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Question of the day

Thursday, Mar 7, 2019 - Posted by Rich Miller

* As we’ve already discussed today, Gov. Pritzker’s proposed graduated income tax plan is projected to raise $3.4 billion.

Pritzker’s projected graduated tax revenue is equal to about a one percentage point increase in the existing flat tax, from 4.95 percent to 5.95 percent on everybody.

The state government could also cut spending by 15 percent across the board for K-12 and higher education, DCFS and other social services, the Illinois State Police and other public safety programs, DNR, agriculture, health care and on and on and on. It’s not a direct comparison, but to give you a kinda rough idea what that would look like, think of the impasse’s cuts and deficit/backlogged spending after a 1.25 percentage-point reduction in the income tax.

Now, they could conceivably cut spending by less than that, but some folks I’ve spoken with today don’t believe that even the $3.4 billion raised by the graduated tax produces enough revenue to fix the structural deficit and make the necessary investments in education, etc. So, for argument’s sake, let’s stick with that.

* The Question: Your choice? Take the poll and then explain your answer in comments, please…


survey service

       

53 Comments
  1. - Anonymous - Thursday, Mar 7, 19 @ 3:20 pm:

    After reading that we currently fund higher ed at about half what it was in 2000, I can’t take anyone serious who thinks it should be cut another 15%.


  2. - curtis - Thursday, Mar 7, 19 @ 3:24 pm:

    Graduated tax:

    Flat tax is abysmal at taking in revenue and sticks it to those with the least.

    And where can we cut 15%? I’d like to hear Ideas Illinois propose their alternative besides saying “no” to a graduated income tax.


  3. - ShyBoy - Thursday, Mar 7, 19 @ 3:25 pm:

    Funding cuts are a non-starter- we are woefully underfunding education and social services, and in my opinion, THAT is why we have severe population growth issues.

    The tax system we have in Illinois is also more burdensome for the poor than the rich, another reason people are leaving.

    Pritzker’s plan could have included more brackets for 10 million and/or 20 million. The people making 350k per year aren’t the biggest problem at all. But this is a good proposal and he deserves great credit for submitting it. It takes courage to propose tax raises like this.

    It is going to be a long road to getting this done.


  4. - Rich Miller - Thursday, Mar 7, 19 @ 3:26 pm:

    Stick to the topic, please. I’ve already deleted three off-topic comments. Either explain your vote or don’t comment.


  5. - FormerParatrooper - Thursday, Mar 7, 19 @ 3:29 pm:

    The tax proposal seems reasonable to me considering how much we need to balance the books. Something that I didn’t see mentioned is those who will pay less tax will spend that money, paying tax on those purchases which will go to the State and the local economies. We should also still look where we can cut the budget, make more cost effective purchases and better manage our money.


  6. - Anonymous - Thursday, Mar 7, 19 @ 3:29 pm:

    I think the graduated tax proposal provides a real solution to begin plugging the structural deficit. There probably will have to be spending cuts and revenue increases down the road. This proposal does begin the real and lengthy road of actually solving the mistakes of previous decades. It’s a long term solution for a long term problem. Finally. Thanks Guv.


  7. - City Zen - Thursday, Mar 7, 19 @ 3:32 pm:

    ==And where can we cut 15%?==

    Ask JB. It’s his presentation.

    I voted for the cut, more out of curiosity to see what JB thinks is the least important expenditures in the state.


  8. - revvedup - Thursday, Mar 7, 19 @ 3:35 pm:

    Pritzker Plan. Current tax structure does not fairly tax high-income earners, so 1% of nothing is still nothing, while 15% cuts would ensure Rauner’s harms are never repaired.


  9. - Anonymous - Thursday, Mar 7, 19 @ 3:36 pm:

    I voted for a graduated tax…because… as Jung stated,”Life does not operate on right or wrong,it operates on sense or non-sense”…and a graduated tax simply makes sense.


  10. - Jibba - Thursday, Mar 7, 19 @ 3:36 pm:

    I’m voting for the graduated tax, but only because there was’t a button for “all of the above” (only a little snark). I suspect some budget cutting will be needed as part of reorganizing services, especially given the relatively low amount of revenue to be generated as compared to the needs. I also would prefer they kept my “tax cut”, which is too small to do me any real good, but might be better used by the state.


  11. - Anon - Thursday, Mar 7, 19 @ 3:38 pm:

    Although I’d like to see some cuts, there aren’t enough brains and guts in Springfield to do it. I voted for flat tax. Easiest to accomplish, immediate effectiveness, Fair to all.


  12. - Informed Mom - Thursday, Mar 7, 19 @ 3:39 pm:

    I’ve been wanting a graduated tax for Illinois ever since I learned it was a possibility and that’s a long time.


  13. - Grandson of Man - Thursday, Mar 7, 19 @ 3:41 pm:

    Graduated tax all day and night. We job creators need tax cuts. Isn’t that what all the right wing screaming is about, that job creators are being hurt by taxes?

    What kind of Draculas want to slash education spending by 15%? Could it be those who don’t want to pay a modestly higher state income tax and who could more easily afford it? Education is a major component of job creation.


  14. - Perrid - Thursday, Mar 7, 19 @ 3:41 pm:

    A graduated income tax is by far the best solution, in my mind. Could you make some cuts, specifically everyone favorite, waste and abuse? Almost certainly. Are there programs that have less value, or impact less people? Sure, though that’s always in the eye of the beholder. But I’m a big government guy, I think most of our institutions provide a very real, large benefit to our state and don’t think there is a lot of cuts to be had before you lose real value to Illinoisans. So the 15% flat cut is completely out, to me. Again, maybe some smaller cuts, but not that large or broad. So that leaves increasing revenue. And keeping taxes the same, or a little less, for the majority of people is by far the best solution. There are some losers in this plan. It sucks for them. But I’m not inclined to cry for people, even couples, making $250k. They are comfortable, if not “rich” (according to some).


  15. - JT11505 - Thursday, Mar 7, 19 @ 3:43 pm:

    Voted for the progressive tax.
    It would also be nice if our federal delegation could bring home a bit more bacon… get us at least a little closer to even on what we send and what we get back.


  16. - stlboy - Thursday, Mar 7, 19 @ 3:43 pm:

    I know it’s a stretch for me, but his plan seems the best of all. Have no idea where you would cut 15% without doing more serious damages and creating a bigger gap. I don’t suppose there could be a sunset? Wishful thinking.


  17. - Ducky LaMoore - Thursday, Mar 7, 19 @ 3:43 pm:

    I voted for the Pritzker plan. Though I have reservations. I agree with many that it still may not be enough. There does need to be cuts. Where? I wish I knew. Across the board 5-10% maybe. But you don’t want to mess with things that have matching federal dollars. This is probably the best of nothing but bad options.


  18. - Lt Guv - Thursday, Mar 7, 19 @ 3:46 pm:

    Progressive tax, increased revenue and a cut for 97% of the population. What’s not to like?


  19. - Smitty Irving - Thursday, Mar 7, 19 @ 3:46 pm:

    Ptitzker -
    First Governor since Ogilvie to step up to the plate and do the right thing. Hopefully this will put a stake through the heart of budgetary gimmicky / kicking the can down the road we’ve had since Walker.


  20. - Chicago 20 - Thursday, Mar 7, 19 @ 3:46 pm:

    Graduated income tax is a no brainer.

    Pritzger also needs to change the corporate income tax to a revenue tax.


  21. - Ducky LaMoore - Thursday, Mar 7, 19 @ 3:50 pm:

    ===Pritzger also needs to change the corporate income tax to a revenue tax.===

    I know I know, off topic. Remember the Honorable Rod R Blagojevich’s gross receipts tax? Same thing. It got zero votes. Zero votes. A very bad policy for a very long pipe dream.


  22. - Blue Dog Dem - Thursday, Mar 7, 19 @ 4:02 pm:

    I voted for the graduated income tax but would still like to see approx $1 billion in cuts. And yes Grandson, i would certainly like to see some k-12 cuts and as I’ve said repeatedly rob LGDF significantly. Wont happen i know, so start smoking some extra somethings.


  23. - Dead Head - Thursday, Mar 7, 19 @ 4:03 pm:

    I voted yes because this is a policy I have been advocating for for over 20 years.


  24. - RNUG - Thursday, Mar 7, 19 @ 4:05 pm:

    I voted for the progressive tax but I would also like to see some strategic and targeted cuts with the money saved redirected to the areas of greatest need. In other words, I would like to see some smart management of the State’s limited resources.


  25. - We'll See - Thursday, Mar 7, 19 @ 4:06 pm:

    Graduated income tax

    There’s not a lot of meat on the bone to take a 15% hit and the same is true for many families on the 1% across the board hike.


  26. - RNUG - Thursday, Mar 7, 19 @ 4:07 pm:

    Looks like the clear choice is ‘tax someone else’


  27. - Big Jer - Thursday, Mar 7, 19 @ 4:09 pm:

    I voted for the graduated tax. In the links I have attached in my previous comments on other posts, I have tried to show how much wealth and high incomes are in Illinois.

    I would expand the tax base into services, financial transactions, retirement income, and others as well.

    Rather than spending cuts I would like to see more public transparency, accountability, and efficiency in the spending of revenue.


  28. - SpfdNewb - Thursday, Mar 7, 19 @ 4:17 pm:

    Graduated income tax is the best of three bad choices. But as Big Jer said, this state needs to be more efficient (reduce the amount of local government, consolidate government agencies when it makes sense, etc.) to reap big savings.


  29. - 32nd Ward Roscoe Village - Thursday, Mar 7, 19 @ 4:17 pm:

    I voted for the flat tax, but I wanted to vote for a combination of all three because:
    1. What RNUG said: “I would also like to see some strategic and targeted cuts with the money saved redirected to the areas of greatest need. In other words, I would like to see some smart management of the State’s limited resources.” and
    2. A not insignificant subset of the 3% will change their residency for tax purposes.


  30. - Last Bull Moose - Thursday, Mar 7, 19 @ 4:21 pm:

    I support the graduated tax. Selfishly this avoids a state income tax increase for me.

    My expectation is that this will not raise enough money. But that is tomorrow’s worry.


  31. - intern - Thursday, Mar 7, 19 @ 4:21 pm:

    i voted for a graduated income tax because I want to pay less taxes


  32. - Bourbon Street - Thursday, Mar 7, 19 @ 4:30 pm:

    Graduated income tax is the only real choice. Raising the flat tax merely continues the policy of regressive taxes. Those who want to see 15% cuts never seem to be able to identify what can be cut without doing real harm.


  33. - Demoralized - Thursday, Mar 7, 19 @ 4:34 pm:

    Graduated income tax. It’s the best option and the most fair option.

    I find it interesting that there are more than 100 votes for the 15% cut and not one person has commented with what cuts they would like to see.


  34. - ChicagoVinny - Thursday, Mar 7, 19 @ 4:35 pm:

    Graduated income tax is the best solution even though it will raise my own taxes.


  35. - Anonymous - Thursday, Mar 7, 19 @ 4:35 pm:

    JB sure makes the graduated tax look the best choice. But what keeps government from changing the rates in the future? Vote for it and you may regret it in the future. Also if it seems too good, it probably isn’t. JB way of selling it.


  36. - Blue Dog Dem - Thursday, Mar 7, 19 @ 4:38 pm:

    How is it the IPI calculates this only generates $1.4 billion in new revenue. Who is using this new math?


  37. - AnonymousOne - Thursday, Mar 7, 19 @ 4:40 pm:

    Graduated tax. Seems the most fair. Cuts? WHere would those be?


  38. - City Zen - Thursday, Mar 7, 19 @ 4:42 pm:

    ==What kind of Draculas want to slash education spending by 15%==

    But we committed to spend an extra $350M per year for the next 10 years. Since the commitment was made with no additional revenue source, it’s safe to say it’s allocated from the overall state’s budget. So after a 15% cut from the $8.4B budgeted for lower ed, we’d be back to the current budgetary level in 4 years. Even after a 15% cut, our per pupil spend would still be top 20 nationwide and higher than MI, OH, WI, CA, etc.

    I’m not advocating for this, just saying it’s not as horrible as it might sound.


  39. - Ebenezer - Thursday, Mar 7, 19 @ 4:48 pm:

    Voted for the 1% hike, but would really like to see a meaningful mix of all three. It’s starting to feel like JB’s pitch is this can all be solved by taxing the man behind the tree. It’s solvable, but its not painless.


  40. - Token Conservative - Thursday, Mar 7, 19 @ 5:09 pm:

    I voted for the 15% cut, but I know that’s not realistic.

    What’s most frustrating is Pritzker and the Democratic majorities refuse to cut spending by $1, much less 1% or 10%.

    There could surely be a deal to be made in the middle that some Republicans could get behind, but they’re not ever, ever, ever going to get behind this administration’s request for a blank check.

    Instead of any fiscal responsibility, Democrats are going to use a backhoe to make the hole even bigger.


  41. - Amalia - Thursday, Mar 7, 19 @ 5:17 pm:

    graduated income tax is the most fair. it will spread the pain of taxation differently and those who will pay more are more capable to doing that. we have to raise revenue to meet some very real needs. we cannot sit by and do nothing.


  42. - Not a Billionaire - Thursday, Mar 7, 19 @ 5:39 pm:

    Doesn’t this come close to the money for his promises you added up ?


  43. - JS Mill - Thursday, Mar 7, 19 @ 5:39 pm:

    Graduated income tax

    Add on a dedicated 1% tax on services that goes straight to pensions.


  44. - Not a Billionaire - Thursday, Mar 7, 19 @ 5:40 pm:

    On and yes. All our income growth has been at the top end unlike the even growth from 1940 to 1973


  45. - Mike - Thursday, Mar 7, 19 @ 5:42 pm:

    Why can’t it be both cuts and tax increases


  46. - Collinsville Kevin - Thursday, Mar 7, 19 @ 6:39 pm:

    Mike, you took the words right out of my mouth. That’s why I voted “none of the above.”


  47. - m4a - Thursday, Mar 7, 19 @ 7:21 pm:

    “Fair” is the correct adjective for the graduated income tax. About time.


  48. - Anonymous - Thursday, Mar 7, 19 @ 7:55 pm:

    A combination of cuts and a slight rise in the tax rate would be the best solution.


  49. - Joe M - Thursday, Mar 7, 19 @ 8:40 pm:

    Definitely graduated income tax. No one should vote for the 15% cuts, unless they can give very specific cuts they would make - and the dollar amounts those cuts would generate.


  50. - lollinois - Thursday, Mar 7, 19 @ 8:45 pm:

    Not sure how people can be for mixing all three options. You either have a flat tax or a progressive one. Unless they’re advocating for raising taxes by 1% on everyone and then adding a progressive tax for high incomes on top of that?


  51. - lollinois - Thursday, Mar 7, 19 @ 8:47 pm:

    Sorry, forgot to add - I voted for the graduated income tax. Clearly the best option, and I don’t buy the notion that high earners will leave.


  52. - Taxedoutwest - Thursday, Mar 7, 19 @ 9:18 pm:

    “FAIR”. I guess the teachers in this state are not making their money after all. 5% of $100,000 is $5000. 5% of $1,000,000 is $50,000. Now, stay with me, mathematicians, how is that not “fair”? Remember, that $50K comes right out of capital reinvestment and employee salaries for small businesses stuctured under a Subchapter S….now it will be almost $80,000…that is over 2.5 jobs at JB’s $15/hour….now start multiplying that by all the small businesses in the state.


  53. - striketoo - Thursday, Mar 7, 19 @ 11:59 pm:

    I would opt for the graduated tax and an across the board 5% cut in spending.


Sorry, comments for this post are now closed.


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