Showing posts with label 50% Income Tax Hike. Show all posts
Showing posts with label 50% Income Tax Hike. Show all posts

Thursday, September 03, 2009

Hynes challenges Quinn and his tax plan

By Bethany Jaeger
The Democratic primary election between Illinois Gov. Pat Quinn and Comptroller Dan Hynes gained another dynamic Wednesday as Hynes officially announced his candidacy for governor with a proposal to raise the state income tax based on income.


Both political campaigns are staying true to their original slogans that we wrote about during the State Fair. Hynes says Quinn received his job by default after the legislature impeached former Gov. Rod Blagojevich and that Quinn has since failed to implement a consistent and calibrated agenda. Quinn, on the other hand, maintains that Hynes, as comptroller, has stood on the sidelines as a “shrinking violet.”

Before today, however, Hynes had not officially announced where he stood on an income tax increase other than saying the legislature and governor should look to cut spending first. On Wednesday, he announced, first in Chicago then in Springfield, a three-step plan that would rely on various cuts and efficiencies this fiscal year and propose a graduated income tax next fiscal year.

Because the state Constitution specifies Illinois’ income tax rate is a “flat” rate applied evenly to individuals, as well as a separate flat rate applied to businesses, changing the tax structure to a graduated rate would require a constitutional amendment. Hynes said he would want the General Assembly to approve a measure to put the question to voters about whether to change the Constitution in the November 2010 election.

The graduated rate, according to Hynes, would range from the current 3 percent on individuals to a new 7.5 percent, which Hynes said would only apply to individuals who make more than $1 million a year. He would not change the corporate rate. If instituted in January 2011, Hynes said the new tax would generate $5.5 billion to help close the budget deficit his second year in office.

Quinn, in his March budget proposal to the General Assembly, proposed raising the individual income tax rate from 3 percent to 4.5 percent and the corporate rate from 4.8 percent to 7.2 percent, but he would keep the rate “flat,” which would not require a constitutional amendment.

“Rather than taking years to enact through a constitutional amendment, it could have been done quickly through an act of the legislature,” said John Kupper, spokesman for the Taxpayers for Quinn campaign.

Quinn also wanted to triple the personal tax exemption, which he said in March would mean that about half of the state’s taxpayers would pay less, while the other half would pay more than they currently do.

Today, Hynes countered that Quinn would levy a 50 percent higher tax rate on all taxpayers, while his proposal would only increase taxes on those making more than $200,000 a year. “Because of the graduated income tax and the way it is designed, you’re actually going to pay more under Pat Quinn’s plan, even if you make a half a million dollars a year,” Hynes said in Springfield. “That is why his plan is not only inequitable and unfair, but really, wrongheaded and backwards.”

Both Quinn and Hynes use similar language — cut spending before seeking higher taxes — (we quoted Quinn as saying it in June, when budget negotiations hit a stalemate). Quinn cut $1 billion in spending already and said he is working toward another $1 billion as part of the final budget agreement for fiscal year 2010 (the current year).

But Hynes says Quinn’s approach to cutting is across-the-board and, therefore, unfair. Instead, one of Hynes’ cost-cutting proposals is to fire half of Blagojevich’s political employees or appointees making more than $70,000 a year. Hynes said his campaign identified 1,600 such employees through state payroll. Firing half of them, or 800 workers, would save $100 million a year, he said, but it would be up to the governor and his agency directors to determine which half to fire.

Other immediate cost-saving measures proposed by Hynes today include reducing discretionary grants, slashing contracts for advertising, consulting and other professional services and closing so-called tax loopholes by expanding the state sales tax to include such “luxury” services as Botox cosmetic injections, car and truck rentals and membership of private clubs. He’d also borrow $1.5 billion to pay down backlogged bills, which he said would leverage enhanced federal reimbursements temporarily available through the federal stimulus package.

Hynes said those would be the prelude to the second year, when he would then increase the income tax, merge the comptroller’s and treasurer’s offices and create two or three more gaming licenses to open new casinos, among other ideas. (See his proposals here.)

Several of his ideas — instituting a graduated income tax structure, building three new casinos, increasing the sales tax on cigarettes by $1, closing corporate tax breaks and prohibiting the state from rolling over unpaid bills into the next fiscal year — have been proposed within the past few years but have all stalled in the legislature.

In a phone interview shortly after the Springfield event, Hynes said legislators who opposed those ideas in the past might look at them in a different light under the current economic and fiscal circumstances. He added that his leadership style would differ. “I’d like to think that I have the ability to persuade lawmakers that this is the correct path. Part of that is leadership. Part of it is having a clear vision and being consistent, not wavering, not waffling and not changing your opinion, your position and your plan every week.”

Kupper of the Quinn campaign dismissed Hynes’ ideas as playing politics. “In a very real sense, this is a proposal that was put together for the benefit of a political campaign and not a serious effort to address the state’s fiscal problems,” he said. “It’s a lot of rehashed proposals that came right out of the political playbook 101. The question is better addressed to Dan Hynes as to how he is going to enact these things, since he’s pretty much been on the sidelines as these budget issues have been debated.”

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Thursday, July 09, 2009

Looks good for capital, not so much for budget

By Bethany Jaeger
It’s taken a decade, but Gov. Pat Quinn said that come Monday, the state would have a major infrastructure program in place to help spur the economy and send people back to work.

Downstate legislators who met with the governor Thursday afternoon in the Executive Mansion expressed bittersweet sentiments: The governor would sign the long-awaited public works program to send laborers and others back to work, but thousands of other public employees and the people they serve are on the brink of losing their jobs and their access to critical aid. That's because the governor and the legislature still haven’t enacted a balanced operating budget, despite a new fiscal year that started July 1.

Rep. Brandon Phelps, a Harrisburg Democrat, for instance, is in a downstate area in need of economic development. However, he also has a prison in his district that could lose employees under Quinn's plan to cut spending by an additional $1 billion. Enacting the capital bill wouldn’t prevent layoffs of 1,000 Department of Correction employees, he said, adding that such significant layoffs might not save as much money as needed to cover the increased overtime costs.

The General Assembly is scheduled to return to the capital city Tuesday, about the same time the comptroller’s office needs to process checks so the first round of state employees would get paid on time. The governor, facing doubt about whether he can persuade more legislators to support an income tax increase to fill what he says is a $9.2 billion budget deficit, said he would consider Plan B, even if that includes a temporary spending plan.

“I’m open to anything that gets us moving in a positive direction, whatever it takes,” Quinn said. That could include a five-month budget so he could continue to lobby for an income tax increase.

But, asked Rep. Bill Black, a Danville Republican, at what level would the five-month budget be based? Would it be based on the $26 billion plan already approved by the legislature but partially vetoed by the governor? Or would it be the $28 billion originally proposed by Quinn?

In May, the legislature approved along partisan lines a budget that reduced funding for human services by half of what the governor proposed. Quinn then vetoed much of that spending plan and said that regardless of whether an income tax increase passes, he would still have to make about $1 billion in cuts. He recently announced a general plan that lacked specifics, although legislators said today they hope by Tuesday to receive more details.

Rep. Roger Eddy, a Hutsonville Republican, said a five-month budget is risky because it would assume that the legislature would approve an income tax increase before the end of the year. “Then you’ve spent for five months based on revenue you may or may not get. I think it’s very risky.” He added, however, that it might be the most politically palatable option for many legislators because by this fall, incumbents would know whether they faced a serious challenger in the next election.

Either way, Eddy said, Quinn faces a “triple negative” in trying to persuade lawmakers to vote for a tax hike because the new revenue would not prevent further budget cuts. “It would be nice to vote for a tax increase — if you have to — and go home and talk about all the new wonderful programs you’re going to start. This combination is: Vote for revenue, borrow $2.2 billion, make $1 billion in cuts above the cuts that have already been made. That’s a pretty tough sell.”

Rep. Mike Bost, a Murphysboro Republican, said he appreciates that Quinn is showing some direction in where he might cut, but he’s concerned that the governor is making broad statements to stir up local residents so they pressure their legislators to approve an income tax increase. The GOP has remained mostly united on opposing a tax hike without action on other cuts and what they see as reforms because they fear giving billions of new dollars to a group of leaders which he said “can’t control themselves.”

Legislators said they could be in session Tuesday through Thursday, although several expressed doubt about how they would solve the budget impasse by then. “I think it’s going to be a challenge for all the pieces to come together,” said Rep. Bob Flider, a Mount Zion Democrat.

CAPITAL

After the legislature in May overwhelmingly approved the first major infrastructure program in a decade, Quinn said he wouldn’t sign the package into law until he received a balanced operating budget on his desk. With little consensus on how to balance a severely out-of-whack budget, the capital program remained in limbo and jeopardized federal matching funds.

The governor said today he would sign the capital program into law on Monday. He previously said on May 31 that the lack of an operating budget would hurt the state’s bond rating, making it more expensive to borrow money.

Thursday afternoon, he said the state still needed both. “I think we need to have a good budget that is a balanced budget that’s fair and decent. Together with a good jobs program, we can get Illinois focused on economic recovery and budget stabilization.”

Shovels might not move dirt for weeks, maybe months. We’ll have more on that and other reaction soon.

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Wednesday, June 24, 2009

Everything in limbo

By Bethany Jaeger, with Jamey Dunn and Hilary Russell contributing
Illinois’ human service providers, as well as other state contractors, remain in limbo as to whether they’ll receive state funding after July 1. The General Assembly finished its special legislative session this afternoon without sending a spending plan to the governor. Lawmakers aren’t scheduled to return until Monday afternoon (the Senate won’t be back until Tuesday), which some providers said would be too late. Providers, many of whom rallied at the Capitol yesterday, anticipate having to close their doors or lay off employees without a state operating budget in place by then.



“What’s going on right now is cruel, it’s cynical and it doesn’t need to be happening. And it should have been addressed this week,” Senate Minority Leader Christine Radogno said after the legislature adjourned. She added: “There is a lack of clarity, a lack of leadership, in terms of what is going on. And in the meantime, people are dangling in the wind thinking that their lives are going to be inextricably altered.”

She proposed enacting a temporary budget to keep state services going, uninterrupted, and to give service providers more predictability.

Gov. Pat Quinn continues to publicly reject the idea of a temporary budget and said lawmakers still have time to enact a full-year balanced budget within six days. But he said balancing the budget, which he projects will carry a $9.2 billion deficit, will require a two-year income tax increase to generate $4.2 billion. (Comptroller Dan Hynes calculated the deficit at $7 billion.)

Legislative leaders of both political parties have cast doubt on the governor’s ability to gain enough votes in each chamber to approve a tax increase by July 1, although House Minority Leader Tom Cross said a few of his members are leaning toward a tax increase if they see action on other efficiencies and long-term spending reforms first.

Senate Democrats maintain that they approved a version of a permanent income tax increase in House Bill 174, which never got called for a vote in the House. According to Sen. James Meeks, the caucus doesn’t want to give up on the idea of offering property tax relief and increased education funding. Meeks said a temporary increase would result in a permanent increase in two years. “Temporary should scream out to everybody saying, ‘In two years, they’ll be back.’”

There could be more immediate support for a short-term borrowing scheme. A plan backed by Quinn would issue pension obligation notes rather than bonds, which typically are repaid over longer periods of time with higher interest costs. The House advanced the plan, Senate Bill 415, today. It would allow the state to make its full contribution into the public employee pension systems and free up $2.2 billion to help plug the deficit.

“If we get $2 billion to help close the deficit, that’s a good thing,” Quinn said after finishing a series of meetings with all four legislative caucuses. “We’re making progress, but we still have $7 billion to go.”

The governor and all four caucuses appear to agree one goal: to reduce spending by another $1 billion. But they might disagree on how to do that.

Quinn said his administration could save about $125 million by mandating 12 unpaid days off, or furlough days, for state employees, including unionized workers. Layoffs also could be considered, he said, although he added that he wouldn’t pursue layoffs until after he and the General Assembly settled on whether the state would generate new revenues first. “Under our contract, we can lay off employees if we don’t have the money to pay them,” he said.

Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees Council 31, said union leaders already met with the administration last week and determined that furlough days and layoffs wouldn’t save significant amounts of money. Henry Bayer, Council 31 executive director, said last week that even if every state employee worked the entire year unpaid, the state would only save about $3 billion. Lindall added this afternoon, “Any number of furlough days would be an insignificant savings to the state but a very real reduction in services.”

Cross said his caucus agrees with the need to look for $1 billion in cuts and recommends moratoriums on programs, furlough days and salary freezes, as well as reduced travel budgets.

Capital and recall
Two other items on hold include the $29 billion capital construction program and a provision that would allow voters to decide whether they wanted to change the state Constitution so they could recall the sitting governor.

Quinn said he will not sign the construction program without an operating budget in place. Democratic Sens. Martin Sandoval of Chicago and John Sullivan of Rushville said the capital plan and the operating budget have nothing to do with one another. In a Statehouse news conference, they joined organized labor groups to say Quinn has fallen through on his promise to immediately put people to work. "People are falling off the edge, losing their homes, having a very difficult time making ends meet, and he’s decided to hold the jobs bill as a political football until he gets his tax hike,” Sandoval said, citing the state’s 10.1 percent unemployment rate.

On the other hand, the Senate Democrats have held one of Quinn’s initiatives, House Joint Resolution Constitutional Amendment 31: a recall provision. Senate President John Cullerton said yesterday he would not call the provision for a vote until Quinn signed an ethics package that would limit the amount individuals, businesses and political organizations could donate to candidates. However, the Senate hasn’t even sent the measure, HB 7, to the governor’s desk.

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Tuesday, June 23, 2009

Pension plan delays tax hike vote, for now

By Bethany Jaeger, with Jamey Dunn and Hilary Russell contributing
The latest scheme for the General Assembly to get closer to a balanced budget is to borrow money to fully pay the state’s contribution into the public employee pension system and to free up about $2 billion to help stave off deep cuts to human services.


This on a day when more than 5,000 advocates, parents and children rallied at the Capitol with Gov. Pat Quinn to urge an income tax increase to help fight those cuts. Top Democratic legislators indicated today, however, that they would not vote for an income tax increase this week. And if they did, there wouldn’t be enough support among Democrats to approve it without Republican votes. The GOP remains united against a tax increase, at least, officially. Some Republican members in both chambers have privately said they could support a tax increase but have stuck with their caucuses.

Senate Minority Leader Christine Radogno said that Republicans are not ready to vote for an income tax increase and described the projected cuts to human services as a “cynical ploy,” adding that spending reductions could be spread fairly across all areas of state government.

The idea to issue pension obligation notes, which we wrote about earlier this week, poses a less politically risky option. The short-term borrowing plan would be repaid within five years and would fund the state’s $4 billion contribution into the public employee pension system for the fiscal year that starts July 1.

It’s generally agreed that the plan would free up about $2.2 billion, which the General Assembly would put into the general revenue fund and give the governor, essentially, a blank check. The ball would be in Quinn’s court, then, to cut or to plug where he saw fit.

“This is more discretion than we’ve ever given any other governor, simply because the times require it,” said Rep. Frank Mautino, assistant majority leader from Spring Valley.

He said the pension obligation notes would combine with previously approved authority to sweep extra money (Senate Bill 1433) out of dedicated funds and to refinance other state debt (SB 1609). All three revenue sources combined would allow the spending authority to come within $2 billion of the governor’s proposed budget. Quinn wanted authority to spend $28 billion. The latest plan would authorize about $26 billion, meaning he would still have to cut back spending.

The legislature could vote on the pension plan Wednesday, according to Mautino.

A vote on Quinn’s proposed two-year tax hike, however, would not happen until the governor provided a list of specific cuts he would make if he didn’t have new tax revenues to spend, according to several House Democrats. His temporary tax increase would generate about $4.5 billion. But there’s still debate about the size of the budget deficit, said Rep. Art Turner, deputy majority leader from Chicago.

“The biggest issue right now is just trying to put the bean counters together to come up with what’s the agreed number,” he said. “So then from there, we can … say, ‘What’s going to be the number that we have to use in terms of the cuts?’”

A Republican, Rep. Richard Myers of Colchester, said he’d be willing to look at a tax increase if he knew where the money was specifically going to be spent.

Comptroller Dan Hynes added to the debate with a letter to the governor. He wrote: “I believe that part of your difficulty in obtaining votes for an income tax increase is the fact that the public is confused about how much money is really needed to fix the deficit. Legislators are, therefore, understandably reluctant to vote for an ever-changing proposal for an ill-defined problem. In a sense, we have all been given a false choice: raise taxes by $4 [billion] to $5 billion or cut human services by the same amount.”

He proposed starting over, operating on a 60-day budget to keep services going while the legislature found more ways to cut spending. He cited across-the-board cuts to contracts, grants and agency spending. And then he suggested such new revenue sources as an expansion of the sales tax, building new casinos and increasing cigarette taxes. All of those proposals came up during the spring legislative session but failed to advance in both chambers.

Senate Democrats point to their version of an income tax increase, which also would offer property tax relief and an expansion of the sales tax. Senate President John Cullerton said his caucus already took the hard vote on House Bill 174 last month and that it’s up to the other caucuses to make the next move. “Anything is negotiable, as long as we keep the principles in mind that we need to balance our budget and not have these draconian cuts that all the people surrounding the capital are complaining about today.”

Cullerton added that his caucus would not vote on the governor’s desired “recall” provision until Quinn enacted campaign finance reforms approved by the legislature last month. The House already approved the recall provision, which would allow voters to decide whether to change the state Constitution so they could recall the governor at the time. The provision awaits final action in the Senate.

The rally
By Hilary Russell and Jamey Dunn, with Bethany Jaeger contributing
The secretary of state’s office confirmed that more than 5,000 people attended the rally coordinated by numerous social service providers and public employee unions. Police temporarily blocked more people from entering the Capitol out of safety concerns, said Henry Haupt, spokesman for the secretary of state.

The temperature rose as participants chanted, “People before politics,” “Do the people’s work,” and “No budget cuts.” Signs advocated for everything from substance abuse treatment services to early childhood education and autism. The anecdotes were endless.

For instance, Michelle Lefrere, who has epilepsy and volunteers with Springfield’s Epilepsy Resource Center, said without an income tax increase, the doors to the center would close June 30. Having used the center since the age of 9 and turning 40 next year, she said: “There will be no counseling, no recommendations to doctors, no job placement. There won’t be any help for people with epilepsy in Springfield or the certain communities. There won’t be any money for research.”

After the rally, Quinn remained optimistic that the legislature would vote on a tax increase by June 30, the end of the fiscal year. In any case, he said, “I am not going to preside over a dismantling of the fundamental human safety net that we are proud of in Illinois.”

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Monday, June 22, 2009

Quinn: Won't cut human service funding in half

By Bethany Jaeger
Without a state budget in place eight days before a new fiscal year starts, Gov. Pat Quinn said in Springfield on Monday that he would not accept a budget proposal that would chop state funding for human services by half, as advanced by Democrats May 31.



“So I want to make that clear to our legislators this week that whatever has been concocted up to now is insufficient, and hopefully we can work together to repair the oversights in revenue,” he said, previewing Tuesday’s special legislative session. “You can’t have a balanced [budget] if you’re short billions of dollars.”

His office estimates an $11.6 billion deficit next fiscal year.

But just how he will work with the legislature to enact a balanced budget before July 1 is a mystery, despite Quinn’s optimism that a few legislators who rejected a temporary income tax increase last month would support it this month “under the circumstances.” If an income tax increase failed again, however, he said he would not support the idea of a so-called month-to-month budget to keep the state operating as long as money remained available.

He did not specify how he would prevent cuts to human services, only that even if the state increased the income tax for two years, Illinois would still have to accept a “no-frills, lean government.” But, he added, “That doesn’t mean that the most important things for the most vulnerable people are left behind.”

Quinn has campaigned since last month for a two-year tax hike to stave off deep budget cuts to human services. He even used Monday’s ceremony to honor Scripps National Spelling Bee contestants to seek support from parents in the audience, whom he asked to “invest in our future, even in hard times.” He’s scheduled to continue his campaign Tuesday morning during what’s expected to be a large rally in the Capitol before the legislative session starts.

But approving an income tax increase any time soon will be difficult, given that Democrats have said they don’t have enough votes without Republican support. And Republicans have said they won’t consider a tax increase without action on Medicaid and pension reforms, which could take months to compile and to gain momentum.

Democrats in both chambers approved a bare bones budget at the end of May, but they have prevented the legislation from going to the governor’s desk (see Senate Bill 1197 for the lump sum spending plan; SB 1433 for authority to sweep excess money from dedicated funds; SB 1609 for authority to refinance state debt).

In a light-hearted plea to legislators, Quinn quizzed national spelling bee contestants by asking them to spell such words as “whistleblower,” “gridlock” and “mudslinging.” He asked one student to spell out “fortitude,” which he later defined as “doing very hard things for the common good, worrying about people above and beyond yourself.”

Also Tuesday, Quinn said he hopes the legislature will take another try to approve a measure that would allow voters to decide whether to change the state Constitution so they could recall elected officials. House Joint Resolution 31 passed the House last month and awaits Senate action. And watch for a new short-term borrowing proposal that could help the state fund most of its $4 billion pension contribution next fiscal year.

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Wednesday, June 17, 2009

Little hope for compromise by July 1

By Bethany Jaeger
The General Assembly will return to the Capitol in a special legislative session Tuesday afternoon, seven days before a new fiscal year starts without a state budget in place. However, legislative leaders appear unlikely to agree on a way to avoid a budget plan that would cut at least $7 billion from state-funded services after July 1.

According to Senate President John Cullerton, legislators will return to Springfield to address technical problems with the $29 billion capital construction program approved last month, as well as some other bills that authorized limited spending. But Gov. Pat Quinn indicated he still does not intend to sign the infrastructure program into law without a balanced operating budget in place.


While Quinn emerged from a meeting with legislative leaders in Chicago this afternoon and said he hopes to achieve both next week with bipartisan support, none of the leaders mentioned income tax increases as part of next week's agenda. (Thanks to Capitol Fax Blog for providing video.)

“Unfortunately, it appears at this point in time that the Republicans are not ready to vote for any revenue increases," Cullerton said. "And that’s unfortunate.”

Democrats maintain that the state cannot cut its way out of what Quinn estimates to be a $9.2 billion deficit and that an income tax increase is the only way to prevent draconian cuts to human services to the most vulnerable citizens. Republicans repeat their call for government reforms first, which Senate Minority Leader Christine Radogno said could reveal savings that would offset some of the need to raise income taxes by as much as proposed by Democrats. “The Democrat proposal is to raise taxes now and we’ll figure out reforms maybe later, and we don’t accept that that’s a realistic way to approach this,” Radogno said.

She also described the state's budget situation as "manufactured." “I believe it is a manufactured crisis to the extent that we do not need to have those draconian cuts on July 1," she said, adding that the state could fund services for the first half of the fiscal year while legislators continued to negotiate. Quinn said it's irresponsible to begin a year by spending money that would run out halfway through.

Cullerton said before the meeting that a "reasonable solution" would be to enact the Senate-approved version of an income tax increase that also would relieve property taxes and expand the sales tax to some services. He said House Bill 174 would need Democratic and Republican votes to pass in the House. House Speaker Michael Madigan said that not enough members of his caucus, which has 70 members, are willing to vote for an income tax increase without GOP support. “There were a certain number of House Democrats who said quite flatly, ‘I’m not going to go on a roll call when it’s Democrats-only,’” Madigan said.

Any revenue-generating proposal would need 71 votes to pass now that the legislative session has extended beyond May 31, making it harder for enough legislators to get beyond politics and agree on a budget plan within seven days of the new fiscal year.

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Wednesday, April 15, 2009

"TEA Party" held and historic sites to reopen

by Hilary Russell and Jamey Dunn
Photographs by Hilary Russell

Anti-tax protesters gathered in front of the Illinois Capitol today, shouting the message that they are Taxed Enough Already (TEA) on the last day people can file their income taxes without an extension. Meanwhile, Gov. Pat Quinn launched a new Web site intended to help taxpayers and government employees report corruption.




Today’s protest was one of several TEA parties held around the nation to demonstrate opposition to government spending and rising taxes under President Barack Obama’s administration.

In Illinois, taxpayers face a potential 50 percent income tax increase (from 3 percent to 4.5 percent for individuals and 4.8 percent to 7.2 percent for corporations). The legislature also is considering hiking sales taxes on cigarettes, some flavored coffee drinks and motor fuel as a way to help generate more revenue and plug a budget deficit projected to reach as much as $12.4 billion.

Protesters booed, waved American flags and raised signs that read,“Big government is the problem, not the solution,” “Read my lipstick, no more payments,” and “Vote to raise our taxes, and we will vote you out of office.”

Rep. Lou Lang, deputy House majority leader from Skokie, said he understands why people are angry at the prospect of increased taxes nationally and locally.

“For most of us here, no one wants to raise taxes, or raise fees and costs on people,” said Lang, who was in the Capitol today even though the General Assembly is on spring break. “But as we try to get through the spring session and we have to try and come to grips with a $12 billion hole in our budget and how we are going to deal with that, we may have to bite the bullet and raise some taxes. None of us would like to do that; we’d like to avoid it.”


Quinn, at a news conference in Chicago, said he supports citizens taking to the streets to make their opinions known, but he’s still waiting to hear alternatives to an income tax increase.

“We’ve heard a lot of chirping, but nobody has a specific concrete plan that gets the job done, without having to raise revenue in order to pay down the 11 and a half billion dollar deficit,” he said.

Meanwhile, he launched a government Web site aimed at getting people to report fraud that involves taxpayer dollars.

The site is supposed to make it easier for people to take advantage of a 1991 Illinois whistleblower protection law that encourages citizens to expose corruption and theft by offering a financial incentive. The law applies to all levels of government. According to Quinn, the law has already led to exposing Medicaid fraud and crooked highway contractors.

Quinn said that citizens have an obligation to help police their government. “We as taxpayers have, I think, a duty to keep our eyes open. We want anyone who would even think of committing fraud against the taxpayers to think twice about it,” he said.

Historic sites to open soon
Quinn also announced in his press conference today that some of the state historic sites could reopen as early as next week.

Dave Blanchette, spokesman for the Illinois Historic Preservation Agency, said that notices to return to work have been sent to all 33 agency employees who were laid off late last year. He said that the agency has asked them to come back April 22 and that at least some historic sites should reopen by the end of next week.

Blanchette said that all 11 sites that were closed by former Gov. Rod Blagojevich last year will be reopened, but the timing depends on how soon employees are available to come back to work. The governor and the agency will be making a formal announcement sometime next week.


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Saturday, March 21, 2009

50% Tax Hike Not Enough

One of the states mega-taxeating advocates State Senator and Rev. James Meeks thinks a 50% income tax is not high enough.

That's what Chicago Sun-Times columnist Mark Brown reported yesterday.

How does Brown feel?

Here's the end of his column:

“...I support his overall goal. If we're going to raise the income tax, this is the time to deal with education funding, too.

“There are more legislators than you might expect who are willing to raise taxes, even in this economy, but if they're going to take the political hit, they're only going to do it once, and they're going to want to have something more to show for it than getting the state's bills paid more quickly.”
And, if this McHenry County Blog interests you, this one about Pat Quinn tax hike editorial cartoons might be of interest.

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