Governor Quinn is being a mouse turd

Yeah, I get it, the state is in financial ruin(if we made the 2/3 corp.that pay no income tax pay like citizens have to, it wouldn't be).
Yeah, I get it, we have a pension(Although I don't get the meme of how much we make, since over 60% make under $25K and no social security).
NO I DON'T GET WHY WE'RE THE PROBLEM!!!!
Governor Quinn decided he's gonna take his ball and go home....just like the mouse turds that use to do that in neighborhood ball---name your sport, football, basketball, baseball---you know the kid. He wasn't able to bully the other kids into what he wanted so his panties got in a bunch and he owned the ball.
REALLY????
Gov. Quinn Cancelled our contract and lied about the reasons why: he said AFSCME wanted too much money, we wouldn't even think about playing ball(not when "playing ball" meant a 20% pay cut). He whined that we were just too mean....
Again, REALLY???
Let's look at what has been happening for the last....oh...30 years...
First, for the employees: Employees have paid into the pension every paycheck their fair share, somewhere between 4 - 9% of their paycheck, every paycheck, towards their pension.
Second, AFSCME has negotiated, for at least the past 30 years to protect pensions--we've gone without raises/benefits/language to keep the pension for our members. Why? Because we thought it was important for our members to be safe during retirement.
Third, the state's reaction to pensions? For the past 30 years, they've acted like a drunken sailor when it came to pension payments. Not only have they not paid their part for at least 26 of the past 30 years, but they took my money out to spend on other things such as projects the governors wanted to do(remember Illinois First? That was done with public employees pension funds) or to pay other funds. And now? Oh, its too much of a bother to pay what they owe...I feel the same way about my mortgage, but I still must pay it - if I want to keep my house. The same for the state of Illinois--if they want to keep their employees, they must pay what is due.
And then, there are the lies that Quinn has told. The first one? Before the election, he spoke about how much retirees made when they retired. He said that if an employee in 1992 was making $65K, that retiree now would have doubled what he was receiving due to the overgenerous COLA...sure. What Quinn didn't relay is that in 1992, the average pension was about $11,000 a year, no where close to $65K(that was the pols and governor appointees) so, even if he is right about the pension doubling in 20 years, that doubling would only amount to $22K for most long term retirees!
And some more lies: Quinn whines he's cancelling the contract because AFSCME is being mean...you know how bullies are, they either intimidate you or snitch that you're being mean...BUT the facts are far from what he's whining about.
AFSCME negotiated a contract, but came back to the table to defer raises and find money savings in health insurance 2 years ago. AFSCME also requested meeting about negotiating changes in retirement earned benefits with only one caveat--that these changes would only effect future retirees, not present ones. The union was rebuffed by the Governor. AFSCME has always tried to work with the state during times of duress, but that doesn't mean we are going to roll over and play dead. Now some facts:

• Quinn is arguing that AFSCME is making excessive demands in negotiations. The truth? AFSCME has been at the bargaining table for almost a year now working in good faith to try to reach a contract settlement. Contrary to the governor’s claims, the Union’s economic proposals have been very moderate in recognition of the state’s dire fiscal condition.
• Quinn tries to give the impression that the Union has been dragging its feet in negotiations. In fact, progress in negotiations has been moving at a snail's pace for only one reason -- the Quinn Administration for more than 10 months was demanding that every employee’s pay had to be cut by 10%. And Administration is the one that cancelled meetings, not AFSCME.
•  Even now the Administration continues to demand that employees’ wages be reduced by demanding a three-year wage/step freeze and massive health care cost increases.  
• Quinn is basing his efforts to drive down employee wages on the lie that Illinois state employee salaries are the highest in the country. NOT TRUE. Although Illinois ranks 7th in the nation for wages, Illinois public employees rank only 9th, compared to other states.  

And, yes, I know, AFSCME endorsed Quinn during the last Governor's election. But I don't think we really had much of a choice, considering Brady(R) veers on teabagger and made his money the old fashioned way---he married into it and Whitney(G) had no game---no ground game, no finance game, no election game. Yes, Mr. Whitney had good ideas, but no one knows who he is, which means, no name recognition for the voters.
So, what happens now? We live in a state that seems determined to bankrupt seniors so 2/3 of Illinois based corporations pay nothing in income taxes. We seem to think its just fine if these seniors lose their homes, their savings, their future, their dignity, but can't change our laws so that the state receives all of the 6.5% of retail tax, instead of retailers keeping about 1.5%(which gives Wallmart an extra $9 million in profits just cuz they don't have to pay the tax to the state).
But, then, there we are--I think the administration of this state would like to pay us the way Wallmart pays their employees...little to nothing and the employees qualify for food stamps and Medicaid...so, then the state budget crisis would just go from so-called pension problem to the Medicaid and food stamp program...but at least the employees of those agencies know what they need to qualify for those benefits. Just very sad and shameful.

Illinois is NOT broke, but our Tax System is!

HUH??? But all the media says Illinois is one of the worst business states in the universe!!!! If ET had landed in Illinois, he'd still be stuck! Sure...don't ya just love the crap the right/rich/corporate/take you pick like to try to shove down our throats? Too often it works because sound bytes and snappy little phrases work much better for people who don't feel like they have the time or the knowledge to understand these things. Oh, and you know its MY fault Illinois isn't paying its bills...so, what are some facts? 

First: Illinois has the least amount of state employees per capita than any other state, yes, that means that even Mississippi cares more for their residents than we can. You can't lay off more employees, because many places are down to bare bones minimum to begin with. 

Second: Why make cuts???? Our tax system is antiquated and needs to be updated. We also need to get rid of a couple tax laws that either aren't needed any longer or are not needed in a time when we, the middle class, state employees and/or retirees, are expected to pay more while the corporations are paying less.

So, some facts about the tax system. In my last post, I spoke about the difference between our flat tax and a graduated income tax, like all of our neighbors have('cept Indiana):

• Iowa: 9 rates that start at 0.36% to 9% (rate is higher than Illinois at $12K-6.12%)
• Kentucky: 6 rates that range from 2.0% to 6% (rate higher than Illinois at $5000)
• Missouri: 10 rates from 1.5% to 6% ( rate is higher than Illinois at $9,000)
• Wisconsin: 5 rates starting at 4.6% to 7.75% (rate is higher than Illinois at $13,580 - 6.15%)
• Indiana: 3.4%--ok, they're lower, but...its Indiana(spoken like a true FIB).

OMG!!! LOOK--all of the states have rates that actually are higher than ours at the top end! How could that be??? You mean all those fine business/media types have been lying to us?!?!?!?? Sure seems that way.

Not only that, but all, including Indiana tax services as well as goods. In other words, they have broadened the sales tax base.  So, what services? Dining, marina fees, landscaping, dry cleaning are some that were in a bill a couple of years ago(that also included seniors being able to get a property tax rebate on income taxes-now its just a credit). And how do those state sales tax rates compare?

• Illinois:       6.25%          Indiana:   7%
• Kentucky: 6%                Michigan: 6% 
• Iowa:        6%                 Missouri:  4%

Illinois is not out of bounds on sales tax, in fact it looks like we're about the same place as everyone else. 

Another area that we could set up a tax is on financial transactions--sales of stocks, etc., not withdrawing $100 from your savings. Again, this is something that would be small, but effective in 2 ways: first, more revenue, second-more stability in the market and less fluctuation--think gas prices and how they've been manipulated in the last couple of months by speculators...same thing can happen statewide vs. nationwide.

So, now that I've begun to get Illinois out of the trash bin that others have built for her, I've got a couple more ideas...

Large businesses in my state get a much larger piece of the tax cut pie than small and medium sized businesses, specially in the area of the "Single Sales Factor"(I will try to explain this later in another post because its very, very, wonky), suffice to say that this bomb allowed Caterpillar to pay NO sales tax in Illinois, this costs us about $600 million annually! But there are 2 other cuts/credits that businesses receive that just don't seem very fair:  the Retailer's Discount on Sales Taxes and Accelerated Depreciation.

Accelerated depreciation is very easy to understand. Some businesses get to depreciate equipment (computers, cars, JETS) at a faster rate than other businesses--doesn't sound very fair to me.

The Retailers Discount goes sorta like this---I go to a store, buy $100 worth of clothing and pay the 6.25% state sales tax. The retailer then sends the $6.25 to the state at the end of the quarter/year, right? Nope. This  tax cut allows the retailer to keep some of the sales tax. It was established years ago when it was more difficult to figure out the taxes in a small window of time. My idea? To the State legislature...ummm, we have computers now, this problem is alleviated! Get rid of this giveaway NOW! 

Yes, Illinois needs to budget the balance, but there are many ways to balance that would be fair to the state employees, the retirees and to all of the people in Illinois, not just kow-towing to the Chamber of Commerce and the Chicago Civic Federation.

The state of the State of Illinois-it ain't broken

The Chamber of Commerce and the Chicago Civic Federation have been jumping up and down about how Illinois is broke and its all "my" fault, being a retired state employee who receives a pension that I put up to 9% of my salary into....naw, I don't have an issue with their lies....but anyways.....
First, nothing to do with finances directly, but Illinois received a "C" in public integrity, placing 10th in the nation...yep, there are 40 states that are worse than Illinois and that includes all the ones that surround us, imagine that. Yes, we've had our share of corrupt politicians, but ours actually end up in prison or at least indicted and out of public office.
So, back to the financial state of Illinois. I do agree that our tax system is broken, but not because its too much...its broken because its a "flat tax"--everyone alleges to be taxed at the same rate...not really. We have an antiquated tax system--flat tax, no taxes on service(unlike the surrounding states). We have not actually changed the tax structure since the 70's, partially because to change the flat tax, we need an amendment to our constitution, but we do need to do something.
So, how broke is Illinois? Not very. Illinois has the 5th largest economy in the United States...and has been for over a decade! Obviously, some people are doing all right in the Land of Lincoln. Much of this is in northern Illinois--Cook, Will and DuPage counties. So why do we have such a problem with paying our bills? Greed?
I do believe that part of the problem is greed, considering the disproportionate income/wealth inequality that has developed in this country in general, but in Illinois we also have a very unfair tax system, the one that so many right wing folks dream of--the flat tax. The idea is that everybody pays the same, and that's more fair than a progressive income tax.
So, why is a flat tax unfair? It seems to be fair, a guy making $10K pays the same as a guy making $10M, right? Wrong...
The less income you have, the more you pay in taxes, when all taxes are considered. The Center for Tax and Budget Accountability is a bi-partisan non-profit think tank that promotes fair, efficient and progressive tax, spending and economic policies--the definition on their website. This group has been instrumental in research on different ways to end the funding problems in Illinois and make it a better system for all Illinoisans, not just the top percentage.
In February of this year, the CBTA issued a report on why Illinois needs an overhaul of the tax system and why the flat tax is one of the most recessive ways of taxing. The first graph in this report shows the different taxes we all pay, Sales/excise, property and income. People making $18K or under spend 13.7% of their income on taxes...people making $500K and over? Only 5.3%! Now, if you're sitting there with the idea that, "well those poor folks should try harder...they're the burden"...if you make under $50K, you're still paying about 12% of your income on taxes. So how fair is it that we (middle class) should pay more than the wealthiest? I'm not talking about a percentage point or so, its almost 7% difference! This report also points out that the bottom 60%(making up to $58K annually) of working people in Illinois bring home less than they did in 1979! And our taxes really haven't changed much since the 70's.
Part of the reason that Income tax is such a big issue is that its the only one that can be controlled by our present situation. For example, I'm very lucky and I'm making $100K...all of a sudden, the company I'm working for closes up and all I can find is a job as a barista making $20K...with a progressive income tax(and to a point, the regressive income tax), the tax automatically adjusts. That doesn't happen with other types of taxes...I can't go to the gas station and tell them, "I can't pay that much right now cuz I lost my job"...best they may do is say, "Fill out an application, we're hiring", that is if they don't laugh me out of the door....
So, you're still cynical...."What about cutting spending? We all know that the government spends too much!" that might work somewhere else, but Illinois is 47th in the country when it comes to spending and we are 50th when it comes to state employment rolls(not the lowest in number, but as a ratio of state employees per capita). If we go along with some of the budget cuts that are running around, we are not only putting more people on unemployment, we are putting the clients in danger. Illinois does not act like a drunken sailor on Friday night, more like a spinster librarian on Sunday morning!
"What about all of those businesses that would move?" Hasn't happened yet. Remember when WI and IN scab governors put out ads and billboards about the great business climate in their states? In the last year, Illinois has gained 30K jobs, while both IN and WI have lost thousands of jobs....hmmm....but, then again, our tax structure does some other interesting perks than others for business, such as a retailers discount on sales taxes. Huh? This began years ago when it was difficult for retailers to figure out the exact amount to send to the state...we have computers now...I think we can stop this practice. I'll have more tomorrow-this has gotten reallllll long and I'm hoping you haven't fallen asleep.