ABC 7 Chicago | Temporary tax increase not so temporary?

TUA President Jim Tobin was featured in a story from ABC 7 Chicago about Illinois’ “temporary” tax increase. To see the video, click on the image below, or go to the ABC 7 website here.
abc7temptaxSPRINGFIELD, Ill. (WLS) — Illinois lawmakers will apparently balance next year’s budget without the state’s temporary income tax increase.
The Illinois House is expected to vote Tuesday on the approximately $35 billion spending plan that could lead to layoffs and further delays in paying the state’s bills
When approved three years ago, taxpayer advocate Jim Tobin suspected there was nothing temporary about the 2011 Illinois income tax increase.
“They always say it will be a temporary tax but then they try to make it permanent,” Tobin said.
“We have some temporary tax increases that are designed to pay our bills . . . to get Illinois back on fiscal sound footing,” IL Gov. Pat Quinn said in January 2011.
To resolve a budget deficit that includes $8 billion in unpaid bills, the governor and General Assembly Democrats authorized increasing the state’s income tax rates for four years: the personal rate increased from three to five percent and the corporate rate went from 7.3 to 9.5 percent.
“This is to get us out of a very deep and unpleasant hole that we happen to find ourselves today,” Rep. Barbara Flynn Currie, (D) Hyde Park, said.
“All of the income tax surcharge, over $21 billion, has gone to the pensions, government employee pensions,” Tobin said.
The 2011 bill called for the tax rates to be rolled back in 2015 to 3.75 and 7.75, respectively. But Illinois still has a deficit and a $4 billion backlog. Governor Quinn wants the rates extended to avoid devastating cuts to public education spending.
“We cannot be slashing the education budget and hurting our teachers and our students,” Gov. Quinn said.
Despite the governor’s pleas, House Speaker Michael Madigan says he cannot find the votes to extend the rates and has warned state residents to brace themselves for cuts.
Meanwhile, Tobin said Madigan could revive the tax increase extension after the fall election.
“He will push/promote the income tax increase again after the November election if enough of his allies get elected,” Tobin said.
Republican candidate for governor Bruce Rauner is opposed to extending the income tax increase, so voters can expect the question to become an issue in the fall campaign.
The state will lose just under $2 billion beginning January 1 and during the second half of the next fiscal year.
Rauner has not said what his administration would cut to make up for the loss.

Madigan Bribing Dems To Extend State Income Tax Increase? Say It Isn't So!

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CHICAGO—The president of Taxpayers United of America (TUA) today condemned House Speaker Michael J. Madigan (D) for attempting to bribe house Democrats into voting to make permanent, the 67% increase in the state personal income tax.
“Bribing and intimidating legislators runs in the Democrat party family,” said Jim Tobin, TUA president.
This January, the ‘temporary’ state personal income tax that raised the rate from 3% to 5% is due to drop to 3.75% and to 3.25% in 2025, and the 9.5% state corporate income tax is required to drop to 7.75% in 2015 and drop further in 2025 to a rate of 7.3%. Gov. Patrick Quinn (D) and Chicago Democrat machine boss and House Speaker Madigan originally promised Illinois taxpayers that the income tax hikes would be temporary. Now, Madigan, who is short of the 60 votes needed to extend the income tax hike, is pulling out all the stops to bribe and intimidate Democrats in the Ill. House.”
“Madigan is basically telling house members that if they don’t vote ‘Yes’, their districts will get no new capital projects, and that they may lose projects they already have.”
“Bribes are standard operating procedures for Springfield Democrats. Gov. Quinn bribed former St. Rep. Careen Gordon (D-Morris) in order to secure her vote for the 67% increase in the state personal income tax. Her Yes vote gave Quinn the minimum 60 votes. “The Chicago Tribune in January 2011 revealed that after securing Gordon’s Yes vote, Quinn gave Gordon a new $86,000-a-year state job.”
“Almost all of the money from the 67% income tax increase is going to shore-up the floundering state government-employee pension funds, which provide retired government employees lavish, gold-plated pensions that are higher than the actual wages of most workers in the private sector.”
“If the Illinois economy stands any chance of recovery, house Democrats must stand firm and reject House Bill 395, which would make the 67% increase in the state personal income tax permanent.”

Is Chicago Press Part of the Cabal that Supports Illinois’ High Tax Rates?

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The Illinois state corporate income tax continues to be understated by reporters and politicians, according to Jim Tobin, the president of one of the nation’s largest taxpayer groups, Taxpayers United of America (TUA).
“The total Illinois corporate state income tax rate of 9.5% includes a base rate of 7% and another 2.5% on top of that, which was added by constitutional amendment in 1980,” says Tobin, “The additional tax was called a ‘personal property replacement tax,’ which purportedly replaced a 19th-century tax that was not even being collected.”
“But the government game of misrepresenting the actual corporate income tax rate is perpetuated by a press that is either lazy, sloppy or part of the conspiratorial group who would drive taxes even higher.”
“Let’s not forget that the Chicago Sun Times, who consistently understates the corporate income tax rate, also supported Gov. Quinn’s 67% income tax surcharge increase.”
“I guess if the press can’t ask the hard questions of the lawmakers, such as what’s the plan for fixing Illinois’ financial house of cards, it’s up to us to ask why not?”
“It is also reasonable to ask how much responsibility lazy or incompetent press bears in the state’s financial and corrupt cesspool when they fail to do basic diligence, much less responsible, investigative journalism.”
The facts are readily available at the non-partisan Tax Foundation in Washington, D.C., “The Illinois corporate state income tax rate, raised from 7.3% to 9.5%, rose from being the 21st highest overall corporate tax rate in the country to 4th highest.”
“This is the third time since October we have provided this information to all members of Illinois Press.”
The first report is HERE, released October 10, 2013. The second report is HERE, released March 31, 2014.