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Now that the governor has agreed to raise the sales tax for the mass transit bailout, do you think the “seal is broken” and he’ll do it again on other taxes? Or, do you think this is a one-time thing? Explain fully, please. Thanks.
posted by Rich Miller
Thursday, Jan 17, 08 @ 10:45 am
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Anyone who presumes to “know” or have an educated guess as to what this guy will do is deceiving themselves.
Comment by R U Kidding? Thursday, Jan 17, 08 @ 10:47 am
I agree with R U.
Comment by Snidely Whiplash Thursday, Jan 17, 08 @ 10:54 am
I agree with both above, however my gut tells me that the seal is broken. The state is broke, talking about more layoffs ect.
Comment by Just Because Thursday, Jan 17, 08 @ 10:59 am
No. The governor gave his word to the people of Illinois that he would not raise statewide sales or income taxes. He never breaks his promises.
Comment by Bill Thursday, Jan 17, 08 @ 11:01 am
Unless the leaders of this state can break the business as usual model we will have tax increase after increase rather than reform and responsible budgeting.
Case in point despite the brinkmanship of the mass transportation meltdown, the solution is a tax increase with a nibble around the edges of the inefficiencies of the system.
How will any other issue focus the minds of the legislators any better?
Its not just the Governor…..
Comment by plutocrat03 Thursday, Jan 17, 08 @ 11:02 am
Yes. Bill, Blago just keeps moving the goal posts…
Comment by Anon from BB Thursday, Jan 17, 08 @ 11:08 am
“The state is broke, talking about more layoffs ”
yes, and the layoffs will be the frontline workers, the ones we can least afford to lose.
I’m still trying to get over that warm fuzzy letter from Blago dropped into the Spgfd paper this morning. We’ll soon see just how long this big new compromise position of his goes.
Being the state is so far behind in paying bills, sales tax in coming is down, and the legislatures have more “I wants” and the governor is intend to push through every free/expanded program he can think of–I really think the Chicago area sales tax should be extended at least short time to get this state moving again. Yes, I’ve heard the the ‘this is regressive’ speeches, but nobody really seems to have much else on the table to bring in money quickly.
Comment by Princeville Thursday, Jan 17, 08 @ 11:14 am
Given the general direction of the economy and the revenue forecasts, there will probably be some significant revenue shortfalls that will have to be addressed. I don’t see him raising the income or sales taxes, but I think we’ll have a replay of his first term where he raises taxes but calls them “fees.”
Comment by Gene Parmesan Thursday, Jan 17, 08 @ 11:14 am
Bill,
All we need now is a capital bill that raises sales taxes or gas taxes in the 96 downstate counties, and the governor can still proclaim that he didn’t raise taxes statewide.
Comment by Six Degrees of Separation Thursday, Jan 17, 08 @ 11:18 am
that was suppose to be extended state wide.
Comment by Princeville Thursday, Jan 17, 08 @ 11:18 am
If it makes him look good he’d do it. So it’s anybody’s guess!
Comment by Levois Thursday, Jan 17, 08 @ 11:21 am
The gov will not agree to raise statewide sales or income taxes. Push comes to shove, we may end up with some kind of new fee’s or charges somewhere. I think he will come up with what amounts to sales or income tax increase, but clothed as somthing esle.
He is planning to run for re-election so I think you can go with him not breaking the letter of this promise; the spirit of the promis just went out the window with transiit, but he will hold to the letter of it.
Comment by Ghost Thursday, Jan 17, 08 @ 11:21 am
Of course he will. When soil erodes away, the hole or path becomes bigger. As we have witnessed over the past 6 years his “promises” have eroded away enough to start letting the flow begin. It will get much worse for us in Illinois.
Comment by SpfldPolitico Thursday, Jan 17, 08 @ 11:23 am
“The governor gave his word to the people of Illinois that he would not raise statewide sales or income taxes. He never breaks his promises.”
No, he doesn’t break them, but he sure is creative about the way he dances around them. As Ricky Herndon said, even this tax increase didn’t break his campaign pledge because it’s not a state-wide increase. So he can impose a tax on anybody for any reason, and as long it isn’t for everybody, he can still say it’s not it “statewide.”
My answer is “Yes and No”. “Yes” the “seal” is broken, we can expect more of these sorts of increases, but “No” the “seal” isn’t broken because Mr. Populist Govern By Press Release will still want to brag about not raising taxes come 2010.
Comment by What planet is he from again? Thursday, Jan 17, 08 @ 11:26 am
This is not his fault. The legislautre raised taxes and he was forced to sign it to avoid “DOOMSDAY!!! He did help offset it by giving the seniors a free ride!
Comment by Wumpus Thursday, Jan 17, 08 @ 11:34 am
tongue in cheek I hope, Wumpus. Blago already pulled money out of other places to avoid doomsday and his next desire was to pull a large chunk next leaving a bigger hole in the state budget. As my state leader I expect him to help find ways to solutions that does not rob Peter to pay Paul. I think I might even go the Cassandra route today and say it’s time to look at the bloated waste of money in this state and ask that upper bloat and dept. waste and mismanagement be closely looked into. It’s not his fault don’t cut it with me
Comment by Princeville Thursday, Jan 17, 08 @ 11:43 am
With the polls he is getting, what does he have to lose now?
But what we know he will do will be to focus on his political needs at our expense. If he can raise taxes and point fingers at others to share any backlash, then he will probably start raising taxes.
He has promised stuff that costs us billions. The bills are due and he has already sold all the assets he can lay his hands on. He has jacked our credit to the point of insolvency. Yet he continues to promise “freebies”.
I think he will start raising taxes because without money he doesn’t get a chance to keep playing governor.
Comment by VanillaMan Thursday, Jan 17, 08 @ 11:44 am
With our Blagojevich who the hell knows, but it wouldnt shock me if he did or try to push GRT or some other similar hidden tax increase on the public.
Comment by RMW Stanford Thursday, Jan 17, 08 @ 11:44 am
Bill –
love the quote, too bad Blagojevich never qualified his “no tax” pledge with the word “statewide”.
In fact, he’s vetoed other legislation regardin local sales tax initiatives. Here’s what he said when he vetoed sales tax authority for infrastructure improvements in Rockford:
“Sales taxes are regressive and disproportionately impact consumers regardless of ability to pay. There are other methods of revenue enhancement that provide for the same worthwhile objective of infrastructure investment that are not regressive.”
That loud GULP you just heard was Rod and Bill swallowing their words.
I said a long, long time ago that Rod Blagojevich would break all of his campaign promises, except his promise not to raise taxes, and then he would break that one.
This may not be a “statewide” sales tax increase per se, but it does affect the one region of the state where roughly 3/4 of Illinoisans live.
NOW, in answer to Rich’s question:
No, I don’t think this paves the way for more tax increases from Rod. The Disingenuator will pretend this wasn’t a tax increase, and stubbornly restate his pledge as if the sales tax increase never happened. Save reporters will use it as an opportunity to remind voters that Blagojevich did, in fact, raise taxes.
This is why one of the best politicians I’ve ever known, Judge Mary K. O’Brien, used to advise candidates to “never say ‘Never’.”
“Read my lips…” only gets you into trouble.
Comment by Yellow Dog Democrat Thursday, Jan 17, 08 @ 11:45 am
Tounge in cheek indeed
Comment by Wumpus Thursday, Jan 17, 08 @ 11:48 am
the governor says all kinds of stuff. it’s increasingly apparent that what he says is barely related to what he will do, and probably has no relation to reality. it is not his no new taxes pledge that he will feel compelled to keep but his addiction to being in front of the cameras, to being the center of attention. getting state government to operate properly seems to threaten his need for attention. so even if he opens up the flood gates on higher taxes, it won’t stop him from pulling further stunts. (btw, if the governor held weekly or daily press conferences, he’d get all the attention he needed. obviously, that solution conflicts with other problems the governor has.)
it might be interesting if some “impartial” agency gave an estimate of how much rod’s governing impotence has cost the taxpayers of illinois…
Comment by bored now Thursday, Jan 17, 08 @ 11:50 am
The seal is broken?
The State is in a deep financial crisis. If another crisis like the transportation issue arises, there will be the need to raise revenue in some way. But you can rest assure Blago will mask any increase in fees or taxes with something similar to the “Senior citizens free ride”.Then Blago will claim he made “lemonade out of lemons”.
This Gov. doesn’t have an honest bone in his body!
Comment by MOON Thursday, Jan 17, 08 @ 11:57 am
The fact that it wasn’t statewide makes no difference. He has in the passed vetoed even allowing counties to hole a referendum for a tax increase. Just so that it makes him look good to say no to any attempt at a tax increase.
Comment by Levois Thursday, Jan 17, 08 @ 12:00 pm
What happened to closing those corporate loopholes.
Somehow, whenever they get mentioned, nothing happens. Corporate honchos know what to do to bring pressure where it’s needed.
Comment by Cassandra Thursday, Jan 17, 08 @ 12:03 pm
It all depends on whether or not an opportunity for a spin type BS press release is available.
Comment by one of the 35 Thursday, Jan 17, 08 @ 12:13 pm
Who knows “if the seal is broken”? I really don’t think even Rod has a clue of what he’ll do next. He just wets his finger and sticks in the air to see which way the wind is blowing. Sad part for us South of I-80 is that it’s generally his middle finger that he is sticking up in the air.
Comment by Jechislo Thursday, Jan 17, 08 @ 12:18 pm
Given the state’s inablity to pay its bills, I think an income tax increase is inevitable - if not his legislative seesion, then the next, after the 2008 elections. One can only hope that all parties would be open to some practical compromises after the impasse last year.
Comment by Captain America Thursday, Jan 17, 08 @ 12:40 pm
I personally don’t believe that his action on the RTA problem broke his campaign pledge.
Comment by steve schnorf Thursday, Jan 17, 08 @ 12:49 pm
CA either an increase or some major cuts. The problem is getting worse with State finances. We are not hitting the projected revenue, and we have spent more then our projected revenue!!1 I doubt the gameing expansion will be the gold egg laying goose it is touted as, so there will be more spending whith shortfalls in projected revenue. So not only will we be unable to fund the annual costs of the State, we will have over due bills as well.
Comment by Ghost Thursday, Jan 17, 08 @ 12:50 pm
1.7 BILLION is a lot to make up…How?
Comment by Siyotanka Thursday, Jan 17, 08 @ 1:08 pm
Until the legislature grows up and becomes the parent, the kid is going to continue to wreak havoc and we’ll all just continue to jump through hoops and put out fires.
Comment by Mike Thursday, Jan 17, 08 @ 1:18 pm
The Governor is now vulnerable - remember George Bush senior. In terms of an income tax vs. casino expansion - it is cheaper for citizens to pay a tax increase then to visit a casino - explanation follows.
This will catch on, because the Gov has no place to hide anymore.
State government needs to travel the route of past governments and propose a tax increase. If the people support such a move, then the increase will happen. There will be no shenanigans and false hopes raised that people can beat impossible odds and win at casinos. For the month of December, 2007 the Illinois Gaming Board reports casinos reaped $122 in adjusted gross receipts for each of the 1.23 million admissions to Illinois’ nine casino boats.
According to the Illinois Department of Revenue a quarter point increase in Illinois’ income tax would cost $110 annually per return in Illinois. There are 5.75 million returns filed each year in the state. The bottom line: a tax increase is cheaper than shelling out money to a casino and feeds the state’s needs far better than cutting out a huge chunk for the gambling interests. I understand the administration is not favor of tax increases, but it is important to create realistic counter arguments to a casino expansion, while supporting the capital bill.
The basis of computation on this is:
1) a typical return has $50,000 AGI
2) you assume three exemptions - couple and one child
3) 3 x $2,000 exemptions = $6,000
4) $50,000 - $6,000 = $44,000 taxable income
5) $44,000 x .25 percent = $110
Comment by Doug Dobmeyer Thursday, Jan 17, 08 @ 1:25 pm
No Elvis wont raise taxes but he will continue to increase spending. So he can have the best of both worlds. His base will love his new and expanded programs and he will continue to say he wont raise taxes. Blago doesnt care about the economic disaster he is creating he knows the feds are going to indict him. Blago is going to live for the present because he has no future
Comment by FED UP Thursday, Jan 17, 08 @ 1:31 pm
Governor Jet Fuel agreed to the increase of taxes that was hinged upon his ability to pander votes from elderly users of public transportation.
Seniors vote in higher percentages, right?
My take on this is that Rod will only raise taxes again if he believes it would sway the public to reelect him.
It is politically expedient for Gov. Jet Fuel to say he never raised taxes during his two terms, but only acceded to the Assembly’s tax increase when the seniors of Illinois receive a tangible benefit.
Comment by Jake from Elwood Thursday, Jan 17, 08 @ 2:44 pm
What “seal”? He’s been raising fees (same as taxes) since day one. And besides, when he does taxes, he’ll call it something else and go on a bus tour bragging about it.
Comment by David Thursday, Jan 17, 08 @ 4:18 pm
I suspect the Gov will only raise income taxes if some sort of tax rebate scheme for the lower middle class and lower class can be created. In essence, it would be creating a graduated income tax while adhering to the letter of the law that requires a flat income tax. The Gov might be convinced to sign that tax increase, but not if a tax increase is going to hit the very people who are struggling the most in our economy.
Comment by cermak_rd Thursday, Jan 17, 08 @ 4:56 pm
Um…anyone who thought he was being honest then they have mental issues. At least Topinka said she doesn’t know for sure what might happen in the next four years. I don’t want to think about what he would do but will he raise taxes, most likely.
Comment by JakeCP Thursday, Jan 17, 08 @ 5:01 pm
Yahoo. Cigarette Tax (the easiest of all taxes for legislators to support)here we come!
Comment by Toxin Taxes Thursday, Jan 17, 08 @ 5:48 pm
We have a rebate program. It’s called the earned income tax credit.
Comment by steve schnorf Thursday, Jan 17, 08 @ 6:05 pm
of course he will. why not & all in the name of whatever he chooses. just more cash to spend. this guy has never had a plan since day one….it’s what ever is in the moment. it’s been one endless crisis after another & we’re stuck with him till 2011.
Comment by annon Thursday, Jan 17, 08 @ 6:07 pm
What Doug Dobmeyer said. I’ll add that with the current childishness in Springfield it’s going to be tough either to get the constitutional amendment we need to make the income tax progressive (let’s say, levying income beyond 100K per year at five percent), or to broaden the sales tax base in order to lower sales tax rates. If both these changes were enacted, it would make the distribution of the tax burden fairer, it would make revenue actually grow in line with inflation which would be handy for those receiving it, and it would provide the state with enough extra revenue to be able to provide the services taken for granted in other Midwestern states without borrowing like madmen for them.
But I’m not holding my breath. As things stand, a quarter point on the income tax seems like a reasonable compromise to me.
And watch Blago veto it and prance around and stand on his head with his fingers in his ears while going “la la la la la la la.” 2008 will look just like 2007, only for transit, substitute the state’s entire budget.
Comment by Angry Chicagoan Thursday, Jan 17, 08 @ 6:32 pm