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More react to Pritzker’s graduated tax proposal

Thursday, Mar 7, 2019 - Posted by Rich Miller

* Posted in the order they were received. Illinois Republican Party Chairman Tim Schneider…

More tax hikes will not solve Illinois’ fiscal problems. Pritzker’s proposed $3.4 billion tax increase will lead to even more out-migration of Illinois families, businesses, and jobs. Tax-and-spend Illinois Democrats cannot be trusted with more of our tax dollars. That is why Illinois Republicans stand united against the Pritzker-Madigan tax hike and will continue to support reforms that will lower taxes, create jobs, and make our state thrive once again.

* From the pro-Pritzker dark money group Think Big Illinois’ Executive Director Quentin Fulks…

“Today’s proposed tax rates are an important step toward creating a fair tax system that works for everyone, so it shouldn’t come as a surprise that outside groups funded by the wealthiest Illinoisans are quick to launch desperate, false attacks. While these outside groups and their wealthy donors will do or say anything to avoid finally having to pay their fair share, the fact is Illinois needs a fair tax to modernize our tax code, boost the economy, and address the dire financial situation we’ve been left in after years of irresponsible governance and mismanagement.

“Under the fair tax system, 97% of Illinoisans will receive tax relief, with only families making upwards of $250,000 a year paying more. This structure will also lift the burden off middle-class and working families and provide $100 million in property tax relief, but that won’t stop opponents from fighting to prevent Illinoisans from even having the opportunity to vote to implement a fair tax.

“False attacks from those whose bottom lines will be hurt by a fair tax will undoubtedly continue, but Think Big Illinois remains committed to standing with working families and educating Illinoisans about how a fair tax will help them, their communities, and our state.”

* AFSCME Council 31 Executive Director Roberta Lynch…

“Under Governor Pritzker’s fair tax plan, millionaires would pay more while working people pay less. Public services and schools would get needed reinvestment and the state could pay its bills.

“Raising needed revenue from those who can afford to pay a little more—while cutting or keeping taxes low for 97 percent of filers—is the fair tax reform that’s long overdue in Illinois.

“Our union will work with lawmakers to pass the legislation needed to put the fair tax plan on the 2020 ballot.”

* linois Federation of Teachers President Dan Montgomery…

The Illinois Federation of Teachers applauds Governor JB Pritzker’s commitment to working families and putting Illinois on a more fair, prosperous path forward.

This fair tax proposal, which provides relief for more than 97% of taxpayers, will be a welcome change for our members and the communities we serve.

It’s no secret that Illinois’ dire financial situation has taken decades to develop and was made exponentially worse in recent years. Solving our problems will take both time and real structural change. The Governor’s proposal asks the wealthy to pay their fair share so we can invest in schools, higher education, and vital services – and that is something the IFT supports.

As Governor Pritzker has noted, alternatives to this plan would be raising taxes on everyone, including those who can least afford it, or cutting public education and services to the bone in a Rauner Replay.

That is unacceptable. It’s time for change. Our current tax system is unfair and unsustainable, and this is a strong first step. We look forward to working with the administration and lawmakers to build the future we all deserve.

I’ll post ‘em when I get ‘em.

…Adding… Americans for Prosperity-Illinois State Director Andrew Nelms…

“Giving lawmakers a graduated income tax would be like giving them a blank check. Make no mistake, this is a tax hike on Illinois job creators that will only drive jobs out of our state and hasten residents’ departure. Illinois’ political landscape is strewn with broken promises when it comes to taxes. When the Illinois Senate passed the temporary income tax increase in the middle of the night in January, 2011, politicians told the people of Illinois that it would partially expire in 2015 and roll back even further in 2025. Then, over Independence Day weekend in 2017, lawmakers raised the income tax permanently. But they still want even more of our hard-earned money.

“Don’t be fooled – Illinois lawmakers have consistently raised our taxes and are now pretending to lower them. As we’ve said time and again, the last thing we should do right now is let lawmakers wield greater power to levy higher taxes. Taxpayers shouldn’t fall victim to the hope of a meager property tax credit in exchange for giving Springfield politicians a blank check to raise income tax rates, add brackets, and reduce the thresholds at which higher rates apply in the future.”

* Illinois Network of CILs…

In order to build a strong and inclusive state, our government needs adequate revenue.

Today Governor Pritzker released a plan that would lower individual income tax rates for 97% of Illinois individual taxpayers. Those who earn less than $250,000 would pay less, and those earning more would pay higher rates. Illinois CILs applaud this proposal.

If enacted, this reasonable proposal will not only bring relief to tens of thousands of taxpayers with disabilities, it will help secure the empowerment and civil rights of all people. For too long, Illinois has been unable to properly fund so many urgent priorities, including programs that support Independent Living. The Governor’s plan represents a giant step forward.

…Adding… Senate Republican Caucus…

Without guaranteed protections for middle class families, we are opposed to the governor’s $3.4 billion tax increase.

I’m not sure what that means, so I’ll ask.

* Illinois AFL-CIO President Michael T. Carrigan…

“The Fair Tax proposal is responsible, sustainable and practical. The Illinois AFL-CIO commends Gov. Pritzker for taking bold action with this proposal. We have long supported a progressive tax system to alleviate the burden on the middle class and move our state forward.”

* LiUNA Vice President and Midwest Regional Manager John F. Penn…

“We are pleased that Gov. Pritzker is again following through on his commitment to stand with working families, including the hardworking men and women of the Laborers’ Union, who help build our state’s roads and schools and who serve the public at all levels of government. Asking the wealthy to pay their fair share will offset a tax cut for 97 percent of taxpayers – anyone who makes less than $250,000 per year – and will put Illinois back on the path to fiscal stability. Illinoisans deserve a fair tax structure like the one proposed by the Governor today.”

* Kristina Zahorik, President of the Illinois Democratic County Chairs’ Association…

Illinois has been desperately awaiting two critical changes from an Illinois governor. First, we needed bold leadership. Second, we needed a legitimate path toward stability for the state. JB Pritzker delivered on both of these needs today.

The IDCCA stands with the Governor and applauds his refreshing, straightforward honesty about our fiscal challenges. He’s shown true leadership by proposing a way to cut or stabilize taxes for 97 percent of our residents while adjusting taxes on millionaires who’ve financially fared quite well throughout the years.

We understand that passing a Constitutional Amendment for a fair tax won’t be easy. So we’re ready to offer more than simple lip service. We’re already working with our network of volunteers, activists and partners to support the plan as it becomes an election issue. Rank and file Democrats will work exceptionally hard to build support for a fair tax amendment in 2020.

* IMA…

“Today’s massive tax hike proposal will further harm the state’s manufacturing sector, which has already lost more than 300,000 jobs since the turn of the century. Illinois cannot afford to lose more of these good, high-paying middle-class jobs,” said Mark Denzler, president and CEO of the Illinois Manufacturers’ Association. “Taxing and spending are not the answer to our daunting challenges. The governor’s plan will vault Illinois to the 3rd highest corporate tax rate and 8th highest individual tax rate in the United States. Given that we already face the highest property taxes in the nation, the most glaring part of today’s announcement is what is not included: there is no mention of property tax relief for job creators or curtailed government spending.”

* IEA President Kathi Griffin…

“The Illinois Education Association supports a Fair Tax for Illinois. Surveys show voters support a Fair Tax for Illinois. It is imperative that we redirect Illinois to a path of economic recovery that will help our students access the tools and resources that will allow them to reach their full potential. This will strengthen our institutions of higher education, allow our public schools to thrive and strengthen communities throughout Illinois. It is perplexing that we are one of only nine states that hangs on to the flat tax while more than 30 other states have graduated tax rates. Our structure is woefully regressive. Gov. Pritzker’s plan will put us on a better path – a path to not only recover from the two-year budget impasse, but also to grow and stabilize our economy.”

…Adding… A couple more…

The Responsible Budget Coalition applauds Governor JB Pritzker’s push for a Fair Tax. A Fair Tax would give relief to working families while raising much-needed revenue to fund essential state services.

Under Illinois’ current flat tax, wealthier residents do not pay their fair share of state and local taxes. Furthermore, the regressive tax structure perpetuates the state’s dire financial circumstances, an untenable situation made worse by the years-long budget impasse. Illinois’ revenue deficiencies have forced unconscionable cuts to vital services and a chronic failure to pay our bills on time. More revenue is needed in order to put Illinois on a path to fiscal health.

A Fair Tax would bolster our economy and raise billions in revenue to fund our schools and social services. A more just tax system is long overdue. Join us in supporting this necessary measure. Call your Illinois senators and representatives and tell them to support a Fair Tax.

* And…

“The Illinois Chamber realizes that Governor Pritzker has inherited real and serious fiscal problems,” said Chamber President and CEO Todd Maisch. “Unfortunately, his plan for a new tax increase is very unlikely to solve them. Taxing businesses and business owners without restraining state spending nor taking measures that will spur economic growth sends exactly the wrong message to job creators who are already questioning their commitment to Illinois. When they choose to move investment across state lines, government loses tax revenue and our communities take a hit.

“It is important to note that the increase on the ‘2.7 percent’ of taxpayers the governor is targeting will pay much more than the $3.4 billion net income the plan claims it will generate. They will also pay for the ‘tax relief’ afforded to other taxpayers. Clearly, this plan will trigger a serious reaction from employers, especially since the plan only addresses the perceived budget deficit and does not make any meaningful dent in Illinois’ backlog of unpaid bills nor the future spending demands of progressive members of the governor’s party. The plan should be viewed for what it is: merely a first installment.”

70 Comments

Jesse White: “Lightfoot seems to feel like she has to attack everyone who disagrees with her”

Thursday, Mar 7, 2019 - Posted by Rich Miller

* Secretary of State Jesse White and Ald. Walter Burnett endorsed Toni Preckwinkle for mayor yesterday. Lori Lightfoot was not impressed…

“We need someone who’s going to run the city of Chicago who has experience,” White said. […]

“Toni Preckwinkle is the epitome of those entrenched political interests, so it’s not surprising to me that she is seeking people who she has worked with for decades,” Lightfoot said.

I do not remember the last time a Democrat said something harsh about Secretary White. Burnett? Sure. White? Nope.

* Secretary White responded today…

Unfortunately, Lori Lightfoot seems to feel like she has to attack everyone who disagrees with her. That’s no way to get things done and that’s not what Chicagoans expect in their elected officials. Like Toni, I’m honored to have been re-elected by my constituents for making real change in Illinois. And I’ve done it by working together with the concerned citizens and other elected officials.

* Toni Preckwinkle…

Corporate lawyer Lori Lightfoot’s attack on Jesse White is almost as disgusting as her making millions as co-owner of a law firm that represents Big Tobacco, Big Pharma, and big polluters. Secretary White is a three-time military veteran — he served as a paratrooper with the 101st Airborne Division, the Army Reserves, and the National Guard. And as Secretary of State Jesse White has implemented countless programs to improve the lives of Illinoisans including reforming the teen driving program which reduced teen driving deaths by 54 percent. Unfortunately, Lori has made it clear that, instead of listening to folks who disagree with her, she will instead point fingers and attack. That’s no way to lead a city.

* Meanwhile, Lightfoot is staying on message…

Today, Chicago mayoral candidate Lori Lightfoot released a new TV ad, “Why.” The ad questions the motivations behind Toni Preckwinkle’s recent attacks on Lightfoot and points to Preckwinkle’s history of regressive tax hikes and old-school machine politics. The ad is Lightfoot’s third of the campaign, and second of the runoff. Lightfoot released her first TV ad of the runoff, “Change,” on March 1.

“Why is Toni Preckwinkle launching a ‘full blown,’ and ‘incorrect’ attack against Lori Lightfoot?” asks the narrator. The ad then features news stories about Preckwinkle’s ties to the broken Chicago machine and history of regressive taxation. “An entrenched political insider won’t lead Chicago forward. It’s time to bring in the light,” the narrator concludes as the ad features footage from Lightfoot’s election night celebration.

* The ad…

* Preckwinkle is also staying on message…

Tonight, former teacher Toni Preckwinkle and corporate attorney Lori Lightfoot square off in the first televised debate of the runoff.

The spotlight will be on Lightfoot, whose record is now starting to come into focus for Chicago voters.

Here are five questions she must answer for Chicago voters tonight:

* Does she think it was progressive to defend a Wall Street bank being sued for racial discrimination or to make a profit as equity partner of a firm that represents Big Tobacco, Big Pharma, Wall Street banks, and corporate polluters?

* If she is such a progressive, why would she accept the endorsement of two anti-immigrant aldermen, Anthony Napolitano and Nick Sposato?

* Why did she represent Republican politicians trying to protect their power?

* What was her justification for overruling her own investigators to justify police shootings?

* Why did a political operative for Alderman Scott Waguespack say that she promised him a powerful position on the council if it wasn’t true?

* Lastly, but not leastly…

Mayoral candidate Lori Lightfoot is leading rival Toni Preckwinkle in nearly every category and has a lead of 30 points more than three weeks before the April 2, according to an internal poll provided by Lightfoot’s campaign.

Lightfoot is leading among union households, self-described liberals as well as those who voted for Bill Daley or Jerry Joyce; Amara Enyia or Willie Wilson; and Susana Mendoza or Gery Chico.

The memo is here.

…Adding… An interesting development…

The Chicago Firefighters Union Local 2 endorsed Lori Lightfoot for mayor at a press conference on Thursday. Lightfoot announced the endorsement at the historic formerly all-Black firehouse on 35th and Calumet. Today marked Lightfoot’s second union endorsement. The Illinois Education Association Region 67 endorsed Lightfoot in February.

“It’s my great pleasure to accept this endorsement, and I’m humbled by it,” said Lightfoot. “Our first responders do a tremendous job in our communities and are really part of the fabric of our neighborhoods. We need to make sure that we’re doing everything we can to provide them with the support and resources that they need. It is a great honor to be here at this historic firehouse and accept the support of this important group.”

“We are here to throw our support behind Lori Lightfoot for mayor,” said Chicago Firefighters Union Local 2 President Jim Tracy. “She comes from a union home and understands the importance of unions and their roles in lifting up the middle class. Lori understands Local 2’s needs when it comes to our staffing, antiquated rigs, and the need for more ambulances. We all understand the roadblocks ahead when it comes to pension payments and higher property taxes, and Lori strikes a balance that can take care of the economic development downtown, and in turn, take care of some of the blighted communities such as Englewood and the West Side. We need that economic development to make the city a more fair and balanced place, and Local 2 is here to support our next mayor, Lori Lightfoot.”

29 Comments

*** UPDATED x2 *** Standoff with shooting suspect closes I-55

Thursday, Mar 7, 2019 - Posted by Rich Miller

* Tribune…

A McHenry County sheriff’s officer was shot and critically wounded while serving a warrant at a motel in Rockford Thursday morning, sparking a high-speed chase that ended with a crash south of Bloomington, according to police and law enforcement sources.

Reports from troopers involved in the chase, which reached speeds over 100 mph, said the suspect crashed his car near Lincoln around 11:30 a.m. but refused to leave his car. One report said he was pointing a rifle out the car.

A SWAT team has been called in, and all lanes of I-55 remained shut down as of 1:15 p.m.

* From the Illinois State Police a few minutes ago…

UPDATE. 55 is still closed. We are now directing traffic I 55 north to I 155 north to Route 136 east to I 55. This is the McLean exit on 55.

Be careful driving home if you’re heading north. And if you’re going to the Chicago area, you might wanna consider taking 72 over to 57.

…Adding… The police barricade at about 1 o’clock…

*** UPDATE 1 *** Sorry for coming late to this…

A McHenry County Sheriff’s deputy working on behalf of the U.S. Marshals has died following a shooting Thursday morning in Rockford.

Gov. JB Pritzker tweeted, “The people of Illinois join the family of the fallen officer in mourning his loss, and with our deepest gratitude for his courageous service.”

Illinois State Police in Logan County also confirmed his death around 2:30 p.m. Wedneday.

*** UPDATE 2 *** From ISP at 5:55…

He is in custody.

26 Comments

Pritzker unveils proposed graduated tax rates

Thursday, Mar 7, 2019 - Posted by Rich Miller

* From the Pritzker administration…

• Filers at or below $250,000 – 97% of taxpayers – will have lower tax bill

• 20% increase in current Property Tax Credit

• From approx. $500 million (@ 5.0%)to $600 million (@ 6.0%)

• Top rate of 7.95% for net income over $1.0 million

• Once income reaches $1.0 million, entire income is taxed at 7.95% rate
• Corporate Income Tax rate to match top Fair Income Tax rate (7.95%)

• $100 per child Child Tax Credit for:

• Single filers under $80K (phase-out starting @ $40K)
• Joint filers under $100K (phase-out starting @ $60K)

More in a minute.

…Adding… Click here for the entire presentation.

…Adding… The rates…

* More…

* Lower income…

* Higher income…

The governor is planning a 2 o’clock press conference. Watch the live coverage post for immediate updates.

…Adding… House GOP Leader Jim Durkin…

The House Republican Caucus stands united in opposition to a $3.4 billion tax increase on Illinois families and businesses.

…Adding… Applying the top rate to all income once that income hits $1 million is unusual. Usually, graduated taxes only apply to income earned above a certain rate. That is the case with Pritzker’s plan until taxpayers reach a million bucks. So, I’m assuming those close to that level will do whatever they can to avoid reaching a million dollars on paper, because that would hugely jack up their tax bills. But, hey, they could also hire somebody or give some cash to charity to stay below a million.

Also, the state’s current corporate income tax rate is 7 percent. This proposal would raise that rate to 7.95 percent.

The current personal income tax rate is 4.95.

…Adding… If your property tax bill is $6,000 per year, you currently receive a $300 annual state income tax credit. That credit would rise to $360 under this plan. Sixty bucks a year ain’t a lot of relief.

…Adding… Ideas Illinois Chairman Greg Baise…

“We can’t trust Springfield politicians – the same people who in the last 8 years have raised taxes twice – with a blank check,” Ideas Illinois Chairman Greg Baise said. “Today’s proposal is just a massive jobs tax on Illinois families and will destroy the Illinois economy and further accelerate people fleeing the state.”

Key Questions for Governor Pritzker

Are you going to lock these rates into the Constitution, so voters know EXACTLY what they are voting on?

Illinois has had 2 tax increases in the last 8 years - can you promise that these tax rates will not change?

Have you done an analysis on what this jobs tax will do to job creators?

In the past, you have said that this will pay for schools, infrastructure, pensions, and social services along with a property tax break – is this enough money because the math doesn’t seem to add up.

Do you trust the legislature to be responsible or will this be another blank check to raise taxes whenever they want?

…Adding… Factor in the Personal Property Tax Replacement tax on corporations, and the rate corporations pay will rise from its current 9.5 percent (8.5 percent for partnerships, trusts, and S corporations), to 10.45 percent (9.45 percent for S corps etc.). That’ll give us one of the highest in the nation.

…Adding… SEIU Illinois State Council President Tom Balanoff…

“Illinois’ current tax code puts undue burden on the working people of our state, making it harder for them to put food on the table for their families and get ahead. Governor JB Pritzker campaigned on a promise to overhaul this unfair system, and today he is making good on that pledge.

“Governor Pritzker’s plan lowers tax rates for 97 percent of Illinois taxpayers while making sure the wealthy pay their fair share. This proposal will put our state on the path towards fiscal sustainability and good governance.

“The janitors, healthcare and home care workers, security officers and more of SEIU support Governor Pritzker’s fair tax plan, which will make Illinois a better, more equitable state for working families.”

234 Comments

Rep. Hammond wants WIU’s state money released, but what money?

Thursday, Mar 7, 2019 - Posted by Rich Miller

* WEEK TV…

A state lawmaker is urging Gov. J.B. Pritzker to release emergency funding and appoint a full board for Western Illinois University as the school prepares to lay off 132 employees.

“Western is struggling, as most state universities are right now, and having a full board in place would help to ensure the university’s success,” said Rep. Norine Hammond (R-Macomb). “I am asking Governor Pritzker to take immediate action to fill six vacant positions on the board so Western can move forward. Additionally, I am asking him to release funds in an effort to reduce the negative impact not only to the university, but our area.”

I checked with the comptroller’s office…

There are no funds being held up. Our office prioritizes payments to higher ed. WIU, SIU, EIU, all the state colleges get their payments together earlier than they were getting their state funding in years past. Same with MAP grants.

* So, I asked a House Republican spokesperson what funding Rep. Hammond was talking about. Andrew Flach…

Until a supplemental appropriations is brought forward, a good first step would be to appoint a full board of trustees followed by expediting the remaining operational funds owed to the university for this fiscal year and prioritizing the campus’ deferred maintenance projects.

Thoughts?

…Adding… Some commenters really need to take a breath. Rep. Hammond voted for the 2017 income tax increase and the motion to override Gov. Rauner’s veto.