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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.”
TUA’s executive director, Jared Labell, was interviewed by Shanice Harris of the Madison – St. Clair Record last week. They discussed changes Madison County board members made to the number of work hours needed for county workers to stake a claim in the Illinois Municipal Retirement Fund.
A taxpayers’ advocate sees a recent decision that increases the minimum number of hours that Madison County employees must work in order to be eligible for pension benefits as a positive move, but one that only “tinkers” with a more profound problem.
Last month board members changed the number of work hours needed from 600 per year to 1,000 per year in order for county workers to stake a claim in the Illinois Municipal Retirement Fund.
“The recent change by the Madison County Board is a good move for taxpayers, but raising county employees’ minimum number of work hours to collect IMRF pensions is merely tinkering on the edges of a much broader problem,” Jared Labell of Taxpayers United of America told the Record. “Defined benefit government pensions are unsustainable.”
County employees previously received IMRF pension for working approximately 12 hours a week, but because of this change, the hours have increased to a minimum of 20 hours of work. The change won’t affect current employees, but will apply to new hires.
“Employees currently working 600 hours a year at a minimum won’t be required to work additional hours to remain in IMRF, so the changes only affect new hires and not existing county employees,” Labell said.
Other counties across Illinois are also increasing the amount of hours an employee is required to work before receiving their benefits. But, according to Labell, the pensions promised to government workers are overly lavish and unfair to taxpayers.
“To receive pensions for as little as 12- or 20-hour work weeks is astonishing. If government employees are to receive pensions, taxpayers should expect these individuals to at least work full-time,” Labell said.
“Taxpayers are struggling under numerous tax burdens in this state. Income taxes, local taxes, and rising property taxes are all tied to the broader government pension problem in Illinois. IMRF is funded through local property tax increases and taxpayers should demand more accountability with their hard-earned money.”
The TUA has advocated for at least offering state workers the option of moving into 401(k) plans, which has been met with fierce opposition by state labor groups.
Chicago – Tax Accountability (TA), the political action arm of Taxpayers United of America, congratulates taxpayers for electing numerous TA endorsed candidates in the general election held on Tuesday, November 8.
“2016 has been a year full of surprises,” said Jim Tobin, Chairman of TA. “The Cubs won the World Series, President-elect Donald Trump turned the political system upside down, and Michael Madigan, Speaker of the Illinois House, lost his super majority! Our sincere congratulations to these tax fighters and thanks to their constituents.”
The following is a list of TA endorsed candidates who were victorious in their campaigns for various local, state, and federal offices:
- Incumbent Dan Patlak defeated Marty Stack for Cook County Board of Review, 1st District
- Joe Tirio defeated Lynn Gray for McHenry County Recorder
- Tom Wilbeck won a seat on the McHenry County Board, District 1st
- Craig Wilcox won a seat on the McHenry County Board, District 4th
- Incumbent Jeanne M. Ives defeated Kathleen Carrier for IL State Rep 42nd District
- Steven Reick defeated John Bartman for IL State Rep 63rd District
- Allen Skillicorn defeated Nancy Zettler for IL State Rep 66th District
- Dan Swanson defeated Bill Butts for IL State Rep 74th District
- Incumbent Randy Hultgren defeated Jim Walz for House Rep IL 14th District
“I am pleased to see Madigan stunned and losing his grasp on power in Springfield,” said Tobin. “And think of the possibility of a revolt within his own caucus! Regardless, we are delighted to see so many great candidates elected to office, both newcomers and incumbents. Taxpayers should be proud of these tax fighters within the halls of power and encourage their peers to live up to their examples.”
