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* Gov. JB Pritzker spoke to the annual IRMA-IMA lobby day yesterday. And while sharp differences exist, they did their best to publicly try and get along…
The governor criticized the former administration for leaving the state in what he called a “dire fiscal situation”.
“After years of neglect, Illinois is finally getting its mojo back and we’re open for business,” he told a room full of business leaders from the Illinois Manufacturer’s Association and the Illinois Retail Merchants Association in Springfield.
Pritzker said his graduated income tax idea is the best solution to dig the state out of a $3.2 billion structural deficit. “There are people here, I know, who disagree with me about this proposal, and that’s in our democracy. But to be clear, doing nothing is not an option.” […]
Despite disagreeing on certain issues, Rob Karr, president and CEO of the Illinois Retail Merchants Association, said he welcomes the communication with Pritzker —something that wasn’t readily available with the previous administration.
“There are clear policy objectives that they [Pritzker’s administration] want to accomplish that we’re just simply not going to agree on – the graduated income tax being one of those. But there are other issues being discussed where we are clearly heard and listened to,” he said.
* Bernie…
MARK DENZLER, president and CEO of the IMA, said the organization has a long history of working with governors from both major parties.
“We didn’t always agree with Governor Rauner,” he said. “We’re not always going to agree with Governor Pritzker.” And while strongly disagreeing with the $15-per-hour minimum wage by 2025 already passed this year, and despite similar opposition to the progressive income tax, Denzler said the group likes Pritzker’s backing of workforce development, research and education.
ROB KARR, IRMA president and CEO, said there is “clear, open communication” with the Pritzker administration.
* But as Brenden Moore reports, it wasn’t all rainbows and unicorns…
“I think he thinks this is the best way to solve the state’s issues,” said Rob Karr, president of the IRMA. “Our problem is that as an association — we have twice in the past supported income tax increases, we have also put forward other ideas that would modernize our tax system and draw in more money from the state — we’re not convinced that the graduated income tax is in fact the way to go.”
IMA president Mark Denzler characterized Pritzker’s position and the Senate’s vote as “yet another sign that Illinois politicians are more concerned with increased spending rather than meaningful solutions to curtail costs, address growing property taxes, tackle ballooning pension debt and adopt reforms that make it easier for businesses to create jobs.”
Members of the business groups immediately following the governor’s address and those listening to a panel discussion on the graduated income tax later that afternoon expressed skepticism of the merits of a progressive tax and frustration with the possibility of having a higher tax burden.
“We cannot go quietly into the night,” said Jim Havey, president of Young’s Security Systems in Springfield. “We must continue to ensure that policymakers understand that there are consequences for their actions, to making Illinois even less job-creator friendly, and that we are a large and diverse state, we’re not just Chicago.”
* And…
SWD Inc. President Rick DeLawder, who is also a board member for the Illinois Manufacturers’ Association, said that will hurt his business.
“My income tax may look like I’m making a whole bunch of money, however, it’s actually flowing through from the business,” DeLawder said. “[Taxing that at higher rates] is a big problem on a personal level that I have.”
posted by Rich Miller
Thursday, May 2, 19 @ 3:09 pm
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Breaking: The Rich Want to Stay Rich
Comment by Anon E Moose Thursday, May 2, 19 @ 3:34 pm
Many of the rich employ people, do a lot to spur the economy and donate significant sums of money. In addition to paying a lot of taxes.
Comment by Pick a Name Thursday, May 2, 19 @ 3:42 pm
=Many of the rich employ people, do a lot to spur the economy and donate significant sums of money. In addition to paying a lot of taxes.=
That is how it works. No need to put up the bunting for them, their benefit is being rich.
That really should be enough.
But many of them do not do much in terms of donations. The president is one that comes to mind. Many of them don’t employ people.
Comment by JS Mill Thursday, May 2, 19 @ 3:56 pm
Talk with each other
Listen to each other
Respect each other
And move this state forward
Comment by Henry Francis Thursday, May 2, 19 @ 3:59 pm
It’s a pretty hard-sell to paint a multi-billionaire as anti-business.
Comment by wordslinger Thursday, May 2, 19 @ 4:08 pm
JS, you need to attend more fundraisers.
I do believe it has been publicized how little Biden, the Clintons, et.al give to charity. I recall a current candidate, Beto, giving 1/3 of 1% to charitable causes.
Comment by Pick a Name Thursday, May 2, 19 @ 4:19 pm
If all the rich people leave, who will be left to tax?
Comment by Just Me 2 Thursday, May 2, 19 @ 4:37 pm
Maybe I’m just not keeping up but what are these “other ideas” Karr is referencing?
Comment by Original Rambler Thursday, May 2, 19 @ 4:55 pm
Please Mr. Denzler tell us of these “meaningful solutions to curtail costs, address growing property taxes, tackle ballooning pension debt and adopt reforms that make it easier for businesses to create jobs.”
Comment by very old soil Thursday, May 2, 19 @ 4:58 pm
It strikes me as not weird, exactly, but yeah, maybe weird, that the IRMA-IMA are lobbying on behalf of business owners, and not on behalf of the businesses themselves.
Comment by lincoln's beard Thursday, May 2, 19 @ 5:02 pm
If the rich leave and take their business with them, that will open up opportunities for new businesses to start and fill the gap.
Comment by A Jack Thursday, May 2, 19 @ 5:06 pm
===My income tax may look like I’m making a whole bunch of money, however, it’s actually flowing through from the business,” DeLawder said. “[Taxing that at higher rates] is a big problem on a personal level that I have.”====
So this dude doesn’t pay any business tax because it flows to him personally and he is composing that he has to pay personal taxes. I wish I could feel his pain. But there really isn’t any.
Comment by Been There Thursday, May 2, 19 @ 5:48 pm
How obvious can it be? A janitor should not pay the same per cent of income tax that a billionaire pays.
Comment by wondering Thursday, May 2, 19 @ 5:55 pm
A-Jack - your last comment is the single dumbest statement I have ever read on this blog. Assuming the progressive tax goes thru and I will be paying more tax- that’s ok but at 3.2 billion of revenue that won’t dent the pension obligation payments which Pritzker himself seems to acknowledge since he is proposing a pension holiday to allow for new spending on his campaign promises. This kind of demonstrates that sooner of later the tax rates will change to impact more then those residents earning 200 for single Filers and 250 for joint
Comment by Sue Thursday, May 2, 19 @ 6:19 pm
We would be taxing the rich ballpark to other regional states, at least pre-deductions. Minnesota has the highest income tax rate in the region, and it has population gains, higher median incomes, a budget surplus, strong economy, education investment, etc.
Griffin is staying, knowing full-well a graduated income tax could become a reality. Corporations love Chicago, because of education, capital access, infrastructure, culture, etc., even with its problems.
It would benefit the rich if we have fiscal stability, responsibility and predictability with our state’s finances and investment.
If rich right wingers are angry because we tax them reasonably, they should leave Illinois. We can survive without them, trust me, or should I say, believe me.
Comment by Grandson of Man Thursday, May 2, 19 @ 6:30 pm
Sue, do you not understand the concept of time, or what? The fair tax can’t come for years. JB proposed some new taxes and revenue streams, and a pension payment “restructuring” (or holiday, if you insist) to balance the NEXT budget. The one being cooked up right now. Not the one 2 years in the future. If you want to cry gloom and doom and say it won’t be enough, at least do so coherently.
Comment by Perrid Thursday, May 2, 19 @ 7:46 pm
Sue, having my comment considered dumb by you is probably the highest compliment I have received on this blog.
It is really a matter of supply and demand. If a business leaves, the demand is still there and will provide opportunity for someone else.
If a wealthy lawyer, for example, doesn’t want to pay another 3% in taxes, they can leave and a younger lawyer will pick up the clients. The wealthy think they are irreplaceable, but they aren’t.
Comment by A Jack Thursday, May 2, 19 @ 8:57 pm
perrid- JB is proposing 7 years of pension payment reductions. Essentially his entire term considering he is re-elected. Try reading the details. The pension holiday isn’t just this and next year
Comment by Sue Friday, May 3, 19 @ 6:50 am
This might be the most anti business General Assembly we’ve seen in decades, and that’s a pretty low bar. People just seem to think business should fund government and government should take care of them.
Comment by Tim Friday, May 3, 19 @ 6:57 am
I guess I don’t understand this. Are they proposing to tax all money coming into businesses, even the money that comes in and is spent on business expenses such as materials, worker salaries, benefits, rent & etc? I thought they taxed what was left over, the net, and if the business owner reinvested it in more business stuff and grew the business it won’t be taxed. Only the net part obtained by the business owner as salary or un-reinvested profit.
Comment by NoGifts Friday, May 3, 19 @ 7:22 am
“The wealthy think they are irreplaceable, but they aren’t.”
Not all wealthy are anti-union, anti-tax right wingers. We had two who ran for governor and one who won. I believe if we make our tax system fairer, make investments in education, infrastructure, better pay our bills, it’s better for everybody.
According to one study, incomes of the 1% in Illinois more than doubled in the last three decades, while the median household income barely grew. The recent tax increases didn’t hurt the rich. This has to change as quickly as possible. We can’t only keep taking from social services, higher ed, vendors and the public sector.
Comment by Grandson of Man Friday, May 3, 19 @ 7:50 am
“We can’t only keep taking from social services, higher ed, vendors and the public sector.”
Forgot to include other taxpayers and everyone else who’s negatively impacted while the tax is flat. A flat tax hike would burden so many others, as would more cuts to the public sector and business done by the state.
Comment by Grandson of Man Friday, May 3, 19 @ 8:06 am
A Jack - You are assuming that supply can magically be created out of thin air. You’re ignoring capital needs, competitive intelligence, workforce development, and all sorts of realities that business owners must face.
Why do the pols always say they want more better lying jobs, but then they enact policies to make that difficult?
Comment by Just Me 2 Friday, May 3, 19 @ 9:15 am
JB is both anti tax and anti union. Reference his tax avoidance scheme and non union work on his mansion rehab. Actions always speak louder than words.
Comment by Blue Dog Dem Friday, May 3, 19 @ 9:32 am
“JB is both anti tax and anti union. Reference his tax avoidance scheme and non union work on his mansion rehab.”
So he’s just like Rauner. Ok.
Comment by Anonymous Friday, May 3, 19 @ 9:40 am
“JB is both anti tax and anti union.”
Sure he is. He banned RTWFL zones and gave many unionized state workers their proper pay steps.
He’s not behind the graduated income tax campaign either and is privately trying to sabotage it.
Comment by Grandson of Man Friday, May 3, 19 @ 10:01 am