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* From Gov. Rauner’s SJ-R op-ed…
A bad deal for taxpayers is worse than no deal at all, because it preserves the broken system and continues our state’s slow and painful decline.
I addressed this topic in a recent Crain’s Chicago Business column.
Even if Rauner is right (and he may be) that a bad deal “continues our state’s slow and painful decline,” he completely ignores the fact that no deal would take that slow decline and jam it into overdrive.
No deal means $24 billion in overdue bills by January of 2019. No deal means junk bond credit ratings, which means Illinois won’t be able to borrow in 2019 to pay off that mountainous backlog. No deal means an accelerated decline and even collapse of universities and colleges and more huge tears in our already ripped up social service fabric. No deal means more delays in funding for K-12 schools which are currently dealing with a billion-dollar backlog. No deal means higher unemployment. No deal means chaos.
* Meanwhile, this reader said he received an automated poll…
My wife answered a telephone poll yesterday (yes, we still have a landline) that tested Rauner against Pritzker and Kennedy, then had multiple questions about the “four and four” compromise – 4 year increase in income tax, 4 year complete property tax freeze along with multiple levels of cuts to Medicaid, higher ed, local government funds (10%), state operations, mass transit, etc. Wish I took notes on all the listed items and cut levels but we were finishing dinner at the time.
Pretty clear from the questions that the poll was by the Rauner camp.
posted by Rich Miller
Tuesday, May 16, 17 @ 9:57 am
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Previous Post: GOP Rep. takes sick day after pressure from above
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==our state’s slow and painful decline==
A rapid and excruciatingly painful decline is much better! Thank you Governor Rauner for helping destroy the state at an unprecedented pace. /S
Comment by AC Tuesday, May 16, 17 @ 10:11 am
I suggested yesterday that the GA not pass any budget at all, not even a stop-gap K-12 bill. Just let the State run under the court orders and consent decrees. If parents want the schools to open in the fall instead of having a Rauner Holiday, get a court order.
I also suggested the only bill the GA should pass it a tax increase big enough to close the $7-8B structural deficit plus enough to pay down the current $8-12B backlog over the next 3 or 4 years. That second amount could sunset once the backlog was down to a normal 30 day cycle. And when Rauner vetoes it, pass it again. Repeat as needed until it is signed or 2019.
Comment by RNUG Tuesday, May 16, 17 @ 10:12 am
I guess it is all in how one defines a “bad” deal for taxpayers.
I think math tells us that given the financial mess our state is in, taxpayers are going to have to pay more in taxes. A lot more.
So is the Guv saying any deal where taxpayers pay more in taxes is a bad deal? If so, then there is no such thing as a good deal for taxpayers.
If the Guv is saying that a balanced budget with reforms is the only way the taxpayers can get a good deal, then he has to prove his case.
A balanced budget would include both cuts and increased taxes. But the Guv (and his budget chief and his agency heads) have refused on multiple occasions to identify the cuts necessary to balance the budget.
As to his “reforms”, the Guv has failed now for over 2 years to explain with a factual basis how his reforms would help balance the budget, or improve the overall quality of life for the taxpayers (or citizens) of Illinois.
We know what no deal gets us. Instead of creating unrealistic or unachievable ideals of what a “good” budget is, I wish the Guv would instead focus on getting the “best” budget he can.
Comment by Henry Francis Tuesday, May 16, 17 @ 10:17 am
The DopeyDuct op ed makes him looks sillier than the flannel short events — if that is possible.
Guessin’ he believes that if he adds in Madigan to every bungled sentence — after droppin’ g’s — he will be helped.
Comment by Annonin' Tuesday, May 16, 17 @ 10:18 am
Our slow and painful decline didn’t exist until this governor took office and put it into hyperdrive to be rapid and excruciating! What kind of positive leadership does this?
Comment by a Tuesday, May 16, 17 @ 10:19 am
Any budget is better than no budget at all.
Comment by Saluki Tuesday, May 16, 17 @ 10:19 am
===“I apologize but we may have to go through a little rough times and we have to do what Ronald Reagan did with the air traffic controllers. We sort of have to do a do-over and shut things down for a little while, that’s what we’re going to do,” Rauner said.===
===“I think we can drive a wedge issue in the Democratic Party on that topic and bring the folks who say, ‘You know what, for our tax dollars, I’d rather help the disadvantaged, the handicapped, the elderly, the children in poverty,’ ” Rauner said, instead of directing tax dollars to the Service Employees International Union or “AF-Scammy,” an apparent reference to the American Federation of State, County and Municipal Employees, known as AFSCME for short.===
No Deal for Governor Rauner is the best deal.
A bad deal doesn’t get the damage Rauner wants. A bad deal prevents passive destruction too.
That’s why, I think, Rauner feels he’s right. To Rauner, no deal allows wedges, possible shutdowns, a reset, and squeezing the beast.
Not the way to run a railroad.
Comment by Oswego Willy Tuesday, May 16, 17 @ 10:19 am
The Great Perfidy
“structural reform”
When REMI analysis were produced for peer review
1.4% increase in our economy.
They haven’t tried it again because the economic benefits are false. The “structural reforms” are a false God.
No fellow citizens Rauner serves Mammon, the God of Profit
The “structural reforms” would bring private profit
Junk bond rating=private profit
EDGE = private profit
Labor weakened/destroyed =Private profit
Government weakened= private profit
The poor,disabled,elderly not cared for=private profit
Less revenue/taxes= private profit
Every Action Rauner and Republicans do is for
Private Profit
All for Mammon
Mammon is their Lord
Comment by Honeybear Tuesday, May 16, 17 @ 10:21 am
Only in his fantasy can no deal be better than a bad deal. No deal allows him to keep politicking and refusing to govern. No deal allows him to have no responsibility for anything. Any deal requires Brucie to be a governor–something he apparently does not want–he only wants to run for governor.
Comment by d.p.gumby Tuesday, May 16, 17 @ 10:21 am
The machine always waits it out
Comment by Anonymous Tuesday, May 16, 17 @ 10:32 am
Polling people if they want a longer or shorter tax freeze is about like polling them if they like paying taxes at all. The results are pretty predictable.
Comment by Joe M Tuesday, May 16, 17 @ 10:36 am
At least we get things with “bad budgets”. little things like higher education and social services. All we have now is 12 billion in debt building up interest. Governor, do your job.
Comment by Rogue Roni Tuesday, May 16, 17 @ 10:38 am
Rauner’s personal reward is No Deal.
He feels great that he is on the path to breaking the systems of our government.
He views government as unnecessary and costly to him.
After two years of his actions and non-actions it is clear that Rauner loves the feeling that he gets from having No Deal.
Comment by don the legend Tuesday, May 16, 17 @ 10:44 am
Simply, Rauner has too much money, more focused on what people think, than getting things done.
Comment by Anonymous Tuesday, May 16, 17 @ 10:46 am
The man is not a leader. He only ever knew how to do for himself and nobody else ever. If he really wanted a deal, he would have it. Because a real leader would work for it, and not just say they want a deal.
Comment by Ducky LaMoore Tuesday, May 16, 17 @ 11:07 am
A “good deal” (if one is even possible at this point) would have to not only change the trajectory of the state but also overcome the consequences (and taxation requirements) that have been brought by the bill backlog. To me therein lies Rauner’s problem. When it’s all said and done we’ll have to answer the question of “why did we endure X number of years of no budgets to get this and now pay Y in taxes”?
The juice has never been worth the squeeze.
Comment by Pundent Tuesday, May 16, 17 @ 11:09 am
Rauner is negotiating
Rauner negotiates for an unconditional surrender
For the God of Profit Mammon
Because DEMS are not unconditionally surrendering
Negotiations will continue till surrender
“No one can serve two masters. ” Luke 16:13
Rauners reforms are for
Private profit
Comment by Honeybear Tuesday, May 16, 17 @ 11:11 am
== this reader said he received an automated poll… ==
Is that the damned “CCI” that calls the landline every 10 - 15 minutes from 5 or 6 different numbers? They call faster than you can call block them!
Comment by RNUG Tuesday, May 16, 17 @ 11:11 am
OW. Thanks for replaying Rauner’s greatest hits… I was also trying to find when he said something along the lines of “You only need the legislature if you want to spend more. They can’t stop me if I want to spend less.”
Amazingly, he seems to be right… he slashed his own taxes, raised his return on Illinois bonds with ratings declines, and may get his wish for another bite at the pension reduction apple. All this by simply refusing to sign a budget.
Well played, Raunie…well played. You are winnin’ and all it took was gaslighting… why would he want to change this new dystopian status quo?
Comment by LeadingInDecatur Tuesday, May 16, 17 @ 11:15 am
- LeadingInDecatur -
Thank you.
Yeah, that “spending what’s budgeted” talk led to MOUs entering the mix as Rauner said, as is the 100% privilege as governor, he may not spend all monies allocated.
Then, of course, Rauner would own that passive cut, and Dems want monies spent they voted for, for agencies and programs.
Meanwhile, no worth of MOUs or holding monies back. Rauner is passively destroying everything, not just a program or 8
Comment by Oswego Willy Tuesday, May 16, 17 @ 11:30 am
“worry”
Comment by Oswego Willy Tuesday, May 16, 17 @ 11:30 am
To me the 4 and 4 means no budget for the next two years.
Another vague unworkable plan for Raunerite’s to put their hopes and dreams.
Comment by Chicago 20 Tuesday, May 16, 17 @ 11:48 am
I like RNUG’s proposal. I would add a Senate shutdown of all confirmations and investigations of DCFS and DOIT.
Any agreement will reveal priorities. I don’t think Governor Rauner wants to commit.
Comment by Last Bull Moose Tuesday, May 16, 17 @ 11:53 am
Self proclaimed “baddest negotiator” thinks no budget is not bad, a benchmark in his administration
Comment by Rabid Tuesday, May 16, 17 @ 11:55 am
I can already tell you what the voter’s response is to the latest Rauner proposal: about 17 percent in favor.
That’s how many were in favor of his proposal the last time, and nothing has changed.
Comment by Free Set of Steak Knives Tuesday, May 16, 17 @ 12:19 pm
You know what?
This campaign’s gonna be easy for Pritzker.
It’s going to be easy to correlate Rauner’s decimation of Illinois to his decimation of corporations and businesses via vulture capitalism.
He desperately needs a deal or he is toast.
Comment by Winnin' Tuesday, May 16, 17 @ 12:35 pm
It would be great if we laid off the state workforce and could put everyone on Tier 2. Save a lot of money.
Comment by Ron Tuesday, May 16, 17 @ 1:25 pm
Mammon likes to save money by shedding the unprofitable.
More for private profit
Layoffs
Downsizing
Privatizing
Moving plants to Mexico
Reducing hours
Reducing benefits
Beloved methods of increasing profit
Methods of Mammon and his faithful
Right Ron?
Private profit over public good
Comment by Honeybear Tuesday, May 16, 17 @ 1:49 pm
Wrong Honeybear. Taxpayers are being crushed by outrageous taxation in Illinois. Rationalizing state government is very important for the future of the state.
I am for progressive income taxes, but cutting comes first.
Comment by Ron Tuesday, May 16, 17 @ 2:22 pm
Do not feed the Troll.
Add to the discussion, yes, but don’t feed the troll.
Comment by Oswego Willy Tuesday, May 16, 17 @ 2:25 pm
==This campaign’s gonna be easy for Pritzker.==
Agreed 100%. Others will obviously disagree but unless Rauner figures out how to effectively govern in the next 17 months he’ll be defeated handily.
The recent “tax hit” on Pritzker is ineffective because the simple truth is that most poor and middle class folks already assume rich guys exploit tax loopholes. Therefore, it’s baked in for most. Of course none of us like it and it might carry water if J.B. was facing off against a blue-collar opponent. Everyone knows Rauner is a billionaire so that dog likely won’t hunt. People are going to be voting for the billionaire they like best this time around. I’m saying it’s an easy call for most who that is.
Comment by CrazyHorse Tuesday, May 16, 17 @ 3:04 pm
== Taxpayers are being crushed by outrageous taxation in Illinois. ==
Yes, the POOR taxpayers in Illinois are paying too much. But that is because the RICH taxpayers aren’t paying enough. Time for a progressive income tax that exempts the first $50,000 in income, taxes the next $50,000 at 3%, taxes the next $150,000 at 6%, and taxes everything over $250,000 at 9%. No other deductions allowed.
Comment by RNUG Tuesday, May 16, 17 @ 3:07 pm
My bad. I poked it. I’m just driving home the absolute immorality of creating economic suffering in order to secure private profit, which is what I honestly believe Reublicans are doing. Many republicans are Christian especially here in the South.
I am messaging that to pursue profit over people, to put people in literal danger, to harm the poor, disabled and elderly, to be “competitive then we can be compassionate” is to be immoral
It is to worship a golden calf to worship a false God
It is to worship Mammon
Luke 16:13
No one can serve two masters
For too long republicans have held themselves as righteous Christians defending the mythical taxpayer.
I I rebuke this false righteousness and call it what it is
Idolatry
People before profit
Community before corporation
1.4% was no reason to destroy
Over a million people’s economic security
Higher education
Private social services
State agencies
State credit
Small main street business
Our rural communities
Contractors with the state
Ruined for decades!
Immoral I scream at the top of my lungs!
There is no religious
There is no Christian justification for what they are doing!
What they are doing is worshipping private profit
At the corporate temple.
Comment by Honeybear Tuesday, May 16, 17 @ 3:18 pm
Yes, the POOR taxpayers in Illinois are paying too much. But that is because the RICH taxpayers aren’t paying enough. Time for a progressive income tax that exempts the first $50,000 in income, taxes the next $50,000 at 3%, taxes the next $150,000 at 6%, and taxes everything over $250,000 at 9%. No other deductions allowed.”
That is utterly ridiculous.
Should be
3.5% up to $50K
4.5% up to $150K
5.5% above
Comment by Ron Tuesday, May 16, 17 @ 3:23 pm
RNUG, Illinois is not a very desirable place other than Chicago. Those are rates like in CA almost.
Comment by Ron Tuesday, May 16, 17 @ 3:24 pm
“A bad deal for taxpayers is worse than no deal at all, because it preserves the broken system and continues our state’s slow and painful decline”
LOL! Governor Kevorkian wants us to have a swift painful decline!
I can’t imagine a more ungubernatorial thing to say. Compromise much Governor?
Comment by VanillaMan Tuesday, May 16, 17 @ 3:24 pm
==Yes, the POOR taxpayers in Illinois are paying too much. But that is because the RICH taxpayers aren’t paying enough. Time for a progressive income tax that exempts the first $50,000 in income, taxes the next $50,000 at 3%, taxes the next $150,000 at 6%, and taxes everything over $250,000 at 9%. No other deductions allowed.==
Excellent proposal. I think most poor to middle class folks would agree. Besides being fair it would also spur our economy much more than putting the screws to some guy who blew out his rotator cuff on the job. When people get to keep more of their income it’s been shown time and time again that the majority of those dollars get spent and mainly at local businesses. The rich guys, on the other hand, simply buy more stocks.
For the guys crying about the rich paying too much, how about we bump the capital gains rates up to match ordinary income.
Comment by CrazyHorse Tuesday, May 16, 17 @ 3:25 pm
Those tax rates are for crack smokers. High income earners will bail in a minute with those rates.
California here we come! Illinois can’t even keep people with 3.75% rate.
Comment by Ron Tuesday, May 16, 17 @ 3:28 pm
== Those are rates like in CA almost ==
You got it! I was deliberately going to California rates where people truly are highly taxed.
Comment by RNUG Tuesday, May 16, 17 @ 3:29 pm
RNUG,
Illinois is not California.
Illinois is sub par.
California is the nicest state in the Union.
People will leave Illinois in droves with those confiscatory tax rates. They are leaving with the rates we have now.
Comment by Ron Tuesday, May 16, 17 @ 3:33 pm
== Should be
3.5% up to $50K
4.5% up to $150K
5.5% above ==
Not high enough. Right now math says the flat income tax needs to be about 5.5%. If you go progressive, figure 6% -7% for the top rate.
Note: the flat rate could have been OK at 5% before Ruiner dug such a deep hole in the last 2 years.
Comment by RNUG Tuesday, May 16, 17 @ 3:40 pm
They are leaving because of the disfunction. They don’t see Rauner compromising the next 2 years.
Comment by RNUG Tuesday, May 16, 17 @ 3:42 pm
==People will leave Illinois in droves with those confiscatory tax rates. They are leaving with the rates we have now.==
I don’t have the DATA but I’m guessing that the majority of the people leaving are middle-class and the elderly. Those rates would help those people and incentivize them to stay. With the rates RNUG proposed, anyone making under 250K (over 95%) would be paying 2K less than what they paid when Quinn had the rates at 5%. Also, even for those right at that 250K threshold, it only represents a tax hike of $1,125 when compared with our current 3.75%.
Comment by CrazyHorse Tuesday, May 16, 17 @ 4:01 pm
== Illinois is not California. ==
Actually,in terms of political leanings and social policies, Illinois IS (or at least was until Rauner) a lot like California and New York. We also have a lot of the nanny laws like California and New York. In that way, we are pretty much unique in the mid-week. And, like those 2 states, we tend to swing back and forth on the political spectrum.
What we don’t have is the climate or the mountains / desert / coastline California does. We also don’t have the stability of having a working budget.
But if you are going to have a blue leaning state, you can’t do it on a red tax rate … although Illinois has tried to do so. The voters elected Rauner because (a) he wasn’t Quinn and (b) he promised to fix the fiscal mess while not hurting the State. He lied.
Comment by RNUG Tuesday, May 16, 17 @ 4:38 pm
CA real estate tax is 1%. If you are going to talk about Illinois having a red tax rate you should be transparent and compare real estate taxes.
Comment by Anonymous Tuesday, May 16, 17 @ 4:51 pm
Ron@3:24. I think you meant to say, “most of Illinois is desireable to live in, except Chicago.”
Comment by blue dog dem Tuesday, May 16, 17 @ 5:28 pm
Illinois is a dump. Why do you think the vast majority of well educated live in the Chicago area. Downstate is dying.
Comment by Ron Tuesday, May 16, 17 @ 5:36 pm
Yep, Anonymous is right. RE taxes are capped in CA. So they have outrageous income taxes. Illinois has one of the highest tax burdens in the nation.
And to the joker that claims people are leaving because of dysfunction, LOL!
That is some excellent crack.
Comment by Anonymous Tuesday, May 16, 17 @ 5:39 pm
Ron. Usually I find your comments somewhat interesting. I don’t agree with your assessment on this one. Having just spent a few years in Lincoln Park, I was more than happy to return to SoIll.
Comment by blue dog dem Tuesday, May 16, 17 @ 5:43 pm
Why do you think the vast majority of well educated live in the Chicago area. Downstate is dying.
Outside of Hyde Park and Evanston, I’d put up Edwardsville and Glen Carbon as totally competing with Chicago academically. Again the arrogance of the privileged.
Comment by Honeybear Tuesday, May 16, 17 @ 7:26 pm
FYI. Education does not belie intelligence. Wealth does not mean happiness. Progressive does not ensure compassion. Conservative does not mean unChristian.
Comment by blue dog dem Tuesday, May 16, 17 @ 7:34 pm
OMG! I couldn’t get past the “everyone has a lobbyist but you, the taxpayers. That’s why you elected me…”!!!! Puh-lease!!! Gov needs to hire lobbyists instead of CONTRACTORS!!! At least lobbyists are open about why they are in the business! Contractors make it appear that they’ve “won” bids and are “saving taxpayers money”. blah blah blah. So Gov, please…don’t insult. Contractors get contracts for reasons you choose NOT to disclose. DoIT is prime example. Rauner-Bhatts don’t disclose their contacts or conflicts of interest to large scale companies that get contracts for large scale IT jobs. May not be at DoIT, but other agencies. HFS Medicaid/Medicare system, DNR licensing system….
Comment by Rabbit Hole Tuesday, May 16, 17 @ 8:28 pm
== CA real estate tax is 1%. If you are going to talk about Illinois having a red tax rate you should be transparent and compare real estate taxes. ==
And my $90,000 home in Springfield would be a $500,000 home (or more) in a suburb over an hour commute from LA and the real estate tax at 1% would be $5,000, about double what I pay here. And Prop 10 doesn’t prevent the value from being reset to market when you buy.
Comment by RNUG Tuesday, May 16, 17 @ 8:31 pm
Property tax. The very words make my blood boil. The ultimate penalty on the working poor and middle classes. The ultimate penalty on the unemployed, the elderly. Illinois CAN NEVER recover while we fund so much with this immorral tax. kennedy has been the only one to address this. Not saying I like him, but if we can’t change the way we generate revnue, I am afraid we will have to get down on our hands and needs and beg Congress to let us walk from our obligations.
Comment by blue dog dem Tuesday, May 16, 17 @ 9:00 pm
With all due respect, Honeybear, you need to fire up the Family Truckster and take a drive through Central Illinois. Springfield and Decatur could be doing better, but Champaign is hot right now. $250 million in commercial/residential ready to come out of the ground. Urbana will get going now that the Mayor for life is gone. BloNo still looks good even with State Farm moving jobs hither and yon.
As far as schools, every one of those cities’ school districts have been nationally recognized. The Big E is as much about gerrymandered boundaries as educational excellence.
Comment by Arthur Andersen Tuesday, May 16, 17 @ 10:34 pm
RNUG - With much respect (you have no idea how much!), as one of the much demonized state employees/retirees, I’d like your opinion on this idea. A graduated income tax also include retirement income with again 0% for 50k and less. Increase the amount of brackets, every 50k if not 25k, if practical. This maybe would “undemonize” us as the AAI increases would move us into higher brackets as time goes on. Not so much for the average pensioner (I don’t think I’ll live long enough to see another bracket!) but as for those collecting six figure pensions…? As an aside, I ran across this site during the whole pension ordeal in 2013. If I had trusted your opinion then as much as I do now, I would have completed the goal of serving 32 years that I set for myself at age 20 instead of leaving 2 years short of that goal. Words can’t describe how much I appreciate your sharing of knowledge, as well as the other commenters here. As you said last fall, this site is truly a classroom of Illinois state politics and I learn something new everyday. Let me not be remiss in acknowledging our gracious host who makes this possible - Thank-you Mr. Miller!!!
Comment by Illinoyed Wednesday, May 17, 17 @ 6:49 am
- Illinoyed -
I would be OK with more brackets and with taxing some retirement income.
My proposal above, while partly serious, was as much about trolling the troll. (I know, I don’t joke that much on here but I sometimes do.)
Specifically to taxing retirement income, I think it all needs to be taxed: pensions, retirement annuities, Social Security, IRA / 401K withdrawals, etc. although I could make an argument to follow the Federal rules, which would exempt a portion of SS and all Roth IRAs. I do think the first $50K per person needs to be exempt, partly out of helping the retired and partly out of necessity to get such a tax passed and signed.
And while some States exempt just Social Security, I don’t think that would be fair to the people who didn’t pay into Social Security, because they weren’t allowed to. It might even lead to a court case by “state” retirees over diminishment, especially since it could be shown to be unequal treatment of a whole class of people.
Comment by RNUG Wednesday, May 17, 17 @ 9:20 am