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Author: 2828 Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1040  
Subject: Illinois Insanity Date: 1/7/2011 2:42 PM
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http://www.weareillinois.org/connect/newsDetail.aspx?newsID=...

Gov. Pat Quinn and top Democratic lawmakers reached a tentative agreement Thursday on a major, post-election income-tax increase and a $1-a-pack cigarette-tax hike to stabilize the state budget and provide a cash infusion for schools.

The plan, detailed by Senate President John Cullerton following closed-door meetings with the governor and House Speaker Michael Madigan, still faces a review by rank-and-file members of the Democratic-led legislature in the waning days of a lame-duck session.

Under the proposal, the state's 3 percent personal income-tax rate would rise to 5.25 percent for four years, then fall to 3.75 percent. All told, that's a 75 percent increase.

The personal income-tax hike is expected to net the state roughly $6.2 billion, and a corresponding corporate income tax increase could raise an additional $1 billion, Cullerton said. The rate businesses pay would temporarily jump from 4.8 percent to 8.4 percent.

The cigarette tax increase, which is expected to raise $377 million, would go into what was described as a "lock box" to increase education funding. Lawmakers said they hoped to double that amount using other funds to provide more than $700 million in new school funding this spring.
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"No i don't like the term 'mass exodus' Gary".

2828
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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1024 of 1040
Subject: Re: Illinois Insanity Date: 1/8/2011 2:02 AM
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The personal income-tax hike is expected to net the state roughly $6.2 billion, and a corresponding corporate income tax increase could raise an additional $1 billion, Cullerton said. The rate businesses pay would temporarily jump from 4.8 percent to 8.4 percent.

The cigarette tax increase, which is expected to raise $377 million, would go into what was described as a "lock box" to increase education funding.


My guess would be that Cullerton doesn't realize (or maybe does) that business are struggling in Illinois (of which he, seemingly, has little awareness), that increases in "education funding" mostly go to administrators and politician who would "dip" into the "'locked' box", without improving the level of education.

Bob * I haven't looked at his proposal in detail, beyond your introduction to it, but will - Thanks for the headsup!!

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Author: 2828 Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1025 of 1040
Subject: Re: Illinois Insanity Date: 1/8/2011 10:48 AM
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The details aren't out yet because i think they're meeting about it on Sunday, here's what Mitch Daniels had to say:

Gov. Mitch Daniels thinks Illinois’ proposed 75 percent hike in its corporate and personal income tax rates will be great — for Indiana.

In an exclusive interview Friday with The Times, the Republican governor said he looks ...forward to welcoming to the Hoosier State any Illinois business or resident that wants to pay less in taxes.

“We already had an edge on Illinois in terms of the cost of doing business, and this is going to make it significantly wider,” Daniels said.


They didn't do anything to cut spending, all they did was double the taxes, all this will do is make people leave the state and businesses leave the state or go out of business. I wonder how they came up with the revenue projection for the cigarette tax revenue too, everytime a state raises taxes on cigarettes the revenue "windfall" comes in below expectations because they didn't think that some people would quit or some would go across state lines, etc. This is a disaster.

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1026 of 1040
Subject: Re: Illinois Insanity Date: 1/8/2011 5:47 PM
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everytime a state raises taxes on cigarettes the revenue "windfall" comes in below expectations because they didn't think that some people would quit or some would go across state lines, etc.

Buying across State lines (including over the Internet) is illegal, unless you file an Illinois Cigarette Use Tax form (I forgot the form number) and Illinois RT-44 (general) Use Tax form. I once got tagged for over $6,000 in Cigarette Tax @ $.98/pack + general use tax on everything I bought over the Internet. They sent me copies of every invoice for cigarette purchases I had made over a number of years from esmokes.com I guess Illinois subpoenaed the company's records. They didn't go into other purchases I'd made for computer parts, but I wanted to put it behind me, so I tracked what I had bought over the time frame levied, as best as I could, and ponied up. I sent a check net of the interest and penalties they levied and asked that they forgive those, because I really didn't know that I had to pay these taxes - Springfield didn't respond to my request, one way or the other. I now submit required Use Tax forms, of which I am aware, with payment, and I haven't bought cigarettes over the Internet since.

I bought a kayak in Missouri in 1999. I didn't realize that Illinois required that a damn kayak be titled, registered and Use Tax, if any, paid on an out-of-State purchase of a small kayak until last year when I started using it again on Illinois DNR lakes, and checked more thoroughly into Illinois regulations. I had misplaced the Bill of Sale and Certificate of Origin. Thankfully, the dealer where I had bought the "craft" still had me on file, provide required documentation and the manufacturer, Old Town, provided a replacement Certificate of Origin - Otherwise, Illinois would have required that I pay Use Tax, on top of sales tax I had paid to Missouri when/where I bought it, plus interest and penalties.


This is a disaster.

Pretty much.

just my .o2
Bob

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Author: 2828 Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1027 of 1040
Subject: Re: Illinois Insanity Date: 1/9/2011 10:04 AM
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This from IBD today:

http://www.investors.com/NewsAndAnalysis/Article/559259/2011...

Undaunted by this information, Illinois lawmakers are considering raising their state's income tax rate to 5.74% from 3%. This increase, Illinois taxpayers are being told, will be only temporary, lasting four years, when the rate will fall back to 3.75%.

Temporary tax hikes are like unicorns — they exist only in legend. Even if this promise is kept, four years is long enough to drive out more businesses and workers and accelerate Illinois' death spiral into bankruptcy.

The state has a $15 billion budget shortfall. It has arrived at this point by spending like many states in good times like there was no tomorrow and only the next election. Dominated by what some locals call "the People's Republic of Chicago," it's been a laboratory for every socialist idea. Well, that experiment has failed.

Despite putting a moderate Republican in President Obama's old Senate seat, Illinois has become a dark blue states. Chicago is a pre-Detroit socialist paradise where a one-party government has never met a fee or tax it didn't like to raise.

There's talk about closing that budget gap, talk that doesn't include much about cutting spending. And there are no guarantees all the added revenues would go to paying unpaid bills and deficit-reduction. Nor is there much thought being given to the economic impact. Liberals simply refuse to believe that raising taxes affects human behavior.
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The pension news is pretty damn grim too.

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1028 of 1040
Subject: Re: Illinois Insanity Date: 1/9/2011 12:02 PM
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Thanks, very much, for the information, 2828. I'll pass the word along to interested people I know and write my representatives, urge them to help defeat it, as best as they can. If Chicago politicians want it, it's probably a done deal though. *sigh* I, at least, know who's NOT getting my vote for re-election as governor. With all of the funds that they rake in from current taxes and the Illinois Lottery, they should be able to make ends meet, but aren't. That's pathetic.

Thanks again for the heads up!!

Bob

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