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POSTED BY WONKISH.COM.
With Governor Quinn making some changes to his proposed tax plan to help close the budget deficit, we thought it would be a good idea to update our tax calculator so you can compare how this would affect you.
The biggest change was the reduction of the personal exemption to $3,000 per family member (down from $6,000 per family member), and replacing that with a much larger property tax credit (from a 5% credit back of your annual property tax to 10% of your annual property taxes, capped at $500) and doubling the EITC.
We have our own analysis of who does better in this scenario (hint: High property tax payers), but see for yourself how it will impact your family and others:
(Again, For those of you who can’t play hypotheticals and object to the assumption that more revenue is needed, please make sure to visit the Wonkish.com Budget Tool and share your link here which shows all your cuts).
posted by Wonkish.com
Wednesday, May 27, 09 @ 12:22 pm
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Previous Post: SUBSCRIBERS ONLY - Download new tax plans (use all caps in password)
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I pay 300 more under the new plan. I prefer the old one
Anyway to add in hendons plan to the mix?
Comment by Ghost Wednesday, May 27, 09 @ 12:24 pm
Hendon’s plan is added to the mix. Check the search result page.
I do the best under Hendon. The new Quinn tax plan actually hits me harder than the original one.
Comment by Rich Miller Wednesday, May 27, 09 @ 12:28 pm
“The new Quinn tax plan actually hits me harder than the original one”
Maybe those personal exemptions weren’t so silly after all.
:)
Comment by George Wednesday, May 27, 09 @ 12:28 pm
Yikes! My state income tax will go up by several hundred per year under either plan. But I’m one of the ones who will see a net benefit from all that capital spending.
Comment by Six Degrees of Separation Wednesday, May 27, 09 @ 12:29 pm
Same here. Hendon’s saves me at least 700..
Comment by Anonymous Coward Wednesday, May 27, 09 @ 12:30 pm
As a renter, I get hosed under the new plan. $135 more under Quinn’s revisions compared to his original. I do the best with Hendon’s proposal.
Comment by Tim Wednesday, May 27, 09 @ 12:32 pm
Quinn’s new plan kills me. Hendon’s is the best but it’s still not good.
Comment by DuPage Moderate Wednesday, May 27, 09 @ 12:34 pm
Ditto what Rich said - I pay the most under Quinn’s revised proposal, and the least under Hendon’s proposal.
Comment by The Doc Wednesday, May 27, 09 @ 12:36 pm
quinn’s new plan hits me over 500. hendon’s the smallest hit.
Comment by wizard Wednesday, May 27, 09 @ 12:38 pm
Bummer! Both ways! I do “save” $150.00 with Hendon.
The selfish side of me shows substantial real “savings” if no tax increase resulted under any plan, but . . .
Comment by Louis G. Atsaves Wednesday, May 27, 09 @ 12:41 pm
I vote for Hendon’s plan…it saves me compared to Quinn’s new plan, I would save $330, and to his old plan, $195. I don’t mind paying a bit more, but I do not want to get hosed because I am single, have no kids, and rent. An extra $330 a year won’t kill me, but it doesn’t seem very equitable.
Comment by Anon, Good Nurse, Anon Wednesday, May 27, 09 @ 12:44 pm
===Maybe those personal exemptions weren’t so silly after all.===
The problem with them isn’t that they are “silly,” it’s that they greatly reduce the tax dollars collected for the hits endured via a “50 percent tax hike” headline barrage.
Comment by Rich Miller Wednesday, May 27, 09 @ 12:46 pm
Ironically, this plan can be billed as “A tax hike, but with property tax relief”, and can be sold more easily (watch the ed boards salivate over property tax relief).
But in reality, most people do better with the original plan.
Same with Hendon’s plan - “A compromise 33% tax increase WITH property tax relief!!!”. Still, more people probably did better under Quinn’s original plan.
But I guess that is how it goes.
Comment by George Wednesday, May 27, 09 @ 12:50 pm
===watch the ed boards salivate over property tax relief===
Are you suggesting that editorial boards just skim all-important Statehouse issues like taxes?
For shame!!!
lol
Comment by Rich Miller Wednesday, May 27, 09 @ 12:52 pm
New Quinn adds a new level of suck. Also whats up the low limit on the property tax deduction. Last time I checked my house isn’t that big (Guys in Naperville have garages almost as big) but thanks to all the new schools we have had to build my taxes are over 6K.
So by doing the ‘right thing’ and funding my schools I pay the price now…
Sweet
Comment by OneMan Wednesday, May 27, 09 @ 12:57 pm
The Governor now wants more than twice what he wanted earlier. How is this an improvement?
The right thing is to let parents keep their money for their kids and freedom of choice - not give it to bureaucracies.
Comment by VanillaMan Wednesday, May 27, 09 @ 1:11 pm
Ouch - either way. Although, Hendon’s plan would be $550 less than the New Quinn plan.
Comment by make it so Wednesday, May 27, 09 @ 1:13 pm
Quinn’s new plan cost me $325 more than his previous proposal. Hendon’s cost me about $90 more than Quinn’s original.
While I prefer paying the Hendon amount, whichever spares the most in service/ social programs ect., works for me. I just want a budget in place (full FY please) and time is running out.
Comment by Princess Wednesday, May 27, 09 @ 1:17 pm
I get killed under the new plan. About $500 more than Quinns original plan. Whoever votes for this tax increase needs to be voted out.
Comment by fed up Wednesday, May 27, 09 @ 1:18 pm
I will take the old plan please!!
I get spanked under the new plan. Either way it sucks, because I am giving away money to irresponsible spendthrifts that are only looking out for themselves. Whereas I could be buy Rich Miller beers at the Beer tents at the fair.
Comment by He Makes Ryan Look Like a Saint Wednesday, May 27, 09 @ 1:21 pm
My taxes go up $179 under Quinn’s new plan. Under his old one, they only went up $44. Hendon’s increase is in the middle at $109.
== Whoever votes for this tax increase needs to be voted out. ==
fed up, please do offer an alternative.
Comment by Cheswick Wednesday, May 27, 09 @ 1:34 pm
It doesn’t appear that any of these tax hikes are well thought out. I don’t actually think there is that much property tax relief for the income tax increase.
I’m actually not opposed to taxes at all, I think when done right their an investment into our society. It just appears that our Governor and our legislative body seems to throw out these tax ideas on the fly. What about some structural change to the way we do things here? I like the idea of expanding the sales tax into services (excluding medical and barbershops) and lowering the overall sales tax rate. Also, lets not be one of the highest corporate tax rates in the nation. Lets get businesses here and employing people.
I did the least bad under Hendon’s
Comment by ahoy Wednesday, May 27, 09 @ 1:37 pm
The new Quinn plan whacks me for over $400, $300 more than his original proposal. Hendon’s plan is much better for me - it’s still a hit of more than $200, but it’s $200 less than new Quinn.
So let’s take stock of all the various tax and fee increases already in place or on the way, and it’s no wonder why legislators are afraid of this income tax vote. Sales tax rates (Cook County, Springfield, probably other locals), sales taxes on soda and candy, taxes on alcohol, license plate fees… and who knows what else the feds will impose to pay for a healthcare expansion.
It’s enough to make you wonder if the people who attended the tea parties are just the tip of the iceberg. To follow the metaphor, who or what is the Titanic?
Comment by cover Wednesday, May 27, 09 @ 1:38 pm
Fed Up:
I’m with you. I’m so sick of all these supporters of these legislators asking me to “offer up a better solution.”
90% percent of these political hacks have been in Springfield for way more than a decade in one way or another. They signed up for the job and failed us miserably. They created this problem, not me.
They should be voted out…every single one of them. And they shouldn’t be forcing us to make sacrifice after sacrifice so as to keep their union base happy. It’s gross.
Comment by DuPage Moderate Wednesday, May 27, 09 @ 1:42 pm
We do best under the original Quinn plan.
Quinn prime = +$75
Quinn 2.0 = +$600
Hendon = +$300
Comment by Rob_N Wednesday, May 27, 09 @ 1:47 pm
===They created this problem, not me.===
So, I take it you’ve never voted in your life?
Comment by Rich Miller Wednesday, May 27, 09 @ 1:52 pm
== Whoever votes for this tax increase needs to be voted out. ==
fed up, please do offer an alternative.
How about do what I do dont spend what you dont have. Plus dont create new programs without a way of paying for them.
We have some smart people in springfield getting 75-80k plus for a part time job give them a projection of what the revenues will be next year and then craft the budget. That way you know what you can spend. Dont make a budget and then check what the expected revenue will be.
Comment by fed up Wednesday, May 27, 09 @ 1:54 pm
I also believe eliminating the Lt govs office, and either the comptroller or the treasurer’s office would be a good start. 5 additional casinos including 2 in chicago, slots and video poker at the airports, a hiring freeze a pension reform including that of elected officals. Then if we arent there we get to vote on any state expense over the expected revenues.
Comment by fed up Wednesday, May 27, 09 @ 2:01 pm
Quinn = $2425 more
Hendon = $1790 more
orig Quinn $1740 more
I will now officially move my primary residence to condo in Florida and you guys and gals can pick up my slack.
Comment by North of I-80 Wednesday, May 27, 09 @ 2:01 pm
Rich:
I’ve voted…and I guess using logic of elasticity I then do shoulder some blame. For that, I’m sorry. I apologize to the State of Illinois for the 10+ years of waste, graft and pandering to special interests and unionized employees.
To the other schmucks like me who go to work in private jobs without unions, organized support, legislators having our back, shame on us. I guess we do deserve to take it where the sun doesn’t shine.
Comment by DuPage Moderate Wednesday, May 27, 09 @ 2:07 pm
I’m out $1,300 more under the revised Quinn plan, up from $1,230. Hendon’s plan seems like a sweeter deal, I only pay about $800 more.
I think I needs to be making some babies this year…
Comment by 47th Ward Wednesday, May 27, 09 @ 2:09 pm
I get hammered either way since I am one of those in the taketh away bracket. I would prefer the dooms day budget rather than giving tax money that can and will most likely be squandered. I have no trust in most of our politicians doing the right thing. We unfortunately created this beast through apathy. Hendon gives me a bit of a break but not much.
Comment by Justice Wednesday, May 27, 09 @ 2:11 pm
I never thought I’d agree with anything Rickey Hendon said or did, but…his plan would only be a $700 hike, not a $1200 or $1600 hike.
Go, Rickey.
Comment by Concerned Observer Wednesday, May 27, 09 @ 2:32 pm
Like Rich, I get hit harder under the new Quinn plan than under the old Quinn plan and the hit is significantly less under the Hendon plan. (Wonkish overstates the total cost of the tax increase a bit because the calculation only takes into account the Illinois tax increase and not the impact of the increased federal state income tax deduction. But adding that calculation would get complicated.)
Comment by Just the Facts Wednesday, May 27, 09 @ 2:37 pm
I’m with ya, North of I-80…only Vegas for me.
I’ll be saving 4.5%, instead of losing 3% with Quinn’s new plan.
Only vote in Illinois worth anything = voting with your feet.
Comment by Johnny USA Wednesday, May 27, 09 @ 2:38 pm
“Wonkish overstates the total cost of the tax increase a bit because the calculation only takes into account the Illinois tax increase and not the impact of the increased federal state income tax deduction.”
I don’t know about you, but I take the sales tax deduction (you can deduct either). Since Chicago/Illinois is a high sales tax state, and low income tax state, this makes sense.
Actually, nobody in Chicago (except the super-rich) should take the state income tax deduction.
So, they got it right.
Comment by George Wednesday, May 27, 09 @ 2:55 pm
“So, I take it you’ve never voted in your life?
Great reply Rich. I get so sick and tired of some people bashing “the politicians” when 49% of you were stupid enough to vote for Blago the second time around. Own it!
Comment by siriusly Wednesday, May 27, 09 @ 3:04 pm
As a Republican in my neck of the woods, I can say I haven’t voted for too many winners lately…
Comment by OneMan Wednesday, May 27, 09 @ 3:07 pm
The new Quinn plan takes $400 more than his first plan did. Hey any TV reporters reading Rich’s blog, could you run a feature story on the tax calculator? It’d improve the discussion of state finances on the tube.
Comment by Anonymous Wednesday, May 27, 09 @ 4:28 pm
As a single, childless renter, I’ll be paying about 675 bucks more a year.
I have to agree with others who have said that it hurts more because we know we’re handing money over to “irresponsible spendthrifts” and career politicians who have screwed everything up over the years. Not to mention supporting a state full of patronage supported by collective bargaining agreements. It couldn’t work properly given all the money in the world. There’s too much dead weight, middle management in the state workforce pulling in huge bucks while there aren’t enough people actually performing state services. The bulk of them are political hires.
We live in a sorry ass state, pun intended.
Comment by Sorry Ass State Wednesday, May 27, 09 @ 4:33 pm
Response to George - I agree, you get a choice as to which to deduct. I didn’t say Wonkish got it wrong, I just noted that the total impact of the tax increase is vitiated a bit by the federal deduction.
For me, the federal deduction for state income taxes is always the higher of the choices between income and sales taxes - If my back of the envelope math is correct, under the Quinn plans I would have to make taxable purchases at the local sales tax rate of about $150,000 for the federal sales tax deduction to be worth more than the federal income tax deduction.
Bottom line is that I get hit by the Quinn plans by about $3500 and a little over a thousand less under the Hendon plan.
Comment by Just the Facts Wednesday, May 27, 09 @ 4:48 pm
Not everyone is as wealthy as you “just the facts”
Comment by hmm Wednesday, May 27, 09 @ 5:51 pm
Hey OneMan, AA can relate. We can elect some Rs down here but then sometimes we wish we hadn’t.
AA’s numbers are in the same group with the Captain. Quinn 2.o the highest, Quinn 1.0 in the middle, and Hendon the smallest increase.
AA never thought I would a) be paying a five-figure State income tax bill (Quinn 2.0) and supporting a Hendon proposal. Go figure.
Comment by Arthur Andersen Wednesday, May 27, 09 @ 6:17 pm
Everybody wants to be a victim. While we were all asleep, scoundrels came in from out of state and took over Illinois government.
If only we would have known, we wouldn’t be in this mess….
Comment by wordslinger Wednesday, May 27, 09 @ 6:29 pm
Rich: thanks for the calculator because it greatly Simplified the comparison….wow I will pay more under all plans…
Comment by long time state worker Wednesday, May 27, 09 @ 8:48 pm