Huge tax increase coming for Illinois?

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Huge tax increase coming for Illinois?

Post by 19delta on Sat Jul 01, 2017 8:43 pm

Proposed 1+% personal income tax increase. Effective July 1st if it passes.

https://www.illinoispolicy.org/illinois-house-amendment-includes-permanent-income-tax-hike/
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Re: Huge tax increase coming for Illinois?

Post by Teetime on Sun Jul 02, 2017 5:00 pm

Talking about 4.95% in place of 3.75%.

For a person who makes $50,000 the increase would be $600.

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Re: Huge tax increase coming for Illinois?

Post by 19delta on Sun Jul 02, 2017 8:39 pm

Teetime wrote:Talking about 4.95% in place of 3.75%.

For a person who makes $50,000 the increase would be $600.

It passed. Veto-proof supermajority.

Thank God this is over. I'm sure we will not see future tax increases. 🙄
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Re: Huge tax increase coming for Illinois?

Post by Teetime on Mon Jul 03, 2017 6:31 am

19delta wrote:It passed. Veto-proof supermajority.

Thank God this is over.

Not sure it's over. The Senate still needs to act, the a Governor still needs to veto the legislation and the House and Senate still need to override that veto.


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Re: Huge tax increase coming for Illinois?

Post by 19delta on Mon Jul 03, 2017 8:35 am

Teetime wrote:
19delta wrote:It passed. Veto-proof supermajority.

Thank God this is over.

Not sure it's over. The Senate still needs to act, the a Governor still needs to veto the legislation and the House and Senate still need to override that veto.


After all that happens, they might as well rake all the revenue this tax increase will generate into a big pile and set it on fire.
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Re: Huge tax increase coming for Illinois?

Post by OSUBucks on Mon Jul 03, 2017 9:31 pm

A 4.75 rate isn't bad. Look at our neighboring states, only Indiana is lower and they also have a local income tax. If Illinois had adopted a progressive state income tax some years ago (multiple brackets based on income like Federal tax) we'd be in a lot better shape today. On average state governments supply about 45% of K-12 school funding. Illinois supplies about 30%. They don't have a tax rate to support 45% so as a result we have among the highest property taxes in the country to help fund K-12 schools.
If Rauner hasn't succeeded in burning this state to the ground by 2019 we'd better hope that he doesn't get a 2nd term. It would also be helpful if Madigan decides to retire. If he doesn't retire his District will likely give him 2 more years.

http://www.money-zine.com/financial-planning/tax-shelter/state-income-tax-rates/
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Re: Huge tax increase coming for Illinois?

Post by BirdWatcher on Tue Jul 04, 2017 12:44 pm

My brother in law and I are the same age, retired the same year. Me from the private sector, he from a 30-year state job. He won't tell me, but I guarantee he's making upwards of 60-70% of his working wage. My pension on 30-and-out at age 53 is about 35% of my working wage.

My best friend was a state judge. His retirement pay is basically what he made working.

Until IL reins in those costs, no amount of tax increase is gonna save them....

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Re: Huge tax increase coming for Illinois?

Post by OSUBucks on Tue Jul 04, 2017 1:33 pm

I don't know why Illinois doesn't do a reamortization of the pension payment. The current payments are based on the Pension Ramp law signed in the mid 1990's when Edgar was Governor and those pension payments were rear weighted. In theory you would only need 100% pension funding if every state worker retired at the same time, which would never happen.
Those state workers who work in more dangerous jobs like state police or corrections get a better pension. The majority of state employees, your rank and file worker, would need to work 30 years to get to 50%. 1.67% per year of service x 30 = 50.1% and there is a cap on that. Most workers who retire do not have 30 years of service. Judges and legislators get a much better deal, imagine that!
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Re: Huge tax increase coming for Illinois?

Post by 19delta on Tue Jul 04, 2017 3:53 pm

The Illinois Senate overrode Rauner's veto. On to the House. Start raking...
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Re: Huge tax increase coming for Illinois?

Post by Teetime on Tue Jul 04, 2017 4:02 pm

19delta wrote:After all that happens, they might as well rake all the revenue this tax increase will generate into a big pile and set it on fire.


I don't know.....the Budget (that they say is balanced, given the new tax rates) totals just under $37 Billion dollars. That is the current year spending 2017-2018 and does not address the $12 billion or so that Illinois owes for previous fiscal years.

In Wisconsin, they budget for two years at a time and they are also having a budget fight over a proposed $76 Billion dollar budget.

They have about half as many residents in Wisconsin as we do in Illinois and the budget totals are nearly identical for one year. I think the property taxes in Wisconsin are significantly lower, and the state covers a higher percentage of educational funding.

But still....they are spreading that state budget out over half the number of taxpayers that we do in Illinois. That makes me wonder if it really is a spending problem as much as it is a revenue problem.

I do agree with BW. We have to fix the pension problem in Illinois....and I think we should start with Head Skin's pension.


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Re: Huge tax increase coming for Illinois?

Post by Head Skin on Thu Jul 06, 2017 5:38 pm

Knock yourself out Tee. There's already a teacher shortage in Illinois. Enrollment in education programs has almost been halved in the past 5 years. Cut more benefits. I'm sure it won't have any impact on the availability to hire teachers.

Seriously though, with no perks and terrible pay, along with a society that blames everything on them, how do you think there will be people wanting to take on the job?
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Re: Huge tax increase coming for Illinois?

Post by Teetime on Thu Jul 06, 2017 7:17 pm

This says some of the highest salaries in the country at an average of $59,199

https://articles.niche.com/teacher-salaries-in-america/

This says the highest pension of all but one or two states.

https://www.teacherpensions.org/blog/what-average-teacher-pension-my-state

I think that's a long way from "no perks and terrible pay", but I'm sure I'm wrong. Let me have it.


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Re: Huge tax increase coming for Illinois?

Post by Head Skin on Thu Jul 06, 2017 7:49 pm

I will make a total of 48k next year with coaching included in my 17th year of teaching. And that is a raise. I'm sure suburban teachers are paid more, but their cost of living is also much higher.

Do you honestly believe teachers are overpaid and receive too good of benefits for what they do for the overall society or are you just being an asshole again? The teacher shortage is real. If you continue to roll back benefits, there will be no one willing to take the job. I've said this for years and it's starting to play out. The first pension reform I would imagine is responsible for much of that. Make further cuts and you may see 75% reductions in people enrolling in education. What is your plan for education when no one is willing to do the job anymore?

I mean, what other job can you get a master's +30 and HOPE to make 75k? Along with getting blamed for whatever societal ill someone decides that day to dump on you?
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Re: Huge tax increase coming for Illinois?

Post by Teetime on Thu Jul 06, 2017 10:54 pm

I don't believe teachers are overpaid, nor have I ever said they were. You should make more. How much did you think you were going to get paid when you majored in education? The possibility that it wasn't a high paying profession didn't occur to you?

I do think that all pensions negotiated by the State of a Illinois are overly generous. I have said so many times.

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Re: Huge tax increase coming for Illinois?

Post by Head Skin on Thu Jul 06, 2017 11:46 pm

One way or the other- salaries or benefits- you can't keep taking away and expecting people to take the job. Pay increases certainly aren't happening.

If you want people to become teachers, something is going to have to change in the equation and less retirement benefits isn't going to help. You're going to have to pay somewhere.
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Re: Huge tax increase coming for Illinois?

Post by Teetime on Fri Jul 28, 2017 11:38 am

Wisconsin just landed a big plant that will provide 3,000 full-time jobs and about 10,000 temporary construction jobs. Here is an article about that big news in Wisconsin.

http://www.realclearmarkets.com/articles/2017/07/28/to_win_foxconn_wisconsin_pays_250000_per_job_102806.html

The citizens of Wisconsin will pay $250,000 per job for the full-time jobs.

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Re: Huge tax increase coming for Illinois?

Post by Head Skin on Fri Jul 28, 2017 12:06 pm

I would rather my money go to creating and paying someone's job working for 5 years than welfare or benefits for non citizens to do nothing like in Illinois.
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Re: Huge tax increase coming for Illinois?

Post by BirdWatcher on Fri Jul 28, 2017 3:40 pm

Teetime wrote:
The citizens of Wisconsin will pay $250,000 per job for the full-time jobs.

But is that $250k a "tax" or a "fine?"

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Re: Huge tax increase coming for Illinois?

Post by Teetime on Fri Jul 28, 2017 4:26 pm

Head Skin wrote:I would rather my money go to creating and paying someone's job working for 5 years than welfare or benefits for non citizens to do nothing like in Illinois.

Illinois' annual budget (and it's the annual budget that pays for welfare) is about 5% higher than the annual budget for Wisconsin. Our population is 100% higher.

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Re: Huge tax increase coming for Illinois?

Post by Head Skin on Fri Jul 28, 2017 4:45 pm

Your point?
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Re: Huge tax increase coming for Illinois?

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