Question of the day
Monday, Mar 11, 2019 - Posted by Rich Miller
* Trib…
The Illinois gas tax was last increased in 1990, from 16 cents a gallon to 19 cents.
In that year, East and West Germany reunited, Nelson Mandela left prison and Andre Dawson played for the Cubs.
It was, in short, a long time ago, and the tax has not kept up with inflation. Some lawmakers pushing for a capital bill want a hike in the current gas tax, which helps pay for construction and repair of state’s roads and bridges.
* The Question: Do you support a significant increase in the Motor Fuel Tax to pay for infrastructure projects? Take the poll and then explain your answer in comments (including your definition of “significant”), please…
survey tools
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You reap what you sow
Monday, Mar 11, 2019 - Posted by Rich Miller
* Sun-Times…
During a Thursday night debate that turned bitter fast, both candidates were asked what they admired most about their opponent. […]
Preckwinkle said she admired how open Lightfoot is about her sexuality. If she wins the April 2 runoff, Lightfoot would become Chicago’s first openly gay mayor.
Full Preckwinkle quote…
“That she’s open and honest about her LGBTQ orientation. You know, I think it’s really important in this country that we be respectful of differences and that we understand that all of us matter and that there is dignity in each and every one of us. And there has been so much discrimination and prejudice and homophobia in our country, it’s very important that particularly prominent people declare their sexual orientation and do it with pride.”
* Lightfoot more than just implied that the comment was a “dog whistle”…
Lightfoot stopped short of characterizing Preckwinkle’s intentions. “I’m saying that if there was (a dog whistle), it would be disappointing,” she said. “But the words are the words. Whether — I can’t go into her mind and understand her intent.”
Asking the candidates what they admire about their opponent has become a standard question in most debates, Lightfoot noted.
“She’s got a lot of sophisticated people around her. It’s hard to imagine … the question was coming, you knew it was coming. We both did,” Lightfoot said. “And she chose to say what she said.”
* Usually, in situations like this, I tend to look toward the people who do this for a living instead of the candidates…
“Trying to peer into Preckwinkle’s soul to determine the intent of her remarks is impossible,” Brian Johnson, CEO of Equality Illinois, which has endorsed Lightfoot, told POLITICO. He acknowledged Preckwinkle “has been an ally and champion” of the LGBTQ community. “But instead of running a campaign with an inspiring vision of her leadership for our city, Preckwinkle has built a campaign whose sole purpose seems to be to mislead voters about Lightfoot and attack her at every step of the way.”
Even a seemingly positive statement about Lightfoot’s identity is met with “skepticism and mistrust,” he added.
Co-sign.
Preckwinkle may or may not have intended to blow a dog whistle. The problem here is that she’s said or done so many unnecessarily ham-handed things that people are naturally going to assume the worst intentions.
If you deliberately construct an image of being an arrogant bully, don’t act all shocked when people think you are one. A seemingly liberal compliment can easily be interpreted as a grotesquely illiberal campaign tactic.
Preckwinkle walked right into that one.
* Related…
* Laura Washington: How Willie Wilson changed his mind on LGBTQ people and endorsed Lori Lightfoot
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* Former state Sen. Jeff Schoenberg writes in Crain’s that a bipartisan legislative panel he co-chaired a dozen years ago found that a partial, 75-year lease of the Tollway could yield between $15 billion and $23.8 billion. Schoenberg, who left the Illinois Senate to advise the J.B. and M.K. Pritzker Family Foundation (not mentioned in the piece), says the issue ought to be reopened. But he has some caveats…
The Pritzker administration’s due diligence must ensure that any plan to bring private capital into public infrastructure not only retains public ownership of those assets, but also insists upon a high standard of accountability and transparency for the tollway’s spending practices and policies. […]
• The bitter aftertaste of Chicago’s parking meter privatization means that after the tollway’s bonds are paid off, any Illinois deal must have an iron-clad provision binding proceeds exclusively to the unfunded pension liabilities. And no slicing off a chunk of the money to increase base spending, either (see 2003 Blagojevich pension obligation bonds).
• In the Chicago Skyway transaction, eliminating union jobs didn’t favorably impact the deal’s financials for prospective investors; the Daley administration’s decision to do so was driven by factors that wouldn’t show up on a spreadsheet. Consequently, it ‘s essential to maintain the collective bargaining agreements for tollway employees.
• A major takeaway from the original Indiana Toll Road agreement crafted by then-Gov. Mitch Daniels was that a portion of the revenues realized by the Hoosier State was set aside for a 10-year stabilization fund to absorb all or part of motorists’ “sticker shock” resulting from toll increases.
• Unlike the Skyway and the Indiana Toll Road, the Illinois Tollway system is much bigger and in far better condition—in concrete and on the balance sheet. Illinois taxpayers therefore should expect a significantly larger upfront payment from the winning bidders.
Your own caveats?
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We need a capital bill
Monday, Mar 11, 2019 - Posted by Rich Miller
* John O’Connor on a state capital program for school construction…
Former Republican Gov. Jim Edgar and a school-reform-minded Legislature concocted it in 1997. It promises a cost match of 35 percent to 75 percent, depending on local resources, for school districts adding classrooms for a growing enrollment or replacing outmoded structures. The state borrows the money by selling general obligation bonds.
Conceived as a $3 billion effort, it got a boost in 2001 from former GOP Gov. George Ryan’s $12 billion Illinois FIRST construction program. All told, from 1998 through 2003, there was $6.7 billion in school construction, with the state pouring in $3.5 billion, according to the AP analysis.
But school administrators dreaming of a huge payday from a Pritzker plan would do well to study the numbers from the last time the program saw substantial funding. Democratic Gov. Pat Quinn’s Illinois Jobs Now construction program in 2010 was, at $31 billion, 2 ½ times larger than Illinois FIRST. It yielded just $1.3 billion in state funds toward a $2.7 billion investment overall for schools.
* The backlog is huge…
Illinois State Board of Education records indicate that since 2004, 270 Illinois school districts have applied for 285 state school construction grants without funding. Based on the average cost of the 606 projects funded since the program debuted in 1998 and adjusted for inflation, The Associated Press estimates the unfunded projects are worth nearly $6 billion, of which the state, based on history, would theoretically pay about $3.1 billion.
* And who even knows what the current need is?…
The need among public schools is likely much greater than the wish-list suggests. There have been only 40 grant applications since 2011, likely reflecting school districts’ attitude that there’s no sense applying if there’s no money forthcoming.
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It’s just a bill
Monday, Mar 11, 2019 - Posted by Rich Miller
* In this case, it’s a dead bill…
It will be at least another year before self-driving cars hit Illinois roads.
Bill-sponsor Mike Zalewski says it is time to pump the breaks on his legislation. The bill is currently in committee, and if it were to pass there, it would be put up for a vote in the House. However, there are still a lot of issues and it is enough to make Zalewski admit that the bill is not ready for a vote this session.
Skeptics include Abate Illinois. That is a group dedicated to preserving motorcyclists’ rights. Zalewski is planning on hearing out every concern he can.
The assistive technology is great. Completely automated cars are, however, nowhere near fruition. I’m with ABATE on this.
* When I was in the hospital years ago, I noticed that nurse staffing levels were way down on the weekends. I simply couldn’t get the same medical attention as I did during the week. And I noticed it again when Steve Schnorf was in the hospital before he passed away…
Under the Safe Patient Limits Act, no nurse working in a hospital could be responsible for more than four patients at a time.
That number would be lower for special units like maternity wards, intensive care units and emergency rooms.
Paul Pater, with the Illinois Nurses Association, said high patient-to-nurse ratios are dangerous for everyone.
“Hospitals and administrators take advantage of our empathy and sense of duty to our patients to force unsafe situations on the nurses of Illinois in a misguided attempt to save money,” Pater said.
* WMAY…
Democratic State Senator Andy Manar is joining with Republican Jason Barickman on a bill that would reduce the signature requirement for new political parties and independent candidates. Currently, established political parties need fewer than 10,000 signatures to get on the statewide ballot… while independents need 25,000.
The bipartisan bill would put everyone at the same, lower threshold. Manar and Barickman say their bill should get bipartisan support.
* Illinois Policy Institute…
Airbnb’s growth has created push-back from hotels in the form of new taxes and stringent regulations by local communities, but a new Illinois House bill would halt bans and overregulation of vacation rental services.
House Bill 2919, introduced by Rep. Michael Zalewski, D-Riverside, limits the home-rule authority of local governments. HB 2919 would prohibit municipalities from enacting ordinances that have the “express or practical effect” of banning Airbnb and similar vacation rental services, as happened in Lake Bluff and a well-connected ward in Chicago.
Vacation rental services provide valuable and affordable lodging alternatives for visitors, and income streams for residents. Studies suggest the growth in vacation rentals benefits both property owners and the broader economy.
The services, also known as home sharing, have come under fire across the nation. New York City bans vacation rental of full units for fewer than 30 days.
…Adding… E-mail to the author of that Policy Institute piece…
Hi Joe,
I’m writing on behalf of the Village of Lake Bluff to request a clarification regarding your recent article on HB2919 (re: short term rentals / Airbnb).
In the second paragraph, your article references some prior (2017) IPI reporting on Lake Bluff’s short term rental regulations that is no longer accurate. In early 2018, following a fact-based public process, the Village adopted regulations that allow short-term rentals to operate with reasonable restrictions that protect public safety and ensure payment of the Village’s hotel tax. I have attached our regulations if you are curious to know more.
There are inconsistencies between our regulations and what would be permissible under HB2919. Notably, we would prohibit the use of neighborhood houses as vacation rentals 365 days a year. However, certainly, we do not “ban” short term rentals. As someone reading your article would likely come to that conclusion, we would appreciate an edit or a clarification.
Thanks,
Glen Cole
Asst. to the Village Administrator
Village of Lake Bluff
* Other stuff…
* Gov. Pritzker Signs Legislation at Southern Illinois Hospital: Ferrell Hospital CEO Alisa Coleman says the additional funding is huge so her facility and the 50 others like it receive the appropriate payments under the hospital assessment program. “More than 43% of critical access hospitals are operating in the red today and others on extremely thin margins.”
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Pritzker explains his hiring
Monday, Mar 11, 2019 - Posted by Rich Miller
* Gov. Pritzker as quoted by the Dispatch-Argus…
“I’m being very careful about (hiring) the people that run agencies. But I did not show up as somebody’s political organization guy.
“I came into office with the belief that we can hire great people who know how to run these agencies and have real experience, who is not somebody’s political suggestion. Therefore, we can run government better. The people I picked to lead are the very best in the state; I am very proud.”
Your thoughts?
* Semi-related…
* Gov. Pritzker: Future of SIU system should be decided locally: Ultimately, sources indicate that Pritzker is planning further replacements and an adjusted balance on the board, with three Carbondale-affiliated trustees, three Edwardsville-affiliated trustees, and one trustee from Springfield, where the SIU School of Medicine has its headquarters.
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* Bruce Rushton last week in the Illinois Times…
Newsroom employees at the State Journal-Register are being offered buyouts, with the prospect of layoffs on the horizon.
The buyout offer from GateHouse Media, the paper’s corporate owner, was made Wednesday, with employees told they have until Monday to volunteer to be let go. Under a newsroom collective bargaining agreement, employees who accept a buyout would be paid one week of pay for every year of service, to a maximum of 15 weeks.
The buyout offer, also extended to employees at the Peoria Journal Star and Rockford Register Star, papers also owned by GateHouse, comes just six months after the last GateHouse buyout offer made last August. Reporter John Reynolds accepted the offer and was the only newsroom employee who departed then.
There aren’t many reporters left to cut. City hall reporter Crystal Thomas is leaving the paper on Friday to cover the Missouri legislature for the Kansas City Star. Her departure will leave the SJ-R with five news reporters, including Doug Finke, Dean Olsen, Brendan Moore, Bernard Schoenberg and Steven Spearie. Fifteen writers, editors and photographers have left the paper in the last six years without being replaced.
Yep. Click here to see the staff list. The paper does have three sports writers on staff in addition to those five, however.
* Town by town, local journalism is dying in plain sight - Newspapers in more than 1,400 cities across the US have closed over the past 15 years, often leaving residents without a reliable source of local news: Did GateHouse stop investing because people were less interested in reading the paper? Or did people lose interest because the lack of investment made it a less satisfying read?
* Communities lose when newspapers die or slide into decline: Even more prevalent than closures are what Abernathy calls “ghosts,” newspapers that are a shell of what they were. Tens of thousands of journalists left newsrooms in the decade ending 2017.
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For crying out loud, vaccinate your kids!
Monday, Mar 11, 2019 - Posted by Rich Miller
* Daily Herald…
Your children might be vaccinated against measles, but what about their classmates?
Only 9.8 percent of public and private schools across the suburbs have 100 percent of the student population vaccinated against measles, and some have immunization rates below 80 percent, according to data compiled by the Illinois State Board of Education. […]
A 93 percent to 95 percent measles vaccination rate is required to stop the spread of a contagious disease within a population, a concept health experts refer to as “herd immunity,” according to the World Health Organization. The chance of a measles outbreak rises if protection levels fall below that threshold, said Dr. Andy Bernstein of North Suburban Pediatrics in Buffalo Grove and Evanston.
“It can catch on like wildfire,” he said. “It’s a highly contagious disease, and as soon as immunization rates in a community drop with any significance, it spreads very easily.” […]
For measles, nearly 94 percent of schools in suburban Cook and the collar counties fall within or above the range for achieving herd immunity, state records show. Many institutions below that level have more students legally exempted because of religious objections to getting the shots. [Emphasis added.]
The Daily Herald used research from the Illinois State Board of Education to compile a list of all suburban schools. By my count, 13 schools had vaccination rates of 92-92.9 percent, 16 schools had vaccination rates of 91-91.9 percent and 11 had vaccination rates of between 90 and 90.9 percent.
Now, check out all these schools with even lower vaccination rates.
* Private schools in Cook County…
Jordan Baptist School - 54.5%
Tallgrass Sudbury School - 58.8%
Farm and Nature Discovery Presc - 75.0%
Kingsway Preparatory School - 75.0%
Valeo Academy - 75.2%
Mosaic Montessori Academy - 77.4%
New Life C C Academy - 79.5%
Guardian Angel Orthodox Day Sch - 80.0%
Plato Academy - 81.5%
Christian Hills Church School - 82.6%
St William School - 83.3%
North Shore Country Day School - 85.1%
Logos Christian Academy - 85.2%
Montessori Elem School Southwest - 86.1%
Midwest Montessori School - 88.5%
Northridge Preparatory School - 88.9%
Westchester Christian School - 88.9%
Koraes Elementary School - 89.1%
Landmark Christian Academy - 89.4%
Council Oak Montessori School - 89.6%
Southside Baptist School - 89.7%
* Public schools in Cook…
Rich Central Campus High School - 79.1%
Thornridge High School - 82.8%
Higgins Education Center - 88.0%
Tiny Town Lansing Nursery Sch Inc - 89.8%
* DuPage County…
Delphi Academy of Chicago - 38.5%
Prairie School of DuPage - 61.0%
Chesterton Acad of Holy Family - 63.8%
South School - 78.3%
Carriers of Light - 82.0%
Seton Academy - 82.4%
Kingswood Academy - 82.8%
Marquette Manor Baptist Academy - 83.5%
Concord Lutheran School - 84.7%
Nurturing Wisdom Academy - 86.0%
Clapham School - 87.2%
Naperville Christian Academy - 88.1%
Bethany Lutheran School - 88.2%
DuPage Montessori School - 88.8%
Holy Family Catholic School - 89.7%
Calvary Christian School - 89.9%
* Kane County…
Montessori Academy - 73.8%
Fox Valley Montessori - 76.9%
Resurrection Lutheran School - 82.5%
Bridges Montessori Academy - 86.5%
Geneva Christian School - 87.7%
Covenant Christian School - 88.4%
Mansio Mens Montessori - 88.9%
Immanuel Lutheran School - 89.3%
St Joseph School - 89.4%
* Lake County…
Da Vinci Waldorf School - 73.2%
Torah Academy - 77.8%
Old School Montessori - 83.9%
Lions Math & Science Christian - 84.3%
Our Saviors Ev Lutheran School - 86.2%
Grass Lake Elem School - 86.9%
Country Meadows Elem School - 87.5%
Steppingstone Montessori School - 87.5%
Hellenic American Academy - 89.0%
St Anastasia - 89.4%
* McHenry County…
Lord and Savior Lutheran - 76.7%
Montessori Pathways - 85.2%
Immanuel Lutheran School - 87.3%
Crystal Lake Montessori - 89.4%
* Will County…
Midwest Christian Montessori Acad - 73.9%
Little Explorers Montessor - 87.5%
Joliet Montessori - 88.7%
Noonan Elementary Academy - 89.9%
Those schools are disasters waiting to happen.
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More taxsplaining is apparently needed
Monday, Mar 11, 2019 - Posted by Rich Miller
* Tribune headline…
Gov. Pritzker says his income tax plan would generate $3.4 billion in revenue. Some tax experts question whether it’s enough.
Um, the story quotes precisely one tax expert questioning whether it’s enough. And that’s Ralph Martire at the Center for Tax and Budget Accountability.
The Institute for Illinois’ Fiscal Sustainability at the Civic Federation, which also studies these things, proposed a revenue increase last month of about $3.1 billion in Fiscal Year 2021 and $3.4 billion in FY22, which is about what Pritzker is proposing. The Civic Federation wants to get to the same destination by taxing retirement income and expanding the sales tax - the first of which is political death and both of which are opposed by Pritzker.
And when you factor in Pritzker’s proposed tax hikes for next fiscal year, you add another $733 million to the $3.4 billion Pritzker’s tax hike would bring in, for a total of $4.1 billion (that figure doesn’t include one-time taxes and fees, like the sports wagering and recreational cannabis licensing fees).
* Crain’s Chicago Business editorial…
Another problem: Pritzker’s plan as proposed pulls in $3.4 billion a year, roughly half what outside experts estimate is really needed to fill the state’s structural deficit, pay off IOUs and adequately fund pensions.
Which “outside experts” are these? I asked and haven’t yet heard back. The only entity I can find which has proposed such a thing is the Civic Committee of the Commercial Club of Chicago. That group isn’t so much known for being a fiscal expert as it is for being a propaganda outlet. They’re the ones who beat the drum for years for unconstitutional pension reforms and then put up “LOL Illinois” billboards all over the state.
The group wants an extra $2 billion a year from various taxes to inject into the pension funds to bring down long-term costs. It’s a good idea. Martire has a similar proposal. But Pritzker wants to get there a different way: by transferring state assets into the funds. We’ll circle back to that idea later today or tomorrow.
Is more revenue needed than Pritzker is proposing? I’d say so. But how much can you realistically get?
* Meanwhile, once again we see a not-great way to describe the proposed graduated income tax…
Under Pritzker’s plan, those earning $10,000 or less would receive a minuscule reduction of 0.2 percentage points and pay a 4.75 percent rate.
Those earning between $10,001 and $100,000 would receive a more minuscule cut of 0.05 percentage points and pay a rate of 4.9 percent.
Those earning between $100,001 and $250,000 would pay the same rate as they do now — 4.95 percent.
From there, the tax rates dramatically increase.
Those earning between $250,001 and $500,000 would pay a 7.75 percent tax rate.
Those earning between $500,001 and $1 million would pay a 7.85 percent tax rate.
Still unclear on the concept of marginal vs. effective rates.
* A much better way of describing the proposal…
The taxes would be applied marginally, meaning 4.75 percent rates would be applied to an earner’s first $10,000 of income, a 4.9 percent rate would apply to the next $90,000 of income, and a 4.95 percent rate would apply to an earner’s income from $100,001 to $250,000.
According to the plan, that means taxpayers in those brackets would pay a lower rate than Illinois’ current 4.95 percent rate which applies to every penny of income.
A 7.75 percent tax would take effect for income between $250,001 and $500,000, and a 7.85 percent rate would apply to an earner’s next $500,000, up to $1 million.
When an earner hits $1 million of income, every penny they bring in would be taxed at a 7.95 percent rate.
* One more…
IPI said “there’s no publicly available data to back up Pritzker’s claim that his rates are capable of generating $3.4 billion in revenue” and that, according to IRS statistics, “these rates would generate far less revenue ($1 billion to $2 billion less).”
IPI estimates that “revenue from these proposed rates would bring in only $1.4 billion, according to dynamic estimates, or $2.4 billion, according to static estimates.”
I asked the Illinois Policy Institute last week how they came up with their projection and was promised an explanation and never heard back. The Pritzker administration says it devised its projection by working with the Illinois Department of Revenue and others.
Also, “dynamic” scoring can be twisted to do whatever the scorer wants. It’s more magic than math.
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Just 4 precincts reelected Ald. Burke
Monday, Mar 11, 2019 - Posted by Rich Miller
* I meant to post this when Eric Zorn wrote it, but somehow forgot. Zorn drilled down into 14th Ward election results to see how Ald. Ed Burke won…
His two challengers, Jaime Guzman and Tanya Patino, simply had to hold Burke to less than 50 percent of the vote in order to force a runoff election April 2.
And in 27 of the 31 precincts in the 14th Ward, they did. Combined, Guzman and Patino won 51 percent of the vote in those precincts, according to preliminary tallies provided by the Chicago Board of Elections.
But in four precincts in the western finger of the ward — a 38-block-long gerrymandered extrusion that in places is just one block wide — Burke’s operation shuffled that deck and got his voters to the polls.
The contiguous 1st, 4th, 9th and 24th precincts at the far edge of that protuberance had 52 percent voter turnout, compared with a dismal 30 percent turnout in the other precincts. Those four key precincts, which overwhelmingly supported white mayoral hopefuls Jerry Joyce and Bill Daley, voted 70 percent for Burke.
That margin boosted Burke to 3,759 total votes, close to 54 percent, enough to claim re-election and avoid a runoff.
Burke deployed a ton of people to those precincts.
Anyway, good catch by Eric.
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If you can’t beat it, bend it
Monday, Mar 11, 2019 - Posted by Rich Miller
* My weekly syndicated newspaper column…
Democrats often propose ideas that take forever to explain and are often difficult for the masses to understand. That wasn’t the case last week.
“Under my fair tax plan,” Gov. JB Pritzker tweeted, “97 percent of taxpayers get tax relief and the wealthy will pay their fair share.”
It’s gonna be really tough to top a succinct message like that, particularly when its chief supporter is worth $3.2 billion and just gleefully spent $170 million on his campaign and is willing to spend big on this.
The governor’s new graduated income tax plan is obviously designed to appeal to the most people possible. And 97 percent is almost everybody.
The dirty truth is that human beings tend to prefer taxes which don’t apply to them. It’s really no surprise that 72 percent of Illinoisans backed a progressive income tax in the most recent Paul Simon Public Policy Institute poll taken last year.
So, the tiny 2.7 percent of income tax filers who will pay more taxes under Pritzker’s plan and who, unlike in the past, have little hope of outspending the governor if it goes to the voters for approval will have their work cut out for them.
One of the early responses from opponents was to attempt to scare people into believing rich people will pack up and leave, even though one of our biggest exit problems is the tens of thousands of kids who leave for out-of-state colleges every year and never come back.
Other pro-business types claimed part of Pritzker’s proposal was a “millionaire’s tax,” which actually polls even better than a graduated tax. They can’t beat Pritzker that way.
Democratic state legislators were mostly silent. That’s often the case with big proposals. Legislators are, for the most part, naturally cautious creatures who will want to be assured they can do this without harming their districts and, in turn, themselves.
As with the recent minimum wage hike, the governor can stress to legislators that his tax plan is a “core Democratic Party value,” and that he will have their backs if they’re attacked. This won’t be an easy rollcall, but things like infrastructure projects will help smooth things over.
The House Republicans have been a hard “heck no” for weeks on this topic. But the Senate Republicans left the door open to negotiations.
“Without guaranteed protections for middle class families, we are opposed to the governor’s $3.4 billion tax increase,” the caucus statement read. They wouldn’t say what those “guaranteed protections” might be, but I was told that the caucus is open to “exploring” the topic.
Senate Republican Leader Bill Brady has always been a guy who wants to be at the table. And he likely knows he can’t stop that constitutional amendment in his chamber (the real fight will probably be in the House).
And, remember, 97 percent of taxpayers will get some relief. It’s not much, but sneer at a $271 annual tax cut for a family of four earning $61,000 at your own peril. That’s a decent credit card payment or two, and families in that bracket aren’t exactly flush with cash. Anyone who is a hard “no” on this can be portrayed as opposing tax relief for almost everybody on behalf of the rich.
So, why not try to make his caucus look reasonable and bend the proposal his direction?
What about altering the rates, or formally tying the top tax rate to the lowest in the same way the corporate rate is currently tied to the personal rate to prevent lawmakers from soaking big business without also raising taxes on individuals? Or, how about allowing married couples who file joint federal returns to file separate Illinois returns to avoid triggering higher brackets? Or what about dumping the proposed one point increase in the corporate rate, which would only bring in about $317 million anyway?
From what I’m told, Gov. Pritzker is not only eager to talk with the Republicans, he doesn’t expect them to put a single vote on the amendment. Adding some Republican ideas would undoubtedly make his case stronger with moderate Democratic legislators and with voters. Does that mean Republicans would be used as cover? Of course, but it also means that the Republicans will have made some important changes. It’s called governing.
Pritzker’s plan is so easy to like that, unless they’re absolutely sure they can kill this thing, the Republicans need to get to the bargaining table before it’s too late.
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Question of the day
Friday, Mar 8, 2019 - Posted by Rich Miller
* You may remember this from the Senate Republican Caucus on the governor’s income tax proposal…
Without guaranteed protections for middle class families, we are opposed to the governor’s $3.4 billion tax increase.
I never did get a specific answer about what those protections might be, although they do seem to be interested in talking about it.
* Hannah Meisel at the Daily Line…
[Sen. Dan McConchie, R-Hawthorn Woods] said Pritzker has “talked a big game in terms of bipartisanship…We haven’t seen a lot of substance on that yet.”
[Sen. Don Harmon, Oak Park] however, said that if Republicans “feel they haven’t been invited yet [to negotiate on progressive income tax rates], let me invite them right now.
“No calendar is set yet; any Republican who wants to talk about the language of the rate structure or constitutional amendment should reach out to the Democratic caucus,” Harmon said.
But [Illinois Chamber of Commerce President and CEO Todd Maisch] cautioned Thursday that Republicans should stay out of negotiating on a progressive income tax, saying a “strong statement” against a progressive tax is the “right position, no doubt about it.”
* The Question: Should at least some legislative Republicans come to the table and try to negotiate the overall graduated income tax plan, even though they may not vote for it? Or should they totally refuse to take part and try to kill the proposal, even though they’re in the super-minority? Take the poll and then explain your answer in comments, please…
picture polls
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BEER scholarships forever!
Friday, Mar 8, 2019 - Posted by Rich Miller
* Isabel Miller (my niece) in the Daily Egyptian a few days ago…
At Southern, beer isn’t just for drinking.
The ‘BEER,’ or the Balancing Education, Experience and Reality Scholarship is a product of a 1980’s to 1990’s SIU alumni Facebook group wanting to give back to their university.
The group, created by Craig Wilson, has 13,917 members on Facebook. Wilson created the group to research a book project and connect old friends. […]
The organizers hope to fundraise for the scholarship with a big push on the Day of Giving, an annual fundraising campaign held by the university.
That group really took off.
* And the campus’ Day of Giving was better than ever this year…
Twenty-four hours after SIU Carbondale’s third annual SIU Day of Giving, university employees were still counting up donations for the final tally.
Once all the gifts are counted, administrators expect to report over $875,000 contributed to the school by over 2,400 donors from 45 states and 10 countries, making this SIU’s biggest Day of Giving yet.
Events like SIUC’s one-day fundraising bonanza are common at universities around the country, as they seek to entice families and alumni to support their schools, just before tax time. Among Salukis, the growth in the event has been dramatic.
In 2017, the first SIU Day of Giving raised $341,000. In 2018, that jumped to nearly $480,000. This year nearly doubles that.
And the BEER scholarship?…
With about $36,000 in donations from over 800 individual donors, the BEER scholarship will become an endowed scholarship, to be awarded every year by the university, in perpetuity. The group will be recognized with a trophy from SIUC, Goldsmith said.
Man, that’s cool. It’s good to see a bit of alumni spirit back at SIUC. Let’s hope it continues to grow because that campus really needs it.
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Dueling polls in city treasurer’s race
Friday, Mar 8, 2019 - Posted by Rich Miller
* From Melissa Conyears-Ervin’s campaign this morning…
Chicago City Treasurer candidate Melissa Conyears-Ervin holds a double-digit lead over her opponent leading into the April 2nd election. A recent poll conducted by GBA Strategies, shows 46 percent of respondents voting for Melissa compared to 36 percent voting for her opponent, increasing her vote share significantly from the primary election.
“Melissa’s calls for transparency, responsible investment, and increased access to financial institutions in underserved communities resonates with voters throughout the electorate,” said Nick Wilbat, Melissa Conyears-Ervin’s Campaign Manager. “As the only candidate who has walked in the shoes of every day Chicagoans, Melissa’s vision for the city is especially important for minority voters who are often underbanked and unbanked at a disproportionate rate.”
Melissa has received extremely strong support from African Americans, among whom she leads 70 – 14 percent. She also leads with Hispanics, a pivotal voting bloc, by 44 – 37 percent. On the heels of an endorsement from her former opponent for City Treasurer, Peter Gariepy, who won 14 percent of the vote on February 26th, Melissa holds a 53 – 29 percent lead over her opponent with Gariepy voters.
The polling memo is here.
Conyears-Ervin won first place in Round One with 44.3 percent, Pawar was second with 41.6 and Gariepy was last with 14.1.
* From Ameya Pawar’s campaign this afternoon…
Progressive candidate for City Treasurer Ameya Pawar and his opponent are in a dead heat heading into the April runoff election, a new poll shows. In a survey of likely voters conducted by Anzalone Liszt Grove from March 4-7, both candidates received 34 percent of the vote with 32 percent undecided.
Key Findings
Pawar is tied with Conyears-Ervin. Both candidates hold 34% of the vote; Conyears-Ervin leads among African Americans while Pawar wins Latinos (40% Pawar / 32% Conyears-Ervin) and whites (45% Pawar / 22% Conyears-Ervin). Pawar has a 27-point lead among white women and leads on the Lakefront, the Northwest side, and the South/Southwest side.
Pawar leads among the most likely voters. Among voters most likely and most enthusiastic to turn out in this election, as judged by a combination of past voting behavior and likelihood to vote today, Pawar leads by four points (37% Pawar / 33% Conyears-Ervin). […]
The following findings are based off a survey of n=502 likely April 2019 municipal election voters conducted March 4-7, 2019. The survey’s margin of error is +4.4% and higher among subgroups.
I searched my inbox for more news on these candidates and found nothing recent. From the Google…
A vanquished candidate for city treasurer on Tuesday endorsed Melissa Conyears-Ervin in the April 2 runoff, portraying Ald. Ameya Pawar (47th) as a publicity hound whose activist ideas would put Chicago taxpayers at risk.
“The city treasurer’s office is not about headlines and hashtags. … It’s not a matter of crazy ideas and personal beliefs or setting yourself up for something else,” Peter Gariepy said.
Gariepy said he is endorsing Conyears-Ervin “without reservation” and plans to spend the next four weeks helping her get elected.
…Adding… Good stuff…
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TaxSplaining
Friday, Mar 8, 2019 - Posted by Rich Miller
* Not a great way to describe the newly proposed income tax rates…
The governor’s proposed tax rates are as follows:
• 4.75 percent for those making $0-10,000 in income
• 4.90 percent for those making $10,001-$100,000
• 4.95 percent for those making $100,001-$250,000
• 7.75 percent for those making $250,001-$500,000
• 7.85 percent for those making $500,001-$1,000,000
• 7.95 percent for those making over $1,000,000
* A decent way to describe the newly proposed rates…
• The first $10,000 in net income is taxed at 4.75 percent, resulting in a maximum $475 in income taxes.
• For the next $90,000 in income a 4.9 percent rate is applied, resulting in up to $4,410 in taxes. People claiming $100,000 a year would pay $4,885, $65 less than what they pay under the current income tax law. The average annual income in Illinois is a little more than $56,000, according to the U.S. Bureau of Labor Statistics.
• The next $150,000 of income is taxed at 4.95 percent, which adds up to another $7,425 more in taxes. Someone claiming $250,000 a year in taxable income would owe $12,310, also $65 less than under the current law. More than 97 percent of all income tax returns filed in Illinois claim income of $250,000 or less, according to Pritzker.
• The tax rate jumps all the way up to 7.75 percent for the next $250,000 of income, which could amount to as much as $19,375 more in income taxes. People claiming $500,000 in income would owe $31,685, which is $6,935 more than what they would pay with the current flat income tax rate. […]
Retirees would not be affected because Illinois is one of the few states that doesn’t tax retirement benefits.
And etc.
* Another decent way…
The plan proposes dropping the personal tax rate for the first $10,000 of income for single and joint filers to a 4.75 percent rate; income above $10,000 to $100,000 would be taxed at 4.9 percent; income between $100,000 and $250,000 would be taxed at 4.95 percent; income between $250,001 and $500,000 would be taxed at 7.75 percent; and income from $500,001 to $1 million would be taxed 7.85 percent.
* Meanwhile, this is not a great way to explain the governor’s proposed higher corporate tax rate…
Under the new tax plan, Illinois would maintain a competitive corporate income tax rate. The proposed 7.95 percent rate, identical to its highest rate for personal income, would fall under the corporate income rates in California and Iowa. The two states levy 8.84 percent and 12 percent rates, respectively.
Wisconsin’s 7.9 percent corporate tax is just shy of Illinois’ proposed rate. New York has the lowest corporate income tax of the aforementioned states, at 6.5 percent.
* Same goes for Gov. Pritzker…
“They were paying a flat tax at 7 percent before, they’d be paying a flat tax again.”
Businesses also pay a Personal Property Replacement Tax of between 1.5 and 2.5 percent, depending on the company…
Corporations pay a 2.5 percent tax on their net Illinois income.
Partnerships, trusts, and S corporations pay a 1.5 percent tax on their net Illinois income.
So that has to be added to the corporate tax rate, bringing the newly proposed rate to between 9.45 and 10.45 percent, putting Illinois above California.
* Related…
* Unpacking Pritzker’s Tax Proposals: Retail Discount: Stores in Illinois keep a portion of what you pay in sales tax. Think of it like a collection fee, though in state government shorthand it’s called a retail discount. The amount is based on a percentage of what they collect. So the more they sell, the more they keep. Gov. J.B. Pritzker wants to cap that amount to $1,000 per month for each retailer.
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Willie Wilson to back Lightfoot
Friday, Mar 8, 2019 - Posted by Rich Miller
* Big…
In what might prove to be a crucial decision in the race for mayor, Willie Wilson is endorsing Lori Lightfoot over Toni Preckwinkle.
Lighfoot confirmed the endorsement Friday morning at the City Club of Chicago. Wilson has scheduled a formal announcement for Friday afternoon at Chicago Baptist Institute International in the Washington Park neighborhood.
“I’m happy to have his endorsement; because I think, fundamentally, where he and I agree is the absolute urgent necessity to invest in our neighborhoods to change people’s lives, and to give them opportunity and hope. That shared value is where we have connected,” Lightfoot said.
Wilson came in fourth in total votes in the first round of the mayor’s race last month, but won the most wards of any candidate, taking 14 wards, amassing more than 50,000 votes in largely African American neighborhoods on the South and West sides. Lightfoot won 11 wards, mostly along the North Side and north Lakefront.
* Retort…
Preckwinkle accused Wilson of making his endorsement “contingent upon him receiving guaranteed clout appointments for various city commissions and departments.” She also accused him of demanding that Preckwinkle help retire the debt that remains from his self-funded mayoral campaign.
Those are promises that, Preckwinkle said, she was unwilling to make while her opponent was.
“Yet again, it seems Lightfoot is succumbing to a textbook example of pay-to-play politics, rather than looking out for Chicago’s best interests,” the Preckwinkle campaign said in a statement.
Preckwinkle’s deputy campaign manager Jason Lee was quoted as saying: “If Mr. Wilson’s endorsement can be bought, that is certainly not an endorsement that reflects the values of integrity of Toni’s campaign. And frankly, not one our campaign is interested in.”
Kinda difficult to make that stick on someone generally regarded as a reformer…
* Speaking of endorsements…
Lightfoot was endorsed by the firefighters’ union. Standing with her for that were Northwest Side aldermen Nick Sposato and Anthony Napolitano, whom Preckwinkle described as “pro-Trump Republicans and anti-immigrant alderman.” That prompted Lightfoot to accuse Preckwinkle of lying. “There’s no lie you will not tell. It is sad and pathetic.” In an interview with POLITICO, Sposato said he was surprised by Preckwinkle’s inflammatory language since she had called him last week asking for his endorsement. He and Napolitano are former firefighters who chose to stand by whomever their union endorsed. “I stick with the girl who brought me to the dance. And that was Local 2,” he said.
More…
“I’ve seen a lot of craven things happen in politics but, man, you are shameful,” Lightfoot said, before explaining that the two aldermen showed up when she was endorsed by the firefighters union. She noted she’s been “highly critical” of those aldermen.
* Speaking of Trump and back to the Wilson nod…
The Preckwinkle campaign pointed to an old tweet in which Lightfoot hit Wilson as a “proud Trump and Rauner-supporting Republican who supports horrible policies that will end up costing regular Chicagoans much much more in the long run.”
Lightfoot brushed off her earlier criticism, saying she had gotten to know Wilson during the campaign. “He’s shared lots of different issues with me, his rationale on a number of different things, and I’m happy to have his endorsement, because I think fundamentally where he and I agree is the absolute, urgent necessity to invest in our neighborhoods to change people’s lives and to give them opportunity and hope,” she said.
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Caption contest!
Friday, Mar 8, 2019 - Posted by Rich Miller
* One of my favorite Statehouse people is WTTW’s ace reporter Amanda Vinicky, who did a fun piece recently about some famed Springfield eateries. Here she is with Maldaner’s Chef-Owner Michael Higgins eating a horseshoe…
Have fun, but keep it clean.
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The Credit Union Difference
Friday, Mar 8, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
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* Gov. Pritzker’s proposed effective tax rate on a million dollars of annual income is 7.09 percent. Technically, it’s 7.0934746 percent, which is what we’re gonna use here. You can click here to see the math. State taxes on that million bucks would be $70,934.75, for an after-tax income of $929,065.25.
As we’ve already discussed today, at the $1,000,001 income level, the governor’s proposal would tax all income at the 7.95 percent rate. State taxes would be $79,500 for an after-tax income of $920,501. So, you’d be losing about 9 grand for that extra dollar of income. Significant.
The cutoff point above which tax avoidance wouldn’t make sense would be $1,009,305. State taxes would be $80,239.75 for an after-tax income of $929,065.25 - exactly what you would’ve paid if you made a million dollars.
Increase that income by just a dollar, to $1,009,306, and your state tax would be $80,239.83, with an after-tax income of $929,066.17 - 92 cents more than you’d have made with a million dollars in earnings. After that, the gravy gets thicker.
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Rep. Bennett involved in serious accident
Friday, Mar 8, 2019 - Posted by Rich Miller
* From the House Republicans…
Last evening, Rep. Tom Bennett was involved in a serious car accident that resulted in 10 broken ribs, six in multiple places. He is currently being treated at St. Joseph Medical Center in Bloomington, and is expected to be there for a few days. Tom is known by his House Republican colleagues as one the hardest working members of the House. In fact, after the accident he was most concerned about his legislative paperwork that was engulfed in the flames. Please keep him in your thoughts as he recovers.
Reading Rep. Bennett’s (R-Gibson City) Twitter feed is exhausting. The guy is literally everywhere in his district. He goes to every event imaginable and that is not a small district. I’m always amazed at his energy.
Get well soon, Tom!
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*** UPDATE *** I’m closing comments on this post because I did the math with a bit of help and found that the tax avoidance issue is basically a nothingburger. Click here to see the results.
* Crain’s…
The Pritzker administration unveiled the first details of its long-awaited graduated income tax, and perhaps the biggest surprise is that it contains a true millionaire tax.
Under the proposal, households making more than $1 million will see all of their income taxed at the proposed 7.95 percent rate rather than just the portion above $1 million. Higher rates kick in for those making $250,000 or more, but the higher rates are applied only to the portion above $250,000. That is, until those households hit the $1 million threshold.
* Tribune…
Madigan twice backed efforts to amend the state constitution to create a 3 percent tax surcharge on income above $1 million. He never got enough votes to put the question on the ballot, but voters in 2014 endorsed the idea by a wide margin in an advisory referendum. The 7.95 percent top rate in Pritzker’s plan matches what Illinoisans would currently pay on income above $1 million if Madigan’s idea had been adopted.
Laurence Msall, president of the nonpartisan budget watchdog Civic Federation, commended Pritzker for releasing the details of his plan. The Civic Federation does not have a position on graduated income taxes generally or Pritzker’s plan specifically, Msall said.
“Coming forward with the specificity removes a lot of the uncertainty and speculation as to what the governor and his team intends to do,” he said. “It provides a real opportunity for the state of Illinois’ policymakers to engage in a meaningful debate on the future of tax policy in Illinois.”
Msall said one of his organization’s initial concerns is that charging the 7.95 percent rate on all income for people who earn more than $1 million could lead to “very significant tax avoidance.”
* Capitol News Illinois…
But it’s the plan for the highest bracket that led Illinois Chamber of Commerce President Todd Maisch to call the plan a “millionaire’s tax,” which he said will drive high-income earners out of the state: When an earner hits $1 million of income, every penny they bring in would be taxed at a 7.95 percent rate.
“There’s always a need for more money, especially when you think about the fact that you’re squeezing more than $3.4 billion out of those high earners, how many are going to stick around to pay that tab?” Maisch said. “That tab then has to get pushed down the scale and we see it in other states. It always starts out as a millionaire’s tax, always ends up a tax on the middle class.”
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