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* Greg Hinz totaled up the new tax cut package. After listing the corporate breaks, he gets to the cuts for individuals, which were added to make the big corporate tax cuts passable…
The exemption on the Illinois estate tax will double to $4 million. Estimated annual cost in fiscal 2014 is $62 million. […]
Senate Democrats estimate that doubling the state’s earned-income tax credit to 10% of salary will cost the treasury $110 million a year.
Bumping the personal exemption on the state’s individual income tax up $50 to $1,050 will cost another $20 million or so, I hear. But the exemption now also will be indexed to inflation, so the ultimate cost is much, much larger.
Add all of this together and, by my count, you’re something north of $344 million in fiscal 2014 — not counting the 10 tax credits that are being extended. That’s not quite the $800-plus-million Christmas tree that originally was proposed. But it sure is bigger than a bonsai evergreen.
I suppose it could’ve been worse. But none of these breaks are affordable right now. I’ve never been held up by a masked gunman, but I’m starting to get an inkling of what it feels like.
…Adding… Factor in the “extra” $250 million from the expiration of an accelerated federal tax credit and it’s about $100 million a year. Still a lot. And that $250 mil would’ve come in handy for paying old bills. But, whatever, we’re stuck.
* Meanwhile, Senate President John Cullerton appeared with Gov. Pat Quinn and Mayor Rahm Emanuel at an event on the city’s Southeast Side today to tout a big new green space initiative. But Cullerton wanted to talk about a different kind of green…
“Governor, this might be a little off topic,” Cullerton said at the event on the far South side. “I don’t know if we can see any eagles here, but we definitely can see the Hammond casino. Which reminds me, you and I and the mayor need to work on bringing a casino to Chicago so that… Illinois gamblers spend their money in Illinois, not Indiana.”
The comments drew a roar of laughter from attendees, including Mayor Rahm Emanuel, who has been pushing for a Chicago casino.
Quinn’s face turned a tad red, but he appeared to take the ribbing in stride.
“I want to thank John for his targeted remarks,” Quinn responded.
He later dodged questions about the status of gambling negotiations, taking advantage of Emanuel’s suggestion that he turn attention to the young granddaughter of Rep. Mary Flowers, who had held the child throughout the event.
So much for Quinn’s happy morning.
* Check back for audio.
*** UPDATE *** Cullerton audio…
…Adding… Here’s the Q&A, which is mainly Quinn, Emanuel and Cullerton talking about the tax cut bill…
posted by Rich Miller
Friday, Dec 9, 11 @ 2:13 pm
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Maybe we should all offer to help John Corzine find that $1.2 billion of MF Global customers’ money he misplaced at CME.
Whatever we find, we keep half.
It’s gotta be around here somewhere, right? I’ll check the couch cushions, the rest of you, spread out.
Problems solved.
Comment by wordslinger Friday, Dec 9, 11 @ 2:32 pm
I think the Governor spoke to the gambling question on Brandmeier’s radio show. And he probably thought that was enough for now.
Comment by Anonymous Friday, Dec 9, 11 @ 2:37 pm
Good for Cullerton,we need a casino and the governor knows it. For some reason he can’t pull the trigger. Let’s hope the laughs continue and the state moves foward.I also am glad Johnny B is back.
Comment by mokenavince Friday, Dec 9, 11 @ 2:41 pm
The budget people estimated recently that the states income from all sources will increase by $1B or a bit more next year. The folks at the pension funds recently said that they will need and additional $1B (the total for all of the pension funds) next year.
Lets assume that the the tax cut proposal will pass and its cost will be $344m next year. The next question then is: what current state program(s) will be cut by $300M (give or take) to balance the budget for next year?
Comment by Left Out Friday, Dec 9, 11 @ 2:53 pm
Still hoping the whole thing fails. This kind of thing is fine when you flush with cash, but when you already can’t pay your bills, this is bad public policy.
Comment by Jaded Friday, Dec 9, 11 @ 2:59 pm
These are the consequences of a lame-duck GA passing a tax increase in the middle of the night last January with no thought of the consequences. Bad public policy begets bad public policy.
Comment by Anonymous Friday, Dec 9, 11 @ 3:10 pm
===in the middle of the night last January with no thought of the consequences===
C’mon. You act like the idea was hatched that same night. I know you’re not that stupid.
Comment by Rich Miller Friday, Dec 9, 11 @ 3:15 pm
Jaded: If the bill didn’t go through and companies leave, then the state would really be experiencing a shortfall (as that tax base vanishes). It’s happened in other places (e.g. MI, CA) and it could easily happen to a great degree in IL.
Comment by Flip Friday, Dec 9, 11 @ 3:16 pm
No big deal. The state will just push back paying vendors and human services agencies a few more months.
Comment by Aldyth Friday, Dec 9, 11 @ 3:22 pm
That would have been good going to the pensions.
Comment by He Makes Ryan Look Like a Saint Friday, Dec 9, 11 @ 3:26 pm
Flip: or we could just roll back the corporate tax hike instead of redistributing it. That’s how it seems, at least.
Comment by Shock & Awww(e) Friday, Dec 9, 11 @ 4:08 pm
Agreed, Shock & Awwwe. I’d like to see that happen, ideally. However, that wouldn’t exactly resolve CME’s and CBOE’s issue, which is the manner in which they are taxed, not the rate per se.
Comment by Flip Friday, Dec 9, 11 @ 4:59 pm