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Posted by Barton Lorimor
Bill Brady has long talked about creating a tax incentive for job creation, but reporters got something new out of the Bloomington Republican yesterday…
Republican gubernatorial candidate Bill Brady gave some details on Tuesday about his plan to create more jobs and acknowledged that parts of his plan would add as much as $1 billion to the state’s $13 billion budget deficit.
Brady, who also announced a two-year $3,750 tax credit for each new job created by a business, pledged to make cuts to offset the lost revenues from eliminating the sales tax on gasoline, cutting fees and eliminating a gap between the state and federal estate taxes.
“I’ll have to cut $1 billion for those tax cuts until they replenish themselves,” Brady told reporters while visiting Prime Panels, a business on Springfield’s north end. “By bringing jobs back and creating a fabric and an environment for that, revenues will grow once again.”
More on the Brady plan…
Brady had previously proposed a $2,100 credit, but Democratic Gov. Pat Quinn criticized that because it was lower than a $2,500 small-business tax credit he had already signed into law.
Brady has said his plan is better because it includes businesses of all sizes.
During a stop in Springfield, Quinn attacked Brady for decreasing state revenue while the state’s fiscal status remains less than good (I need to find a new way to say, “We’re broke,”). This time he latched onto Brady’s proposal to do-away with the gasoline tax…
“How’s he going to pay for education, health care public safety and helping our veterans?” Quinn told reporters.
Quinn, a Democrat, rebuked the Bloomington Republican’s reluctance to release specific state budget plans until after the election.
While we’re on the Brady thread, former Arkansas Gov. Mike Huckabee will be in Illinois in the coming weeks stomping on Brady’s behalf…
It appears as though Huckabee’s travel this month is aimed at the perception within the political chattering class that his appeal is generally limited to the south and to social conservatives. The more Huckabee can show his effectiveness as a surrogate in races across the country, the easier it is for him to make the case that he could be the party’s standard-bearer against President Obama in 2012.
Something seems just a little odd to me with this announcement…
Gov. Pat Quinn has proclaimed Sept. 13 through Sept. 17 as Chamber of Commerce Week throughout Illinois.[…]
In his proclamation, the governor declared “chambers of commerce have contributed to the civic and economic life in Illinois for 172 years, since the Galena Chamber of Commerce was founded in 1838. Chambers of commerce encourage the growth of existing industries, services and commercial firms and encourage new businesses and individuals to locate in Illinois.”
Maybe it’s nothing, but it comes across as Quinn trying to pick at Brady’s base. Brady is the candidate touting business and jobs. It’s what earned him the Illinois Chamber of Commerce’s nod. I guess we’ll see where this goes.
Related…
* Brady: Tax cuts will increase Ill. deficit
* GOP’s Brady: Tax cuts will increase Ill. deficit
* Manufacturers Support Brady
* Is Brady’s Jobs Agenda Bad For Illinois’ Economy?
* Brady says small businesses key to jobs growth; predicts ‘new crop of leaders’ for Illinois
* Brady stops in Champaign on statewide jobs tour
* Brady to crack down on corruption at all levels of government
* Brady, Quinn tout dueling jobs plans in Illinois campaign openers
* Brady alters stance on across-the-board cuts
* Gov Candidates Talk Jobs on Tour of State
* Quinn Campaign Airs Controversial Gun-Related Ad
* Quinn Campaign Defends Gun Ad
* Norquist to Gov. Pat Quinn: Pick a Flawed Income Tax Hike and Stick With It
* Hewitt: Celebrating contributions of chambers
* Madigan says Democrats face tough economy in election, but party’s record is solid
* 10th Dist. hopefuls detail abortion stances
* Dems accuse Ald. Doherty of ’serious ethics violation’
* Murphy stumps for Right Nation conference
* DuPage chairman candidates weigh in on zoning proposal
* John Fritchey, Job Hopper
* Joe Versus the Public Opinion Volcano
* Jay Talking: Dunn for mayor? All-year campaign signs?
posted by Rich Miller
Wednesday, Sep 1, 10 @ 8:33 am
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The more Brady opens his mouth the smaller his lead will become.
Comment by Niles Township Wednesday, Sep 1, 10 @ 8:53 am
–“As governor, I will authorize an audit so we know every dollar spent and where it is going.”-
I guess budget books, state auditor reports and comptroller reports aren’t enough for this guy.
And now he has another billion to cut, based on his own estimate.
He’s either very naive, as Edgar said, or very dishonest.
Comment by wordslinger Wednesday, Sep 1, 10 @ 9:01 am
Brady is doing a poor job of salesmanship. The Federal government collected record tax revenues after the Bush tax cuts of ‘01 and ‘03. (And before someone cries foul, the Bush deficits were created by unrestrained spending, not tax cutting.) However, government bean counters, CBO in Washington and its equivalent in Springfield, are not able to calculate the stimulative effect of tax cutting (i.e. dynamic scoring). To them, every dollar in reduced taxes is a dollar in reduced revenues, historical patterns be damned. Brady needs to talk about the increases in revenues that would be generated by an economy stimulated by tax cuts.
Comment by GoldCoastConservative Wednesday, Sep 1, 10 @ 10:10 am
It has been pointed out many times that stability is what these businesses want most. I don’t think increasing the deficit on a gamble is exactly what they have in mind.
Comment by Small Town Liberal Wednesday, Sep 1, 10 @ 11:34 am
GoldCoast — an awful lot of the increased federal tax receipts that resulted from the Bush tax cuts was from capital gains tax receipts. Some of that results from the economic stimulus of the cuts, but but many think it is primarily due to the reduction of the so-called lock-in effect. If you’re going to pay 25% tax on a gain, you might decide to just hold the stock rather than cash it in and buy a different stock you think will do better. The new stock would have to be a lot better to make up for the taxes taken out before you can reinvest. If the tax goes down to 15%, you might decide to cash it in, resulting in tax receipts of 15% of the gain rather than 25% of nothing. No one is talking about an equivalent Illinois tax reduction (and trying to introduce lower capital gains rates would raise an outcry of “tax breaks for the rich!”), so all we would get from Illinois tax cuts is whatever economic stimulus would result from tax savings that are a lot smaller than those from federal cuts in dollar terms, and that affect a much smaller set of players than the federal cuts. I believe there would be some, but using federal tax cuts and tax receipt changes as a comparison is tricky, at best.
Comment by Pat Robertson Wednesday, Sep 1, 10 @ 11:40 am
As a family owned small business owner in Joliet/Peotone area, I do not worry about stability as much I worry how my customers can get more money in their pockets so they can buy my items so I can grow my business.
I run a 30 year old+ family business and I am not growing at all the last 3 years. We are now just barely making a profit after paying all the bills and line of credits. We need a way to get money in people’s pockets so they can spend.
Comment by Joliet Small Business Owner Wednesday, Sep 1, 10 @ 11:48 am
Brady’s stance on taxes is completely ludicrous. At three percent, the only way a tax cut will stimulate more in state revenues is if it generates new economic activity on a multiplier of 100/3, i.e. 33 to 1. One dollar in tax cut would have to generate 33 dollars in new economic activity in order to bring that back as revenue to the state. Dream on, Mr. Brady.
Bill Brady as governor means bankruptcy for the state. It’s just a damned shame we didn’t get the adults for the major party nominees.
Comment by Angry Chicagoan Wednesday, Sep 1, 10 @ 12:07 pm
Other ways to say we’re “broke” : deficit riddled; out of money; income shortfall; lacking fiscal resources.
I’m sure there are as many others as there are dollars in the state’s undersupply of financial capabilities, but you’re welcome for these.
Comment by Draznnl (Rhymes with orange) Wednesday, Sep 1, 10 @ 12:10 pm
==Quinn attacked Brady for decreasing state revenue==
sales tax holidays exempt?
Comment by Vote Quimby! Wednesday, Sep 1, 10 @ 12:12 pm
Rich Whitney for Governor?
Comment by Disenchanted Voter Wednesday, Sep 1, 10 @ 12:31 pm
GoldCoast–in keeping w/ the spirit of Draznnl, things that rhyme w/ “dynamic scoring” include–”trickle down”; “wishful thinking”; “wish and a prayer”; “ballet w/ the books”; etc.
It is not very “conservative” to be basing fiscal policy on such a slender reed of speculation. Moreover, to claim that the huge Bush & Republican deficits that eroded the surplus that was at the beginning of the Bush years had nothing to do w/ the Bush tax cut but only w/ Bush spending is like choosing the egg over the chicken in a game of “which came first”. Brady is drinking the same Kool-aid–Illinois is in bad enough shape w/o adding more.
Comment by D.P. Gumby Wednesday, Sep 1, 10 @ 1:47 pm
D.P. Gumby,
If you take a look at the revenues collected after the Bush tax cuts (soon to be renamed the Obama tax cuts when he recommends their extension), they went up. We did not have a revenue problem, but a spending problem during the Bush years. Obama has doubled down, running unprecedented deficits as a result of excess government spending.
Brady should stop talking about taxes, the problem is spending. If he sticks to the anti-spending message, he wins. Hands down.
Comment by Cincinnatus Wednesday, Sep 1, 10 @ 2:25 pm
==I guess budget books, state auditor reports and comptroller reports aren’t enough for this guy==
Hynes and Alexi have been authorizing expenditures under an unconstitutional budgets because it is what their partners Mike Madigan, Rod Blagojevich, and Pat Quinn told them to do. So yes, they are not enough.
==Bill Brady as governor means bankruptcy for the state==
Mr. Angry, where have you been? The state IS bankrupt. I quess you would prefer someone who continues to blindely spend money with no idea on how to pay the bills.
Comment by the Patriot Wednesday, Sep 1, 10 @ 3:00 pm
I like Huckabee. I hope I get a chance to see and hear him.
Comment by Jack Wednesday, Sep 1, 10 @ 4:46 pm
I am so not impressed…and people support this guy? Why? Cause he’s not Quinn? Better have a better
reason than that…
Comment by Loop Lady Wednesday, Sep 1, 10 @ 7:23 pm
The Brady plan for balancing Illinois’ budget:
Going to bed after his Inaugural Ball and hoping the Budget Fairy leaves about $13-14 billion under his pillow when he wakes up the following morning. Otherwise, Illinois is SCREWED!!!
Comment by fedup dem Wednesday, Sep 1, 10 @ 10:24 pm
As a business owner, it does not seem like it takes a rocket scientist to see that lowering business taxes would spur expendable capitol enabling more new hires!
Comment by tax business owner Thursday, Sep 2, 10 @ 12:01 pm