Latest Post | Last 10 Posts | Archives
Previous Post: Schillerstrom lining his pockets with Dem money?
Next Post: Shutdown rumors persist, inflamed
Posted in:
* If you’re a non-subscriber and were wondering about all those password-protected posts yesterday, here’s a bit of what was going on…
…House Speaker Michael Madigan announced on Chicago talk radio and to the Statehouse press Wednesday that the best way for Gov. Rod Blagojevich to get new revenue is to consider that the majority of House Democrats support some kind of an income tax increase. […]
“[HB] 750 had the regressive sales tax, which I strongly oppose,” [Senate President Emil Jones] said after a budget meeting in the governor’s Statehouse office. “But I’m open to the income tax, as well.” … When asked whether he could change the governor’s mind on an income tax increase, Jones said, “The governor was opposed to gaming, and I persuaded him to back off his opposition to gaming. And so if the House passes the income tax as the speaker indicated on WVON, he should go ahead and pass the legislation, and we would give it a strong consideration in the Senate.”
Madigan even made a point to tell the press that he had dinner with Jones Tuesday night in Springfield. “The most significant thing for me coming out of the meeting was that Sen. Jones strongly indicated that he was willing to work with me to finalize the budget for the next fiscal year,” Madigan said. He also said gaming was not in the budget that he was preparing.
But Jones said he wouldn’t accept a budget without gaming expansion unless Madigan came up with an alternative revenue source to fund Jones’ desired $1.5 billion increase in education funding. Jones said other revenue ideas still on the table include the closure of some corporate tax breaks and an alternative minimum tax, which would apply to businesses that make a lot of money but that don’t pay a lot of state taxes. The way to come up with a compromise on alternative revenue ideas, Jones said, was up to the speaker. “Now it’s up to [Madigan] to provide the quality leadership to get additional dollars we need for education — quality leadership.”
* This isn’t all that Madigan’s original statement was about, but it was the most obvious…
Madigan’s backing of an income tax hike generated buzz throughout the Capitol, but it later appeared he simply was adhering to the governor’s demand for ideas –not necessarily ideas that have any prayer of passing. Madigan (D-Chicago) said it would not be part of a House budget that may be voted on later this month.
I’ll have complete audio for subscribers, but what are your thoughts on this?
posted by Rich Miller
Thursday, Jul 19, 07 @ 9:03 am
Sorry, comments are closed at this time.
Previous Post: Schillerstrom lining his pockets with Dem money?
Next Post: Shutdown rumors persist, inflamed
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
First, is a full percentage point income tax increase necessary? What about .5%?
Second, will the GA ever consider a progressive income tax? Not much, of course - but perhaps a bump of 1% or so for wealthier citizens would not be terrible.
Third, when is Emil going to drop his education funding demands? Even with a tax increase, how can we fund his education preferences, Blago’s tax increase, increase pension payments and perhaps even a capital plan? I don’t see how this works.
Comment by Team Sleep Thursday, Jul 19, 07 @ 9:40 am
Of course the GA will never consider a progressive income tax or even advocate for the constitutional
change required to implement one.
That’s because Blago, Emil, Madigan and a substantial number of GA members are themselves wealthy. They don’t want to pay any more taxes than they absolutely have to; they want the middle class to pay. And since they are at the seat of government, so to speak, they well know how much
of that money will be wasted. So, the less progressive the better. Let the gullible middle class electorate pay.
Comment by Cassandra Thursday, Jul 19, 07 @ 9:50 am
A 1% income tax increase that raises the standard deduction to $5K or even triples it to $6K (now $2,000) would be progressive.
Here’s how raising the standard deduction while raising income taxes 1% would affect families in poverty:
Family Income Curr. Tax $4K Ded. $6K Ded.
4 $20,650 $380 $26 $0
3 $17,170 $335 $87 $0
2 $13,690 $290 $148 $67
1 $10,210 $246 $208 $168
Raising the income tax rate by 1% while increasing the standard deduction to $6,000 means that every family of four earning less than $72,000 will pay less in taxes, while every family of four earning more pays more.
If you increase the standard deduction to $5,000, the break even point is $56,000 for a family of four.
Sounds progressive to me.
Comment by Yellow Dog Democrat Thursday, Jul 19, 07 @ 10:17 am
Yellow Dog’s on the right track. Making an increase more “progressive” - even with IL’s mandatory flat tax - is relatively easy.
1. Couple it with an increase in personal exemption (which helps every taxpayer, but proportionally helps low- and middle-income folks the most).
2. Add an increase in the state Earned Income Tax Credit, which gives a little bit more of a tax break to working-poor families.
This could even be structured in ways that ensure the poorest pay no more in taxes (or even less), and middle-income households pay either no more or only modestly more. This shifts more tax burden to those who can actually handle the burden: the highest earners.
Voila. Progressivity in taxing.
DO IT NOW!
Comment by Linus Thursday, Jul 19, 07 @ 10:28 am
YDD,
Excellent point!
Comment by Bill Thursday, Jul 19, 07 @ 10:28 am
I think that if we are going to include all that progressiveness, however, we should go up TWO points.
Comment by Bill Thursday, Jul 19, 07 @ 10:39 am
I am absolutely in favor of an income tax increase. Yellow Dog’s hypothetical seems sensible to me.
But I don’t think it’s really feasible since Schnorf advised several weeks ago that it was unlikely that an inccome pass increase would get any support from the Republicans and certainly would not get the required supermajortiy of votes. Furthermore, Blago has vowed to veto any income/sales tax increase.
If it were up to me I would have compromised on business tax increase and income tax increase before May 31, but the Governor and Senator Jones were in no mood to compromise when Republican votes were not required to pass a budget.
As far as I can tell, we still have a complete impasse despite Madigan’s idea/trial balloon and the Jones-Madigan discussions.
Comment by Captain America Thursday, Jul 19, 07 @ 11:49 am
CA, there is significant support in the House GOP caucus, and probably no support in the Senate GOP.
Comment by Rich Miller Thursday, Jul 19, 07 @ 11:58 am
Thanks for letting me know about this Rich! it makes me more optimistic that some reasonable outcome can be achieved.
Comment by Captain America Thursday, Jul 19, 07 @ 2:04 pm
A 1% increase in the income tax with the added exemption would seem a reasonable idea, it wont raise enough money for education pensions and transportation on its own though. Not to mention a pie in the sky healthcare plan.
Comment by FED UP Thursday, Jul 19, 07 @ 3:13 pm
My thoughts remain the same, and I agree with the Illinois public that House Bill 750 should become law. Unfortunately, it seems that our elected officials are representing someone else.
Comment by Squideshi Thursday, Jul 19, 07 @ 8:38 pm