introduced a bill on this topic last May

Amends the Illinois Income Tax Act. Provides that compensation paid to individuals whose service is performed both within and without this State, but is not otherwise treated as paid in this State under the Act, is paid in this State to the extent that compensation is paid for services performed within this State.

- Posted by Rich Miller        

26 Comments
  1. - Dome Gnome - Monday, Mar 12, 18 @ 12:40 pm:

    Didn’t Senator Oberweis get caught up in something similar to this?


  2. - Whatever - Monday, Mar 12, 18 @ 12:41 pm:

    Rep. Manley beat them to it - HB 5517. Florida, on the other hand, does not have an individual income tax, so I don’t know where Kennedy is getting his “Florida tax” idea.


  3. - anon - Monday, Mar 12, 18 @ 12:43 pm:

    Aside from complicating taxes for any individual who travels (especially those who do not travel regularly), I wonder if Illinois would really end up as a net gain. Do we import more legal work than we export, for example?


  4. - Stand Tall - Monday, Mar 12, 18 @ 12:54 pm:

    Ask JB about it as he and his family found an even better way to avoid paying taxes on their money. Just keep finding more ways for people to want to leave Illinois.


  5. - City Zen - Monday, Mar 12, 18 @ 12:58 pm:

    Finally, a “someone else” we can all agree on.


  6. - Anon0091 - Monday, Mar 12, 18 @ 1:09 pm:

    Gravely voice: “Chris Kennedy is so desperate to raise taxes that now he wants to go after you even if you move out of state. Chris Kennedy - just another big tax Democrat.”


  7. - Anon324 - Monday, Mar 12, 18 @ 1:11 pm:

    ==Florida, on the other hand, does not have an individual income tax, so I don’t know where Kennedy is getting his “Florida tax” idea.==

    It’s called a “Florida tax” for that reason. People claim to live in Florida to avoid state income taxes, when they earn their income in other states.


  8. - wordslinger - Monday, Mar 12, 18 @ 1:26 pm:

    –Potentially, the state could net tens of millions of dollars a year in revenue by fully collecting such a tax, he adds.==

    Fine. As long as everyone understands the difference between “millions” and “billions.”

    I’m talking about those who think Rauner is a “fiscal conservative” for turning off lights in the mansion while he was running up $12 billion in unpaid bills.


  9. - Anonymous - Monday, Mar 12, 18 @ 1:47 pm:

    I agree. That would make more people want to come to this state. As long as he doesn’t tax us illinoisans


  10. - Amalia - Monday, Mar 12, 18 @ 1:51 pm:

    worth a look. also, JB lies when he says that social security would be taxed. Not possible. not legal.


  11. - Hank - Monday, Mar 12, 18 @ 2:01 pm:

    People of Illinois. He doesn’t want to tax yum be happy for such a proposal


  12. - Hank - Monday, Mar 12, 18 @ 2:02 pm:

    I mean you


  13. - Touré's Latte - Monday, Mar 12, 18 @ 2:04 pm:

    Dear Chris,

    I am not totally sold on the idea that making a persuasive case, for residents of other states who work here, to pay taxes here, starts with calling them “tax cheats”, especially when it appears it is the state who is letting it go.

    Love,

    Latte


  14. - NeverPoliticallyCorrect - Monday, Mar 12, 18 @ 2:11 pm:

    Yeah, Kennedy is on point, not. Everyone pays the same percentage of income all other things being equal. And when he says “their fair share” just what does that mean? Illinois isn’t in trouble because it has a flat rate tax. It’s in trouble because of decades of mismanagement that has driven more business away than it has attracted. Problem is that Rauner has added to the problem. No win scenario.


  15. - very old soil - Monday, Mar 12, 18 @ 2:22 pm:

    Amalia Where do you get that you can’t tax SS. The feds tax most (85%?) of mine


  16. - wondering - Monday, Mar 12, 18 @ 2:22 pm:

    I csn see where this is going…try to tax Illi ois pensioners living out of state.


  17. - wondering - Monday, Mar 12, 18 @ 2:24 pm:

    I can see where this is going…try to tax Illi ois pensioners living out of state.


  18. - City Zen - Monday, Mar 12, 18 @ 2:26 pm:

    ==I can see where this is going…try to tax Illinois pensioners living out of state.==

    Illegal. The Pension Source Tax Act of 1996 stipulates that no State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State.


  19. - Sue - Monday, Mar 12, 18 @ 2:28 pm:

    If you spend any time is the so called snow bird states- folks from NY NJ CT OH MA all will tell you their states put them thru the ringer to assure they are not evading their State tax obligation - Illinois not at all. Don’t know how much revenue is out there to collect but the Illinois Dept of Revenue is really lax policing their dual state residents


  20. - thechampaignlife - Monday, Mar 12, 18 @ 2:29 pm:

    Can we at least tax traditional IRA contributions the same way we tax Roth? We seem to overlook that Roth contributions are included in your federal AGI and therefore taxed at the state level.

    So, we already tax retirement contributions, just not retirement income. It seems only fair for traditional contributions to be taxable too. So, if we will not tax it at the time of withdrawal as income, why not at the time of contribution?


  21. - Arthur Andersen - Monday, Mar 12, 18 @ 2:48 pm:

    Typical Kennedy to pull a major proposal outta his caboose eight days before the primary, largely unvetted.


  22. - BIG R. Ph. - Monday, Mar 12, 18 @ 3:23 pm:

    Following this same logic, if you are on a “business trip” and you pass through an Illinois airport (Midway or O’hare) you are technically here for 1 day. Then would you have to file and Illinois tax return for 1/365 of the year?

    Audit the Medicaid rolls. Much easier. Much more effective!


  23. - Hhooh - Monday, Mar 12, 18 @ 4:06 pm:

    Been going after the out of state taxpayers with Illinois businesses need better laws. Lots of loop holes. But rest assured the tax auditors are looking under every rock to collect taxes due.


  24. - Anonymous - Monday, Mar 12, 18 @ 5:01 pm:

    ===If you spend any time is the so called snow bird states- folks from NY NJ CT OH MA all will tell you their states put them thru the ringer to assure they are not evading their State tax obligation - Illinois not at all. Don’t know how much revenue is out there to collect but the Illinois Dept of Revenue is really lax policing their dual state residents===

    Illinois tax statutes make it easy for Illinois residents to establish a domicile in another state. The Department of Revenue can’t change the tax statutes. If you think its a problem now, imagine what would happen if Illinois changes its constitution and adopts a progressive income tax.


  25. - 44th - Monday, Mar 12, 18 @ 5:12 pm:

    Great we chase the rich out of the state and keep chasing them.


  26. - blue dog dem - Monday, Mar 12, 18 @ 5:40 pm:

    I find it unbelievable that any of my fellow Illinoisians would do anything as low as avoiding taxes. Must be all Republicans. Progressives wouldn’t do such an immorral thing. Paying ones fair share is a civic duty. A priveledge.


Sorry, comments for this post are now closed.


* Reader comments closed until Tuesday
* *** UPDATED x1 *** Tribune asked 16 mayoral candidates to release tax returns, 6 complied
* A rough idea of what they're looking at
* Question of the day: Golden Horseshoe Awards
* Rauner was wrong about "record levels" of unionization
* SUBSCRIBERS ONLY: Stava-Murray updates
* Pritzker's inauguration ball tix will benefit Cabrini Green Legal Aid Clinic and Illinois Fairgrounds Foundation
* Rauner claims he's been too busy to reflect on his term
* Pritzker's day in DC
* *** UPDATED x3 - Morrison wants emergency meeting of ILGOP - McConnaughay explains - Schneider responds *** Rauner says he tried to drop out of race after primary
* Feds re-raid Ald. Burke's office
* *** 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
December 2018
November 2018
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