* Greg Hinz has a pair of poll results on Mayor Rahm Emanuel today. One was taken of Chicagoans in US Rep. Mike Quigley’s district which showed a 57 percent favorable rating and a 41 percent unfavorable rating. Emanuel’s job performance was a net positive, at 52-46. The sample for both polls was of likely Democratic primary voters for next March. So, it doesn’t include the smallish number of Chicagoans who take Republican ballots (about 11 percent last year) and those who may not vote in the mayoral race.
The other one…
The other survey—actually, results of two polls of 584 likely [Chicago Democratic primary] voters conducted in late October and then late November—was conducted by a national firm that has done previous work in Illinois. The pollster involved asked questions about Emanuel as part of his survey for a statewide candidate and while neither will allow their names to be used, I spoke with the pollster directly.
In this survey, Emanuel citywide got a personal favorable rating of 50 percent positive and 40 percent negative. His rating from African-Americans was slightly better than among whites, 51/37 as opposed to 51/42, due mostly to a strong 56/32 rating from black women.
Emanuel’s rating on the North Side was 53 percent favorable to 38 percent unfavorable, fairly close to the results in Quigley’s district. The split was narrower on the South Side, 49 percent to 40 percent, and almost even on the West Side, 47 percent to 44 percent.
Those numbers collectively “look like the coalition that elected him last time,” said the pollster, asserting that Emanuel’s public efforts to get more state school aid for Chicago Public Schools, hire more police and help immigrants are having an impact. And overall, Emanuel’s numbers probably are stronger than they appear because the survey excludes Republicans, who likely would lean toward the mayor in a challenge from a progressive on the political left such as Garcia, the pollster said.
Take it for what you will.
…Adding… More results on Quigley from the Quigley campaign…
Very Fav 37% Somewhat Fav 34% Somewhat Unfav 7% Very Unfav 3% Name ID 81%
How would you rate the job Mike Quigley is doing in Congress?
Excellent 28% Good 41% Not so good 11% Poor 5%
If the Democratic primary election for Congress were held today, would you vote to re-elect Mike Quigley, or would you vote to replace him with another Democrat?
Definitely re-elect 35% Probably re-elect 26% Total re-elect 61% Probably replace 11% Definitely replace 7% Total replace 18% Undecided 21%
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* I was waiting on her letter so I could post it, but yeah, this also happened today…
Not a banner week for the governor and it’s only Tuesday.
* Rep. Greg Harris on Facebook…
Illinois’s Chief Procurement Officer has just voided the multi-million dollar no-bid Medicaid consulting contract issued by the Rauner administration that was subject of our hearings last week. This Thursday we will be having hearings on the much larger $60+ billion dollar Medicaid MCO contracts.
*** UPDATE 1 *** Here’s the pertinent part of the letter. Click the pic for a much better image…
Seems pretty clear that the contract was not exempt.
*** UPDATE 2 *** From the comptroller’s office…
As Comptroller Mendoza mentioned the last time she appeared before the Human Services Committee, our office has had these matters under review for some time and we are not surprised by the Chief Procurement Officer’s decision to void the contract. We will watch the committee’s hearings with great interest.
* Also…
*** UPDATE 3 *** Press release…
The cancellation of a no-bid consulting contract inked by the Rauner administration in violation of state procurement law raises other red flags about the state’s Medicaid managed care program, Senator Andy Manar said today.
“In my mind, all this does is raise more questions about the Rauner administration’s handling of the overall $60-plus billion managed care contract. I think taxpayers are owed some explanations,” said Manar, a Bunker Hill Democrat and chairman of a Senate appropriations committee.
The state’s chief procurement officer on Tuesday voided the multi-million-dollar no-bid consulting contract between the Rauner administration and Chicago-based McKinsey & Co. The contract was for services related to the state’s Medicaid managed care program.
The process of contracting with insurance companies to be part of the state’s Medicaid managed care system has been cloaked in secrecy while costs ballooned without explanation. Manar said he and other state senators will be looking for answers from the administration during a Senate hearing at 11 a.m. Friday in Chicago.
The hearing will be streamed live at www.ilga.gov.
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* Today, Gov. Rauner brought up former Rep. Ken Dunkin’s Democratic primary defeat last year after Dunkin sided with Rauner on the AFSCME bill. The governor even bemoaned the fact that House Speaker Michael Madigan convinced President Obama to campaign against Dunkin (without mentioning that Dunkin had foolishly run ads which made it appear as if Obama supported him). Anyway, Rauner then turned his attention to Rep. Scott Drury, who is now running for attorney general…
One member of the General Assembly here recently, just one, voted Present, I think, or abstain in the last election for Speaker Madigan to be Speaker. One. You see he’s not running again for the House. What a coincidence. They made his life holy heck. And, basically, push him out. This is rule by fear. This is not democracy.
This is the example he uses? Seriously?
* Remember this statement from the chairman of the almost totally Rauner-funded Illinois Republican Party moments after Rauner’s tax hike veto was overridden?…
“I am extremely troubled by the decision of 10 Republicans to again stand with Mike Madigan. Republicans in Illinois fought Madigan’s machine in 2014 to elect Gov. Rauner and won. In 2016 we beat Madigan again and made historic gains in the House and the Senate. After all we have accomplished together, it is astonishing that these legislators would now turn their backs on taxpayers across the state. I am confident voters will hold those politicians accountable for choosing Mike Madigan over the people of Illinois.”
* And nine of the eleven retiring House Republicans on this list voted for the tax hike…
All but one of the 15 who initially voted for the tax hike and stuck around is facing a Republican primary opponent.
* From Rep. Chad Hays’ retirement announcement…
“Legislators who care deeply and have the courage of their convictions and the intestinal fortitude to do what is right regardless of consequences are increasingly silenced. I believe we are in serious jeopardy of independent thought being a relic in our public discourse.”
So, spare me, governor.
…Adding… Wordslinger in comments…
Let’s not forget McCann’s one meaningless vote bucking Rauner that earned him a well-funded primary opponent.
Yep. And it was gonna be two well-funded primary opponents in a row, but he also bailed.
*** UPDATE *** From Rep. Scott Drury…
While Governor Rauner has admitted that Mike Madigan controls him, he incorrectly states that Madigan controls me. To the extent Madigan has unsuccessfully spent time trying to figure out how to thwart me, it merely shows that I am controlling him. As a federal prosecutor and a legislator, I have been working to clean up Illinois at all levels. As Attorney General, I will clean up our state once and for all – which includes putting a stop to no-bid contracts that harm taxpayers, ending the patronage that keeps the Machine in power and prosecuting politicians at every level of government engaged in the corrupt practice of “pay-to-play.”
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* From a pal’s text message today…
You checked out the South Dakota Pritzker trust stuff yet?
Um, no, but I just Googled it.
* Bloomberg, 2014…
Among the nation’s billionaires, one of the most sought-after pieces of real estate right now is a quiet storefront in Sioux Falls, S.D.
A branch of Chicago’s Pritzker family rents space here, down the hall from the Minnesota clan that controls the Radisson hotel chain. Other rooms are held by Miami and Hong Kong money.
Most days, the small offices of this former five-and-dime are shut. But even empty, they provide their owners with an important asset: a South Dakota address for their trust funds.
In the past four years, the amount of money administered by South Dakota trust companies such as these has tripled to $121 billion — almost all of it from out of state. The families needn’t move to South Dakota, deposit their money at a local bank, or even touch down in the private jet. Little more than renting an address in Sioux Falls is required to take advantage of South Dakota’s tax-friendly trust laws.
States such as South Dakota are “creating laws that are conducive to a massive exploitation of a federal tax loophole,” said Edward McCaffery, a law professor at the University of Southern California. “We have a tax haven in our midst.”
South Dakota’s sudden popularity illustrates how the wealthiest Americans are embracing ever more creative ways to reduce taxes legally. Executives at South Dakota Trust Co., one of the state’s biggest, estimate that one-quarter of their business comes from special vehicles known as dynasty trusts that are designed to avoid the federal estate tax. Creation of such trusts has surged in recent years as changes in federal law have enabled more money to be placed in them.
While the super-rich use various tools to escape the levy, the advantage of dynasty trusts is that they shield a family’s wealth forever. That defies the spirit of the estate tax, enacted almost 100 years ago to discourage the perpetuation of dynastic wealth. […]
In 2010, the Pritzker family, whose members include Commerce Secretary Penny Pritzker, revealed in a securities filing that one branch had moved $360 million of Hyatt Hotels stock to trusts overseen by a native South Dakotan named Thomas Muenster. Muenster, whose sister married [JB] Pritzker, maintains an office in the Kresge building. […]
Jay Robert [JB] Pritzker, his sister Penny Pritzker and his brother-in-law Muenster didn’t respond to messages seeking comment
By the way, Thomas Muenster, the brother-in-law, was also involved with that hugely controversial and successful attempt to lower JB Pritzker’s property tax bill in part by removing the toilets from an empty mansion…
Pritzker’s name isn’t mentioned in the documents the assessor’s office released for the mansions. Both are owned by a limited liability company managed by Thomas Muenster, whose sister is Pritzker’s wife. But the Pritzker campaign acknowledges that the LLC is owned by a trust for Pritzker. Muenster and the law firm Schmidt Salzman & Moran filed the appeals with Berrios.
* MarketWatch, 2014…
In the 1990s, most states limited the duration of family trusts to the lifetime of a living heir, plus 21 years; South Dakota, in contrast, had no limits at all. That made it possible, in theory, for a wealthy benefactor to create a trust that could benefit not only her kids, but her great-great-great-great-grandkids.
Since then, more states have removed their duration limits, but the Mount Rushmore State has stayed ahead of the competition. South Dakota laws go the extra mile to shield trust assets from creditors and spouses, and let families control their own trust investments, rather than hiring trustees. What’s more, the state levies no income tax on investments.
Trusts in the state became particularly popular toward the end of 2012, when wealthier families feared that Congress might make more of their assets subject to estate tax (a fear that wasn’t realized). According to regulatory filings, wealthy folks who have taken advantage of prairie generosity in recent years include the Pritzker family, who moved $360 million worth of Hyatt Hotels Corp. stock to the state in 2010
* Quartz Media, 2014…
Most recently, McDowell and his crew persuaded the state legislature to pass laws that make it harder for the former spouses of wealthy people and their children to access assets hidden in South Dakota. That’s just the gravy, however, on laws that attract everyone from the billionaire Pritzker family to the heirs to the Wrigley fortune: They exempt dynastic trusts from federal inheritance taxes and income taxes, allowing generations of heirs to collect money tax-free. South Dakota was one of the first states to make such a law, but now almost a dozen others are following it in a race to the bottom.
The South Dakotans cite around a hundred jobs created by the trust industry, and figure that’s enough. But the state is also a net taker from the federal government, which supplies almost half its budget, even as its trusts drain perhaps billions of dollars from federal coffers and hundreds of millions from states where the beneficiaries of these trusts actually live.
* Financial Times, 2016…
Andy Holmes relocated from Kansas City last year to help his firm, the Great Plains Trust Company, increase its presence in South Dakota after clients, including celebrities and famous athletes, asked about the state’s benefits.
Great Plains worked with SDTC to learn the ropes, but last year leased a windowless office in a brick and glass building for its two employees. Down the hall is Maroon Trust, which manages the money of Chicago’s Pritzker family. Elsewhere on the floor is a roofing company. They share a receptionist.
Mr Holmes estimates that 90 per cent of the registered trusts in the state “are what I call shell companies where you basically have a PO box or an office and somebody will come here twice a year to have board meetings and meet regulatory requirements.”
*** UPDATE *** Pritzker campaign…
JB does not have any dynasty trusts; all of the trusts for his benefit have a rule against perpetuities so the “massive exploitation of a federal tax loophole” that is referenced in the article does not apply to JB.
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* Mary Ann Ahern asked Gov. Rauner about a press release his campaign sent out earlier today attacking JB Pritzker for hiding money in off-shore accounts. Doesn’t he do the same?…
Gov. Rauner: Not at all.
Mary Ann Ahern: You don’t have any off-shore accounts?
Rauner: I do not.
Ahern: That was reported in your first term.
Rauner: Yes, so, so Mary Ann, here’s the spin. This is, this spin is amazing. So, I have assets, I’ve worked hard, I’ve made all my money. I didn’t inherit money. Um, and, uh, uh, I worked hard for teachers and made teachers a lot of money for their retirement. I worked for police officers, made a lot of money for their retirement, and I made a lot of money. I’m proud of it. I’ve never apologized for it.
I have investments that I do not control. For example, investments in, in banks and insurance companies, etc. They manage some money. And what’s got reported, which is true, some of them, for their accounts, where I’m a tiny piece, I have no voice, I have no control over decision-making, they have investments in some operation in Bahamas, or somewhere. Tiny for me, tiny for them, I don’t control it, I don’t have a voice in it. That’s what got reported and spun.
Um, the candidate Pritzker, inherited over $3 billion. And he and his family has chosen, chosen, on a massive scale to hide hundreds and hundreds of millions of dollars of their money off-shore in accounts outside of the United States.
That is fundamentally wrong. That is gonna come out and it is outrageous.
Ahern: [Over cross-talk, made a point about how Pritzker made $15 million last year]
Rauner: Exactly. So get this. Mary Ann, great question [laughter]. Great question. So, you inherit, you inherit $3 billion. And if you want to see how good a businessman he is, go look up how he did with his New World Ventures, you can really see some truth about how good a businessman he is.
But, inherits $3 billion and he’s still got $3 billion years later, mostly. And, but he only reports $16 million of income. How do you do that? I mean, you, you have to be one of the worst investors on the planet to only generate $16 million of income on $3 billion of assets.
How do you do that? By hiding from taxes and tax avoidance. That’s how you do that.
* Pritzker campaign…
In response to the Worst Republican Governor in America’s comments at this morning’s press conference, Pritzker campaign manager Anne Caprara released the following statement:
“We’re not going to get in the way of the Bruce Rauner implosion tour.”
Nope. Not good enough. Not by a long shot.
It’s time JB Pritzker answered questions about his assets. Gov. Rauner made some very valid points today. The Democratic billionaire needs to stop hiding behind snarky statements and release the names of his trust funds. Period.
*** UPDATE 1 *** Pritzker campaign…
Bruce Rauner’s accusations are false and he is lying about JB Pritzker. In addition to releasing his personal tax returns, the total taxes paid by trusts benefitting JB, charitable contributions made personally and by his foundation, JB also filed a detailed Statement of Economic Interest that lists personal investments and assets as well as those held by trusts benefitting him. JB and trusts benefitting him have paid a combined $25 million in state taxes and $136 million in federal taxes over the last three years.
There are some trusts that were established by JB’s family a couple generations ago. JB did not set them up, has never received a personal disbursement from them, and he has directed that any disbursements from these trusts be given to charity. Those are facts, and Bruce Rauner’s attempt to distract from his disastrous campaign can’t change them.
ADDED: In regard to the offshore question, there are some trusts that were established by JB’s family a couple generations ago. JB did not set them up, has never received a personal disbursement from them, and he has directed that any disbursements from these trusts be given to charity. Those are facts, and Bruce Rauner’s attempt to distract from his disastrous campaign can’t change them.
They also claim that Pritzker inherited a bit over a billion dollars, not the three billion claimed by Rauner.
…Adding… From another campaign…
That “bit over a billion” is a red herring. That number is from before Hyatt got taken public and a lot of family owned [assets] got sold.
*** UPDATE 2 *** RGA…
Illinois Democrat candidate for governor and billionaire heir to the Hyatt fortune J.B. Pritzker is being called out for refusing to answer questions over reports that he is hiding his income sources from voter scrutiny in offshore accounts.
The multi-billionaire only reported $15 million in state taxable income this year, leading to questions over Pritzker’s use of offshore trusts to shield his income from taxation.
Illinois’ top political blog, Capitol Fax, slammed Pritzker’s campaign this afternoon for refusing to answer questions about his assets, including his refusal to list the names of the offshore trust he benefits from. “The Democratic billionaire needs to stop hiding behind snarky statements and release the names of his trust funds. Period.”
Pritzker’s primary opponent Chris Kennedy has already listed the names of the trusts he benefits from. Previous reports have detailed the Pritzker family’s “legendary use of hundreds of offshore trusts to protect its wealth from taxes and the prying eyes of the Internal Revenue Service.”
J.B. Pritzker’s refusal to answer questions about his offshore trusts shows he may have something to hide.
*** UPDATE 3 *** Biss campaign…
Today, Daniel Biss’ campaign released the following statement in response to Bruce Rauner and JB Pritzker’s astonishing attacks on each others’ financial interests and tax returns.
“Bruce Rauner and JB Pritzker are two sides of the same shiny gold coin,” said Biss spokesperson Tom Elliott. “Both billionaires lacking government experience. Both have private trusts they don’t control, and can’t disclose, and aren’t willing to report how much they’ve made from them. Both use their business acumen as reasons they should be governor, yet neither have released their full tax returns.
“If we’ve learned anything from the failures of Bruce Rauner and Donald Trump, it’s that success in business doesn’t equate to success in government, and that a candidate who isn’t being fully transparent with their financial interests can’t be trusted to have our best interests in mind.
“While Bruce Rauner and JB Pritzker attack each other in an astonishing battle of the billionaires, everyday Illinoisans are struggling to make ends meet. That’s why we need Daniel Biss, the only middle-class candidate with a record of getting things done, who we can trust to make government work for us, not the uber wealthy and the political elite.”
*** UPDATE 4 *** G…
At a press conference today, Bruce Rauner claimed that in his career in business he “worked hard” for teachers and police officers and “made a lot of money for their retirement.”
But the truth is Bruce Rauner tried to strip those same teachers and police officers of their hard-earned retirement money. In 2015, Bruce Rauner proposed massive cuts to benefits for police officers, public-school teachers, and firefighters with “little or no input from organized labor.”
“Bruce Rauner has never ‘worked hard’ for teachers and police officers and is only interested in their benefits when it lines his own pockets,” said Pritzker Communications Director Galia Slayen. “This is a failed governor who has worked to cut benefits and undermine working families to advance his special interest agenda.”
* Related…
* Fact Check: Do Pritzker and Kennedy Have a Tax Transparency Gap?: There is no law in Illinois requiring gubernatorial candidates or governors to release any tax information whatsoever, and Biss is clearly engaging in some campaign hyperbole when he refers to a Rauner standard and a Romney standard. That said, we find the essence of his statements to be True.
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* Yesterday just wasn’t a good day for Gov. Rauner. He’s had a lot of those lately…
Gov. Bruce Rauner says the Republican attempt to overhaul the federal tax code “has a ways to go,” but it might not have as far to go as he thinks.
“I think they’re not there,” Rauner said during a question-and-answer session with reporters Monday. “I think there’s a lot of wood to chop on the tax policy reform, and I hope they get it done in a good way.”
The governor, however, was a few days behind on his news. Over a packed weekend welcoming Illinois National Guard troops home from Puerto Rico, riding his Harley in a Toys for Tots motorcycle run and attending the Illinois Bicentennial bash at Navy Pier, Rauner might have missed that Republican senators had voted for a sweeping tax bill early Saturday morning.
“First of all, the Senate hasn’t passed anything,” Rauner said on Monday when asked to explain what he thought Congress needed to do to get the tax code right. “And what the Senate is talking about is very different than what the House is working on. They have a long, long way to go.”
Indeed, distance remains between the House and Senate tax bills. But Senate Republicans’ approval of their own version was a big step forward and a sign they are willing to approve a tax overhaul even if it adds to the deficit.
Weird.
*** UPDATE *** DGA…
Governor Bruce Rauner has completely abdicated his responsibilities towards Illinois families on federal matters. From health care to tax reform, Rauner has either been complicity silent or openly supportive of President Trump’s policies. Last week, Rauner expressed support for Congress’ tax bill overhaul while acknowledging it did not help the middle-class. Rauner also would not elaborate on what he would change in the bill as he did not like to “negotiate through the media.”
Well, Rauner now has the perfect someone to negotiate with. Last night, the U.S. House Speaker’s office announced that Illinois Republican Congressmen Peter Roskam and John Shimkus named to the “committee to negotiate the differences between the House and Senate tax overhaul bills.” Roskam and Shimkus are two of only nine Republican House members on the committee, giving them, and Rauner, a great deal of influence in the final bill.
Will Rauner keep shirking from his responsibilities? Or will he call up his fellow Illinois Republicans?
“Illinois taxpayers need a fighter but Bruce Rauner won’t answer the call,” said DGA Illinois Communications Director Sam Salustro. “Many Illinois middle-class households will see their taxes rise to pay for cuts for the wealthy and Bruce Rauner has cheered Congress on. Time and again, Rauner has failed the people of Illinois and refused to protect them from President Trump’s policies, including this middle-class tax hike. Rauner’s failure to show leadership is exactly why he’s was named the worst governor by his own party.”
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