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* A few reporters have focused lately on Gov. Pritzker’s warning last year about budgetary “pain” if his graduated income tax didn’t pass. He was asked about that yet again today after a very optimistic over-view of the state of the state’s budget situation…
You said that without the income tax amendment, there would be pain. You mentioned a lot of areas in the budget are flat. Is that the pain, and how can you be so optimistic about the budget if there’s that pain?
Pritzker pointed to an economy performing “much better than anybody had thought,” which is true, and said closing corporate loopholes is a “permanent fix to a piece of the structural deficit.”
* The Illinois Policy Institute believes there’s pain in the budget…
“This budget still includes four of the nine economically harmful tax hikes the governor proposed earlier this year. These business tax increases will mean Illinois’ struggling economy recovers less quickly than it otherwise would from COVID-19. Illinois’ deficits and structural imbalances will continue threatening taxpayers and vulnerable residents if nothing changes.”
* But one group’s pain is another group’s gain…
On Monday, May 31st, both chambers of the Illinois General Assembly voted to approve the 2022 state budget including closing $655 million in corporate tax loopholes used by Illinois’s wealthiest corporations to avoid paying their fair share. This budget provides for significant new investments in childcare, supports for immigrant communities, creation of affordable housing and funding of the state’s evidence-based school funding formula. The following is a statement by the Raise Up IL coalition.
“The closure of four corporate tax loopholes is a step towards full recovery and making Illinois a state where everyone can thrive. Billionaires and corporations saw their wealth and profits soar during the pandemic, while Illinois families struggled to pay rent and keep food on the table. Closing these loopholes will help Illinois invest in public schools, human services and other healthcare, while calling on those who profited from the pandemic to pay their fair share,” said Amisha Patel, Executive Director of Grassroots Collaborative.
“For years we have been talking with our communities about the services they need and how closing tax loopholes is a way to pay for them. Over the last several months members of Raise Up IL have been focused on organizing our communities to let state elected officials know through phone calls, constituent meetings, and emails, that we needed them to stand up to corporate lobbyists and fund the services we need. When we fight, we win!” explained Adele Sims, with ONE Northside.
“We appreciate the state legislators and the governor who listened to the needs of their constituents instead of corporate lobbyists. We are especially thankful to Senator Robert Peters, Senator Ram Villivalam, Rep Delia Ramirez, and Rep Will Guzzardi for their leadership and continued commitment to working families,” stated Marta Popadiak, with The People’s Lobby following the budget vote. “We look forward to continuing to work with legislators and the governor to continue to close the tax loopholes used by the ultra-wealthy and large corporations, so that we can fund and expand the foundational systems communities across the state need to thrive — expanding child care and the home care program fully funding public education, supporting immigrant services, building more affordable housing, and providing tax relief for working-class and low-income families.”
* A coalition of groups backing legislation to expand the Earned Income Tax Credit also believes there’s pain in the budget…
The Illinois General Assembly denied access to up to $1,200 in tax relief to more than a million more low-income Illinoisans when it failed to expand the Earned Income Credit (EIC) early this morning. The bill, HB2792/SB 2184, would have expanded the popular and effective tax credit to a projected 500,000 households in every district across the state.
“It’s disgraceful that the State’s budget continues to leave behind residents who most need our support,” said Harish I. Patel, Director of Economic Security for Illinois. “This past year saw the sharpest rise in poverty in over 50 years. The General Assembly should be proactively seeking ways to curb rising poverty and inequality, yet they willingly neglected to bolster the Earned Income Credit, a proven anti-poverty tool. Our coalition will continue to fight to expand the Earned Income Credit so caregivers, immigrants, and childless workers have access to the relief they deserve.”
* But the ILGOP believes the only pain is for businesses…
Highlights of this year’s budget include:
• $1,100 pay raises for legislators
• A doubling of the legislator district budget allotment
• Hundreds of millions in new discretionary spending
• Increases taxes by over $600 million on job creators across the state
posted by Rich Miller
Tuesday, Jun 1, 21 @ 2:52 pm
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Maybe if the job creators paid more wages and better benefits they would have less taxable income. They could invest in the operations and so on that helps to. Maybe all these business owners should “promise” to do something with their money besides dividends and moving the money off-shore.
Comment by Publius Tuesday, Jun 1, 21 @ 3:18 pm
=== • Increases taxes by over $600 million on job creators across the state===
Elections have consequences.
You defeat the Fair Tax, you get “crushed” by taxes anyway.
It coulda been worse, like $900 million worse.
“Why so mad?”… you won. Right?
Comment by Oswego Willy Tuesday, Jun 1, 21 @ 3:20 pm
Gotta love the “Job Creators” trope. Business doesn’t hire folks out of the goodness of their hearts. They do so because they profit from the fruits other employee’s labor, and many times they increase their profits, exorbitantly, by holding down their employees wages. Time to share those exorbitant profits boys, and if your business model won’t allow you to do so, others who can do so will replace you.
Comment by PublicServant Tuesday, Jun 1, 21 @ 3:28 pm
I’m glad they doubled the legislative allotment to $140K. How can anyone pay a staffer and run an office on $70K? Working for a state legislator should be a potential career and this will help the legislative branch retain talented people. Staffers are the unsung heroes. We need more of them that can have a career in public service.
Comment by Dan Johnson Tuesday, Jun 1, 21 @ 3:36 pm
If Republicans really object to the pay raise and the increase in district allotment, then they can refuse them. Practice what they preach.
Comment by anon2 Tuesday, Jun 1, 21 @ 3:37 pm
More safe D seats and more money for those Ds to pay staff to do work on name recognition.
This is the 2021 session in a nutshell.
Comment by Smell the Coffee Tuesday, Jun 1, 21 @ 4:00 pm
=== More safe D seats and more money for those Ds to pay staff to do work on name recognition. ===
Start winning, or continue to whine from the sidelines. Oh wait.
Comment by PublicServant Tuesday, Jun 1, 21 @ 4:02 pm
I agree with PublicServant. The D’s own. I expect our financial situation to improve dramatically over the next decade. I wouldn’t be surprised if they somehow get this pension deficit in order. I look to see Illinois population to actually increase this decade. I am extremely confident that the gun violence across the state will also show drastic improvement. Yes. The future is bright.
Comment by Blue Dog Tuesday, Jun 1, 21 @ 4:10 pm
* Business doesn’t hire folks out of the goodness of their hearts. *
No one ever said they did, and no successful business does. There is a task or tasks that need to be performed, so the business exchanges a salary for having those tasks completed.
Comment by Grumbler Tuesday, Jun 1, 21 @ 4:27 pm
Pretty sure two of the four “loopholes” won’t have a net revenue impact over the long term. NOL’s and depreciation will all be taken in future years. Hard to argue that’s a long-term fix.
Probably should just fess up that he oversold the need for a graduated income tax structure and all of the revenue that came with it. It was always about spending.
Comment by Phenomynous Tuesday, Jun 1, 21 @ 4:42 pm
=== There is a task or tasks that need to be performed, so the business exchanges a salary for having those tasks completed. ===
And advocating for policies that make those workers desperate. Like refusing to increase the minimum wage to levels adjusted for inflation. And advocating for a diminution of unemployment benefits at a time when couples with children under 12 cannot be vaccinated, thus forcing them back into the work force. And attempting to reduce social security benefits to force people to work well into their retirement years. And supporting policies to increase H1-B visas to import tech workers to work for less because of the enticement of citizenship…IT employees you know what I mean. These are only a modicum of anti-worker policies supported by today’s Republican party.
Other than that, Grumbler, you’re right. They exchange wages and salary for work performed…just not enough in most cases.
Comment by PublicServant Tuesday, Jun 1, 21 @ 4:52 pm
“I’m glad they doubled the legislative allotment to $140K. How can anyone pay a staffer and run an office on $70K? Working for a state legislator should be a potential career and this will help the legislative branch retain talented people. Staffers are the unsung heroes. We need more of them that can have a career in public service.”
Agreed. I think we all know more than a few electeds who must fundraise to help support constituent services.
Comment by Proud Sucker Tuesday, Jun 1, 21 @ 6:04 pm