* Press release…
Residents struggling to stay healthy and pay their bills amidst the pandemic and worst recession in our lifetimes joined Illinois legislators for a press conference. Together, they urged Gov. Pritzker and the legislature to close corporate tax loopholes to preserve education, healthcare and other essential community services. Watch (and rebroadcast) the press conference on Facebook: https://fb.watch/2reqkK1lRS/
Jose Serna, a college student and grocery store worker from Bloomington, talked about lost wages and mounting medical bills. Serna’s mother works as a travelling nurse and does not get paid when she is unable to work due to COVID exposure. They are two months behind on rent and just learned his mother’s car will be repossessed.
“I had to come home early from college because of an undiagnosed illness. I have insurance, but already the bills are piling up from my multiple ER visits and four-day hospital stay,” said Serna. “I have a job at the local grocery store, but I haven’t been able to work because of my mom’s exposure to covid and my illness. We are past our breaking point in terms being financially afloat.”
Tina Hammond is a child care provider from West Englewood and a member of SEIU Healthcare Illinois. “The child care industry was in crisis before the pandemic. Parents couldn’t find affordable child care, and providers - mostly Black and Brown women - were not being paid our worth, with many of us making way below the minimum wage”, said Hammond. “It took a pandemic for many to recognize how important our work is to our communities – and our economy – but even still, the recognition as ESSENTIAL did not mean much. During this time, many providers had to shut their doors, some permanently. Some had to let go of staff or spend more on PPE and cleaning supplies to keep our doors open.”
“We can’t ask working and middle class people to accept cuts to essential community services and government responsibilities in the midst of a pandemic and the biggest recession of our lifetimes,” said State Rep. Delia Ramirez (IL-4), Secretary, House Progressive Caucus. “Millions of our residents are at the breaking point, so I will not talk about cuts or regressive taxes when we still have an opportunity to pass progressive revenue.”
“My children attend one of the most underfunded school districts in the state, and we cannot make any more cuts to education without causing great harm,” said State Senator Andy Manar (IL-48) from Bunker Hill Illinois.
“We have to address our state’s finances in a way that’s fair to everyone,” said Rep. Dan Didech (IL-59) from Buffalo Grove. “That means reforming our state tax code so we aren’t giving preferential treatment to wealthy corporations. They don’t need our assistance to be successful, and that have become even wealthier during this pandemic.”
“The state has already instituted cuts in 2011, 2017, and at other times over the past decade,” said Sen. Ram Villivalam (IL-8) from Chicago’s northwest side and suburbs. “The meat has been cut. We are talking about cutting the bone now and that is unacceptable.”
“People in Illinois are in extreme pain,” said State Sen. Robert Peters (IL-13),Chair, Senate Black Caucus, whose district stretches from Chicago’s loop to the Indiana border. “While so many people struggle, 651 billionaires saw their combined wealth jump over a trillion dollars during this pandemic. They are so rich that they could give every American $3,000 and still have more money than they had at the start of the pandemic. It’s time for those that have made money hand over fist to pay their fair share.”
The following legislators joined to urge their colleagues to support the closure of corporate loopholes:
State Rep. Will Guzzardi (IL-39), Co-Chair, House Progressive Caucus
State Rep. Delia Ramirez (IL-4), Secretary, House Progressive Caucus
State Sen. Andy Manar (IL-48)
State Rep. Dan Didech (IL-59)
State Sen. Robert Peters (IL-13), Chair, Senate Black Caucus
State Sen. Ram Villivalam (IL-8)
Rep. Lakesia Collins (IL-9)
Rep. Elect. Dagmara Avelar (IL-85)
The press release did not include a list of their specific proposals.
*** UPDATE 1 *** The Center for Tax and Budget Accountability calls cuts inevitable without federal assistance…
On Tuesday, Governor Pritzker announced $711 million in General Fund spending cuts to address a portion of what is now estimated to be a $3.9 billion budget deficit for FY 2021, which is the state’s current fiscal year. And while some $300 million of those cuts constitute reductions in spending on general government services, a significant portion of the cuts-over $200 million or 28 percent-will result in reduced expenditures on human services, while another $71 million impact public safety.
If a substantial relief package for state and local governments isn’t passed by the federal government during the first few months of the Biden Administration, you can expect more General Fund spending cuts to be implemented before the current fiscal year ends this coming June 30th. Make no mistake, these spending cuts harm people and communities across Illinois, given that over $9 out of every $10 dollars of General Fund spending on services goes to the four core areas of education, healthcare, human services, and public safety.
The Pritzker Administration was put in the unenviable position of being forced to cut spending on human services during a pandemic, because the state’s fiscal condition continues to deteriorate. This deterioration has had three primary drivers. First is the short-term revenue loss which Illinois, like all 50 states, is experiencing because of the decline in economic activity caused by the pandemic. As things stand today, Illinois’ revenue loss from the pandemic could exceed $6 billion over the course of Fiscal Years 2021 and 2022. Second is the estimated $1.2 billion revenue shortfall for the current fiscal year caused by the failure of voters to ratify the Fair Tax initiative during the November election. But third, and ultimately of more long-term importance, is the structural deficit caused by the state’s flawed tax policy, which fails to generate adequate revenue growth from year-to-year, because it simply is not designed to work in the modern economy.
Illinois’ tax policy is so flawed that, even if there never was a pandemic, total General Fund revenue this fiscal year would have been less than it was two decades ago in FY 2000, after adjusting for inflation-and Illinois would have had a General Fund deficit of almost $8.4 billion by the end of FY 2021. For context, this means the state would not have had enough revenue to cover roughly 30 percent of all current spending initially appropriated to cover education, healthcare, human services and public safety this year - if COVID-19 never happened. After factoring in the impact of COVID-19, as well as the failure of the Fair Tax, that year-end deficit is now projected to reach $13.6 billion, or almost 50 percent of all current General Fund appropriations for services.
In case you are wondering, overspending on public services is definitively not driving Illinois’ fiscal problems. In fact, after accounting for the $711 million in cuts just announced by the Pritzker Administration, General Fund spending on services this year in real, inflation adjusted terms, will be at least 22% - or $7.97 billion - less than it was in the year 2000 under Republican Governor Ryan.
Given how all the data show Illinois’ core fiscal problems have been driven by flawed tax policy, Governor Pritzker was justified in castigating those elected officials and wealthy individuals who opposed the Fair Tax, which would have helped modernize Illinois tax system and addressed some of its key flaws. Perhaps most galling, the anti-Fair Taxers not only opposed a rational approach to reforming state policy in a manner that would generate revenue needed to fund core services while correlating tax burden with ability to pay, but have as of yet failed to make any viable proposal for how to fund the core services covered by the General Fund, or failing that, which specific education, healthcare human service or public safety expenditures should be cut.
*** UPDATE 2 *** Illinois Chamber…
“In the wake of last week’s devastating unemployment claims it is unfathomable that we still have legislators who don’t understand that we are in an economic crisis,” said Illinois Chamber of Commerce President and CEO Todd Maisch.
“These legislators have conveniently not detailed which job providers they intend to raise taxes on. They need to have courage in their convictions and tell us what businesses they want to tax. For example, do they want to get rid of the research and development tax credits that help support life-saving medicines and vaccines? Or, will they eliminate many of the agriculture credits that help keep family farms afloat? Are they targeting incentives that help Illinois compete for good paying manufacturing jobs?
“According Opportunity Insights data, as of November 30, the number of small businesses open in Illinois has decreased by a third since January. Are we going to wait until they all close forever to recognize that state government needs to help job providers instead of punishing them with higher taxes? ”
- truthteller - Thursday, Dec 17, 20 @ 10:58 am:
why not an appropriation rule where those who vote against tax increases or budget bills mosy have their districts forfeit 40% of the benefit that would otherwise go to them A price should be paid by the people who vote in politicians that say no YET stand proud and tell their people about all the wonderful programs and finances heading their way?
- notsosure - Thursday, Dec 17, 20 @ 11:01 am:
Huge sigh. This is as meaningful as the “cut waste and fraud” declarations on the other side of the aisle. Find me an honest-to-god example of either, and I’m all for cutting it. Spending programs designed to help our state’s most needy are not wasteful. Provisions in our tax code designed to properly calculate a business’s net income aren’t loopholes.
- Flyin' Elvis'-Utah Chapter - Thursday, Dec 17, 20 @ 11:03 am:
Look forward to the GOP legislators of southern Illinois to sign off on the loophole closures instead of having the state employee industry dimantled in their districts.
Windhorst, Jacobs, Bryant, and Fowler this should be of particular interest to you.
- Francine - Thursday, Dec 17, 20 @ 11:05 am:
==“651 billionaires…are so rich that they could give every American $3,000 and still have more money than they had at the start of the pandemic. It’s time for those that have made money hand over fist to pay their fair share.”==
New York and California legislators have filed wealth tax Bills to address this issue.
- Chicagonk - Thursday, Dec 17, 20 @ 11:06 am:
Didn’t the house unanimously override Pritzker’s veto on the private jet manufacturer loophole in February? Someone should ask Didech about that, considering he was okay with that loophole.
- Frank talks - Thursday, Dec 17, 20 @ 11:07 am:
So…….time to make billionaires pay their fair share? I think the Gov just tried that in early Nov. How did that work out?
Where are your loopholes and how much will they bring in?
The Gov put his work on paper you can’t just say generic phrases if you’re being honest brokers trying to cut a real deal
- SSL - Thursday, Dec 17, 20 @ 11:19 am:
If California and New York pass wealth tax bills, there are 48 other states ready to welcome those billionaires.
- Grandson of Man - Thursday, Dec 17, 20 @ 11:22 am:
Corporations got a 40% federal tax cut, from 35% to 21 percent. It’s time to look at closing corporate loopholes. Good to see some movement behind this.
The failure of the graduated income tax gives incentive for its supporters to stand firm against drastic cuts and call for more revenue. Voters had a chance to increase the state’s revenue and reduce their taxes. Their failure to do so could bring them consequences.
- Oswego Willy - Thursday, Dec 17, 20 @ 11:29 am:
=== The press release did not include a list of their specific proposals.===
I’d like to see that list. Specific cuts. Specific dollars.
- City Zen - Thursday, Dec 17, 20 @ 11:29 am:
Scanning CTBA update for the word “pension”…
- Phenomynous - Thursday, Dec 17, 20 @ 11:31 am:
The CTBA should know that these aren’t all GRF items.
- City Zen - Thursday, Dec 17, 20 @ 11:32 am:
==If California and New York pass wealth tax bills==
California has the most progressive tax structure in the country and it’s still not enough.
- Who else - Thursday, Dec 17, 20 @ 11:34 am:
Why use humans who are in pain to prop up a meaningless press pop? What Illinoisans need is an actual plan to bring in more revenue, make cuts, or both. Closing tax loopholes is a cut, and I suppose identifying the conceptual desire to close them could be useful.
But for this to be more than an exercise in wealth-bashing it would need specifics with regards to both total dollar amounts lawmakers anticipate will be saved and the specific loopholes they want closed. Lawmakers can ask budget staff to put that together for them, or look to lists from advocacy groups like the Center on Budget and Policy Priorities who already did the work of compiling the options (it was even posted on this blog not long ago.)
Say what you’re actually willing to vote for and what you want your colleagues to vote for. It’s just not that hard.
This is lazy. At least try a little guys.
- Charlie Wheeler - Thursday, Dec 17, 20 @ 11:34 am:
Point of Information
Here are the largest tax breaks– “tax expenditures” in comptroller-speak—for FY18, the latest year for which information is available on the comptroller’s web site (in millions):
Retirement income and SS benefits exempt from individual income tax– $2,235
Food, drugs, and medical appliances exempt from sales and use tax– $1,865
Standard exemption from individual income tax– $989
Residential real property tax credit from individual income tax– $589
Sales to exempt organizations from sales tax– $435
Illinois net operating loss deduction from corporate income tax– $421
Total impact of tax expenditures on individual income tax– $4,499
Total impact of tax expenditures on sales and use tax– $3,525
Total impact of tax expenditures on corporate income tax— $666
Total impact of all tax expenditures– $9,291
SOURCE—Tax Expenditure Report Illinois FY18, https://illinoiscomptroller.gov/financial-data/find-a-report/tax-expenditure-report/fiscal-year-2018/
- NIU Grad - Thursday, Dec 17, 20 @ 11:35 am:
“We can’t ask working and middle class people to accept cuts to essential community services and government responsibilities in the midst of a pandemic and the biggest recession of our lifetimes,”
If the Fair Tax failure taught us anything, it’s that there is a severe disconnect between the public and the services the government provides. I think most “working and middle class people” would be more upset about another tax hike than cuts to services or cuts to the state workforce. I’m not saying that it’s right, but that’s politics right now.
- twowaystreet - Thursday, Dec 17, 20 @ 11:38 am:
I picked up a bill that my predecessor had been working on for years and the end result would have cost the state an immediate loss, but we projected the law would make up the lost revenue and potentially gain some over the long-term.
In order to off-set the immediate loss they put in a closure to a corporate tax loophole. The bill wouldn’t move.
I remove the loophole and shifted to spending my time on coming up with a response to the immediate revenue loss. The bill passed unanimously.
I say that to make the point that the fight to close tax loopholes isn’t popular in Springfield. Maybe the environment is shifting, but it’s not going to be an easy road.
- Honeybear - Thursday, Dec 17, 20 @ 11:51 am:
I would cut EDGE grants out and independently audit every current agreement. The Chicago Trib did a study at the beginning of Rauners term that said a lot of companies have not met their end of the bargain
Claw
That
Money
Back
- Oswego Willy - Thursday, Dec 17, 20 @ 11:52 am:
Again, - Charlie Wheeler - dropping the serious knowledge to the serious discussion.
Thank you.
- AD - Thursday, Dec 17, 20 @ 11:54 am:
=== New York and California legislators have filed wealth tax Bills to address this issue.===
Yeah, good luck with that. HP, Oracle and Tesla are tip of the iceberg of companies leaving California. You can vilify and tax people and companies to a point, but at a certain breaking point, you’ll run them and their thousands of jobs out of town. I’m not saying it’s right or wrong, but if you think shareholders of publicly owned companies would rather their company stay in Illinois and “help out” over moving to Texas and have their share price go up a penny, you’re not living in reality.
- twowaystreet - Thursday, Dec 17, 20 @ 11:56 am:
- Honeybear -
Agreed 100%. They’ve made changes since that time, but many of the same issues still exist.
- Francine - Thursday, Dec 17, 20 @ 11:56 am:
==I think most “working and middle class people” would be more upset about another tax hike than cuts to services or cuts to the state workforce.==
It seems to me that a tax on wealth over $20 million, $50 million, or $100 million might be viewed differently by the middle class than a another income tax, sales tax or property tax hike that will or could apply to them.
- Grandson of Man - Thursday, Dec 17, 20 @ 11:58 am:
We should also look at allocating state funds to match the amounts of taxes paid in, per legislative district. It would be a win-win, because northeast Illinois would gain more money back for what it pays in, and “socialism” hating red parts of the state would gain some liberation from government dependence.
- City Zen - Thursday, Dec 17, 20 @ 12:10 pm:
==We should also look at allocating state funds to match the amounts of taxes paid in, per legislative district.==
Per gerrymandered boundaries? No thanks. Let’s do it by municipality. That’s fair. That’ll learn all those takers you so despise.
- Oswego Willy - Thursday, Dec 17, 20 @ 12:14 pm:
=== Let’s do it by municipality. That’s fair. That’ll learn all those takers you so despise.===
No. Stop.
It’s about the 177.
You don’t wanna vote to help, you’re a tax eating region, we hurt you.
It’s about what can pass the legislature and get signed, not dorm room silliness.
Vote red, see red, with cuts.
- California Guy - Thursday, Dec 17, 20 @ 12:17 pm:
==New York and California legislators have filed wealth tax Bills to address this issue.==
There’s little movement on a wealth tax in California. Administration of a wealth tax can get incredibly complicated and have results that don’t justify the heavy lifting that the tax involves. That’s why European countries that tried to implement it pulled back. That’s not even accounting for the high mobility of high income earners.
In California, we had a constitutional amendment proposal that would lift the property tax (a wealth tax) cap on corporations. That idea went down in flames. “Taxing corporations” will not be easy in the COVID economy with small businesses struggling.
- Pelonski - Thursday, Dec 17, 20 @ 12:22 pm:
The term “loophole” has largely been corrupted these days. A true loophole is a tax break that was never intended. Those are pretty rare. In current use, one man’s “loophole” is another man’s necessary “business incentive”.
- 4 percent - Thursday, Dec 17, 20 @ 12:31 pm:
Charlie’s recitation of the Comptroller’s report clearly shows that the overwhelming majority of “loopholes” are for individuals. Standard deduction. Real estate. Food & drugs.
I’ll wait for this group of legislators or others that talk about closing “loopholes” to call their closure…
- JS Mill - Thursday, Dec 17, 20 @ 12:34 pm:
=That’ll learn all those takers you so despise.=
You are all about the drive-bys these days. Impressive.
One part of the solution is to short the legacy debt payments. As a future pensioner, I don’t like it, but it would seem one way to address the shortfalls for the next two years. You can halve the problem that way and not explode the legacy debt.
For next year, you can help by raising the state income tax from 4.99% to 7%. That should cover the totality of the immediate issue.
Pass a tax on services and you start to get ahead of the issue. Then run the progressive tax amendment again.
Overly simplistic of course, but there is the start of a two-year plan to address the issue both short and long term. I also assume $700 million in spending reductions proposed by the governor. Although I would ficus much of the cutting in the least populous areas of the state thereby lowering the impact on the majority of Illinois.
- From DaZoo - Thursday, Dec 17, 20 @ 12:40 pm:
One thing that stood out to me is staffing and services have been reduced significantly since 2000. Unfortunately revenue is also down and still does not cover current expenses.
Past exercises in examining the budget by others have shown there is roughly only 5% “discretionary” spending in most budget years (i.e. CTBA). So cutting more than 5% will mean affecting real people. There is no way Illinois can afford to cut 32% ($13.6B deficit, $42.9B spending budget). People can talk cuts all they want, there will be a need to raise a significant amount of revenue. Eliminating some “loop holes” or other tax breaks, examples above by Mr. Wheeler, won’t be enough either. Side note: I see a bit of irony in that the property tax credit from individual income tax only applies to those whose income is less than $250,000; the same break point in the proposed graduated tax rates.
Good luck to legislators and Gov Office in finding the balance. Both in terms of financials and communication.
- Grandson of Man - Thursday, Dec 17, 20 @ 12:42 pm:
“That’ll learn all those takers you so despise.”
Oh no, that’s not it at all, lol. It’s tough love, the same thing right wingers tell those who are on and support government assistance.
But I retract my statement above on cutting red districts. It was made out of frustration. I support strong funding for all parts of the state. However, if people in red districts vote against government assistance and attack others for supporting and getting government funding, it’s very hypocritical to not practice what is preached.
- BeenThereDoneThat - Thursday, Dec 17, 20 @ 1:03 pm:
Nothing prevents Chicago from enacting a local income tax. There are plenty of votes in Springfield to authorize that. Did I read tax retirement income? That one will sting politically for all who vote for that. Not good choices but the Dems own it so they can try to get out from under it.
- Oswego Willy - Thursday, Dec 17, 20 @ 1:06 pm:
===Nothing prevents Chicago from enacting a local income tax.===
Huh. Really?
=== There are plenty of votes in Springfield to authorize that.===
Name them. Also explain the process.
=== Not good choices but the Dems own it so they can try to get out from under it.===
They can bury downstate, Raunerite districts, the tax eaters.
The adults are trying to find solutions…
- 1st Ward - Thursday, Dec 17, 20 @ 1:10 pm:
“Nothing prevents Chicago from enacting a local income tax. There are plenty of votes in Springfield to authorize that.”
LOL. Did you see who and why voted no on the city budget? 21 no votes and at least half came from Alders saying their residents can’t stomach a $56 property tax increase and you think their state reps are lining up to vote for a city income tax? Also, which suburban legislators would vote for that? This is comical.
- Jibba - Thursday, Dec 17, 20 @ 1:31 pm:
If Charlie Wheeler provided something of a menu, the first on my list is the property tax credit. It doesn’t amount to all that much in my case, and why credit a tax that is collected by others? You can go after many others on the list if you put income limitations on the credit, thus sparing the poor and true middle class.
- BCOSEC - Thursday, Dec 17, 20 @ 1:33 pm:
Thank you for the factual post Charlie Wheeler.
It’s easy to say we are for “X” if there is no specificity. It also is not very helpful.
- City Zen - Thursday, Dec 17, 20 @ 1:38 pm:
==which suburban legislators would vote for that==
The ones whose suburbs wouldn’t pay the city income tax. There’s no rule that says non-residents have to pay a city income tax just because their employer is located there. Only residents of NYC and those who work directly for NYC govt pay NYC income tax.
- Oswego Willy - Thursday, Dec 17, 20 @ 1:43 pm:
===Only residents of NYC===
1) We’re talking about Illinois
2) City income tax isn’t happening.
3) Make sure your dorm room is cleaned out and your resident assistant checks you out for winter break.
- DuPage - Thursday, Dec 17, 20 @ 1:44 pm:
I had heard of a “big box” loophole years back, and I never heard if the loophole was closed. It involved an accounting method that transferred profits to another state that gave them a lower rate. The stores in Illinois would “rent” their stores from another division of the company in the low tax state. The “rent” was anything left over after the store paid costs for merchandise and employees. (In other words rent=profits.) Year after year, they would make millions in profit and not pay any Illinois tax on it claiming there was no profit under Illinois law. At the same time, they paid federal taxes on the same profit. The big box corporation denied any wrongdoing, they just followed what the law allowed in Illinois. They admitted they paid state tax in other states, because the other states did not have the Illinois-type loophole.
Does this sort of loophole still exist? Do other multi-state companies like Amazon, Exelon, and the big cell-phone companies use accounting tricks to shift their Illinois tax liabilities to other states? This should be looked at closely.
- City Zen - Thursday, Dec 17, 20 @ 1:45 pm:
==the first on my list is the property tax credit.==
Tax credits are how you make a flat tax more progressive.
==You can go after many others on the list if you put income limitations on the credit==
Already there. Since 2017, a single filer earning over $250,000 is not allowed a personal exemption, property tax credit, or education expense credit.
- Unconventional wisdom - Thursday, Dec 17, 20 @ 1:53 pm:
Assuming no income tax increases, is there anyone posting who would like to proposes some very specific suggestions as to how to deal with next years budget?
- Oswego Willy - Thursday, Dec 17, 20 @ 1:57 pm:
=== proposes some very specific suggestions as to how to deal with next years budget?===
Close a prison, DNR closures… cut higher education to force commuter 4-year institutions…
- DuPage - Thursday, Dec 17, 20 @ 2:27 pm:
===proposes some very specific suggestions===
Also, close down the auto-emission tests.
- 1st Ward - Thursday, Dec 17, 20 @ 2:29 pm:
Selling Guaranteed Rate would be a good start. Hotel tax revenues service the debt which are not doing well (shocking). Thus State taxpayers are on the hook once the reserves are gone by the end of FY 2021. In addition to a one time cash infusion ($500MM - $1Bn net I would assume?) you get recurring hotel tax revenues there were being diverted and will increase once recovery occurs. It seems like like a no brainer at this point. Certainly not a panacea but what’s the objection? Pritzker wants to sell private assets why not this one?
https://www.chicagobusiness.com/government/taxpayers-likely-cover-soldier-field-sox-park-debt-shortfall
- 618er - Thursday, Dec 17, 20 @ 2:53 pm:
Just spit balling here.
We all know of these tax eaters everyone is talking about..
I presume this is referenced as a percentage of generated to consumed general revenue funds. pick a statewide cut and subtract the above mentioned percentage to the total and let legislators have input in where the cuts come from within their districts.
- Really - Thursday, Dec 17, 20 @ 3:02 pm:
Hiring freeze. Re-open contracts for state employees. Furloughs. Eliminate the four year six percent increases in pre-retirement years for educators that JB rushed to add back as soon as he got elected. Maybe add sales taxes on services. Taxes on retirement income above a certain level with a lockbox for that money to fund existing pensions. Has to be some of both, not just new taxes. Keep the exidting cuts in place.
- Oswego Willy - Thursday, Dec 17, 20 @ 3:06 pm:
=== Taxes on retirement income above===
This isn’t happening. At all.
=== Re-open contracts for state employees===
“We’ll see”…. hmm.
=== Eliminate the four year six percent increases in pre-retirement years for educators that JB rushed to add back as soon as he got elected.===
Doubtful.
This is the only realist, honest, possible you offered
===Maybe add sales taxes on services.===
- JS Mill - Thursday, Dec 17, 20 @ 3:27 pm:
=Hiring freeze.=
When you started there, I immediately knew that you were either not serious or simply have no clue.
The state has been hollowed out. Call or email the ISBE. They have no “employees”. It is all consultants. I fuyou can, imagine going to McDonalds and everyone that served you worked for another company that wasn’t McDonalds.
Re open contracts? Like unilaterally? ever heard of the law? It doesn’t work that way. And opening contracts could go the other way and become more expensive because it is called bargaining not telling.
Good grief.
- Really - Thursday, Dec 17, 20 @ 3:50 pm:
JS Mill,
Good grief to you as well. They are all things that are possible. Maybe not probable, but possible. When you don’t have monies to pay for things, all things have to be on the table. Yes, I know things are collectively bargained. I serve on a school board. I get it. The state is functionally broke, and if the taxpayers have recently said no to a tax hike, other things must be considered. All avenues must be explored. You and OW say no because you don’t think the current folks that helped create this mess will consider it. Probably correct. But they should.
- Oswego Willy - Thursday, Dec 17, 20 @ 3:54 pm:
=== They are all things that are possible.===
Lay off the egg nog, it’s spiked.
=== You and … say no because you don’t think the current folks that helped create this mess will consider it.===
Don’t speak to my thoughts when I’ll tell you to them, and usually do to your ridiculousness.
“…the current folks that helped create this mess will consider it.”
No. Voters don’t want to pay retirement income tax, your silly union vendetta ignorance is at least consistent, the sales tax issues isn’t even a slam dunk to 60/30
You want my opinion, read it. If you can’t read it, have someone read it to you.
- thisjustiinagain - Thursday, Dec 17, 20 @ 3:56 pm:
We cannot continue to have the situation where profit-making businesses pay zero in income tax year after year. It is not only about fundamental fairness, it is that businesses also receive and depend on public services, roads, etc. Clawbacks on unspent or misspent funds are important, as is ceasing the endless giveaways to businesses. Paying payroll taxes isn’t enough to keep State and local agencies running.
- Thomas Paine - Thursday, Dec 17, 20 @ 3:56 pm:
Sunset all TIFs, all corporate tax expenditures as of July 1.
Create a commission that includes representatives from the Chamber, Manufacturers, Retailers, etc. as well as lawmakers from both chambers and DCEO.
Give them until October 1 to come up with a list of tax expenditures they would like to see put back into the budget, give them a limit of $300M.
- Just the Facts - Thursday, Dec 17, 20 @ 4:00 pm:
DuPage - there is no such loophole. Corporations are subject to tax based on the percentage of federal taxable income apportioned to Illinois. Income is apportioned to Illinois based on the portion of sales in Illinois vs. Sales everywhere. So if corporation X has 10% of its sales attributable to Illinois it is taxed on 10% of its federal taxable income.
As a matter of federal tax law, you can’t just pick a number out of the air, call that rent, and deduct it as a business expense. The “rent” has to have relation to market rates. In order to be sustainable, companies justify those kinds of charges by entering into transfer pricing agreements which are compiled and/or evaluated by independent accountants.
There are other provisions of Illinois law which would also protect against the type of situation you discuss.
- Unconventional wisdom - Thursday, Dec 17, 20 @ 4:03 pm:
@OW
Can you be more specific and how much would this save?
=cut higher education to force commuter 4-year institutions=
- Oswego Willy - Thursday, Dec 17, 20 @ 4:07 pm:
- Unconventional wisdom -
I discuss it here. Thanks.
https://capitolfax.com/2020/11/09/democrats-prepare-for-chaos/
- Unconventional wisdom - Thursday, Dec 17, 20 @ 4:16 pm:
Higher Ed Cuts? I am not specifically targeting Higher Ed but I do know something about its fiances. So as a general background:
Of the $3.692 billion ($2.305 GRF) in IBHE Budget, $1.157 went to public universities in FY 2020:
And now for cuts:
New Appropriation Grants to Various Private Colleges and Universities $ 400,000,000 in 2020 Eliminate.
In 2019, $163 million in MAP grants was received by private institutions. Eliminate.
Of course, all easier said than done.
- Oswego Willy - Thursday, Dec 17, 20 @ 4:19 pm:
- Unconventional wisdom -
You asked my thoughts, I broke it down for ya, two institutions.
Cut the state portion to, say, SIU, EIU, WIU… they wanna stay, dorms, food service, etc, seems like a good start.
- Unconventional wisdom - Thursday, Dec 17, 20 @ 4:24 pm:
@OW,
So as I read it you are for closing EIU, WIU, and SIUC and use that money specifically to help close the budget hole.
Do you think that has any chance of happening?
- Keyrock - Thursday, Dec 17, 20 @ 4:24 pm:
Thanks, Professor Wheeler.
- Unconventional wisdom - Thursday, Dec 17, 20 @ 4:26 pm:
@OW,
Sorry for my last post. It was not on my computer before I submitted my last post.
- Oswego Willy - Thursday, Dec 17, 20 @ 4:29 pm:
=== Do you think that has any chance of happening?==
After the Rauner years we found out the full funding of state universities were not a priority of Raunerites, downstate Illinois re-elected those who consistently voted against their region(s) and district(s), why would these same legislators now be against to stop state funding to these universities.
They’ve voted that way before.
Heck, the governor is already signaling a prison “review”, geared towards closing a prison or two?
Downstate… I don’t think they realize… you close a university, it ain’t coming back.
Do I *think* it will happen?
I’m at the point of hoping it *doesn’t* happen, but Rauner showed, painfully, where monies to cut are… higher ed is a place
- Unconventional wisdom - Thursday, Dec 17, 20 @ 4:44 pm:
=I’m at the point of hoping it *doesn’t* happen, but Rauner showed, painfully, where monies to cut are… higher ed is a place=
And I have listed my own cuts in Higher ED which only go to private colleges and the amount is huge.
Overall, I agree. But, of course, it is only one of many places in the budget. Any item not specifically required by the FEDS in the Medicaid budget is also a candidate. Indeed, there is no item in the budget that can not be cut if it all comes to that.
And that is the tricky part. Anybody want to be the Governor?
- JS Mill - Thursday, Dec 17, 20 @ 4:55 pm:
@Really- You are on a school board? So then you know the 6% end of career salary increase is just a cap right? Not a mandate. Most salary schedule steps are more than 3%. And you don’t HAVE to give the 6% if you know how to bargain a contract.
I am sure you are a real asset. Have you put publicly asked/demanded to reopen your districts collective bargaining agreements?
I know what is real and what is right-wing fantasy fodder. And you don’t know much about my thoughts.
- nadia - Thursday, Dec 17, 20 @ 7:35 pm:
Cut, cut, cut and then cut some more. That’s what many say has to happen. Have at it JB, give them what they say it will take. Governors own, so put on your big boy pants and do it to it.
- From DaZoo - Thursday, Dec 17, 20 @ 9:38 pm:
JB gave a conversation starter with his 1.7% cut press conference yesterday. Perhaps the chess match is to let that stew for a bit and give others their chance of real, specific, suggestions. The next step, may be to eek out another 2-3% in specific cuts. After that there will be press conference to announce a list of additional deeper cuts with impacts (e.g. close a prison, close a university, close a VA home, cancel 2nd state fair, etc.) OR alternative additional revenue options (i.e. income tax hike).