Dueling “Fair Tax” press releases
Tuesday, Jul 7, 2020 - Posted by Rich Miller
* Press release…
Today, in an unprecedented coalition effort, the Illinois Chamber of Commerce, Illinois Farm Bureau, National Federation of Independent Business - Illinois, and Technology and Manufacturing Association joined together to urge Illinois voters to vote no on the Progressive Tax Constitutional Amendment. Leaders of the coalition held simultaneous press conferences at four locations throughout Illinois among the very people this tax would hurt most: small businesses, farmers, manufacturers, and workers.
Their message was heard loud and clear: Illinoisans are already overtaxed. Families, workers, seniors, and small business owners struggle under the weight of the highest overall tax burden in the entire country, yet politicians in Springfield are trying to hike taxes again. The progressive tax will do nothing to address our sky-high property taxes; will cost jobs, slow wage growth, and hurt Illinois workers; and will end up raising taxes on the middle class and the working poor. Illinoisans can’t afford another tax hike, especially as working families and small businesses struggle to recover from COVID-19.
Illinois Chamber of Commerce President Todd Maisch said, “The progressive tax increase is the same thing as leaving a huge bag of taxpayers’ cash at the backdoor of the statehouse and city hall. None of the money is dedicated to property tax relief, increased funding of education, public safety or pension debt relief. Politicians arrogantly demand that hard-working taxpayers trust them to spend the money wisely. We don’t.”
Illinois Farm Bureau President Richard Guebert, Jr remarked, “What this new progressive tax will actually do is take us down the same route that these proposals have gone in other states. To cover all of Springfield’s spending and debt, the tax brackets and rates will have to be changed to raise taxes on the middle class and even the working poor, with higher rates starting at incomes as low as $25,000 per year. So while proponents claim the progressive tax would only tax ‘the rich,’ many of whom are local leaders like family farmers who are investing in their communities and creating jobs, the truth is that this amendment will open up every Illinoisan to tax increases.“
National Federation of Independent Business Illinois Leadership Council Chair Cindy Neal commented, “Let us not forget that Illinoisans already pay the 2nd highest property taxes in the nation, and these local taxes increase every single year. We pay three to four times the property taxes of our neighbors in Indiana and Wisconsin, and our taxes go up every year even though property values are stagnant. This progressive tax will do nothing to address our biggest problem in Illinois: our sky-high property tax burden. It simply piles additional taxes onto already overburdened Illinois taxpayers. All of these taxes have serious and real-life consequences for our families and small businesses, especially as we struggle to recover from COVID-19.”
Technology and Manufacturing Association President Steve Rauschenberger noted, “The progressive tax will cost jobs, slow wage growth, and hurt Illinois workers when we’re already facing the highest unemployment since the Great Depression due to the coronavirus. Our Illinois economy continues to lag our neighbors and the rest of the country because of high taxes. The progressive tax will further hurt our economy, costing Illinois up to 286,000 jobs and $43 billion in economic activity. This means fewer jobs for Illinois workers, slower wage growth and higher costs for families, and less opportunity for our children at a time when we can least afford it.”
About the Vote No on the Progressive Tax Coalition:
Leading small business and pro-taxpayer organizations from throughout Illinois have formed a grassroots coalition to defeat the Progressive Tax Amendment because Illinoisans are overtaxed. Families, workers, seniors, and small businesses struggle under the weight of the highest overall tax burden in the entire country. Illinois’ Progressive Tax Amendment proposal does nothing to address our sky-high property taxes, will cost jobs, slow wage growth, and hurt Illinois workers, with the result being a tax increase on the middle class and the working poor.
* Press release…
Vote Yes For Fairness Chairman Quentin Fulks released the following statement in response to this morning’s press conference from a self-described grassroots organization against the Fair Tax:
“Today’s press conference was the height of hypocrisy, put on by a group masquerading as a grassroots organization whose sole purpose is to protect the millionaires and billionaires who have benefited from Illinois’ unfair tax system for far too long. It’s despicable that they’re trying to capitalize on the coronavirus pandemic to protect the wealthiest Illinoisans, while so many families are struggling to make ends meet. Sadly, it comes as no surprise given these organizations have spent decades advocating for policies that decimated critical services, left our education system criminally underfunded, and hurt our nurses, grocery store clerks, paramedics, and other essential workers.
“Since the truth isn’t on their side, this press conference was filled with lies from start to finish. Contrary to what they say, the Fair Tax will only affect small businesses that make more than $250,000 a year in profit, while at least 97% of Illinoisans will see no income tax increase or a tax cut.
“Now more than ever, we need to change our tax system from one where our essential workers pay the same tax rate as millionaires and billionaires to one that finally makes the wealthiest Illinoisans pay their fair share. It’s clear from today’s press conference that opponents of the Fair Tax can only use desperate lies to try and mislead Illinois voters to keep the status quo in place, and Vote Yes For Fairness won’t let them go unanswered.”
…Adding… Another press release…
Vote Yes for Fair Tax chairman John Bouman issued this statement:
“It’s no surprise that wealthy special interests like the unfair old way of taxing income in Illinois, because it’s given them a sweet deal for way too long.
“Working people overwhelmingly support the Fair Tax amendment because everyone who makes under $250,000 will get a tax cut or pay no more.
“Fair Tax reform also means fair funding for every community and the important services we need now more than ever. When wealthy people pay their fair share, our state will have $3 billion more to invest in health care, schools, human services and jobs to rebuild our communities stronger and more fairly than before.”
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Duckworth obscures her message
Monday, Jul 6, 2020 - Posted by Rich Miller
* US Sen. Tammy Duckworth on CNN’s “State of the Union” yesterday…
DANA BASH: “Senator, I know that you support change in the name of military bases named after Confederate leaders, but there are leaders like George Washington and Thomas Jefferson who were slave owners. And some people are demanding their monuments come down, too. In your view, where does it end? Should statues, for example, of George Washington come down?”
DUCKWORTH: “Well, let me just say we should start off by having a national dialogue on it at some point. But right now we’re in the middle of a global pandemic. And one of our countries that are opposed to us, Russia, has put a bounty on American troops’ heads. What really struck me about this speech that the president gave at Mount Rushmore was that he spent more time worried about honoring dead Confederates than he did talking about the lives of our 130,000 Americans who lost their lives to COVID-19, or by warning Russia off of the bounties they’re putting on Americans’ heads. His priorities are all wrong here. He should be talking about what we’re going to do to overcome this pandemic. What are we going to do to push Russia back? Instead, he had no time for that. He spent all his time talking about dead traitors.”
BASH: “That may be true, but George Washington, I don’t think anybody would call him a traitor and there are moves by some to remove statues of him. Is that a good idea?”
DUCKWORTH: “I think we should listen to everybody. I think we should listen to the argument there, but remember that the president at Mount Rushmore was standing on ground that was stolen from Native Americans who had actually been given that land during a treaty.”
1) Duckworth has often pridefully boasted that some of her ancestors fought under George Washington during the Revolutionary War. She also has an MA from George Washington University.
2) Never tweet…
3) The Senator’s response…
4) The far right went way overboard with its response…
5) Duckworth made the classic mistake of wanting to get her talking points out without first adequately dealing with the question she was asked. As a result of essentially dismissing the question with vague rhetoric, her talking points were overshadowed. Oops. She wants to run on the same ticket as a guy with gaffe issues. So, he’ll likely need someone who doesn’t regularly make gaffes. This was minor in the grand scheme of things, but still important to those who are watching super-closely. Don’t fall for the gotchas and don’t be afraid of Twitter leftists…
* Related…
* Susan Rice sees stock rise in Biden VP race
[Headline changed because, well, she can’t physically step on her message. Sorry about that. Wasn’t thinking.]
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The ramp’s consequences
Monday, Jul 6, 2020 - Posted by Rich Miller
* This is just the sort of thing that happens when you make the bare minimum payments on your credit card. You pay money in, but your debt still goes up. The object of the pension ramp is to eventually get the state to the point where it’s actually paying down the debt. We’re obviously not there yet. Here’s Hannah Meisel at the Daily Line…
Despite paying historic amounts into Illinois’ five pension systems, the state has made virtually no progress on its path to adequately funding the retirement plans. In fact, three of the five funds experienced net losses in 2019, according to a new report from the state’s Commission on Government Forecasting and Accountability (COGFA).
The total unfunded liabilities for Illinois’ five pension systems ballooned to $137.2 billion during the 2019 fiscal year, according to COGFA — up from $133.5 billion the previous year. But the aggregate level of funding has barely budged at about 40.3 percent.
That’s a far cry from the benchmark set up under former Gov. Jim Edgar in 1994 that required the state pension system to be 90 percent funded by 2045.
When that 50-year plan was passed, the pension system’s funded ratio was significantly better, sitting at 52 percent. The highest the ratio has ever been for all five systems was at nearly 75 percent in the year 2000. But in the subsequent recession the pension systems took a turn for the worse.
The COGFA report is here.
* Greg Hinz points out the obvious problem we’ve had…
The report attributes most of the lack of progress to the state’s failure to annually contribute the amount actuaries say is needed to bring the systems to a 90 percent funded ratio by 2045. The state and its taxpayers are contributing more than ever to the funds, more than $9 billion, but because that’s less than what’s required, any gains on investments are immediately applied to filling the hole rather than raising the funded ratio.
Specifically, according to the report, the pension systems that cover grade and high school teachers outside of Chicago, university professors and judges “experienced a net actuarial loss, mostly due to actuarially insufficient employer contributions and less-than-expected investment returns as well as unfavorable demographics/other factors.“
…Adding… Email from a pal…
The Edgar ramp was a 10-year artificial teaser mortgage to get us into a payment system. AND for all of its problems, it was far better than what existed before.
Yep.
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* Last week…
People coming to Chicago from 15 states experiencing a surge in coronavirus cases must self-quarantine for 14 days upon entering the city beginning next week, Mayor Lori Lightfoot announced late Thursday afternoon.
The city ordered the quarantine for anyone who has spent more than 24 hours in the following states before arriving in Chicago: Alabama, Arkansas, Arizona, California, Florida, Georgia, Idaho, Louisiana, Mississippi, North Carolina, Nevada, South Carolina, Tennessee, Texas and Utah.
The order, which will go into effect on Monday, does not apply to people who are at the airport for a connecting flight or driving through the city on their way elsewhere, city officials said. […]
Anyone violating the order could face fines of $100 to $500 per day, up to a maximum $7,000, the city said.
The order takes effect today.
* The city explained how the states were designated on its website…
A state will be designated if it has a case rate greater than 15 new COVID-19 cases per 100,000 resident population, per day, over a 7-day rolling average.
That metric is an odd choice for a couple of reasons. First, the Illinois Department of Public Health flags counties with a warning sign when they surpass 50 cases per 100,000 residents over seven days, more than three times the threshold Chicago is using.
Second, at last check, Chicago itself was at 52 cases per 100,000 residents over the past seven days.
Not to mention that a large number of Illinois counties also wouldn’t qualify. Go see for yourself.
*** UPDATE *** Looks like there’s a difference in methodology here. From the Chicago Department of Public Health…
Chicago’s Emergency Travel Order applies to states that have a case rate greater than 15 new COVID-19 cases PER DAY per 100,000 population. We use the average per day over a 7-day period, consistent with practices around the country. In Chicago, we’re currently adding <200 cases per day. With 2.7m people, we would hit this cutoff at more than 400 cases per day, which is more than twice the rate of new cases we are at now. (15 cases per day x 2.7m population/100,000=405 cases per day.) Using cutoffs like this is very consistent with how other states have approached this.
Sorry about that.
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