Friday, July 20, 2007

Budget negotiation update

BY DEANESE WILLIAMS-HARRIS

Today’s leaders’ meeting focused on spending instead of ways to generate new revenue. There also was talk that electric rate relief may be around the corner.

As far as the budget, there seems to be no visible movement. “Reports that there’s a deal and so forth, that’s erroneous,” Senate President Emil Jones Jr. said.

However, Deputy Governor Shelia Nix said progress has been made, and that next week should be a key week in getting the budget wrapped up by the end of the month.

Sen. Jones said, “The governor had his revenue proposal to drive the budget, and that’s been rejected by the House. We the Senate Democrats put forth our revenue proposal to fund education, to take care of the capital needs of state of Illinois, the House rejected that,”

He also said, “Now perhaps the House will come forth with its revenue measure and maybe the speaker will go ahead and push the income tax.”

In other news, electric rate relief proposal may be in the final stages of completion.

Jones, along with House Speaker Michael Madigan and Attorney General Lisa Madigan has scheduled a fly-around trip to discuss details of a statewide electric rate relief package. “It’s being put together,” Jones said. “It’s not complete as of yet.” However, he did say “the deal is pretty, pretty close.”

The group intends to release the details on Monday said Jones. The trip will begin in Peoria, then to Decatur, Cahokia and end in Marion.

Both chambers will be out for the weekend, the first time since the special sessions began. They’re scheduled to get back to work Monday afternoon.

4 comments:

Anonymous,  4:42 PM  

the house has passed a budget but e. jones doesnt want to talk about that. Just like e. jones doesnt want to talk about ethics reform that would expose the no bid contracts his family members are sub contractors on or talk about all the money Com ed gave him to protect them with this electric rate bill SOME LEADER e. jones is.

Anonymous,  6:30 PM  

Ethics reform is a huge issue, and Jones is a big part of the problem, but the issue taxpayers should be paying attention to right now is the possibility of an income tax.

Remember, under Illinois law, this will be a flat tax. That means that a millionaire will pay an infinitesimal part of his/her income to satisfy the increase, but the middle class will pay a much greater part of its income to pay the tax. Jone is likely a millionaire, at least. Ergo...

Say no to income tax increase. Its a middle class ripoff and the rich won't pay a thing.

Anonymous,  10:25 PM  

a flat tax means everyone pays the same 3% 4% 5% so it really is more fair than anything else. But with the way illinois gov is run we should get a tax rebate and no new taxes should be considered

Huh?,  10:42 PM  

Anonymous said..."Remember, under Illinois law, this will be a flat tax. That means that a millionaire will pay an infinitesimal part of his/her income to satisfy the increase, but the middle class will pay a much greater part of its income to pay the tax."

The part about the millionaire paying an infinitesimal part of their income is false.

The current income tax rate is 3%.

If you have $50,000 in taxable income (after deductions etc) you pay $1,500

If you have 5,000,000 in taxable income (after deductions etc) you pay $150,000

The percentages are the same for the middle class as the millionaire.

If the income tax rate increases to 5% and you make $50,000 you will pay an extra $1,000 while the guy making $5,000,000 will get to pay an extra $100,000.

Again the taxes percentages are the same whether you make $50k or $5mill.

Most people making the $50,000 are being paid wages or salary, so the income tax bite is a little from each pay check. The money is gone and it only hurts a little bit.

According to the Illinois IRS, the 3% tax rate became effective on July 1, 1989 as a temporary increase. It became permanent on July 14, 1993 and retroactive to July 1, 1993.

I have no problem with increasing the income tax. Increase the personal exemptions and standard deductions to make the tax incrase more palatable.

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