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* From Will Allison at the Rauner campaign…
Hey, everyone-
Yesterday, JB Pritzker spoke to Crain’s to reaffirm his call for higher taxes. But while he’s talked glowingly about a “graduated income tax,” he’s not waiting for a constitutional amendment. Instead, he’s ready to hit every single Illinoisan with yet another tax hike.
Crain’s: “Pritzker said he has a short-term remedy: raise the overall rate, but then effectively lower it for most taxpayers by adding and expanding deductions for those with low and moderate incomes.”
So Pritzker is firm in his stance for higher tax rates, but incredibly vague on possible deductions to spare low-income taxpayers and the middle class. That means millions of Illinoisans will have to hope and pray that they’ll be lucky to qualify for one of Pritzker’s hypothetical deductions while knowing for sure that their tax rate will go up.
Is anyone really willing to take that bet?
Expect to hear plenty more attacks like this in the coming days, weeks and months. You can basically sum up the Republican attacks as: Madigan, corruption (toilets, offshore accounts, etc.) and tax hikes.
posted by Rich Miller
Thursday, Mar 22, 18 @ 9:41 am
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I read that quote and see that he is lowering taxes on the people who need it most. Seems fair to me.
Comment by Sox Fan Thursday, Mar 22, 18 @ 9:46 am
As mentioned in a number of Rich’s posts, people don’t do nuance. Rauner will not outline Pritzker’s full position. If video trackers catch JB stepping on a bug, Rauner ads would proclaim that JB favors crushing little ones.
Comment by Norseman Thursday, Mar 22, 18 @ 9:50 am
Rauner has the huge challenge of winning the collar counties where he suffered in this primary. Highlighting a progressive sales tax in those suburbs won’t make people fall in love with Rauner, but it will sure cause them to vote for him. Book it.
Comment by A guy Thursday, Mar 22, 18 @ 9:56 am
Hey Will, you work for Bruce Rauner. Why should we believe you?
Comment by Cheryl44 Thursday, Mar 22, 18 @ 9:59 am
“Madigan, corruption (toilets, offshore accounts, etc.)” Ok, got it. Can we just skip the next 7 months of negative ads and get to the election part?
Comment by Skeptic Thursday, Mar 22, 18 @ 10:03 am
Toilets and offshore accounts aren’t the kinds of “corruption” that will impress Illinois voters. Ryan and Blago have already set the bar pretty high on that and it will require either a bribes scandal or stalling a children’s hospital permit until campaign donations are forthcoming to get people’s attention. Plus cocaine, somewhere.
Comment by Nick Name Thursday, Mar 22, 18 @ 10:03 am
Rauner does not want the wealthy to pay there fair share… If Pritzker keeps telling people this and make it a theme I will bet Rauner will leave the tax talk alone.
Comment by Real Thursday, Mar 22, 18 @ 10:05 am
JB is facing reality that even with the recent tax hike, the state still does not have enough money to pay the bills.
Comment by Huh? Thursday, Mar 22, 18 @ 10:08 am
Rauner is looking to push a billion dollars of pension payments on to property taxpayers so that he can give a billion dollar income tax cut that will largely benefit the wealthiest. JB’s vague plan sounds better.
Comment by Juice Thursday, Mar 22, 18 @ 10:10 am
===Book it.===
Tell me more about this “progressive sales tax,” Danno.
Comment by 47th Ward Thursday, Mar 22, 18 @ 10:19 am
Almost no one will see a decrease in income tax.
Comment by Ron Thursday, Mar 22, 18 @ 10:24 am
RNUG deserves some credit for this. He proposed it on capfax years ago and with one quarter of all income above a quarter million I think most people will get a cut .It would be even more popular with any property tax relief.
Comment by Not a Billionaire Thursday, Mar 22, 18 @ 10:39 am
Ron. The ones who leave the state prolly will
Comment by Blue dog dem Thursday, Mar 22, 18 @ 10:43 am
Bruce told Mike to let the tax hike expire. Bruce said he had some great plan. Still waiting to hear Bruceies plan. The only thing I ever hear from him is blame Madigan. Madigan worked with other Republicans without a problem.
Bruce Rauner-
Worst. Governor. Ever.
Comment by Mike Cirrincione Thursday, Mar 22, 18 @ 10:50 am
==I read that quote and see that he is lowering taxes on the people who need it most.==
Depends on what qualifies as lowering. Nearly 60% of state tax returns filed are under $50K AGI, but those returns only account for 15% of the revenue. I can’t imagine those on the low end would see any significant cut because there’s not much to cut.
Comment by City Zen Thursday, Mar 22, 18 @ 10:51 am
==but then effectively lower it for most taxpayers by adding and expanding deductions for those with low and moderate incomes.”==
Enacting a graduated income tax requires a constitutional
amendment. Lawyers have told me that, if an action requires a CA, it is unconstitutional to attempt to backdoor it by trickery or
manipulation. It is up to interpretation what is modest modification of deductions, and what is a backdoor scheme.
Pritzker cant get away indefinitely without showing actual numbers. This constitutional interpretation will also need to be vetted publicly. Btw, years ago, LaPaille had a sweeping bill to attempt this.
Comment by Langhorne Thursday, Mar 22, 18 @ 10:54 am
The only tax package JB should be talking about is how to construct a tax swap.
The schools need to get completely off the property tax bills.
If New Trier wants to spend $10k’s more per pupil, let them set up NFPs. Most(?) of the state’s schools don’t get the results they should for the money they are ripping from Illinois owners via property tax bills. /ha
Comment by cdog Thursday, Mar 22, 18 @ 11:03 am
The Federal “re-cut” for taxes expires in 2025 for individuals. A progressive tax program set against that just might gain some good traction in the coming years.
Comment by Anon221 Thursday, Mar 22, 18 @ 11:05 am
==Tell me more about this “progressive sales tax,” Danno.===
Might not break wind or catch a wave in the 47th Ward, but in those stately, leafy burbs where they’re already fed up completely with their tax burden, property, state and feds…it will resonate loudly. Hey your billionaire ripped out commodes to avoid property taxes. You think those wealthy suburbanites want to see their income taxes for Illinois go up toward 10 percent? Just watch. It’s the only thing they may agree with Rauner on. But it is definitely “the thing” Danno.
Comment by A guy Thursday, Mar 22, 18 @ 11:10 am
JB eyes a state income tax higher than 4.95%. Will other elected Democrats support this in the legislature since it can be quite confusing when you add in deductions ? Will Rauner run ads that everyone is getting a tax increase under JB?
Comment by Steve Thursday, Mar 22, 18 @ 11:14 am
The Rauner campaign has to make suburban voters care more about a possible tax hike than they care about Bruce’s first term record of dishonesty and ineffectiveness.
That seems like a heavy lift.
– MrJM
Comment by @misterjayem Thursday, Mar 22, 18 @ 11:30 am
==That seems like a heavy lift.===
True JM. But a much lighter load in the suburbs.
Comment by A guy Thursday, Mar 22, 18 @ 11:37 am
== make suburban voters care more about a possible tax hike than they care about Bruce’s first term record of dishonesty and ineffectiveness.==
Suburban prioritization list:
1) My money
2) My money
…
998) Politicians’ dishonesty and ineffectiveness
Comment by City Zen Thursday, Mar 22, 18 @ 11:42 am
Seventy-six percent of poll respondents support a millionaire surcharge; Seventy-two percent support a progressive income tax. That’s very strong support.
If Pritzker’s plan cuts taxes of those who are not among the highest incomes, which is many people, and many homeowners in suburbs, that could be politically potent. Pritzker would sell this against Rauner’s plan of lowering taxes through massive cuts to middle class workers.
Comment by Grandson of Man Thursday, Mar 22, 18 @ 11:48 am
Vagueness is the critic’s friend. JB needs to come out with a specific tax plan that will mean tax cuts for 80-90 percent of residents. That would make it clear there would be no tax hike, as the GOP insists, for the vast majority of Illinoisans. Instead, they would enjoy a tax cut. Let the GOP defend the wealthiest residents from a tax hike that would still have a top rate lower than in Wisconsin and Minnesota.
Comment by anon2 Thursday, Mar 22, 18 @ 11:55 am
Cant believe anyone would want a graduated income tax. In California it starts at 41k = 8% rate, At 51k = 9.3% and up up from there. So my mailman in Illinois would be paying a graduated rate
Comment by Silicon Prairie Thursday, Mar 22, 18 @ 11:56 am
Graduated income tax without pension elimination is theft
Comment by Ron Thursday, Mar 22, 18 @ 12:16 pm
*Cant believe anyone would want a graduated income tax. In California it starts at 41k = 8% rate, At 51k = 9.3% and up up from there. So my mailman in Illinois would be paying a graduated rate*
A) We all already are part of a graduated tax system at the federal level.
B) Throwing out random examples of tax rates in other states isn’t the strongest argument against a graduated tax system.
Comment by Montrose Thursday, Mar 22, 18 @ 12:24 pm
== Graduated income tax without pension elimination is theft ==
Tier 2 pensions are supposed to be fully funded by only the employee contributions (snd earnings on those contributions), so I would argue that government supported pensions were eliminated for new hires in 2011.
So when do we get the graduated income tax?
Comment by RNUG Thursday, Mar 22, 18 @ 12:32 pm
One of our top priorities should be to pay pension debt. I like the concept of debt reamortization. I wish a tax hike on the highest incomes could be used either directly or indirectly to accomplish reliability and stability in paying our bills.
Comment by Grandson of Man Thursday, Mar 22, 18 @ 12:32 pm
===You think those wealthy suburbanites want to see their income taxes for Illinois go up toward 10 percent?===
Lol. I was poking you for making a typo Guy. There is no such thing as a progressive sales tax, but on the other hand, no reason to think Rauner won’t make that lie up about Pritzker nonetheless.
A better response on your part might have included an admission that you made a mistake. But then, that would require an almost complete personality transplant, so I won’t hold my breath. Just be glad that I’m out here reading your comments.
PS: Have a nice day.
Comment by 47th Ward Thursday, Mar 22, 18 @ 12:39 pm
JB can’t fix the revenue problem because he already tied one hand behind himself when he came out against taxing retirement income. He is going to find out the hard way that Illinois is so fiscally broken that it can’t be fixed. On top of that, JB is actually saying he wants to spend even more money the state doesn’t have on other issues like health care. It all sounds great, until you get into office and have to play ball with Madigan and his toady Cullerton.
Before he decides to go after the wealthy in a punitive way, JB should consider how much easier it is to leave a state than it used to be. It has been happening for years, and accelerating the exodus won’t help. I wish him luck.
Comment by SSL Thursday, Mar 22, 18 @ 12:48 pm
==So when do we get the graduated income tax?==
When retirees are included. Come join the party. You don’t want to be a free rider like that Janus fellow, now do you?
Comment by City Zen Thursday, Mar 22, 18 @ 12:48 pm
==Cant believe anyone would want a graduated income tax. In California it starts at 41k = 8% rate, At 51k = 9.3% and up up from there.==
But Arizona’s rates are 2.59%-4.54% above $150K. That’s very progressive and a rate structure we can all get behind.
Comment by City Zen Thursday, Mar 22, 18 @ 12:50 pm
The tax burden has to be shifted, for state and local taxes, more onto the highest incomes. Our taxes are regressive. This has to be done and sold as tax cuts for lots of people. We know the millionaire surcharge is very popular, as is now the progressive income tax. That is a great starting place.
It’s this type of way or Rauner’s way, which is making middle class workers eat the lion’s share of sacrifice.
I think a lot should be mentioned specifically about Rauner’s plans for lowering taxes, which were strongly rejected in local governments and the GA. That is local RtW, major stripping of local government employees’ collective bargaining rights, repealing prevailing wage, exacting harsh cuts on state employees, such as doubling health insurance costs, the union-busting Janus case, etc.
We should have a choice of two paths to follow. Pritzker owes it to us to come up with a plan that is fair and effective.
The prospect of marijuana legalization is so very exciting right now. That’s a lot of revenue that would help taxpayers.
Comment by Grandson of Man Thursday, Mar 22, 18 @ 1:25 pm
Overtime a graduated state income tax , in a place like Illinois, will have many people paying over 4.95% no matter what today’s politicians say. Once you go graduated: there will be little restraint on income taxation. Illinois doesn’t have a revenue problem but a major spending/public pension problem. Few people in Arizona are paying 10k in property taxes…..
Comment by Steve Thursday, Mar 22, 18 @ 1:40 pm
==so I won’t hold my breath.===
C’mon 47. Be a sport. Hold your breath.
Comment by A guy Thursday, Mar 22, 18 @ 1:49 pm
Illinois is NOT damaged beyond repair! It is, in fact, damaged severly and getting worse by the day by doing absolutely nothing.
The last 4 years have plunged it down the drain further.
As we wring out hands, worrying about all the debt it gets higher every day with no attention given to it.
THere are solutions as the ILlinois Supremes ruled (with respect to pension debt). It’s just that no one wants to do a damn thing about it other than whine and point fingers.
Comment by Anonymous Thursday, Mar 22, 18 @ 1:53 pm
Thanks for proving my point.
Comment by 47th Ward Thursday, Mar 22, 18 @ 1:55 pm
RNUG @12:32
Thank you for pointing out that in 2011 we did, in fact, have pension reform. It has been accomplished. All over and done with. Now address the debt.
Comment by Anonymous Thursday, Mar 22, 18 @ 3:05 pm
==Thanks for proving my point.===
There you go again, talking off the top of your head.
Comment by A guy Thursday, Mar 22, 18 @ 3:07 pm
== When retirees are included. Come join the party. You don’t want to be a free rider like that Janus fellow, now do you? ==
I’ll admit I don’t pay a lot of state income tax as a retiree, but I do have some other income and pay a little bit. Heck, I’m a sucker and even fill in the Use Tax line most people skip or zero out.
With 4 cars and 2 trailers, the State gets a bit more of my money.
Plus the local school district, I’m sure, loves me paying taxes on 2.5 houses.
So I’m probably paying more in taxes than you think I am … just not on the IL-1040.
Comment by RNUG Thursday, Mar 22, 18 @ 3:53 pm
Montross : “Throwing out random examples of tax rates in other states isn’t the strongest argument against a graduated tax system ”
I would say it is important talking about what other states do about graduated income tax proposals. My California example shows high income tax, but the reason it is high is they passed Proposition 13 in the 70s for property taxes– so one tax is high and one is lower. What JB is proposing is keeping property taxes the same (high) and then jacking up income taxes - high tax and high tax
Comment by Silicon Prairie Thursday, Mar 22, 18 @ 5:01 pm
Why must we focus on “revenue”. We have one of the highest state and local tax burdens now. Can’t we start some spending cuts?
Comment by Ron Thursday, Mar 22, 18 @ 5:06 pm
What would you cut?
Comment by Anonymous Thursday, Mar 22, 18 @ 5:12 pm
Everything.
Comment by Ron Thursday, Mar 22, 18 @ 5:14 pm
5% across the board? Simple spending freeze.
Comment by Ron Thursday, Mar 22, 18 @ 5:14 pm
No new programs. No new public union hires.
Comment by Ron Thursday, Mar 22, 18 @ 5:15 pm
Teacher pensions to the local schools.
Comment by Ron Thursday, Mar 22, 18 @ 5:15 pm
The democrats gave us the last 2 tax increases. The tax and spend is the way they work. Pritzker as governor will continue this policy and the state will continue to loose tax payers, to out migration.
Comment by Anonymous Thursday, Mar 22, 18 @ 5:16 pm
===loose tax payers===
Lose.
I don’t usually care about typos but that misspelling truly grates on me. Please do better. Also don’t write “add” for ad. Ugh [exclamation point]
Comment by Rich Miller Thursday, Mar 22, 18 @ 5:19 pm
==What JB is proposing is keeping property taxes the same (high) and then jacking up income taxes - high tax and high tax==
Yes. For every dollar extracted in a progressive income tax plan, I want to know how much money comes back in property tax savings. If it’s zero, we’ve got a big problem.
==So I’m probably paying more in taxes than you think I am … just not on the IL-1040.==
I’ll send your regrets to the state university system and social services.
Comment by City Zen Thursday, Mar 22, 18 @ 5:21 pm
Anonymous, to be fair, Illinois Republicans are just as bad.
Comment by Ron Thursday, Mar 22, 18 @ 5:21 pm
== 5% across the board? Simple spending freeze. ==
On the three budgets Quinn had control over, there were 10%, 10% and 11% cuts mostly across the board. Better than what Rauner has done with his unauthorized It spending and pinstripe patronage.
So just how far do you think they can cut? And for how many years?
Comment by RNUG Thursday, Mar 22, 18 @ 6:55 pm
== Teacher pensions to the local schools. ==
So I’ll mark you down as being in favor of property tax increases.
Comment by RNUG Thursday, Mar 22, 18 @ 6:59 pm
Sure, people can boo local pols who over spend and promise way too generous of benefits to local public workers. If they like high RE that’s their right. I can’t stand paying for Lake Forest teacher’s pensions.
Comment by Ron Thursday, Mar 22, 18 @ 9:37 pm
Or Carbondale’s
Comment by Ron Thursday, Mar 22, 18 @ 9:37 pm
RNUG, we clearly have to cut more. Illinois is losing people faster than any state but West Virginia. We have one of the highest tax burdens in the nation. We have a spending problem.
Comment by Anonymous Thursday, Mar 22, 18 @ 9:39 pm
== We have one of the highest tax burdens in the nation. We have a spending problem. ==
Actually, we have a current DEBT problem from previous spending. The current spending, minus DEBT service, isn’t very far of line.
And the debt service is both the pension shortfall and the outstanding bonds.
Comment by RNUG Thursday, Mar 22, 18 @ 10:15 pm
Yep, we have a spending problem.
Comment by Ron Friday, Mar 23, 18 @ 6:32 am
Last I checked it takes spending money to pay debt. We have a spending problem with one of the highest tax burdens in the nation we still don’t have enough to balane the budget.
Comment by Ron Friday, Mar 23, 18 @ 6:34 am
Silicon, Prop 13 absolutely destroyed the education system in California, which up until then had been stellar. Ronald Reagan as governor destroyed higher education, which had been free to California residents. Illinois’s education funding problem is that the state doesn’t cover its share so local property taxes must make up the difference. Then politicians campaign on capping property taxes. Where do you think the money for educating our future will come fron?
Comment by Chicago Barb Friday, Mar 23, 18 @ 10:49 am