Illinois Income Tax Increase

Discussion in 'Politics, Religion, Social Issues' started by callmemike20, Jan 12, 2011.

  1. callmemike20 macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #1
    At about 1:30am, the democrats of Illinois passed a 66% increase in the state income tax, which means it will go up to 5% (from 3%). Unlike most states, this is a flat tax, so everyone pays the same amount. For someone making $50,000.00 per year, that's another $1,000.00 that goes to the state. In this economy, that could easily be someone's mortgage payment that puts them into foreclosure. The state claims that they are simply eating the federal tax cut that all Americans will receive. The corporate income tax was also raised from 4.8% to 7%.

    I am aware that these may not be the highest numbers when compared to some other states, but that still doesn't make it acceptable.

    Here's a link to the bill. Funny, its called the "Taxpayer Accountability" and Budget Stabilization Act. Really, it's our fault that the government is incompetent and can't manage their finances correctly?

    Illinois should really be afraid of companies and people leaving the state because of these issues. In our current state, I personally don't think tax increases are the best option. However, I know that compromise is necessary. So, I would have been okay with a SMALL tax increase with spending cuts. This bill had no spending cuts attached to it. Complete crap.
    ----------
    In other news, Timmy G. said (today) that the U.S. government is looking for ways to lower the corporate tax rate to maintain our competitiveness without raising the deficit.

    “We have to look at the incentives we create in the U.S. against those created outside the United States,” he said. “We don’t want the tax code creating incentives to shift investment outside the United States.” MarketWatch

    It's about time they are realizing this. Not that long ago, they were trying to tax income on revenue generated outside the U.S. before the money even came into the country! No other country does this. In fact, the U.S. is now one of very few countries (possibly the only) that taxes any revenue generated abroad. With the second highest corporate tax rate in the world, why would anyone want to do business here? Our massive spending in education obviously doesn't generate enough talent to compete with all the kids in Asia.

    /rant
     
  2. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #2
    I agree this sucks. I think it should have been a much smaller amount and cuts should have been made. What really stinks is that Chicago will now have to lower it's taxes on corporations in order to keep them here, which will bleed the city coffers to the point they'll probably raise property taxes. I'm all for paying our bills, but this is too much. We already have the highest sales tax in the country.

    Also, more than ever, we have to start looking at universal health care. We absolutely must get that beast off the backs of our corporations so they can compete better in the world market. No other country's companies have to pay that.
     
  3. dukebound85 macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #3
    I wonder at what point there will be a mass exodus from Illinois in both corporations and population

    All the financial aspects I have read concerning that state seem very daunting and discouraging to even live there
     
  4. callmemike20 thread starter macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #4
    We may disagree on many points related to health care, but you are absolutely right about Chicago. I graduate in May and as much as I would like to be in the city, it may not be a good choice financially. Property and sales tax hikes are now the norm. People just expect them. It's ridiculous. Business has been leaving the city for a while now. Daley probably sees the end is near and decided to leave while he's still ahead (in his mind).
     
  5. leekohler, Jan 12, 2011
    Last edited: Jan 12, 2011

    leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #5
    Well, I think we'll be OK. I love this town too much to ever leave it. It's such a great city. People will wise up. I think Daley leaving is a good first step for us. He's been acting like a king for way too long.

    And yes, I'm very disappointed with Quinn for doing this. I would not be surprised if this tax hike has to be scaled back sometime soon. Another thing that needs to change is how we fund our schools. We should switch to a levy system instead of attaching school funding to property taxes. That would raise the level of accountability for sure.
     
  6. RCGMac macrumors regular

    Joined:
    Aug 21, 2007
    #6
    I think the increase is something that needed to be done. Illinois is in a very deep hole financially and it is going to take some pain on all levels to get out of it. The State's income tax rate hasn't been increased since 1989. While people in IL may think the sky is falling, IL has a lower personal tax rate than the top rates of Wisconsin, Iowa, Missouri and Kentucky.

    Now I would have liked to see more spending cuts. It will be interesting to see if the spending increase cap will be followed and if the tax rate declines like it is supposed to in 4 years.
     
  7. PlaceofDis macrumors Core

    Joined:
    Jan 6, 2004
    #7
    i'm not overly upset about this since its state-wide and not another Cook county or Chicago tax hike. well it is upsetting, but if we don't pay our bills soon this state will go bankrupt so there really is no other option.

    funding for schools needs to be fixed. healthcare needs to be fixed. sales tax in Cook county needs work and the list goes on and on. the funding problems in Chicago alone are staggering. its not going to be easy in the years ahead.
     
  8. gkarris macrumors 604

    gkarris

    Joined:
    Dec 31, 2004
    Location:
    "No escape from Reality..."
    #8
    Well, with the mass exodus of well paying jobs going overseas - who's able to pay income tax? :eek:

    Those of us who managed to find *some type* of work are working at 1/3-1/2 our original pay...

    And now the state is wondering where all the money went? Ask the Chinese and Indians...

    So I guess the answer to those of us who can't make ends meet is to tax us more - that'll work... :rolleyes:
     
  9. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #9
    I'm not sure what the OP is complaining about.

    According to this site, Illinois has a deficit of $13.5 billion, or 40.4% of the entire FY2011 budget!

    If not now, when do you ask people and business to contribute more in a time of crisis?

    I'd suggest now is a pretty good time.
     
  10. rdowns macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
    #10

    It was already pointed out to him in another thread. Looks like he may be the first poster punished under the new PRSI rules.
     
  11. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #11
    I think he was merely surprised at the amount of the increase, as was I. I would rather have seen a smaller increase and more spending cuts. But we will survive this. We're tough folk. :)
     
  12. HyperX13 macrumors 6502

    Joined:
    Sep 3, 2009
    #12
    The problem is not revenues, the problem is spending. If Indiana was able to cut their budget to where it is balanced without raising taxes, Illinois could have too. Now Indiana has a triple A debt rating, while Illinois has the 2nd worse in the nation. Indiana in turn can refinance debt at lower interest rates. The problem is Illinois is ran by democrats, Indiana elected republican Governor Daniels who is turning that state around.
     
  13. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #13
    You'd be happy if government barely existed, I actually feel that government provides a vital role in our society.

    On this point, we won't agree.


    Two percent works out to $83 a month for me. I could easily afford it... although I understand that some people's budget's are tighter than mine.

    The increase should be grandfathered, so that when the deficit is erased the rate returns to 3%. I hope they built that stipulation in.
     
  14. HyperX13 macrumors 6502

    Joined:
    Sep 3, 2009
    #14
    Ok, I can afford it too, but my property taxes went up to about 10k from 8k, even in this economy when prices of homes have fallen. Illinois is not accountable for the spending. They spend spend spend and then raise taxes. When does it end? Dont forget that corporate income taxes went up over 50% as well. How will that affect Caterpillar, John Deere, and others. Indiana and Wisconsin is creating a nice environment for businesses. Imagine the government so large that only government exists - how can that be sustainable? Remember they promised us that toll roads will go away too, and what happened? They are still here, and fees are going up.


    End the spending. Cut things. We are all forced to cut certain things, why not the government? Why do you give them a pass?
     
  15. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #15
    Like groceries.

    You spend and spend and the prices just keep going up.

    When does it end?
     
  16. thefnshow macrumors regular

    Joined:
    Mar 16, 2007
    #16
    the problem is when the 3 years are up, the tax rate won't go back to the 3% we're at now..it would supposedly be 3.75%...so they'd say something that would justify them keeping the tax rate at 5%...quinn said when he was running that he wanted to raise taxes 1%...he already lied...good job illinois
     
  17. HyperX13 macrumors 6502

    Joined:
    Sep 3, 2009
    #17
    Tax is relative. if it's 3% of my income, and my income goes up, the revenue that the state takes in goes up relative to my income. Problem is that revenues of people are not going up, so Illinois raises the rate. On top of that, Illinois was borrowing more than they were taking, spending money they do not have.

    Cut spending, don't increase rate.
     
  18. kavika411 macrumors 6502a

    kavika411

    Joined:
    Jan 8, 2006
    Location:
    Alabama
    #18
    Obtuse much?
     
  19. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #19
    I'm not the one wondering "when it will all end?"

    If by obtuse, you mean "indistinctly felt or perceived," I would suggest it applies to that question.
     
  20. Pink∆Floyd macrumors 68020

    Pink∆Floyd

    Joined:
    Nov 21, 2009
    Location:
    Up There
    #20
    Wasn't Quinn's campaign all about not raising taxes and s***?
     
  21. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #21
    No- he stated that taxes would be raised, but by a smaller amount. I don't think anyone in this state would deny we needed a tax increase.
     
  22. callmemike20 thread starter macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #22
    Nothing in this post was pointed out to me in another thread. So, I don't know what you are talking about.

    Right, a small tax increase was most likely necessary. However, not to this extent and not without appropriate spending cuts.
     
  23. HyperX13 macrumors 6502

    Joined:
    Sep 3, 2009
    #23
    read comments on tribune or other web sites. I am having a hard time finding few people that would support this move. No one wants it, not even the democrats. Can't wait till next elections. I think this was the last straw - even for dems.
     
  24. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #24
    California's going to put raising taxes before the voters soon.

    This democrat is definitely voting for them.
     
  25. Gelfin macrumors 68020

    Gelfin

    Joined:
    Sep 18, 2001
    Location:
    Denver, CO
    #25
    Likewise, and as somebody who makes enough money for multiple Tea Partiers, I sincerely hope the state stops pandering to idiots and taxes me a little more so that we can dig our way out of the hole we have created for ourselves. I can afford it.

    Like with so many other issues, the problem with the budget in California is largely a problem of voter-referendum politics. Every ballot that comes along has a new crop of bond measures that always pass, and a scant few revenue recovery measures that always fail. I've been voting against the stream on these measures for years, for all the good it does, but the problem is emphatically not "the government" spending "the people's" money. It's "the people" not managing the state's credit any better than most individual people manage their own.

    I, for one, am frustrated that these things even show up on a ballot, putting complex financial questions before a public that generally does not even understand what a bond measure is, much less the extended consequences of repeated borrowing on the state economy, and thus cannot make an informed decision. They vote based on whether they are persuaded we need the object, not on how we will pay for it. I cannot speak for other states, but what California needs is less of "the people" and more informed financial expertise advising government, and government doing what needs to be done.
     

Share This Page