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It’s all one thing

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* Politico

Legislators are expected to vote for J.B. Pritzker’s progressive income tax plan by the time the session ends in May. And you can expect the capital bill and budget to be approved at the same time, too.

That’s because Democratic leaders are subtly offering a piece of the capital bill to get votes for the progressive income tax. Lawmakers get a sense that they could be treated well in the capital bill if they vote in favor of a graduated income tax, which Pritzker calls “the fair tax.”

The constitutional change to secure the progressive income tax is expected to be introduced in the state Senate by next week for a first reading.

The message to lawmakers is that the capital bill won’t be possible without supporting the progressive income tax. “If we can’t put ourselves on a path to balance the budget, we can’t ask people to support the taxes necessary to fund a capital bill,” a Dem leader told POLITICO. Funding the capital bill would likely include a gas tax and license-plate fees. […]

Slowing down or rejecting a revenue proposal has consequences. During a recent Democratic Caucus meeting, lawmakers were told that they’ve got to come up with areas in the budget to cut if Pritzker’s menu of revenue generators aren’t met. After going through that exercise, it’s expected the progressive income tax might be more appealing after all.

Mostly true except the Senate won’t be in session next week. You could possibly see some movement this week if the Senate Democratic caucus decides to get the proposal into place for a quick vote after the two-week spring break.

Again, the rest of the excerpt above is pretty accurate. There was a time during the impasse, for instance, that Senate President Cullerton seriously considered running a capital bill. But he pulled back because spending money on infrastructure while not having a state budget in place was just too much to ask.

Capital bills can be wonderful things for governors because they can be used to help attract votes for less palatable proposals. The progressive tax would be no exception.

And those budget briefings are also helping convince Democrats to back Pritzker’s pension holiday. The budget as it stands doesn’t “work” without the nearly $900 million annual diversion.

* Related…

* Lawmakers hear requests for local funding, little on where to find money: After hearing hours of requests, committee chairman Martin Sandoval, D-Chicago, became frustrated with officials ready to ask for millions for projects, but afraid to endorse higher taxes to pay for those projects.

* Local officials outline capital project needs at Peoria legislative hearing: Committee co-chairman Martin Sandoval, D-Chicago, repeatedly pressed panelists on what their institutions and governments were doing to ensure they had adequate participation from minority businesses in their existing operations and ongoing projects. In some instances, those testifying could not provide estimates on those participation levels, or were unfamiliar with voluntary state programs to report that data. Sandoval suggested he’d be interested in a component in a capital bill that had stricter requirements for achieving set participation levels.

posted by Rich Miller
Tuesday, Apr 9, 19 @ 9:15 am

Comments

  1. Haven’t found a revenue source for a capital bill..Haven’t truly identified horizontal and vertical needs.. once you find the revenue, you need time to find the votes… gone for the next 2 weeks… clock is ticking..

    Comment by NotRich Tuesday, Apr 9, 19 @ 9:21 am

  2. Another pension holiday. Isn’t that part of how we got to where we are today? Do these people never learn?

    Comment by NeverPoliticallyCorrect Tuesday, Apr 9, 19 @ 9:24 am

  3. If JB is able to pull off min wage, Fair Tax, sports betting, pot legalization, and a capital bill in one session (with like 5 people working in the Administration/s) I will be pretty darn impressed.

    Comment by Centennial Tuesday, Apr 9, 19 @ 9:25 am

  4. Budget doesn’t work without a pension holiday.
    Same as it ever was.
    Same as it ever was.

    Comment by Keyrock Tuesday, Apr 9, 19 @ 9:28 am

  5. The original link to Sandoval went oh no 403; here’s a different link:
    https://www.ilnews.org/sen-martin-sandoval-presses-officials-asking-for-funding-to-endorse/video_2b00f260-5a4b-11e9-922b-7773e2e6a4fe.html

    Comment by revvedup Tuesday, Apr 9, 19 @ 9:34 am

  6. Pension holiday? Even a partial pension holiday, which is probably more accurate, is insane.

    Raise enough revenue to pay for the bills. If Pritzker wants to add spending then raise the revenue. For crying out loud, he campaigned on fixing the pension debt issue.

    Comment by JS Mill Tuesday, Apr 9, 19 @ 9:38 am

  7. “If we can’t put ourselves on a path to balance the budget, we can’t ask people to support the taxes necessary to fund a capital bill,” a Dem leader told POLITICO.

    This says it all about the leadership of the Democratic party in Illinois.

    Another permanent income tax hike coupled with more shorting the pensions, zero reforms of state government or the cost drivers for the debt, zero pro business legislation to help grow the tax base, will only “put us on a path” to the constitutionally required balanced budget we were told was balanced last year.

    Trust us this time Illinois residents.

    Comment by Lucky Pierre Tuesday, Apr 9, 19 @ 9:46 am

  8. Looks like a good idea, to sweeten up the fair tax vote with a capital bill. The bottom line is that the tax vote doesn’t raise taxes itself but puts the issue to the voters. That should ease concerns. Let the voters decide.

    Comment by Grandson of Man Tuesday, Apr 9, 19 @ 9:49 am

  9. A vote on these matters, or any matters, can happen quickly as the GA is exempt from the Open Meetings Act posting and notification requirements. For other bodies, it is required that actions be announced and posted at least 48 hours in advance. These things will run through like a hot knife through butter.

    Comment by Just a guy... Tuesday, Apr 9, 19 @ 9:55 am

  10. Want new revenue? Tax churches and campaign contributions. Both seem to have money.

    Comment by Generic Drone Tuesday, Apr 9, 19 @ 9:59 am

  11. How can you have any pudding if you don’t eat your meat?

    Comment by SAP Tuesday, Apr 9, 19 @ 9:59 am

  12. How is that going to work with Republicans who presumably aren’t going to vote for the graduated income tax? Are those districts left out of the capital bill? I would assume not, does that mean you could have Democrats who don’t vote for fair tax get less in the capital bill than Republicans? That would be weird, but fun to read about.

    Comment by The Captain Tuesday, Apr 9, 19 @ 10:02 am

  13. ==Tax churches and campaign contributions.==

    I’m a major proponent of taxing campaign transfers between committees. I’d also support taxing large-dollar donations. If some random dark money PAC wants to give a lawmaker 10k, they should have pay taxes on 10% of that. It’s novel, and it’s hard to find a constituency that wouldn’t support it beyond those PACs and the lawmakers they support. Which of course means it won’t happen.

    Comment by PJ Tuesday, Apr 9, 19 @ 10:21 am

  14. Taxing campaign contributions would more than likely run into free speech/First Amendment conflicts.

    Comment by Louis G. Atsaves Tuesday, Apr 9, 19 @ 10:32 am

  15. I love it when a plan comes together.

    Got a public univ in your district? Step right up. Green button is right there. Vote no, and wait for leadership to get you reelected.

    My first LP comment: rauner lost. Be specific, rauner-speak like “reform”, cost drivers, pro business legislation, doesnt cut it. Big things are happening. You gotta give to get. Opposing everything, and yet expecting the other side to capitulate is pointless.

    Politics is the accumulation of advantage under conditions of scarcity and change. Are you part of 60 and 30 (or more) or not?

    Comment by Langhorne Tuesday, Apr 9, 19 @ 10:51 am

  16. While the capital bill may help get it on the ballot. The gas tax which does not poll as well will be used against I bet.Also why do private universities get public money?

    Comment by Not a Billionaire Tuesday, Apr 9, 19 @ 11:03 am

  17. How on earth is this pension holiday acceptable under the circumstances? What is the political reasoning behind it? Is there any budgetary or economic reasoning behind it at all?

    Comment by Angry Chicagoan Tuesday, Apr 9, 19 @ 11:07 am

  18. Yeah, the pension short is a no-go in my book. Give the pensions the tollway proceeds and continue to pay a set static amount/year, but no more pension shorting, otherwise you’re pulling a blago.

    Comment by PublicServant Tuesday, Apr 9, 19 @ 11:35 am

  19. ==Tax churches and campaign contributions.==

    I think you are missing that a higher tax on high earners would be a tax on those giving to those two entities.

    Comment by Hamilton Tuesday, Apr 9, 19 @ 11:40 am

  20. ===Give the pensions the tollway proceeds===
    Right now, the tollway is basically a revenue-neutral self-funder. Are you suggesting they double their rates and give half to the state pension funds? A heavy lift for the suburbanites who would bear the brunt of it.

    Comment by Six Degrees of Separation Tuesday, Apr 9, 19 @ 11:44 am

  21. Tax churches?

    One sure fire way to avoid raising taxes on most progressives

    Comment by Lucky Pierre Tuesday, Apr 9, 19 @ 11:46 am

  22. “zero pro business legislation to help grow the tax base”

    The business groups and individuals pushing “pro business” are doing more than fine. Income distribution has greatly favored the rich and 1% in Illinois, for decades. Plus, corporations just got a huge federal tax cut. How greedy can these people get?

    The tax bases are quite fine in progressive tax states, especially Minnesota and California. Let’s emulate those instead of low-wage RTWFL states.

    We don’t need anti-unionism here in Illinois, which is what the “pro-business” crowd really wants. We have a lot to offer, and corporations know it, as they continually choose to relocate to Chicago metro more than any other region. What we need is tax fairness, education funding and fiscal stability, and the best bet for that is a graduated income tax.

    Comment by Grandson of Man Tuesday, Apr 9, 19 @ 11:49 am

  23. ==Tax churches?

    One sure fire way to avoid raising taxes on most progressives==

    What is that supposed to mean? Are we really bringing that sort of trash to the argument?

    Comment by Demoralized Tuesday, Apr 9, 19 @ 12:34 pm

  24. Increase MFT, remove gas sales tax, hit electric vehicles up for realistic licensure and dedicate MFT to infrastructure.

    Comment by theCardinal Tuesday, Apr 9, 19 @ 1:00 pm

  25. Demoralized, I think you know what it means. LP doesn’t think progressives go to, or at least give money to, churches.

    Comment by Perrid Tuesday, Apr 9, 19 @ 1:07 pm

  26. ==Give the pensions the tollway proceeds== Two words for you: lock box.

    Comment by SAP Tuesday, Apr 9, 19 @ 1:50 pm

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