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* More from last night’s forum…
When asked what income tax rate they would charge the top earners in the state, some offered approximate percentages, while others demurred and declined to state a rate.
Biss said he would look at Wisconsin or other neighboring states; he said top earners in Wisconsin, for example, pay 7.65 percent.
Kennedy said it’s “nearly impossible, with Gov. Rauner sitting as governor, to answer that question.” He said we don’t know if we’ll have a budget next year, or what the financial condition of the state will be. He accused Rauner of allowing the state to pile up its bills and its debt in order to “wound” state government.
Pritzker did not give a rate, but said creating jobs would “grow revenues in this state.”
Daiber said every person would pay $250 annually, with a one percent to six percent rate, with six percent for the highest income earners. Daiber said he based the six percent figure on neighboring states’ tax rates.
Hardiman said his rate would be one percent to 10 percent, with seven to 10 percent reserved for the highest income earners.
Whoever wins the primary, Rauner’s most crucial task next year is to make this race about two things: Speaker Madigan and higher taxes, as in he’s opposed, they’re in favor. That’s easier than explaining why they won’t be beholden to their party’s leader and what a graduated tax would mean for average citizens.
posted by Rich Miller
Wednesday, Oct 18, 17 @ 10:21 am
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What are real estate taxes in Wisconsin versus IL?
Comment by Anonymous Wednesday, Oct 18, 17 @ 10:24 am
“I don’t want to raise your taxes, I want to raise Bruce Rauner’s.”
See, simple!
Comment by Doofman Wednesday, Oct 18, 17 @ 10:26 am
Smart answer by Pritzker — no need to give the Gov a number for a future campaign ad.
Comment by We'll See Wednesday, Oct 18, 17 @ 10:42 am
Each state has a different definition of top earners. In California, it’s $1 million whereas Iowa is $70,000 and Missouri is $9,000. And most states have different top rates for single/married tax filers.
Comment by City Zen Wednesday, Oct 18, 17 @ 10:51 am
I wish the candidates would have simply said, “Do you want to be Minnesota or Kansas?”
Unfortunately, candidates of both parties continue to promise ‘Minnesota-level state services at Kansas-level tax rates’.
Comment by Jocko Wednesday, Oct 18, 17 @ 11:01 am
==I wish the candidates would have simply said, “Do you want to be Minnesota or Kansas?”==
Excellent loaded question as both states tax retirement income.
Comment by City Zen Wednesday, Oct 18, 17 @ 11:05 am
Illinois has Kansa level tax rates?
According to Forbes, Illinois was ranked #46, at 11% combined state and local tax burden on a $50,000 income. Higher than even Minnesota ranked #43, before the 32% permanent tax increase and Kansas was #28.
Yet politicians expect us to believe they are doing everything they can to help middle class families, except lower their tax burden.
https://www.forbes.com/pictures/emeg45ehhij/no-46-illinois/
Comment by Lucky Pierre Wednesday, Oct 18, 17 @ 11:28 am
Talk of a progressive income tax will play well, but as others previously noted, it will be the determination of the top tiers that will be critical. You can’t solve the fiscal ills of this state by going after the 1%. So it is likely that many more people would need to be rolled into the top tier in order to generate what JB wants to do, like expanding Obamacare.
Then you have to decide what gets counted as income. Pensions, 401k distributions and social security would need to be on the table, and that will be a political hot potato for sure. As necessary ad it is, I don’t think Madigan has the stomach for it. Don’t forget, with JB in office, all those extra taxes will get blamed on Madigan and company. He thought the pop tax was bad, but just wait.
There would be many retirees headed for the border should the above items get included as taxable income. The impact would be felt for years. Maybe soneone can ask about that at the next forum.
Comment by Lou Louwinsky Wednesday, Oct 18, 17 @ 11:38 am
Why do people in Illinois regurgitate Minnesota as a state to look to for example? Minnesota’s demographics is NOTHING like Illinois. We CANNOT be like Minnesota. Ever.
Comment by Sands Wednesday, Oct 18, 17 @ 11:56 am
For the same reason the same people talk about Kansas.
Much easier and more obscure than talking about the states we share a border with, who are enjoying lower unemployment and healthy growth in high paying manufacturing jobs.
Comment by Lucky Pierre Wednesday, Oct 18, 17 @ 12:10 pm
===Excellent loaded question as both states tax retirement income.===
But…”Kansas is moderately tax-friendly for retirees. It exempts all Social Security income for seniors with Adjusted Gross Income (AGI) below $75,000. Public pension income is also exempt but other forms of retirement income are not.”
CZ, both states have progressive income taxes too. Taxing Grandma and Grandpa ought to come well down the list from that. Did your parents force you to eat oatmeal as a child? You seem to prioritize taxing fixed income retirees, almost feverishly, and well before fixing our overly regressive tax structure.
But, after the constitution is changed to allow a progressive income tax, I’m open to discussing a wide range of issues with regards to income and property taxes, including grandma’s and grandpa’s. Until then, keep your hands out of senior’s pockets.
Comment by PublicServant Wednesday, Oct 18, 17 @ 12:36 pm
==Kansas is moderately tax-friendly for retirees==
But most folks here decry Kansas as the example of what state NOT to follow.
==It exempts all Social Security income for seniors with Adjusted Gross Income (AGI) below $75,000.==
I’m actually in favor of exempting Social Security as it was already taxed while you worked. Unfortunately, many folks here think that is “unfair” to the lucky few who weren’t required to contribute to SSI while they worked.
==Public pension income is also exempt…==
Only pensions earned in-state, which are modest compared to Illinois pensions as Kansas public employee compensation packages are much lower than here. For example, the average teacher salary is 20% lower in Kansas.
==keep your hands out of senior’s pockets==
As long as they keep their hands out of mine.
Comment by City Zen Wednesday, Oct 18, 17 @ 1:31 pm
==Why do people in Illinois regurgitate Minnesota as a state to look to for example? Minnesota’s demographics is NOTHING like Illinois.==
Because it’s easier to make rash judgments from a tax chart than it is to examine the socio-economic differences between a diverse state population as Illinois - and all the added services and expenses that requires - against an overwhelmingly Caucasian state like Minnesota with minimal such requirements.
Comment by City Zen Wednesday, Oct 18, 17 @ 1:34 pm
About 12% of Illinois’ population is foreign-born; it’s around 8% in Minnesota. Sure, the population there is around 85% white (compared to 72% in Illinois), but Minnesota is not some foreign land that can provide no comparative data to Illinois.
To the post: I felt that, listening to the forum, Mr. Pearson asked the question in a way that would not make sense in any other context. Neither the GA not Governor sets a revenue target, then back-ends a tax rate to match the projected revenue target. (Though, admittedly, that’s what happens with the property tax rates set by local governments.)
It’s possible to set a relatively low rate, with so few exclusions, that you generate similar revenue yields than with a higher nominal rate, but maintaining current exclusions. So asking what a candidate’s desired nominal rate may not actually get the answer you actually want.
Comment by Abu Iskandr Wednesday, Oct 18, 17 @ 3:03 pm
===Much easier and more obscure than talking about the states we share a border with, who are enjoying lower unemployment and healthy growth in high paying manufacturing jobs.===
And all of which have higher income taxes than Illinois.
Comment by Nick Name Wednesday, Oct 18, 17 @ 4:02 pm
==About 12% of Illinois’ population is foreign-born; it’s around 8% in Minnesota.==
Foreign born persons, 2011-2015, is 7.7% for Minnesota and 14% for Illinois.
==Sure, the population there is around 85% white (compared to 72% in Illinois)==
White non-Hispanic is actually 81% to 62%.
==Minnesota is not some foreign land that can provide no comparative data to Illinois.==
Minnesota’s demographics are a better comparison for Iowa and Nebraska than Illinois.
Comment by City Zen Wednesday, Oct 18, 17 @ 4:51 pm
==And all of which have higher income taxes than Illinois.==
And lower property and sales taxes.
Comment by City Zen Wednesday, Oct 18, 17 @ 4:56 pm
Thank you Zen - what are these people smokin?
Comment by Sands Wednesday, Oct 18, 17 @ 6:29 pm