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*** UPDATED x7 - Pritzker’s office responds: “Another important step in the negotiations” - SDems explain - Not the final proposal *** Graduated income tax rates emerge

Tuesday, Apr 30, 2019 - Posted by Rich Miller

* The Senate Democrats are being briefed today on the newly proposed graduated income tax rates.

The drafters have addressed the criticism of the “marriage penalty” by coming up with different rates for married people and single filers. The language is in Amendment 1 to SB687.

Remember that these rates only apply to income earned within the brackets. Here are the proposed rates for joint filers…

4.75% $0-10,000
4.85% $10,001-100,000
4.95% $100,001-250,000
7.75% $250,001-500,000
7.85% $500,001-1,000,000
7.99% $1,000,000+ (includes all income)

For taxpayers who do not file a joint return…

4.75% $0-10,000
4.85% $10,001-100,000
4.95% $100,001-250,000
7.75% $250,001-350,000
7.85% $350,001-750,000
7.99% $750,000+ (includes all income)

* Meanwhile, the state’s estate tax would be repealed on January 1, 2021 (Amendment 1 to SB689).

And I’m not quite sure yet what Amendment 1 to SB690 does to property taxes (it’s supposed to be a freeze of some kind), but click here and maybe some of you smart people can explain this in comments.

All three bills must move forward together, I’m told. One goes down, they all go down.

*** UPDATE 1 *** I’ve been advised to tell you that this is the Senate Democrats’ proposal. It’s not yet an agreed proposal. This is a step in the process. There’s still more negotiating to do, apparently.

*** UPDATE 2 *** House GOP spokesperson Eleni Demertzis…

We have said this since day one: A progressive tax is just a blank check for Democrats. They’ve already changed the rates from their initial proposal– without a care of the effects to middle class families and Illinois businesses. Democrats simply can’t be trusted with the ability to manipulate these rates anytime they want to spend more taxpayer dollars.

*** UPDATE 3 *** From the Senate Democrats…

Revenue:
Individual Income Tax Rates: $3.570 billion

Corporate Tax Rate: Increase from 7% to 7.99%: $350 million
Increased funding for programs/property tax relief:
Local Governments (LGDF) $100 million increase

Child Care: $130 million

Individuals receive a $100 income tax credit per child
Eligibility: Single filers ineligible if making over $80,000. Married filing jointly ineligible if making over $100,000

Property Tax Relief: $365 million

    · School district tax freeze: $265 million. (SB690) If the state funds special education, transportation, free and reduced meal programs and other mandated categorical programs AND funds the Evidence Based Funding formula at a minimum increase of $350 million, then the local property tax rates for school districts are frozen for that year. It remains frozen so long as the state continues to meet those funding levels.
    Illinois State Board of Education will certify funding levels, and if the levels aren’t met, districts can adjust rates as allowed under current law.
    · Property tax credit: $100 million. (Contained in SB 687)Increases income tax credit for property taxes to 6 percent from 5 percent.

Total Estimated New Revenue (minus additional funding/property tax relief): $3.325 billion

SB 689 Repeal Death/Estate Tax

What it does:
Repeals what’s often referred to as the “death tax” in Illinois, the tax on the value of an estate that someone inherits. Of note, the agriculture community has been particularly critical of this tax. This provision is linked to voters approving the Fair Tax (SJRCA1).

Details:
SB 689 repeals the Illinois Estate and Generation Skipping Transfer Tax Act. It eliminates the Illinois Estate Tax on estates of persons dying on or after July 1, 2021, or for transfers made on or after July 1, 2021, only if Senate Joint Resolution Constitutional Amendment 1 of the 101st General Assembly is approved by voters prior to that date.

Background:
Currently, the exclusion amount in Illinois is $4.0 million for persons dying on or after January 1, 2013. At the federal level, the exclusion amount is currently $22.4 million for deaths occurring between 2018 and 2025 for married couples aggregating their exemptions and $11.2 million for all other taxpayers.

If the amount of the estate exceeds ($4 million state, $22.4 million federal) either of these amounts for those affected taxpayers, it is subject to a 40% estate tax at the time of death. SB 689, as amended, eliminates the state tax imposed under this Act.

SB 690 Property Tax Relief

What it does:
As long as the state lives up to its responsibilities to fund school districts’ breakfast and lunch programs, student busing costs, etc., AND continue to invest an additional $350 million annually in overall school funding, then school districts tax rates are frozen. This provision is contingent on voters approving the Fair Tax (SJRCA1) Amendment.

This would be an annual process. The freeze would be contingent on the state meeting its obligations to fund education and thereby offset the need for local school boards to go to property taxpayers.

Note: All components would be effective Jan, 1, 2021, if and only if the Fair Tax Constitutional Amendment (SJRCA1) is put on the ballot by lawmakers and then approved by voters.

*** UPDATE 4 *** Sen. Dale Righter (R-Mattoon) just asked if the governor supports this specific rate structure. Sen. Toi Hutchinson (D-Olympia Fields) who chairs the Revenue Committee, did not give a direct response, mentioning negotiations and saying the governor is supportive of the general principles of a graduated income tax.

*** UPDATE 5 *** No surprise here, but the Senate Executive Committee passed the rates bill and the estate tax bill. No debate yet on the property tax bill.

*** UPDATE 6 *** From the governor’s press office…

From day one, Governor Pritzker has made clear that he prioritizes negotiations with the General Assembly on the fair income tax. Today represents another important step in the negotiations, and we look forward to continuing those conversations with stakeholders in the House as well. Governor Pritzker’s focus on making our system more fair means that 97 percent of Illinois taxpayers will pay the same or less in income taxes, while only those making more than $250,000 will pay more.

*** UPDATE 7 *** The property tax freeze component just passed Senate Exec on a partisan roll call.

  48 Comments      


*** UPDATED x3 *** Legislators threatened with mass assassination if they don’t remove pension clause from state constitution

Tuesday, Apr 30, 2019 - Posted by Rich Miller

* As I told subscribers earlier today, this letter was sent to several legislators. The Illinois State Police has been notified…


The above letter was postmarked in Champaign.

And people wonder why I’ve been urging a calming of the rhetoric on this topic for years.

*** UPDATE 1 *** Oy…



*** UPDATE 2 *** The IEA got one too The IEA president was only reacting to news of the letter. It didn’t receive one that we know about. The IEA did, indeed, receive one of those letters…

Kathi Griffin, president of the state’s largest teachers’ union, says she’s more concerned getting mental health services for the letter-writer than she is about her own safety.

“People who are well do not make threats like this. And I am hoping that nothing happens to anyone, and I’m hoping that we find whoever this person is, and I hope that w​e’re able to help them,” she says. “I feel confident that our police will find who is behind this, and I feel confident that this is someone who is acting solo, and I‘m going to be just fine.”

Earlier today, before learning about the letter, Griffin held a press conference to announce the results of a union-sponsored statewide survey. In an unplanned irony, the survey showed that 75 percent of Illinois residents want teachers to receive their full pension payment.

*** UPDATE 3 *** Finke

The exact number of lawmakers who received the letter is unclear. Senate Democrats said they are aware of one member getting it. Senate Republicans said at least four members got it. Several House Republicans received it said spokesman Eleni Demertzis.

“Several of our members have received the letter, including Leader (Jim) Durkin,” she said. “We receive or are subject to numerous letters of a threatening nature. Unfortunately, it seems the rhetoric and intensity of these letter campaigns has increased in recent weeks.”

I know of two Senate Democrats who received the letter.

  104 Comments      


*** LIVE COVERAGE ***

Tuesday, Apr 30, 2019 - Posted by Rich Miller

* Follow along with ScribbleLive


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*** LIVE COVERAGE ***

Monday, Apr 29, 2019 - Posted by Rich Miller

* Follow along with ScribbleLive


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*** UPDATED x2 *** All heck breaks loose

Wednesday, Apr 24, 2019 - Posted by Rich Miller

* WBEZ with the scoop

Democratic Illinois Gov. JB Pritzker, his wife and his brother-in-law are under federal criminal investigation for a dubious residential property tax appeal that dogged him during his gubernatorial campaign last year, WBEZ has learned.

A law-enforcement source familiar with the investigation confirmed to WBEZ that the probe, which has not been revealed publicly until now, began last October and remains active. There are no signs that criminal charges are imminent.

WBEZ has also confirmed that Illinois First Lady MK Pritzker’s personal assistant who was involved in the property tax appeal, Christine Lovely, is being represented by one of Chicago’s most high-powered lawyers. Her attorney, Reid Schar, is a former federal prosecutor who helped convict ex-Illinois Gov. Rod Blagojevich on corruption charges. […]

“Neither the Governor nor the First Lady have been contacted by law enforcement regarding the property tax appeal,” said [Marc Elias], a partner with the Perkins Coie law firm, which has done extensive legal work on behalf of Pritzker’s gubernatorial campaign. “We are confident that any further review of the matter will show that the appropriate rules were followed.”

Schar, the attorney for the first’ lady’s assistant, declined to comment.

* I went over this story with subscribers earlier today. But it might be no coincidence that this alleged probe began in October. From an October 3rd Illinois Republican Party press release

The Honorable John R. Lausch, Jr.
United States Attorney’s Office
Northern District of Illinois, Eastern Division
219 S. Dearborn St., 5th Floor
Chicago, IL 60604

Mr. Lausch:

We write to call your attention to a recent Cook County Inspector General investigation which concluded that Jay Robert (J.B.) Pritzker engaged in a “scheme to defraud” Cook County of over $300,000 in improper property tax reductions and refunds.

As reported by the Chicago Sun-Times, the Cook County Assessor’s Office in 2015 reduced the assessed valuation of a mansion owned by Mr. Pritzker from $6.25 million to just under $1.1 million. These reductions allowed Mr. Pritzker to claim $132,747.18 in refunds for property taxes paid in 2012, 2013 and 2014, and reduced his property taxes for 2015 and 2016 by $198,684.85.

The Inspector General’s report concluded that the assessment reductions were reduced due to fraudulent affidavits submitted by Tom Muenster, Mr. Pritzker’s brother-in-law, and Christine Lovely, Mary Kathryn (M.K.) Pritzker’s assistant. These affidavits falsely claimed that the mansion had been “vacant and uninhabitable,” with no working toilets, since January 1, 2012. The Inspector General report found that, contrary to the affidavits, the toilets had been removed on October 6, 2015, just ten days before a scheduled appraisal of the property, at the direction of M.K. Pritzker. According to an email obtained by the Inspector General, Ms. Pritzker directed that the toilets be removed for the express purpose of allowing the house to be declared uninhabitable.

The facts described in the Inspector General’s report appear to constitute fraud and perjury. Since the improperly-obtained refund checks were sent to Mr. Pritzker through the U.S. Mail, a violation of 18 USC 1341 (the Federal Mail Fraud Statute) may have occurred.

Illinois, perhaps more than any other state, has suffered greatly due to public corruption. Four of Illinois’ last nine governors have gone to prison. It is important to send a strong signal to the people of Illinois that no one is above the law, not even billionaires running for Governor. For that reason, we urge you to fully investigate this matter with all due speed.

Sincerely,

U.S. Representative Peter Roskam (IL-6)
U.S. Representative Mike Bost (IL-12)
U.S. Representative Rodney Davis (IL-13)
U.S. Representative Randy Hultgren (IL-14)
U.S. Representative John Shimkus (IL-15)
U.S. Representative Adam Kinzinger (IL-16)
U.S. Representative Darin LaHood (IL-18)

Whatever the case (the story broke about the IG probe shortly before the press release was sent), that’s a fairly decent summary of the claims.

…Adding… From the dark money group Ideas Illinois…

Governor Pritzker should immediately abandon his push for this massive Jobs Tax on middle class families because he can’t expect people to pay more when he is reportedly under criminal investigation for gaming the system to pay less.

The governor likes to call his push for more taxes “fair” but it’s clear he knows nothing about fairness or equity - he needs to drop his push for this Jobs Tax that will only hurt middle class families even further.

…Adding… ILGOP…



…Adding… Unless he backs out, the governor will be taking questions today…

Daily Public Schedule: Wednesday, April 24, 2019

What: Gov. Pritzker and Acting Director Brendan Kelly to hold media availability to discuss efforts to address the state’s DNA backlog.
Where: ISP Forensic Science Center, 1941 Roosevelt Road, Chicago
When: 10:30 a.m.
B-Roll Opportunity: Members of the media will be able to tour the crime lab after the media availability to see how evidence is processed by ISP technicians.

…Adding… RGA

“After just a few short months in office, J.B. Pritzker has already proven to the people of Illinois that he is completely unworthy of their trust,” said RGA Deputy Communications Director John Burke. “This investigation raises serious questions regarding Pritzker’s conduct and shows that he is nothing more than another corrupt politician who thinks he’s above the law, just like his friend Rod Blagojevich.”

*** UPDATE 1 *** Standard response in these matters…


*** UPDATE 2 *** Tina Sfondeles…

Asked if the probe will affect his push for a graduated income tax, Pritzker replied: “all of these things will pass.”

* Meanwhile

The former Illinois legislative inspector general says the ethics commission that oversaw her work buried a report of alleged misconduct by one of their fellow legislators, just one sign of a system she describes as “broken.”

In an op-ed published online Tuesday by the Tribune, ex-watchdog Julie Porter said lawmakers have done little to address these longstanding problems despite warnings from her predecessor and a series of high-profile sexual harassment allegations at the Capitol. Porter was appointed interim IG in November 2017 after alleged victims said their complaints went unheard. […]

State Rep. Avery Bourne, a Republican from downstate Raymond, who chairs the ethics commission, said the bipartisan panel voted unanimously in February not to release the report on alleged misconduct by a lawmaker. Like Porter, she said the law prohibits her from discussing the case.

Bourne said the commission provides a “check and balance” on the work of the inspector general and never got in Porter’s way. […]

Pope, the new inspector general, said a different interpretation of state law led her to close the case Porter wanted to publish. However, Pope said she agrees with her predecessors’ broader criticisms of limits imposed by lawmakers on the inspector general’s independence.

The op-ed is here.

As I’ve told you a couple of times now, I’m on break starting today. I will post again if something major happens, but comments are closed until I return.

  Comments Off      


*** LIVE COVERAGE ***

Wednesday, Apr 24, 2019 - Posted by Rich Miller

* As I told you yesterday, I’m going on break. But you can still follow all the happenings with ScribbleLive


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