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CHICAGO—Springfield Democrats enacted the largest permanent income tax hike in the state’s history, raising the personal income tax rate to 4.95 percent from 3.75 percent, and the corporate income tax rate from 7.75 percent to 9.5 percent, but they are just getting warmed up, warned Jim Tobin, President of Taxpayers United of America (TUA). In 2018, Ill. House Speaker and Chicago machine boss Michael J. Madigan (D-22, Chicago), and Ill. Senate President John J. Cullerton (D-6, Chicago), plan on putting on the statewide ballot a proposal to convert the state’s already high income tax to an even higher graduated income tax.
“If put on the ballot, this income tax increase amendment to the state constitution will be presented to Illinois voters, and I can assure you that all state government employees, active and retired, will vote ‘Yes’ on this measure,” said Tobin.
Taxpayers United of America’s executive director, Jared Labell, added, “But sensible Illinois taxpayers will defeat any such proposal if the spend thrift politicians in Springfield attempt to force this disaster upon us.”
“If approved, as with previous state tax increases, almost all of the money will be pumped into the insolvent state pension plans for retired state-government employees.”
“These retired state-government employees are enjoying lavish, gold-plated pensions, while a person in the private sector, who may not have a company pension at all, must scrape by with an average annual Social Security retirement benefit of less than $17,000,” said Tobin.
“Nearly 100,000 Illinois government retirees collect annual pensions totaling $50,000 or more, and 17,000 of those former government employees collect annual pensions totaling $100,000 or more. This is outrageous.”
“These Springfield Democrats need to be taught a lesson. Illinois taxpayers, including those in the Democrat stronghold of Cook County, must call and write their representatives in the Illinois House and Senate and voice their opposition to any further increases in the state income tax. They must tell these highway robbers that if they support changing the state income tax to a graduated income tax, they will be voted out of office,” said Tobin.
Labell concluded, “And if every democrat candidate running for governor continues to advocate for a new disastrous graduated income tax for Illinois, taxpayers will revolt and insure their defeat at the ballot box in 2018.”
Last week, the Illinois General Assembly voted to override Gov. Rauner’s (R) income tax hike veto in both the Senate and the House.
This economically devastating legislation would have been impossible to pass without the help of Republican Sen. Dale Righter and 10 Republicans in the House: Andersson, Bryant, Fortner, Hammond, D. Harris, Hays, Jimenez, B. Mitchell, Phillips, Unes.
TUA’s executive director, Jared Labell, spoke out against this most recent plundering of Illinois taxpayers in the Chicago Sun-Times, under the ominous headline “Illinois moves into the top 20 personal income tax states.”
“Jared Labell, executive director of Taxpayers United of America, compared fixing the state’s financial problems, as well as the impact the income tax hike could have, to a game of “Jenga.” The game of stacked pieces relies on a sound infrastructure to keep from toppling – which is not unlike a state government, he said.
“The tax increase isn’t a solution to (the state’s financial problems).””
Read the article here.
This past Sunday, Jim Tobin, TUA’s founder and president, attended Bob Redfern’s Illinois Forum meeting in Champaign, IL.
While addressing the attendees, Tobin denounced the newly passed 32% income tax hike and the $5 billion in tax dollars to be siphoned away from hardworking Illinoisans for the benefit of the politicians, bureaucrats, and retired government employees collecting millions of your tax dollars to fund their lavish government pensions.
Tobin’s complete remarks can be viewed here.
The state income tax increase was pushed through the legislature against the wishes of a majority of Illinoisans, activist groups, and our best efforts, along with other fellow organizations.
One thing is clear: if this is Springfield’s solution, the financial climate in Illinois will never recover.
When the Illinois General Assembly reconvenes in January 2018, we will be prepared to offer our own legislation to make sure that more of your hard-earned money remains in your pocket, and not in the hands of the spendthrift politicians in Springfield.
Jim Tobin, Taxpayers United of America’s (TUA) president, was quoted in the Madison-St. Clair Record’s article about TUA’s efforts to ensure the defeat of any proposed Illinois state income tax rate hikes.
A proposal increasing state income taxes by 32 percent that passed in the State Senate by Democrats only has inspired the state GOP to target certain House district with robocalls in advance of a possible vote.
Calls going into local districts of state representatives Dan Beiser (D-111), Katie Stuart (D-112) and Jerry Costello (D-116) will in part warn:
“Over the weekend, NBC news reported that 46 Democrats in the Illinois House are committed to voting for a 32 percent income tax increase with no reforms to grow jobs or deliver property tax relief.
“House Speaker Mike Madigan’s plan to force higher taxes without reforms will be one of the largest tax hikes in state history.”
The caller then advises listeners to reach out to their representatives to oppose Madigan’s “tax-and-spend plan without reforms.”
Robocalls are going into 19 House districts across the state, according to a release from the Illinois Republican Party.
Taxpayers United of America (TUA) president Jim Tobin stated in a press release that taxpayers are increasingly venting anger and frustration over tax increase proposals, as they already pay some of the highest state and local taxes in the nation.
The income tax proposal that recently passed by all 32 Democrat senators would raise the individual tax rate from 3.75 to 4.95 percent and it woudl also raise the state corporate tax rte to 9.5 percent. No Republican senator voted in favor of the measure.
“No wonder Illinois has lost more residents than any other state for the third consecutive year,” Tobin stated. “And Chicago, the most corrupt city in the nation, was the only city of the nation’s 20 largest cities to lose population in 2016.”
The TUA press release cited a Chicago Sun Times accounting of taxpayer frustration.
“You dirt bags stop screwing the taxpayers,” posted one person on Facebook, the release states.
Another taxpayer commented, “Keep your grubby hands off our tax money you crook.”
“How dare you raise my taxes in this corrupt state. You are ruining people’s lives with your tax and spend ways,” wrote another.
“Illinois is bankrupt due to the huge deficits of its government-employee pension funds,” Tobin stated. “It is too late for the state to tax itself out of this predicament. Puerto Rico recently declared bankruptcy, and it looks more and more like this is the only salvation for Illinois.”
Even if the House passed the Senate’s tax increase bill, it would likely be vetoed by Gov. Bruce Rauner. Whether it could be overridden is uncertain.
Lawmakers convene today and again tomorrow, the last day of the General Assembly’s regular session. If a budget agreement is not reached, lawmakers could go into overtime where any deals would require a three-fifths or super majority vote for approval, versus a simple majority vote in regular session.
