Posted on 10/19/2013 5:34:10 AM PDT by Kaslin
Illinois "Progressives" (a single word to describe "economically illiterate public union sympathizers") want to pick your pocket once again. The Progressives want to hike the Illinois 2015 top tax rate from 3.75% to a whopping 9%.
Moreover the income tax rate will go up on a sliding scale for everyone making over $18,000.
Promises, Promises
Recall that On the campaign trail in 2010, Gov. Pat Quinn told voters he'd veto any income tax hike that would raise Illinois' rate over 4 percent.
That was one of the quickest disclosed tax lies in history. Here are a few snips from my January 13, 2011 post Business Owners Blast IL Tax Hikes;Quinn's Blatant Lies;Neighboring States Gleeful, Mayor Daley Whines;Escape to Wisconsin; Arrogance,Greed,Corruption
Tax insanity in Illinois is now official. Governor Pat Quinn signed off on a 67% hike in personal income taxes and a 46% hike in corporate taxes the moment the bill hit his desk.
The personal income tax rate immediately rises to 5 percent, up from 3 percent. The corporate income tax rate rises immediately to 7 percent, up from 4.8 percent. The Chicago Tribune reports Quinn, House Speaker Michael Madigan and Senate President John Cullerton — all Chicago Democrats — muscled the tax hike through in the eleventh hour of the lame-duck legislature. Only Democrats voted for the bills.
Not Fixed
That tax hike was supposed to permanently fix the Illinois budget. It did nothing of the kind.
On June 11, 2011, I noted Illinois Insanity: State Spend $365K Taxpayer Dollars to Teach People How to Fish; Hands Out $4 Million in Free Tuition to AFSCME Public Union Workers
On August 31, 2011, I noted Illinois Loses Most Jobs in Nation Following Tax Hikes.
Also recall that Instead of acting to help cities, Governor Quinn strengthened prevailing wage laws several times (see my March 27, 2011 article Poisonous Illinois; Caterpillar CEO Threatens to Leave Illinois over Taxes; Illinois Attorney General Wins Dubious Honor "Prevailing Wage Award").
Illinois Overtakes California for Second Highest Unemployment Rate in Nation
With the above backdrop, no one should have been surprised by my September 25, 2013 report Unhappy Anniversary: Illinois Overtakes California for Second Highest Unemployment Rate in Nation
Temporary Hike?
Quinn's tax hike was billed as temporary. Fortunately the legislature actually passed it that way.
On January 04, 2013 the Chicago Tribune discussed the setup in Your Quinncome tax hits home
Two years ago on their night of infamy, 1/11/11, General Assembly Democrats — and exclusively Democrats — voted to raise the Illinois personal income tax rate by 67 percent.
But when the Democrats boosted the personal income tax rate from 3 to 5 percent — with a companion hike in the corporate income tax — most of us didn't suffer: The state tax hike coincided with a 2-percentage-point decrease in the federal payroll withholding for Social Security. That payroll tax reduction, a last-minute proposal from President Barack Obama's White House, was the final component of a bipartisan Washington deal to keep the Bush-era income tax cuts in place.
Think of it this way: The impact of your Quinncome tax increase — long advocated by Gov. Pat Quinn and made law by his signature two years ago — has finally hit home. Your home. You just took a pay cut.
What's more, the Illinois tax hike hasn't been the saving grace for you, and for your state, that Democrats promised on 1/11/11: State government remains insolvent, unable to pay billions in bills as they come due. And there's no additional money to educate your children or to care for your disabled fellow citizens. Why not?
Because just about every penny of the state's roughly $7 billion in new Quinncome tax revenue goes to paying public pension costs — either making annual contributions to pension funds, or paying off debt from years when Illinois foolishly borrowed money to make its annual pension contributions.
Remember, the Democrats sold the Quinncome tax as temporary: It's in full force for four tax years, 2011 through 2014, then is scheduled to fall to 3.75 percent in 2015 and to 3.25 percent in 2025.
Beware the "Progressives"
In 2015, the personal income tax rate is supposed to drop to 3.75%.
However, the Illinois Policy Institute reports State Rep. Naomi Jakobsson, D-Urbana, introduced legislation for a new progressive tax rate schedule that hit Illinois’ middle and working classes hard.
Under current Illinois law, the individual income tax rate will be 3.75 percent in 2015. Under Jakobsson’s new plan, however, a higher 4 percent rate kicks in for people earning just $18,000.
Here is Jakobsson’s proposed scheme.
If you think that is absolutely nuts, you are not the only one.
The Illinois Policy Institute writes "Jakobsson’s progressive tax rates attack the middle class as well. Her 5 percent tax rate applies to people earning just $36,000. When an Illinoisan earns more than $58,000, Jakobsson’s tax rates jump to 6 percent, and again to 7 percent on income earned after $95,000 – nearly double the rate Illinoisans will pay in 2015.
It’s no surprise that Jakobsson’s progressive tax hike proposal targets the middle class – it’s how progressive income taxes work. That’s where a lot of the money is."
Fight the Hike!
I made a donation to the Illinois Policy Institute, and if you live in Illinois, please consider doing so was well.
Your gift to the “Flat is Fair” campaign will be matched for a one-two punch against the progressive tax hike.
Donations through Sunday, October 20 will be matched.
Please, Fight the Hike!
Detroit, here we come!
We need a non-status quo party that will actually be able to get elected when people get sick of increasing taxes.
We know the GOP is not that party.
This is what happens when Democrats control the whole show.
The GOP is stupid; the Dims are just pure evil.
For those from outside the area — a large portion of the average population will be in the 6% and above rate because the cost of living and salary rates are so high in Chicago. A starting engineer out of college might be in that rate.
- Barackruptcy on steroids
The best news Wisconsin, Indiana, Iowa, Missouri and Kentucky could get.
It would be interesting to analyze the history of Detroit in order to figure out when the last person left who found someone stupid enough to buy their real estate without incurring a big loss. I think that AFTER that “knee”, decline is rapid.
I wonder how close Illinois is to that point.
Kentucky could have some real fun by simply getting rid of their state income tax.
Try selling property in Burnham/Cal City. You'd be asking how far past that point is Illinois.
I shouldn't complain there are plenty of states in worse shape but sometimes I wish my grandpa would have thought harder about emigrating to a state with a silent "s"
My warning to ANYONE considering moving to this craptastic state...DON'T DO IT!!!!!
I lived in Cook County most of my life. The property taxes, sales taxes and hidden taxes (e.g., $20 on your plane ticket when you land and take off from O’Hare) killed me.
Luckily, I moved to Iowa before Quinn was elected. It’s not the most tax friendly state in the country (lots of progs here too), but it’s a whole lot better than Crook County, IL.
Illinois will implode unless Obama can convince Congress to fund a bailout. Even with a Democratic congress, that would be a hard sell. Thus, your vote counts. Vote against the socialists and crony capitalists. Go Galt when you can afford to. The system is corrupt and the machine needs to be stopped.
Advice to businesses considering a move to IL: Think about your employees’ quality of life.
It’s not just the Income taxes. If you drive, smoke, or own a home you’re getting hit with some of the hightest taxes in the nation.
Just back from MO where gas was $2.98 ($3.29 in IL); Carton of Pall Malls $28 ($52 in IL). Don’t even think about real estate tax rates.
So far, though, the liquor prices in IL seem to be reasonable. So you can enjoy a hot toddy after shovelling snow all morning.
Higher taxes in IL? This is good. People there never met a tax they didn’t love for someone else to pay.
KY also taxes out-of-state bank accounts. They call it an “intangibles tax”, and it is paid to the local sheriff. People in KY hence don’t have too many out-of-state bank accounts. But they like their version of McC just fine.
Hey neighbor, are you planning your escape too?!
I’m done waiting for the ‘right time’, I’m taking the leap before these idiots crush me.
I love it that Rahm pissed off the unions, that was the ONLY thing about his sorry a** that made me smile!
They know this would be suicide after the 'temp' tax hike. Her insane idea ain't going nowhere.
Yeah, but they don’t have no sales tax on food and the sales tax is only 6%. We pay almost 10% sales tax in Clarksville, TN
“Yeah, but they don’t have no sales tax on food and the sales tax is only 6%. We pay almost 10% sales tax in Clarksville, TN”
The states will get their pound of flesh one way or the other. I greatly prefer a tax on consumption to a tax on productivity. And I think you’ll find that the states making that choice by and large are doing better than those that go the other way.
Ghey!!
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