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Post by southsidesignmaker on Jan 8, 2011 10:40:42 GMT -6
What the feds gave in tax cuts, Illinois may take away 1-year cut in Social Security taxes in danger of being overshadowed Will 75% income tax hike fix Illinois budget mess? By Bob Secter, Tribune reporter January 9, 2011 www.chicagotribune.com/news/local/ct-met-income-tax-impact-0109-20110109,0,1168030.story A big income tax hike proposal getting serious consideration in Springfield would cost individual taxpayers hundreds or thousands of dollars a year, but in the near term the financial blow could be softened for many workers by the federal tax deal reached last month. Democrats who control state government are mulling a proposal to attack a record $15 billion deficit with a temporary 75 percent hike in the personal income tax rate, bumping it from 3 percent to 5.25 percent for individuals through 2014, then rolling it back to a permanent though still higher level of 4 percent or less. Corporate and cigarette taxes would also rise. Negotiations over a rescue plan and the outlines of it are still fluid and subject to considerable change. This much is clear, however. Any increase could spoil the impact, in Illinois at least, of the holiday present left for taxpayers last month in the federal tax cut deal negotiated by President Barack Obama and congressional Republicans. Chicago Shopping Overwhelming Offers: Always 50% off or more from your favorite brands >> As part of that deal, Social Security payroll taxes were trimmed back for 2011 in an attempt to plump up take-home pay for workers and get them to spend more. But any benefit from that stimulus could be eaten away in Illinois by a larger bite of state taxes. On the other hand, the federal benefit may initially mask the pain from any state hike. "It could work itself out where it will be more or less a wash for many taxpayers," said Joe Rebman, Illinois tax analyst for CCH, a tax research firm based in north suburban Riverwoods. That said, the cross-currents of different federal and state tax initiatives could be felt unevenly in Illinois. Many public workers, teachers among them, pay into government-run pension programs instead of Social Security and so may not fully benefit from the federal cuts. As such, the impact of state tax hikes could hit them harder and faster than other Illinois taxpayers. U.S. Sen. Mark Kirk, who like other Republicans strongly supported the federal tax deal, worried that his constituents would not fully benefit from the federal tax deal if the legislature raises state taxes. "I am concerned that just as President Obama and congressional Republicans protected Americans from a huge tax increase, Gov. (Pat) Quinn and the Illinois Democratic leadership will impose new taxes in the teeth of the Great Recession," Kirk said in a statement. "While citizens of well-run states like Indiana and Wisconsin will see their total tax bills go down, the unfortunate citizens of Illinois will see their taxes go up." The one-year federal payroll tax cut applies to earnings beginning Jan. 1, but it may take a few weeks for changes to show up in withholding on paychecks because the plan was passed just weeks ago. Likewise, higher Illinois income tax rates would also take weeks to be reflected in paychecks if approved, even though the plan now under consideration would be retroactive to Jan. 1. The complete package of tax hikes Democrats are debating would raise an estimated $7.5 billion annually for a state that has for years been awash in red ink, with pension obligations and unpaid bills mounting. It is a financial mess that is bipartisan in the making and one that has been building for decades. It has been more than two decades since the last increase in the state income tax, with proposals for hikes more modest than the one now under discussion routinely swatted down by lawmakers. Meanwhile, the state's financial plight has turned from bad to worse. Despite such resistance to tax hikes, many experts do not regard Illinois as a particularly high-tax state for individual taxpayers. In 2008, the nonpartisan Tax Foundation, a Washington-based think tank, ranked Illinois 30th among all states when it came to the combined burden of state and local taxes, including property taxes. Neighboring Wisconsin had the ninth highest per-capita tax burden among states, while Indiana came in 28th, the foundation concluded. First and worst in the nation was New Jersey, according to the group's rankings. bsecter@tribune.com
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Post by southsidesignmaker on Jan 8, 2011 10:52:12 GMT -6
1)Federal taxes lowered for the short term only to be eclipsed by higher local taxes.
2) Decreasing real values of real estate only to have residential tax rates increase to make up the difference.
3) Real population rates declining in the midwest as folks opt to reside in lower tax rate states. This problem is masked at present due to the recession, note the boomers will leave for less taxing states with warmer climates as soon as homes come up in value. The sharp ones will leave sooner rather than later as all parts on the country have suffered with declining real estate values.
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Post by Arch on Jan 8, 2011 16:06:58 GMT -6
I thought more people were supposedly flocking here to match the enrollment projections.
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Post by doctorwho on Jan 10, 2011 8:54:15 GMT -6
I thought more people were supposedly flocking here to match the enrollment projections. that's #14 in the list of bullcrap we were sold by our SB gang
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Post by southsidesignmaker on Jan 11, 2011 8:21:52 GMT -6
Taxing business right out of Illinois Current revenue proposals would stifle economic growth www.chicagotribune.com/news/opinion/ct-oped-0111-business-20110111,0,1002569.story By Doug Oberhelman January 11, 2011 It's time for Illinoisans to take a hard look at what's happening in Springfield. In a time when we need to encourage investment and attract jobs to Illinois, current tax proposals threaten to do just the opposite. I understand the state's financial condition, and it's unfortunate that Illinois has not done a better job of managing its budget over many years; however, the proposed increases of as much as 75 percent in the personal and corporate tax rates are bad for Illinois' economic climate. If the original proposal to raise Illinois' corporate income tax rate to 10.9 percent (corporate rate plus personal property replacement tax) is implemented, our state will have the dubious distinction of having the highest corporate rate in the country. When it comes to attracting new business or maintaining current jobs, this is not a category you want to lead. It's no secret that when making investments, businesses have to consider the costs. And states with lower-cost environments provide an opportunity for businesses and their employees to succeed. That's not the type of environment we are creating in Illinois with these tax proposals. Additionally, the level of cost it will take companies to maintain competitive salary levels for employees must be considered. There exists a hidden cost to companies that must maintain competitive employee salary levels. After all, we must attract the best and brightest talent to Illinois. Together with the corporate rate, a 75 percent personal rate increase would make it more expensive to operate and maintain employee pay levels in Illinois. The personal tax rate at 5.25 percent would mean that more than an additional $40 million would be taken from the paychecks of Caterpillar's Illinois employees in the first year. Chicago Shopping Overwhelming Offers: Always 50% off or more from your favorite brands >> This is too much. Such dramatic increases in income taxes will stifle economic growth. The most prudent way to emerge stronger from this budget crisis is to cut state spending rather than only reducing the growth rate of expenditures. Further, as most private businesses have already done, the gaping hole in pension underfunding must be plugged by capping current employee pensions and moving quickly to defined contribution plans. We understand that at some point, income tax increases are probably inevitable. But Illinois must first get its financial house in order — then, and only then, should a broad-based tax increase be considered. Cutbacks, streamlining and belt-tightening have to be the first order of business. Doug Oberhelman is chairman and CEO of Caterpillar Inc.
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Post by southsidesignmaker on Jan 11, 2011 8:59:30 GMT -6
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Post by southsidesignmaker on Jan 11, 2011 9:08:15 GMT -6
Time for Illinois to behave like an adult Tax increase would bring financial stability, aid business climate www.chicagotribune.com/news/opinion/ct-oped-0110-illinois-20110107,0,155197.story 11:53 p.m. CST, January 8, 2011 Stabilizing Illinois' financial condition and closing budget deficits is critical to the state's economic recovery. Businesses and jobs won't thrive in a state that's in constant budgetary crisis. We must grow ourselves out of this recession, but we can't do that until we revamp how we fund state government. Illinois needs a tax increase. Illinois' income tax rate is the lowest in the Midwest and one of the lowest in the nation. A modest increase in that tax rate would bring welcome stability to our state's finances, lower our borrowing costs, give a much-needed boost to our business climate and promote entrepreneurship and economic growth. More important, a revenue increase and stabilized state budget would send a message to businesses and investors that Illinois' leaders — in government and in the private sector — are behaving like adults and living up to their responsibilities. We must face the cold, hard facts. Illinois cannot fix its budget problems with spending cuts alone. We must cut spending wherever possible, but we must recognize that Illinois already has one of the lowest numbers of state employees per capita in the nation. Those who blindly oppose a tax increase must face the reality that increased revenues are needed to balance the state budget. Chicago Shopping Overwhelming Offers: Always 50% off or more from your favorite brands >> Job growth is the most important factor in long-term budget stability. Every 1 percent of job growth brings the state about $300 million in additional state revenue. If we stabilize state finances and use these assets strategically, we can retool our state economy and position Illinois for global economic leadership. Illinois must take advantage of its world-class universities and research centers and shift its development policies from focusing on large industrial development projects. We need to engender a culture of innovation that creates the companies of 2020. Part of the way to enhance this type of job creation is through expanding venture capital funding for Illinois-based companies. Many states, including Wisconsin, Massachusetts, Ohio and California have jump-started thousands of high-paying jobs by having public employee pension funds invest in in-state venture capital activities. Illinois companies and future deserve the same support. Until the last year, Illinois has gone without a focused international trade and development strategy. We should move beyond our reliance on a few small overseas trade offices to a model which uses the various "multiplier" organizations described above to reach business partners in a wide range of countries at lower cost and with greater success. We are talking about competing in a brutally tough global economy. We must develop an international "SWAT team" at the highest levels of state government. Illinois has a tremendous network of business leaders with contacts and networks around the world. We must exploit this network and have the leaders serve as business ambassadors who can identify opportunities and close deals. In short, we need a Trade and Export Advisory Council composed of business leaders to help Illinois become a force in global trade. We have no time to waste. We must position Illinois for a strong, swift rebound from the recession. We cannot expect to thrive by hoping the world will come to us. We must find new ways to deploy our resources and re-establish Illinois as a global leader in commerce and job creation. It won't be easy, but it is time to do what is necessary. Alexander Rorke is co-chair of the Governor's Commission on Economic Recovery and managing director of the Chicago-based Loop Capital Markets. Dennis Chookaszian is chair of the commission's Government Committee. He is the former chairman and CEO of CNA Insurance. ______________________________________________________________________________ "Businesses and jobs won't thrive in a state that's in constant budgetary crisis." The two gentleman that are chairing the Governor's Commission should speak to the Cat CEO regarding the business and job climate in our great state. I have never been known as a great innovator, rather a person that examines what is working and successful. Would it be that difficult to look at what is working in states like Texas and duplicate their successes.
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Post by macrockett on Jan 11, 2011 10:34:32 GMT -6
Time for Illinois to behave like an adult Tax increase would bring financial stability, aid business climate www.chicagotribune.com/news/opinion/ct-oped-0110-illinois-20110107,0,155197.story 11:53 p.m. CST, January 8, 2011 Stabilizing Illinois' financial condition and closing budget deficits is critical to the state's economic recovery. Businesses and jobs won't thrive in a state that's in constant budgetary crisis. We must grow ourselves out of this recession, but we can't do that until we revamp how we fund state government. Illinois needs a tax increase. Illinois' income tax rate is the lowest in the Midwest and one of the lowest in the nation. A modest increase in that tax rate would bring welcome stability to our state's finances, lower our borrowing costs, give a much-needed boost to our business climate and promote entrepreneurship and economic growth. More important, a revenue increase and stabilized state budget would send a message to businesses and investors that Illinois' leaders — in government and in the private sector — are behaving like adults and living up to their responsibilities. We must face the cold, hard facts. Illinois cannot fix its budget problems with spending cuts alone. We must cut spending wherever possible, but we must recognize that Illinois already has one of the lowest numbers of state employees per capita in the nation. Those who blindly oppose a tax increase must face the reality that increased revenues are needed to balance the state budget. Chicago Shopping Overwhelming Offers: Always 50% off or more from your favorite brands >> Job growth is the most important factor in long-term budget stability. Every 1 percent of job growth brings the state about $300 million in additional state revenue. If we stabilize state finances and use these assets strategically, we can retool our state economy and position Illinois for global economic leadership. Illinois must take advantage of its world-class universities and research centers and shift its development policies from focusing on large industrial development projects. We need to engender a culture of innovation that creates the companies of 2020. Part of the way to enhance this type of job creation is through expanding venture capital funding for Illinois-based companies. Many states, including Wisconsin, Massachusetts, Ohio and California have jump-started thousands of high-paying jobs by having public employee pension funds invest in in-state venture capital activities. Illinois companies and future deserve the same support. Until the last year, Illinois has gone without a focused international trade and development strategy. We should move beyond our reliance on a few small overseas trade offices to a model which uses the various "multiplier" organizations described above to reach business partners in a wide range of countries at lower cost and with greater success. We are talking about competing in a brutally tough global economy. We must develop an international "SWAT team" at the highest levels of state government. Illinois has a tremendous network of business leaders with contacts and networks around the world. We must exploit this network and have the leaders serve as business ambassadors who can identify opportunities and close deals. In short, we need a Trade and Export Advisory Council composed of business leaders to help Illinois become a force in global trade. We have no time to waste. We must position Illinois for a strong, swift rebound from the recession. We cannot expect to thrive by hoping the world will come to us. We must find new ways to deploy our resources and re-establish Illinois as a global leader in commerce and job creation. It won't be easy, but it is time to do what is necessary. Alexander Rorke is co-chair of the Governor's Commission on Economic Recovery and managing director of the Chicago-based Loop Capital Markets. Dennis Chookaszian is chair of the commission's Government Committee. He is the former chairman and CEO of CNA Insurance. ______________________________________________________________________________ "Businesses and jobs won't thrive in a state that's in constant budgetary crisis." The two gentleman that are chairing the Governor's Commission should speak to the Cat CEO regarding the business and job climate in our great state. I have never been known as a great innovator, rather a person that examines what is working and successful. Would it be that difficult to look at what is working in states like Texas and duplicate their successes. Howard Rorke works at LoopCapital, Head of Public Finance... Must be pretty hard to get anyone to finance anything in Illinois right now given we are at the bottom of the barrel. Last financing was 1.5 billion or so where they had to pledge the revenues from the tabacco settlement proceeds. How do you improve your ability raise financing? Raise taxes. But of course it's a losers game in the long run. Indiana and Wisconsin and any other State which understands the economics of the game will eat our lunch, just like Texas just did.
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Post by doctorwho on Jan 11, 2011 10:50:09 GMT -6
Time for Illinois to behave like an adult Tax increase would bring financial stability, aid business climate www.chicagotribune.com/news/opinion/ct-oped-0110-illinois-20110107,0,155197.story 11:53 p.m. CST, January 8, 2011 Stabilizing Illinois' financial condition and closing budget deficits is critical to the state's economic recovery. Businesses and jobs won't thrive in a state that's in constant budgetary crisis. We must grow ourselves out of this recession, but we can't do that until we revamp how we fund state government. Illinois needs a tax increase. Illinois' income tax rate is the lowest in the Midwest and one of the lowest in the nation. A modest increase in that tax rate would bring welcome stability to our state's finances, lower our borrowing costs, give a much-needed boost to our business climate and promote entrepreneurship and economic growth. More important, a revenue increase and stabilized state budget would send a message to businesses and investors that Illinois' leaders — in government and in the private sector — are behaving like adults and living up to their responsibilities. We must face the cold, hard facts. Illinois cannot fix its budget problems with spending cuts alone. We must cut spending wherever possible, but we must recognize that Illinois already has one of the lowest numbers of state employees per capita in the nation. Those who blindly oppose a tax increase must face the reality that increased revenues are needed to balance the state budget. Chicago Shopping Overwhelming Offers: Always 50% off or more from your favorite brands >> Job growth is the most important factor in long-term budget stability. Every 1 percent of job growth brings the state about $300 million in additional state revenue. If we stabilize state finances and use these assets strategically, we can retool our state economy and position Illinois for global economic leadership. Illinois must take advantage of its world-class universities and research centers and shift its development policies from focusing on large industrial development projects. We need to engender a culture of innovation that creates the companies of 2020. Part of the way to enhance this type of job creation is through expanding venture capital funding for Illinois-based companies. Many states, including Wisconsin, Massachusetts, Ohio and California have jump-started thousands of high-paying jobs by having public employee pension funds invest in in-state venture capital activities. Illinois companies and future deserve the same support. Until the last year, Illinois has gone without a focused international trade and development strategy. We should move beyond our reliance on a few small overseas trade offices to a model which uses the various "multiplier" organizations described above to reach business partners in a wide range of countries at lower cost and with greater success. We are talking about competing in a brutally tough global economy. We must develop an international "SWAT team" at the highest levels of state government. Illinois has a tremendous network of business leaders with contacts and networks around the world. We must exploit this network and have the leaders serve as business ambassadors who can identify opportunities and close deals. In short, we need a Trade and Export Advisory Council composed of business leaders to help Illinois become a force in global trade. We have no time to waste. We must position Illinois for a strong, swift rebound from the recession. We cannot expect to thrive by hoping the world will come to us. We must find new ways to deploy our resources and re-establish Illinois as a global leader in commerce and job creation. It won't be easy, but it is time to do what is necessary. Alexander Rorke is co-chair of the Governor's Commission on Economic Recovery and managing director of the Chicago-based Loop Capital Markets. Dennis Chookaszian is chair of the commission's Government Committee. He is the former chairman and CEO of CNA Insurance. ______________________________________________________________________________ "Businesses and jobs won't thrive in a state that's in constant budgetary crisis." The two gentleman that are chairing the Governor's Commission should speak to the Cat CEO regarding the business and job climate in our great state. I have never been known as a great innovator, rather a person that examines what is working and successful. Would it be that difficult to look at what is working in states like Texas and duplicate their successes. "Illinois' income tax rate is the lowest in the Midwest and one of the lowest in the nation. A modest increase in that tax rate would bring welcome stability to our state's finances, lower our borrowing costs, give a much-needed boost to our business climate and promote entrepreneurship and economic growth" was this copied from when we instituted the state income tax ? Where did that money go ? Pissed away by the same party and some of the same ' leaders' who want more now ? I agree- how does Texas make it work ? Forida ? -and btw- property taxes in those states are miniscule compared to here. We hae the highest gasoline taxes in the country - it's not the crude , it's the taxes-- where is that money disappearing to ? how long do we keep feeding the pig ? I say no more..until/unless you show me where you cut something. The governor gives his staff a 15% raise before year end and then asks ME for money - F him.
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Post by EagleDad on Jan 11, 2011 18:49:47 GMT -6
The governor gives his staff a 15% raise before year end and then asks ME for money - F him. I agree "F him" well said. Tomorrow, noon cannot get here soon enough. Just glad everyone got distracted chasing a meaningless death penalty law today.
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