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* The Sun-Times has more budget details today…
Under the proposal, which Quinn is expected to lay out in his Wednesday budget address, the annual $78 registration fee for state license plate stickers will rise $20. The governor intends to raise cigarette taxes up to $1 over two years, which would double the existing 98-cent-a-pack state tax. Twenty-six states have higher cigarette taxes.
Quinn also is looking at increasing the state’s 3 percent income tax to as much as 4.5 percent. A legislative preview of his funding plans indicated Monday that Quinn is considering a new income tax rate of between 3.5 percent and 4.5 percent.
That 3.5 percent rate emerged after public outcry over the prospect of the tax increase. However, it is expected the governor will still push for a rate toward the higher end of the range identified in the legislative budget “blueprint” obtained Monday by the Chicago Sun-Times.
And in an area likely to generate heated opposition from cities, Quinn wants to withhold the 10 percent stake municipalities would expect to see in additional revenues from an income-tax increase. […]
Quinn also is expected to propose increasing the corporate income tax from 4.8 percent to 5.9 percent, saving $100 million by ending corporate tax incentives, dipping into special-purpose funds for $200 million and withdrawing $150 million from the state’s road fund.
* My syndicated newspaper column takes a look at the naysayers…
Republican state Sen. Bill Brady kicked off his new gubernatorial campaign the other day by claiming that Illinois’ horrific budget deficit can be “managed.” But a new report by the governor’s office makes that claim even less realistic than it already was.
As you already know, Democratic Comptroller Dan Hynes has estimated the state’s budget deficit could reach $9 billion next fiscal year, not including aid from the federal stimulus package. We can toss those numbers out the window now, but this is all Brady had to go on when he announced his campaign, so let’s look at it anyway.
Brady told WGN-AM (720) the day before his official campaign kickoff that the budget deficit was about $4 billion to $5 billion “on an annual basis.” That’s pretty much exactly what Comptroller Hynes projected. Hynes included $4 billion or so in unpaid bills from this fiscal year in his $9 billion deficit projection for next fiscal year, which begins July 1.
But Brady insisted the budget deficit could be managed. “The first thing we need to do is to deal with that $4 billion to $5 billion deficit. And you can manage that. When you’ve got a $53-plus billion budget, you need to manage it,” he said.
Brady did the math and concluded the state budget broke down to $4,000 for every man, woman and child in Illinois. “If the people who are elected into office can’t balance a budget taking $4,000 from every man, woman and child, then maybe we ought to find someone who can,” Brady said.
What he didn’t say, of course, was that the $53 billion budget figure he cited was for all funds, including federal funds. The state’s operating budget - the part that Illinois government actually controls - is about $28 billion. Health care programs and education spending account for all but $3 billion of that total. So, there’s really no way to “manage” the state out of even a $4 billion deficit without big slashes in spending for schools and Medicaid recipients and providers.
Most importantly, there are about 100 days or so remaining in the current fiscal year, which ends June 30. So getting ourselves out of this fiscal year’s deficit crisis with the game almost over would require unimaginable cuts. As I’ve written elsewhere, you’d essentially have to shut the government down.
Brady also claimed Illinois could pay for a capital construction program without raising taxes, such as the motor fuel tax, a proposal made by some legislative Democrats. He’d do this by stopping all transfers from the state’s road fund, which he says is over $1 billion a year.
That’s mostly true. But reversing those road fund transfers means the state would have to either eliminate or slash programs paid for by the road fund, which includes the State Police, or blow a billion dollar hole in the rest of the state budget. The problem, in other words, would be worse.
And here’s where it gets worse.
Much worse.
The governor’s office is now estimating the combined state budget deficit to be $11.5 billion. Income and sales taxes are crashing, to the tune of more than $3 billion. Medicaid costs, employee wages and benefits, including pension costs, are skyrocketing.
In short, it’s a horror show.
But if we can’t cut our way out of this mess, we certainly can’t fully tax our way out of it, either.
Gov. Pat Quinn wants to make the income tax burden as “progressive” as possible, so as of this writing Quinn’s tax hike plan is expected to avoid taxing anyone at all under the federal poverty line. Plus, nobody making less than $57,000 a year would see any income tax hike.
So even though the governor wants to raise the income tax by 1.5 percentage points, which is a 50 percent increase, he won’t get nearly the sort of revenue that an across-the-board hike would give him. That means cuts, and some of them will be painful.
There are other innovative ways to help balance the budget that don’t involve painful cuts or tax increases. But none of those ideas gets you to $11.5 billion. Not even close.
Forget about the political rhetoric and get ready to pay more for less.
* Related…
* Gov. Pat Quinn seeks consensus in break from past: “We’re a team. We’re a family. We have almost 13 million people in our family of Illinois,” Quinn said.
* Illinois Politicians Disagree on Tax Hike Option
* Former Governors Offer Quinn Budget Advice
* House Speaker Madigan Open to Tax Hike
* Quinn wants to make best of worst-case scenario
* Quinn has to be thinking about Ogilvie
* 12 steps before a tax hike
* Tax increases will spark controversy
* State Rep. Smith backs tax hike
* Tax hike plan is excessive
* Will Quinn reopen Frank Lloyd Wright’s Dana-Thomas House and other state historic sites? We’ll know Wednesday
* State to get $8.4 million for foster care, adoption
posted by Rich Miller
Tuesday, Mar 17, 09 @ 8:54 am
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I am sick and tired about hearing old horror stories about Dick Ogilvie and the accursed state income tax. Listen carefully… this is not 1972!
Anyone in their late 50s or younger has spent their entire adult life with the state income tax as one of the smallest items withheld on your paycheck. It’s no big deal anymore, unlike in the early 1970s when the tax was brand-new.
A state income tax increase is the price we have to pay for having had corrupt governors in office for the past decade. Let’s accept this medicine and move on.
Comment by fedup dem Tuesday, Mar 17, 09 @ 9:02 am
Just raise the gas tax! It can be done by .021 so prices will no longer be that annoyinh 1.949. Then again, the people who make those little numbers may need a gvt bailout. We were paying $4.009 per gallon, a few pennies won’t hurt. As long as the budget is reduced (sorry for the vagueness, Rich), I can go for this.
Comment by Wumpus Tuesday, Mar 17, 09 @ 9:09 am
I’m disappointed about the cigarette tax hike proposal. We’ve already witnessed a drop in revenue associated with cigarette taxes for various reasons, mostly due to exceedingly high local taxes and anti-smoking laws.
Yes, it’s perhaps the easiest tax to increase politically, and all options should be considered. Yes, everyone realizes smoking is a health hazard. But I expect more creative and less punitive ideas from Pat Quinn, and targeting an individual group that continues to shrink as a reliable source of revenue is both poor policy and politically spineless. BTW, I’m a non-smoker.
Haven’t heard much about a tax on services, which is progressive has the potential to generate quite a bit of cash, even if coupled with a modest but meaningful decrease in the sales tax rate.
Comment by Anonymous Tuesday, Mar 17, 09 @ 9:16 am
5 cents per text message tax should do it.
Comment by Mr. Ethics Tuesday, Mar 17, 09 @ 9:18 am
Sorry, the anonymous post was mine, sans the moniker.
Comment by The Doc Tuesday, Mar 17, 09 @ 9:19 am
When does the “fumigation” of state government begin?
Comment by Leave a light on George Tuesday, Mar 17, 09 @ 9:23 am
It will be easy to raise sin taxes and income taxes I suspect. After all, how many of our majority Democratic legislators would actually be in danger in their gerrymandered districts if they voted for an income tax increase. And there are plenty of Democrats out there who would be happy to replace Quinn if he has to fall on the tax increase sword. Republicans are still irrelevant.Quinn is pretty irrelevant too, come to think of it, in the eyes of many powerful Democratic politicians.
But given theses huge tax deficit figures which are being tossed around, perhaps the question we middle class folks should be asking is how long will it be before the Democrats come back for more. A year? Two years?
The powerful unions and other constituencies which represent state employees, corporations, and other potential sources of tax dollars are revving up already with their campaign contribtuions and other means of influence to block changes in new employee pension rules, increases in corporate taxes in maximum tandem with personal income tax increases, and other potential sources of state revenues. These folks want the middle class to bear the entire burden. And they know how to reward the Democratic legislators who vote with them and how to punish those who don’t. There has been no campaign finance or lobbying reform of significance in Illinois after all. Money and influence are still the kings.
Comment by Cassandra Tuesday, Mar 17, 09 @ 9:26 am
Actually in a weird way I guess I’m kinda glad about the increase in smokes. It’s long overdue that I stop smoking. Between the federal hike and now a state hike though I wonder just how much the hikes can be counted on to really bring in. I’ve been having a real hard time justifying $5 a pack now, but at $6.60 to watch burn away, nope, can’t bring myself to do it. I’m sure my health will appreciate it. I’ve quit before but these higher taxes should help me quit for good.
oh, and Rich, I’m really glad your article ended with “..get ready to pay more for less” and not what Rod had been spouting for years, the ol’ we’re doing more with less.
Comment by Princess Tuesday, Mar 17, 09 @ 9:26 am
Perhaps every social service agency/medical provider who goes out of business because the state hasn’t paid them for services rendered since October 2008 ought to send Senator Bradley a note to let him know just how manageable it is to provide services without reimbursement. Oh, and maybe the Medicaid recipients who don’t have a doctor who will see them because doctors are refusing new Medicaid/All Kids recipients because the state doesn’t pay its bills can also let Senator Bradley know how manageable this deficit is. And while we’re at it, perhaps the businesses that are defaulting on operational loans obtained for just basic operating expenses because the state doesn’t pay its bills on time can also send a note. And, let’s not forget the employees who are getting laid off or doing without a paycheck now and then because their employer is not getting reimbursed can also send a note. I doubt that would make a difference, though. Unfortunately, some people will say anything, despite the facts, in order to get elected.
There is no historical precedent for the crisis in our state finances, not even the Great Depression can compare as the states did not play the large role in social services and medical care then as it does now.
Pat Quinn and anyone else who steps up and supports him should be congratulated for sacrificing his political future to actually clean up this mess that has been percolating, even before Blago the Great took office. I was skeptical about Quinn prior to these announcements about how he is going to handle the budget crisis, but if his budget proves to be something that actually addresses the massive problems in our state’s finances, he will have shown himself to be a man who is willing to do the right thing, no matter what the cost, which is what this state desperately needs right now. Not more spin.
Comment by Cinho Tuesday, Mar 17, 09 @ 9:29 am
No mention of skipping or reducing the required public pension plan contributions here. If they do this again; all state employees other than those required for public safety should walk off the job and refuse to return untill all public pension plans are fully funded. If they continue to kick this can down the road and leave this growing mountain of debt obligations to future generations more and more of them will be fleeing the tax burden of Illinois, and there will be less and less of those remaining to help pick up the tab as it becomes due.
This approach would also allow the public to determine which jobs and agencies aside from public saftey are indeed essential services, and the remained could be shut down and those employee staffing positions eliminated. This could help reduce the future pension growth and help the taxing environment as well.
Comment by Quinn T. Sential Tuesday, Mar 17, 09 @ 9:30 am
Rich:
“The governor intends to raise cigarette taxes up to $1 over two years, which would double the existing 98-cent-a-pack state tax.”
Shouldn’t that read “to $2 over two years, which would double the existing 98-cent-a-pack state tax.”
Comment by How Ironic Tuesday, Mar 17, 09 @ 9:34 am
Rich you seem to be defending higher taxes at every turn. I think all that time in springfield has made you forget that unlike our state reps and GOV and other office holders most of the people of ILL actually have to work to get paid. An extra $1000 in taxes will make a huge differance to me.
Comment by fed up Tuesday, Mar 17, 09 @ 9:34 am
I don’t disagree with you. But the people elected clowns like RRB, and now it’s time to clean up the mess. It can’t be done with cuts alone.
Comment by Rich Miller Tuesday, Mar 17, 09 @ 9:37 am
Fed up - you make $122,000/year and $1,000 extra in taxes will make a huge difference?
Comment by George Tuesday, Mar 17, 09 @ 9:42 am
Once again, I’d like to see Brady put his solution to paper. If it’s as simple a fix as he says, it shouldn’t take him long. If he won’t, he should keep quiet and let the grownups do the heavy lifting.
Comment by wordslinger Tuesday, Mar 17, 09 @ 9:49 am
tax hike is much better then building revenue on th backs of the poor. It boggles the min that Quinn opposes a gas tax but supports a cigarrete tax. Gambling, Cigarettes, alchol (sin taxes) statistically are generated in large protions from those with low incomes. We need to stop looking for vice for revenue. Lets raise money the old fashioned way, those with the highest incomes carry a higherburden. All these tax breaks for lower income families are worthless if you then build up gambling, cigarratte and even license fee’s. You might as well just do a gas tax and income tax on all.
Comment by Ghost Tuesday, Mar 17, 09 @ 9:55 am
@Ghost
Cigarrete taxes are a world of difference from gas taxes. One can argue that gas is practially a necessity, unless one lives in a major metro area. Down here in the middle of the state, public transporatation is not practical or even available.
Taxing fuel will directly impact the working poor that have to drive because of the lack of a decent public transporatation network.
Smoking however, is pretty easy. If you don’t want to pay it…stop smoking. If you do want to smoke, you will pay more. Smoking is not necessary to keep your job. Driving however, is sometimes required for a job.
Big difference.
Comment by How Ironic Tuesday, Mar 17, 09 @ 10:03 am
Rich, what does this mean “dipping into special-purpose funds for $200 million”? Does that mean they are going to “steal” money like Hot Rod did out of funds that we-citizens pay money into?
Comment by Downstater Tuesday, Mar 17, 09 @ 10:12 am
George gas taxes and cost and cost of gas are going up, property taxes are going up, Federal income taxes will be going up,Tuition is going up( I live in chicago I wish public schools were an option). Am paying off student loans on college for 2. Electric and heating bills up. I have a wife 2 children and an elderly in law living with me. you are very close on income but yes $1000 makes a difference.
Comment by fed up Tuesday, Mar 17, 09 @ 10:23 am
Rich,
I don’t see where ridiculing those who insist that they can “manage” their way out of this fiscal mess is helpful. It avoids any mention of those who “managed” a succession of budgets who got us into this mess. It absolves all those who voted for those succession of budgets. Those who still won’t raise their hands and proclaim “I too was responsible for all of this.” They deserve our ridicule too.
It is the lack of ridicule, the lack of holding their feet to the fire, that will continue to allow our State government fiscal crisis to continue, or get patched up with a series of tax and fee hikes.
Mind you, I don’t see a solution here that would avoid an increase in revenues from taxes. If there were a way to “manage” ourselves out of it, that would be one thing. But allowing those responsible to pretend they were not responsible is equally ridiculous as jumping on anyone who claims that they can manage their way out of this crisis.
Who really got us into this mess? Only Rod Blagojevich by his little old self? Without the assistance of the other legislative leaders? Without the assistance of legislators who voted and supported it and turned a blind eye to the growing deficts and financial crisis? The legislators who were afraid of his veto? Which political party controlled Springfield during that period of time?
I saw Republicans get hammered on a national level over the economy. Where is the hammering on the Springfield Democrats over this mess?
When I was a kid, my father would walk into my bedroom and ask “who made this mess?” “Not me” was never an acceptable answer to him. Nor did he make an effort to clean it up. He made me do it. He gave me no choice. I would be forced to do something I didn’t feel like doing.
Who is “forcing” those in Springfield who made this mess to shape up?
Comment by Louis G. Atsaves Tuesday, Mar 17, 09 @ 10:26 am
The tax to be raised is neither the sales tax nor the income tax. I have said this before. Increasing these taxes or any of the sin taxes, even the motor fuel tax may balance the budget on a one time basis. Afterwards they are there forever.
The politicians believ that the small nibbles these increased taxes take on a continuing basis will be forgotten over time.
The deeper pool of money available for the politicians to frolic in is not a permanent answer. These are Undisciplined Taxes. With the availability of Undisciplined Taxes, reform will come much more slowly if at all.
And, I think nearly all of us agree reform is what is needed.
Now, how to pay the net deficit after chopping the weeds away from the tree. Every capital expenditure needs to be made part of a long term bond issue, with the qualification that the assets being financed are longer in life that the bonds used to pay them. The Bonds need to be secured by a statewide property tax.
Similarly, shortfalls in pension funding ned to be financed in the same way.
When the bonds are retired, the tax goes away. That is a Disciplined Tax. Everybody feels the pain, which is as it should be.
Quinn can pull this off if he uses his populist credentials for reform at the same time.
He has, I fear, let the ambition he has never shown before take over as he scrambles to run in 2010 against a well funded Lisa Madigan.
Let him use reform and the bully pulpit and shared sacrifices as his platform and he just might win the nomination
Comment by Truthful James Tuesday, Mar 17, 09 @ 10:27 am
I don’t disagree with you. But the people elected clowns like RRB, and now it’s time to clean up the mess. It can’t be done with cuts alone.
I believe Gov Quinn was one of the enablers that helped RRB get elected that really makes me question his plans on anything. He could of ran against RRB in 06 or taken the high road and got off the ballot. But Quinn endorsed RRB and kept his mouth shut and cashed his paycheck while the state went to hell. Now hes a reformer. Hes learned to keep his mouth shut about Burris very quickly too. A man with that little spine cant be trusted to raise taxes.
Comment by fed up Tuesday, Mar 17, 09 @ 10:29 am
Yes, Ogilvie lost re-election and Illinois suffered as a consequence. Yes, Ogilvie’s loss is basically due to his enactment of the state income tax. So, it is understandable that many government types mourn Ogilvie as proof that even great governors lose public support if they make the public pay more in taxes.
Big deal. There is life after public office for great men and women. There is a life outside public office for great men and women. We have to stop this public worshipping of temporary political power. The goal of each governor has to refocus on being the best governor they can be and to let the chips fall where they may. Politics sucks when politicians choose themselves over Illinoians. We can no longer accept this choice. We have to demand better from our elected officials. Look where their political attitude has taken this state?
Ogilvie barely won in 1968, even though Nixon carried the presidential election and Governor Shapiro was trying to separate himself from Mayor Daley and Otto Kerner. Shapiro ran a poor campaign, and Ogilvie won unexpectedly.
By 1972, the tide had turned for the GOP. Although Nixon was re-elected in a landslide, Walker won against the perceived machines voters were angry over; the Daley machine and the GOP majority in the General Assembly. Walker was a great campaigner, and foreshadowed the 1976 Jimmy Carter campaign. We wanted change, and Walker promised it. Ogilvie lost.
To blame this all on the enactment of the state income tax is overreaching. It probably made a difference, yet the political tide in Illinois in 1972 didn’t favor a Republican governor who barely edged out a damaged and politically inept Democrat four years earlier.
If we simply focus on politics, we stop focusing on what it is we are suppose to be doing. Quinn has the opportunity to do the right thing, and be elected. He has to publically cut the state budget dramatically. Then he has to carefully raise the income tax while promising to voters that he will continue to fight for reform. He has one year to pull this off and set things right with voters.
Quinn can do this if he is up-front and honest with voters. After Blagojevich, Illinoians don’t really want another gubernatorial shake-up, in my opinion. They will boot out Burris, and this should satisfy their itch, sparing Quinn.
The GOP has a chance, but Brady can’t sell a no tax increase pledge without looking like a liar.
Comment by VanillaMan Tuesday, Mar 17, 09 @ 10:33 am
So Quinn thinks that he can get legislators to vote aye on tax increases that could possibly end their political careers and then give most of the money away so that the fiscal condition of the state is only a little better off than today? I realize that many legislators are not the smartest people ever to walk the Earth, but c’mon!
Comment by Bill Tuesday, Mar 17, 09 @ 10:42 am
…and when he skirts the spirit if not he absolute letter of the law (constitution)banning progressiveness of the income tax by messing around with different exemptions and stuff who will be the first to sue.
Quinn thinks he’s Robin Hood.
Comment by Bill Tuesday, Mar 17, 09 @ 10:58 am
Will we ever see the day where a powerful pol, after careful consideration of what is really best for the majority of citizens, makes up his mind and goes all out for it and to hell with the possibility of losing the election? Would it spark a long lost memory in the citizenry that was once a standard practice: Leadership. Leading in such a way (convince through persuation of one’s ideas) might even be so unusual, so crafty, so cunning, that it means victory……nah, not likely.
Comment by You Go Boy Tuesday, Mar 17, 09 @ 11:06 am
Minus the increase in taxes, Quinn’s budget doesnt sound that much different than Blago’s.
Blago didnt have the political capital to pass anything though.
Of course, Im sure Madigan wouldnt be for alot of these other revenue enhancements that he has been against in the past, if Quinn didnt want to raise the income tax.
Mike Madigan wants the income tax increase so bad. It helps the unions and lets his members cut ribbons all summer, but it also severely cripples Quinn’s re-election chances.
Too bad because I really like Quinn. But we all know people always say “raise taxes” but then we see the actual effect on their pocket book they change their tune. Not to mention all the negative commercials that will run on the issue.
Comment by Taxman Tuesday, Mar 17, 09 @ 11:42 am
How Ironic, smoking is a sever addiction, it is very difficult to just stop. The impact of a cigarratte tax falls most heavily on those with low income. Seeking to hit a vice that impacts those of low income becuase we do not lik their choices is not a tax but a punishment for enaging in legal acitvities. It becomes a morality fine that disproportianly impacts those with low income. There is by impact litle difference between a gas tax and a cigarrette tax.
If Quinn truly intends to not build his budget on the backs of the poor, e needs to move away from gambling and cigarette taxes (sin taxes)
Comment by Ghost Tuesday, Mar 17, 09 @ 11:56 am
@Ghost,
Addiction or not, smoking is not a requirment for a job. However, as I pointed out earlier, driving (at least a way to get to work) is a requirment for a job.
Higher prices lead to lower smoking rates. So if the price gets high enough, I suppose even poor people will give it up.
Comment by How Ironic Tuesday, Mar 17, 09 @ 12:20 pm
===Then he has to carefully raise the income tax while promising to voters that he will continue to fight for reform…
The GOP has a chance, but Brady can’t sell a no tax increase pledge without looking like a liar.”===
Who are you and what have you done with the real VanillaMan?
Comment by 47th Ward Tuesday, Mar 17, 09 @ 12:22 pm
===Ghost - Tuesday, Mar 17, 09 @ 9:55 am:
Gambling, Cigarettes, alchol (sin taxes) statistically are generated in large protions from those with low incomes.===
These vices also cost taxpayers money in state-supported services.
===Lets raise money the old fashioned way, those with the highest incomes carry a higherburden.===
Those with the highest income already carry a higher burden. A 3% tax on $20,000 is $600. A 3% tax on $200,000 is $6,000.
Everyone receives a benefit from state services, and it is appropriate that all contribute to support those benefits.
Comment by Fan of the Game Tuesday, Mar 17, 09 @ 12:30 pm
I haven’t seen Quinn’s tax credit proposals, but here’s where I think he runs into problems.
Increasing the standard deduction to offset a higher tax rate skews the benefits toward larger families and against couples and single individuals.
If you just look at the changes in the tax rate and the deduction:
- A single person making as little as $15K a year will see their income taxes go up (by $15);
- A couple making as little as $30K a year will see their income taxes go up (by $30);
- A family of three making as little as $45K a year will see their taxes go up (by $45).
You get the point. Granted, these are SMALL increases for those on the cusp, but that isn’t how the opposition will paint them.
BTW, the federal poverty guideline for these cut-offs is $10.4K , $14K, and $21.2K respectively. But I don’t think anyone in Illinois considers a single man or woman making $15K a year “well off.”
Comment by Yellow Dog Democrat Tuesday, Mar 17, 09 @ 12:48 pm
So , Blago was on WLS again for an hour or so this morning attacking Quinn and crying wahh wahh… I’m picturing him outside the Capitol building, with a huge 80’s boom box held overhead, (playing Don Wade and Roma), while wearing John Cusak’s long overcoat. Can we use the stalker law to make him go away and be quiet, so the grownups can get stuff done?
We already know Blago will “Say Anything”. That’s why we’re in this mess. Blago didn’t have the stones to ask for the taxes, Quinn does. Blago told fibs to the voters that you can have all the state services you want, and put them all on a magic credit card that never comes due. He forced cities and municipals to raise taxes and fees to cover his promises at the state level.
God bless Quinn for telling the truth, that there is no way to avoid a tax increase and some pain to pay for things we deferred too long. Maybe he can’t survive re-election because of this. I’m with Vanilla Man on this point: who cares, he needs to do the right thing for the state’s own good, regardless of the political cost to himself. He’d be the first man in decades (maybe longer) to do that in Illinois politics, but if he does do it right, his name will end up on schools all over this state in later years, along with the giants like Simon and Stevenson and the like.
When I heard Senator Brady’s claim we can get out of this mess without raising any taxes, just by spending cuts and “management”, I automatically dismissed him from further gubernatorial consideration, because he is either A: lying like Blago or B: hopelessly out of touch with the realities of this budget situation. Situation A insults me. Situation B signals an unqualified candidate, living in a fantasy world.
Comment by Gregor Tuesday, Mar 17, 09 @ 12:55 pm
YDD -
I don’t think the plan is to “raise taxes on the rich.” I don’t think they are trying to set a cut-off of who pays more and who pays less. Their $56k number was an attempt to show the reactionary (/intentionally deceptive) Tribune that not everyone will see their taxes go up.
Quinn’s goal is to raise taxes to get new revenue. But he is also taking this opportunity to reform the system to what a lot of people have been saying for a long time:
Make all income below the poverty line tax free. It doesn’t matter how well off you are, or how poor you are, everyone gets treated the same - one flat rate, and all income below poverty tax free.
The idea is that you shouldn’t be paying income taxes instead of paying for the bare necessities - food, housing, etc.
It is actually more progressive than a so-called “Progressive” income tax. And I highly appreciate that they are going at this from the ground up, instead of the game our federal government politicians play of who gets a marginal increase and how much.
Comment by George Tuesday, Mar 17, 09 @ 1:47 pm
==So if the price gets high enough==
we will all be healthier and the governments will be poorer.
BTW, Quinn says a school-time sales tax holiday is part of his budget plan…
Comment by Vote Quimby! Tuesday, Mar 17, 09 @ 2:22 pm
But Bill…how much danger are those Democratic legislators in if they vote for Quinn’s middle class income tax increase. Don’t the majority of Illinois legislators run unopposed. They don’t have to worry about Republicans by and large. They have to worry about other Democrats. How many potential Blue Dogs are there out there to challenge them. Not too many, I would guess.
Comment by Cassandra Tuesday, Mar 17, 09 @ 2:24 pm
Who are you and what have you done with the real VanillaMan?
I am VanillaMan, defender of taxpayers and the free market! I spit on big government enablers and watch them cower in fear like the pidgeon-chested wimps they are!
I want to see government cuts. I want to see government make sacrifices. I want to see this state government made smaller. I want to see them promise less, and deliver more. I want to see government deliver!
I want to see Quinn make the cuts, demonstrate the sacrifices, and demand accountability from his fellow Democrats, before coming to us for more! This state government sucks! I’m not paying more for this!
Quinn will win re-election if his actions show the reform and change voters demanded in 2002. If he shows voters that this flop-house cast of swilling trough hogs can do a better job first, then he can survive a little tax increase.
If he just raises taxes to satisfy the lazy bums who pretend we can do no better - he will be booted out of office quicker than Ogilvie.
Comment by VanillaMan Tuesday, Mar 17, 09 @ 2:54 pm
Billy never was very good at math…Can we now move on from him and identify a real R candidate who might possibly be able to contend? FWIW, if you increase revenue and decrease spending the budget deficit will shrink. Two ways to increase revenue 1) directly through tax hikes, which tend to be nonstimulative and cap themselves out, or 2) indirectly through tax cuts which are stimulative and open up more potential streams of revenue (see Laffer Curve). The problem is neither will work if you don’t cut spending, which no one on either side of the aisle seems willing to do. Until there is a proposal that demonstrates serious considerations of both elements of the equation (ie, revenue/spending), we will have nothing but more of the same.
Comment by inDUpage Tuesday, Mar 17, 09 @ 4:49 pm
Folks, those who argue that a flat income tax rate is most fair need to look at the realities.
When you look at all taxes levied by the state, the burden is much higher on people with lower income. For example, because the lower your income, the higher percentage of it you spend on consumables, lower income people pay a much higher percentage of their income in sales taxes.
When you do the actual analysis, people in the lowest income bracket spend 12 or 13 percent of their income on Illinois taxes, and that percent goes down with each quintile you move up, till at the very highest its down by about 40%
Comment by steve schnorf Tuesday, Mar 17, 09 @ 9:32 pm
In all the talk of Illinois debt, the Gov. won’t talk about the mess the retirement system is in….40 billion ++ in debt…one of the worse in the nation. But not the lawmakers pension plan…its in fine shape while they talk about yet again skipping yet another payment or two for the plan!!
Comment by zoble Tuesday, Mar 17, 09 @ 10:37 pm