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What’s Ken Griffin’s endgame?

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Illinois

Chicago billionaire Ken Griffin has spent $53.75 million to convince Illinoisans to reject a proposed graduated income tax this year.

Illinois currently has a flat income tax. Everyone pays the same rate, rich or poor. Gov. J.B. Pritzker campaigned heavily on increasing taxes on upper-income voters and followed through by convincing the General Assembly to put a constitutional amendment on the ballot. The billionaire Democrat has since spent $56.5 million of his own money to promote the change.

Pritzker is regularly asked about his proposal, but aside from a couple of public statements, Griffin has been quiet. So, I’ve been asking for an interview for weeks, but to no avail.

Griffin’s apparently willing to let the ads he’s paying for speak for themselves. […]

I really wanted to ask him about his endgame, though.

Griffin backed Gov. Bruce Rauner to the hilt. Rauner’s plan was to create a massive crisis in order to force serious structural change. So, is Griffin now trying to create a new crisis by shutting off a revenue stream? Is this a way to starve the budget in order to force the Democratic-controlled General Assembly to address some sort of new pension reforms?

Go read the rest before commenting, please. Thanks.

posted by Rich Miller
Monday, Nov 2, 20 @ 3:09 am

Comments

I hope he is successful. This state is unwilling to fix itself. Like a alcoholic that won’t stop drinking, reform will only come via an intervention or some self inflicted disaster.

Comment by Gone McCreedy Monday, Nov 2, 20 @ 7:39 am
=== reform will only come===

Is that you Bruce Rauner, lol

Keep in mind, after the tax was raised, Bruce Rauner spent every dime the tax raised.

What reforms are you touting, be specific. Thanks.

Comment by Oswego Willy Monday, Nov 2, 20 @ 7:41 am
Ken’s reasoning can be found on the Chicago Tribune Website. It is an excellent explanation why we should trust our business leaders, not our political leaders.
https://www.chicagotribune.com/opinion/commentary/ct-opinion-graduated-income-tax-ken-griffin-20200904-lauhnk4t3fcbtczf7i6sxjghya-story.html

Comment by John Mangel Monday, Nov 2, 20 @ 8:22 am
Thank you Mr Griffin. Raising taxes is only a partial solution to a bigger problem. As part of a larger solution, it gets my vote. As the only solution, and not a complete one at that, it does not.

Comment by Really Monday, Nov 2, 20 @ 8:34 am
We’ve tried right wing businesspeople and have had the worst failures. Debt and deficits exploded in Illinois under the former governor and under this president. The working class people who mouth anti-tax words of right wing billionaires are likely going to bring a flat tax hike on themselves if the fair tax fails. That’s almost comical, really.

Comment by Grandson of Man Monday, Nov 2, 20 @ 8:36 am
- John Mangel -

Let’s look at the phony Griffin argument;

=== Over the years, our colleagues have served as civic, business and community leaders and have helped power countless new enterprises and philanthropic activities in our state. Illinois has been good for Citadel — and we have been good for Illinois.===

“Be grateful we give money, don’t tax us or we’ll ruin philanthropy”?

That’s the wealthy, again, holding hostage a state for a mere pittance of philanthropic donations where Griffin gets his name on a museum. It’s actually, his reasoning, a truly sad and pathetic attempt to seem generous, “out of the grace he gives”.

That’s not an argument, that’s someone looking to exploit alleged generosity to exploit the middle class to pay the same rate he pays to save millions.

=== The governor has contributed $50 million to fight to raise taxes on the working people of Illinois. It is a remarkable expenditure that may well endear him to Madigan’s compatriots, but the outcome he seeks will further burden our great state.===

“I (Griffin) have contributed over $40 million plus to fight the raising of MY taxes and make sure the taxing pain is on the working people of Illinois. It is a remarkable expenditure that may well endear me to my 3% compatriots, but the outcome I seek will further burden our great state.”

Better.

Comment by Oswego Willy Monday, Nov 2, 20 @ 8:36 am
=It is an excellent explanation why we should trust our business leaders, not our political leaders.=

Ken Griffin ran the state for four years through his proxy governor, Bruce Rauner. It did not go well and at the end Rauner couldn’t give the job away.

Comment by Pundent Monday, Nov 2, 20 @ 8:37 am
“we should trust our business leaders”

Sure, from oil barons, coal barons, unregulated greed that led to market meltdowns in the ’20’s, ’80’s, ‘08, history has shown business leaders know what’s best for the masses.

Mangel, I don’t know who you think you’re shining on, but it ain’t everyone.

Comment by Flyin' Elvis'-Utah Chapter Monday, Nov 2, 20 @ 8:38 am
- Really -

When your taxes go up, it’ll be interesting, your comments, as the Fair Tax wasn’t going to raise your taxes, but you have this need to raise your own taxes to own the libs.

Comment by Oswego Willy Monday, Nov 2, 20 @ 8:38 am
=unregulated greed that led to market meltdowns in the ’20’s, ’80’s, ‘08, history has shown business leaders know what’s best for the masses.=

Adding to your excellent comment..who stepped in to save the day? The government. Time and time again the government has used the people treasury to save the baron’s from their own ruinous behavior. We hat taxes, but we need a bailout. Wall Street is begging for more money as we comment here.

Comment by JS Mill Monday, Nov 2, 20 @ 8:57 am
‘I’m interested in better schools, safer communities…”, Griffin says. His solution is “better governance” and less corruption and “darkness”.

Yet he spends millions to lessen his tax load. How does that help to better our schools or governance? How does that lessen corruption? This is no plan other than naked self interest. Wanna be a big thinker Ken? Make a plan and put it in your next op-ed.

Comment by Jibba Monday, Nov 2, 20 @ 9:24 am
Liked the column. It was well written and raises some good questions.
While Ken Griffin has done some very interesting interviews with some pretty good interviewers like David Rubenstein that you can find on You Tube, I think he is missing the boat by not sitting down with a few Illinois interviewers including Rich.

Comment by Back to the Future Monday, Nov 2, 20 @ 9:57 am
==Raising taxes is only a partial solution to a bigger problem==

News flash. Providing champagne services on a beer budget (Thompson through Blago) is what got us in this mess.

Comment by Jocko Monday, Nov 2, 20 @ 10:25 am
=== Isn’t “Democrat” offensive? A GOP dog whistle?===

Yeah, the simple minded “Rush Limbaugh” types use it to signal their silly to the like minded. They’re not about solutions.

To the post,

Great Read, Rich.

The “thing” about Griffin, and Rauner for that manner (Befure Bruce was humiliated, couldn’t find a person to stave off the humiliation and then moved to Florida, but I digress) is the long game math to to spend $53 million now, to save $100 million or more over the next three of four years, and if that means fooling folks to vote against their better selves… and literally laugh… laugh at the voters actually saving him (Griffin) and not themselves (middle class), it’s worth every single penny.

The “structural change”… that’s union busting. It is. That and trying to take away pensions.

If Griffin wins, the $50 million sat on… just sat on… in June, July, August…Griffin will have won because the 97% message never took root… but the Frerichs Tax (taxing retirement income) and a lack of simplicity muddied when it shoulda been “97% see no tax increases”… $100K a week… June, July, August… during a pandemic… and Griffin had enough of a window… ANYWAY… doing it THIS way.

If Griffin cripples the state of Illinois to save on his taxes, to attack organized labor, to cut and hurt social services…

…

Why’d ya park $50 million so early in the game to let Griffin win the messaging in the end?

It’ll be the O’Malley Mistake, the Friday Fiasco (Rutherford) and the Fair Tax Flop… it’ll be that kind of cautionary tale.

I still think they draw the “inside straight”… but gambling is where the decisions put it.

Griffin is betting he had enough time, message, and laughs to win.

Comment by Oswego Willy Monday, Nov 2, 20 @ 10:34 am
==Phenomynous== Referring to an individual member of the Democratic party as Democrat isn’t their Dog Whistle, referring to the party as Democrat Party or DEMS is. Rush Limbaugh started this subtle slur though it traces back to Joe McCarthy I believe. I prefer to answer it by shortening Conservative to CONS. When you think of Griffin and company, just think CONS.

Comment by anotheretiree Monday, Nov 2, 20 @ 10:44 am
There is a plan here. Starve the state of funds to try and change existing and future pensions. Get Kilbride out (as vote on ILSC that enforces contract clause). With new ILSC in play and a fiscal crisis try the reform again. This time diminishing the argument that the state created crisis, thus opening the door to changing existing pension protection.

Comment by illinifan Monday, Nov 2, 20 @ 11:15 am
Jocko

I agree with you. Time to provide beer services with our beer budget.

Comment by Really Monday, Nov 2, 20 @ 11:16 am
==Get Kilbride out (as vote on ILSC that enforces contract clause)==

While we’re at it, let’s default on all those Illinois bonds too. I’m sure Ken won’t mind.

Comment by Jocko Monday, Nov 2, 20 @ 11:34 am
Last ask the people he put out of work in the trading if pits because he needed more money

Comment by Griffey’s griften Monday, Nov 2, 20 @ 11:40 am
“It is an excellent explanation why we should trust our business leaders, not our political leaders.”

This foolishness was easier to buy before the Rauner administration reigned ruin upon the state.

– MrJM

Comment by @misterjayem Monday, Nov 2, 20 @ 12:44 pm
“Time to provide beer services with our beer budget.”

Please identify your proposed cuts by naming the specific services that you would cut and the amount that you would cut from them.

– MrJM

Comment by @misterjayem Monday, Nov 2, 20 @ 12:48 pm
5% across the board for starters. Every department. Re-open all labor contracts looking for savings. Temporary hiring freeze except for public safety. And get busy with your attorneys figuring out whether or not an adjustment can be made to the 3% COLA in the pensions to tie it to the increase in social security each years.

Comment by Really Monday, Nov 2, 20 @ 1:15 pm
=== 5% across the board for starters.===

No. Stop the dorm room ridiculous.

Pick programs that equal that 5%. Rauner’s staff couldn’t (wouldn’t) under questioning, Rauner also spent every dime of the new revenue of the raised taxes. Good try.

=== Re-open all labor contracts looking for savings.===

What Union is going to agree? “Next”

=== Temporary hiring freeze except for public safety.===

What’s the exact savings? Be specific.

=== attorneys figuring out whether or not an adjustment can be made to the 3% COLA in the pensions to tie it to the increase in social security each years.===

See ILSC rulings.

Comment by Oswego Willy Monday, Nov 2, 20 @ 1:23 pm
@Really - (1) It’s not a COLA. (See RNUG for clarification) (2) Pensions have been reformed already (See Tier 2). (3) Unions have these things called contracts, just like the state’s pension (See the Illinois Constitution). (4) We Illinoisans don’t want to be miserly. (See Tennessee).

Comment by PublicServant Monday, Nov 2, 20 @ 1:34 pm
I sincerely hope Griffin succeeds. It is painfully obvious that given a life preserver the legislature will continue to spend recklessly and drive up debt. Spend within existing revenue and stop asking the public for more–especially galling in this economy.

Comment by Lake Pulaski Monday, Nov 2, 20 @ 1:38 pm
=== I sincerely hope Griffin succeeds.===

Do you make over $250K?

If no, do you do things to hurt your best interests often, or only to help the wealthy 3%?

Comment by Oswego Willy Monday, Nov 2, 20 @ 1:44 pm
The “COLA” (AAI) is part of the employment contract. If you want to alter that part of the contract, I want to renegotiate my last 40 years of salary.

See how silly that sounds?

Comment by Simple Simon Monday, Nov 2, 20 @ 2:06 pm
Do we need a Constitutional Convention to fix the state and get us back on track? Is there any other way?

I don’t see the “Fair Tax” as the solution because it ignores the root cause of the problem - we cut deals we couldn’t fund.

Comment by Honest Question Monday, Nov 2, 20 @ 2:25 pm
=== Do we need a Constitutional Convention to fix the state and get us back on track? Is there any other way?===

Last time that was on the ballot, it failed, no convection.

=== we cut deals we couldn’t fund.===

See; ILSC, pension rulings.

Thanks.

Comment by Oswego Willy Monday, Nov 2, 20 @ 2:27 pm
- Lake Pulaski - Monday, Nov 2, 20 @ 1:38 pm:

I sincerely hope Griffin succeeds.

A lot of poor people have been duped into agreeing with you, unfortunately…that’s one reason we’re in the fix we’re in… today.

Comment by Dotnonymous Monday, Nov 2, 20 @ 2:29 pm
===it ignores the root cause of the problem - we cut deals we couldn’t fund.===

More accurately, we cut deals that we didn’t fund. But we are still legally obligated to pay the deal by both state and federal constitutions. We are morally obligated to pay for them, too. Hundreds of thousands of state employees worked for decades and paid their share. Is it right to absolutely devastate the retirements of a smaller number of people or to share the burden among all taxpayers, l lessening the impact to all? Hint, all taxpayers are equally responsible for the payments.

Comment by Simple Simon Monday, Nov 2, 20 @ 2:35 pm
For those of you who may believe you are going to grab your bootstraps and pull yourself up through the ranks and grab the golden Billionaire ring… keep grabbing…at nuthin’ but thin air.

Look at the amount of money the rich spend on Class propaganda to persuade the poor to root for the rich believing they are soon to join the club…obscenely.

Comment by Dotnonymous Monday, Nov 2, 20 @ 2:37 pm
Not that he needed another reason to oppose the Fair Tax, but the rich get richer:

https://finance.yahoo.com/news/ken-griffin-macro-dream-propels-160132749.html

Comment by Columbo Monday, Nov 2, 20 @ 3:56 pm
The State chose not to fully fund it’s share of the pensions and used the money on other services. The pensions would have been fine if the required contributions had been made each year. So the pension deals were affordable.

Comment by TiredOfItAll Monday, Nov 2, 20 @ 3:59 pm
Rauner ran up 1 billion in interest for his ideological triumph. Then he took off the cathartic.

Comment by Bruce Monday, Nov 2, 20 @ 4:04 pm
illinifan -

“Starve the state of funds?”

According a 2017 study from the Tax Policy Center, Illinois ranks 12th highest in terms of tax revenue per capita ($5,764).

How is that “starving” the state?

I’m not trying to make a point here, but I am wondering how a state that has such a high ranking in terms of tax revenue can be “starving” in that context.

Comment by Quenton Cassidy Monday, Nov 2, 20 @ 5:38 pm
=== According a 2017 study from the Tax Policy Center, Illinois ranks 12th highest in terms of tax revenue per capita ($5,764).

How is that “starving” the state?===

Ask Bruce Rauner.

After begging for his veto to be overridden, Rauner spent every dime… every last dime… on the last two budgets, one he vetoed, one he signed.

You’d think even Rauner woulda found cuts AND given a tax rebate.

Why didn’t he?

Comment by Oswego Willy Monday, Nov 2, 20 @ 5:44 pm
Can we all agree to ignore Oswego Willy? This dude annoys the daylight out of me. Super partisan, never anything constructive to say - perfectly epitomizes what is wrong with Illinois. I can’t wait to lord it over you when the Fair Tax fails and then again when Illinois declares bankruptcy and your cushy public pension is wiped out. Good riddance.

Sincerely - the 1%.

Comment by Oswego Won’t He Monday, Nov 2, 20 @ 11:26 pm
=== llinois declares bankruptcy===

States can’t declare bankruptcy.

Keep up.

:)

Comment by Oswego Willy Tuesday, Nov 3, 20 @ 5:20 am
I wouldn’t be surprised if State of Illinois debt is a significant part of his portfolio. That money is earned and taxed here. It can’t be moved to a more friendly environment. He wants that payment to be paid over a long time with a higher interest rate with our money not over a shorter amount of time with a lower rate with his money. That’s what is worth $56M.

Comment by Anonymous Tuesday, Nov 3, 20 @ 8:27 am
===Providing champagne services on a beer budget…===

I’m not sure who is spending like that when IDES and DCFS (and other agencies) are severely understaffed.

Comment by From DaZoo Tuesday, Nov 3, 20 @ 10:12 am