On 2/11, I to the DuPage county board meeting watching the republican government at work. We have 3 Democratic board members and 12 Republican so it can be a bit one sided. We are of the "upper middle class" venue if you listen to our...um....County Board. It is true that DuPage county has a much higher average income over many other areas of Illinois(our average is $78,000, Illinois average is $55,000), but there are 9 counties, that have an average income of higher than Illinois' median average, all but 2 are northern counties. My opinion? I think our "higher income" is not because of the republicon twitch, but because we're located near Chicago, as are the other 6 counties that make above the median(and that includes Cook).
Full disclosure: the reason I was at these particular meetings was due to my involvement with A Better Illinois, which is a grassroots group that is trying to get a ballot referendum on for the next general election that allows the voters of Illinois the ability to choose a graduated income tax(like 34 of the states now have) or stay with our antiquated misnomer tax system of "flat" which includes corporate loopholes galore. Illinois' tax system has not been really updated since the 1970's and is one of the biggest problems with our funding problems in the Land of Lincoln.
So...I'm sitting and listening to the workings of the board, who are basically wasting time and tax funds by holding a meeting to discuss the viability of sending a resolution to the State Assembly, which doesn't do anything at all in the actual process of putting the referendum on the ballot. Yep, just blowing smoke up their own asses...see how import'nt we are? Not much.
During the meeting there is time for public comment. Yes, I was there to speak, but I wasn't the only one.
There were representatives from different chapters of the League of Women Voters, IEA(one of the teacher's unions) and just regular old folks, shucks, who just came to speak...the same words...over and over again....blah blah blah"blank check", blah blah blah "we pay too much already", blah blah blah "businesses are going to move out!" All seemed to have the same message, sort of like the Stepford wife routine. I smelled something fishy. So, when I got home, I got on the google machine. See, the meetings are taped and you can watch everything over and over again...and everyone's name was right there so it was pretty easy to find out who these people were and what planet they're from.
So, one of the first person that struck me as a bit of a ranty lunatic was Glen Luckinbill who introduced himself as a "small business owner", in fact he said that he owned a business and his wife owned a business--the wording made it sound like there were at least 2 in the family, although there's only one that comes up on the web..which his wife is the president and he the sales executive(hmmm....wonder if they get that lucrative "minority" status since she's the prez?). He went on to say that they used to employ 30, now they employ 17 because of taxes(although the read on the company shows only 3 employees, including the Luckinbills, although I could be missing something), not, of course because of the recession that we've been in, that had nothing to do with it, just taxes. He also said that he and his wife are paying almost 50% of their profits in taxes now and if this went through, OH MY GOD! They'd have to move to another state. OK, so my first question, Who the Hell is doing your taxes?!?!!??!?! There isn't a smart business in this country that's paying that much and if that's true...DUDE, call me, I bet I can do better(but I will be charging him a "gullible" fee).
So the next brainiac I'd like to introduce you to is Jerry Schilling--talk about batshit crazy....I'm talking so far right, he don't make left turns when driving. He began his rant about how we pay too much in taxes, every year the state, county, municipal and other government institution raise taxes, fees, codes and we're being bled to death by taxes! He doesn't want to pay anything in taxes! OK. I really wanted to ask him how he thinks the roads would have been plowed by his house without paying taxes(we've had over 60" of snow), the snow plow fairies???? And the actual fact is that Illinois is a low tax state--we don't tax services, storage, entertainment, automotive service as do all of the states that surround us. We also have a lower tax rate than all of the states that surround us except Indiana(and its Indiana...where they tax services like hair cuts).
So, now what's his background? First, he's in his late 60's/early 70's so unless he's too silly not to retire, he's not paying state income taxes because Illinois doesn't tax retirement income! He runs a blog that complains about every little single thing that government does and he also writes for another rightwing blog(West Suburban Patriots) about, basically the same thing. He also seems to rant alot at the Naperville council meetings and is very upset by the whole smart meter thing, to the point of making a conspiracy out of it.
Then there's Victoria Deppe. Again, the phrases, "worst business climate", "worst unemployment", "highest sales tax", "will raise taxes on those making $18K), "Need to reform pensions and regulations" Illinois is "3rd highest in taxes and unemployment"...so many lies, so little time.
But who is Victoria Deppe? Well she writes on the Illinois Review right wing site, she's involved with the right wing Convention of States that wants to hold a Federal Constitutional Convention cuz they're tired of the Federal Government gettin' in their bidness. This "group" is the loving baby of Mark Levin and Glen Beck and...wait for it...ALEC--so that says how far right and out of step it is with the normal population. And she's a CHRISTIAN!!!! No, not a Christian, but a CHRISTIAN!!!!!, one that embraces the bible and bigotry if the websites that she's on are any evidence...again, she wants gomminint outta her bidness, but also wants gomminint all up in our bedroom bidness. And although I didn't see her being directly invovled in WSP, the Convention of States crap is all over that site.
Hmmm...do I see a pattern, not only of words, but of political bents?
But it gets stoopider....
We have Greg G. from Downers Grove who's unemployed...but he's also 51 and there has been so much written about how many workers have been laid off cuz of their age..no, that's not it, its cuz of taxes..and rich people are job creators(again, the rich person who doubles as the welfare agency...just create a job without profit? I don't think so). He can't pay more in income tax cuz he paid close to $6K for property tax...in Downers Grove...where I live...I had some scepticism about this cuz he was trying to play the "just middle class unemployed worker" so, since his address was mentioned in the hearings, I looked up his taxes...silly boy...don't you understand the interwebs? He paid less than $5K, yes still a lot, but why LIE about it unless you were playing dramaqueen? Again, property tax is not income tax...and, because of other laws in the Illinois tax structure, if Illinois had a fairer tax system, we in this area are assured to receive more funding which would bring down our property taxes...DUH. Oh...and he mentioned its a "spending" problem again.
So then we have Carol Davis who said she only made $40K a year working 2 jobs. She lives in Carol Stream. The only Carol Davis that comes up in Carol Stream is one that owns a business that makes over $70K.Now, those silly interwebs, they can come up with anyone that lives in an area that has a phone number/address...so, if this isn't the person that owns the $70K business, maybe she lives in a cardboard box behind McDonald's. She was all, "I've never resented a wealthy person, because I never got a job from a poor one"...OH HAHAHAH. And there's no rich person or small business person who makes up a job without having a need for it...and, again, that means that I'm the job creator(because my money is spent, not shipped to the Caymen Islands), not Mr. Moneybags. Oh, and she's on the West Suburban Patriots band wagon and a "prepper"(one that is preparing for the end of the world, as we know it). You know the ones that like to hoard food, weapons, etc. and talk about how their neighbors are the crazy ones? Cuz they're gonna have to shoot their neighbors when the collapse comes down.
So, on to the next economic superstar, Hugh Hamill. He owns a jewelry store...one that sells to other jewelers and customers that make appointments to be serviced...we ain't talking Zales, here! High end/luxury type customers. So, he says, again, we're bankrupt, too much spending, blah blah blah. Oh, and he's going to move his business to Tennessee because Tennessee has no personal income tax. Well, he's right on that to a point, but Tennessee does have an annual 6% tax on all income made by capital gains and investments..you know, stocks and stuff. I'm pretty sure that Mr. Hamill probably has a couple or 3 dollars invested and prolly will pay a capital gains tax considering his business and wealth--hmmm...maybe he didn't think this out too well?
Then there was Jan Shaw, from Wheaton, who's big splash on the google machine is that she ran for a School Board seat and made some disparaging remarks about special needs students...oh, and she is/was a board member on the teabagger site, West Suburban Patriots. This pattern isn't just developing, its a freaking snowstorm!
Then, there was Heidi Holan, again, she also is on WSP. She's also running for office in Illinois. She also has absolutely no knowledge about tax structures or math. Yep the, "spending issues", went into the definition of "fair" from Webster's Dictionary and then told this bizarre story about her 2 sons cutting wood, she pays them $10 an hour, one son works for 9 1/2 hours and she pays him 91.43(she took out the 3.75% for the old Illinois income tax) and the other worked for 10 hours and she paid him $89, cuz she took out the 11% made up income tax...huh?????? That's not how a graduated tax works anyway(both would pay 3.75% on the first bracket of $95, and only the other $5 would be taxed at a higher rate, no bracket jumps up by 8%) but there is absolutely nothing in the referendum about brackets! Is this how taxes work in Heidiland???? Because its not the way they work in the real world. So, she wants to be in the General Assembly and doesn't even understand basic taxes???? Really???? And who works their kids for that long chopping wood????
Of course there were the handwringers from the Koch and ALEC backed Americans for Prosperity and the Illinois Policy Institute, both of which have been shown to be partisan and lapdogs for the uber greedy rich. Both of the spokespersons mention how this would raise taxes on those incomes that were under $18,000, one of them said that it would start at $5000...again, no rates have been scheduled and the only structures that have been spoken about favorably all use similar scales as the CTBA, which would end at less than 7% for the wealthiest and no income tax for those who make less than $9000.., but then when you don't understand basic tax policy and think math is hard, I guess 7 and 11 are the same and paying no income tax until you reach $9000 is the same as paying taxes at $5000.
How crazy are these people? And, just how mean-spirited, selfish and greedy? Boggles the mind of compassionate, thinking people.
I'm a mom, grandmother, dog lover and a union activist for at least 30 years. I've picketed, protested, negotiated for the little guy, the guy that just wants a decent job to support his/her family and be able to retire without worrying about where the next meal is coming from.
Showing posts with label tax reform and revenue. Show all posts
Showing posts with label tax reform and revenue. Show all posts
Tuesday, February 18, 2014
Tuesday, November 27, 2012
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:
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.
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.
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.
Monday, May 28, 2012
Quinn's so called budget...or how to make retirees homeless!
I just can't figure out why politicians keep attacking seniors...first its the tea party and republicans trying to privatize(read banksters steal the $3.2 Trillion in trust fund) Social Security, then Paul Ryan and his carnival shell game of "vouchers", and now Governor Quinn(who's supposed to be a DEM), wants to cut senior programs and attacking state retirees pensions and health care. I know, I know, all of you have been told how good we have it and we're breaking the state...and the public believes the lie. SB1313 tore apart the security of health care for seniors, now the general assembly and the so-called "liberal" governor want to cut cost of living increases. I don't know about the rest of the world, but in the last 4 years that I've been retired, gas has gotten ridiculous, which has affected what I spend for gas, what I spend for food, you know, those luxuries of living....
Now, this is because of the rich wanting to be richer and have many of their bills subsidized by what's left of the middle class/working poor. As I've stated in past posts, Illinois is not broke, but the tax system is--we need to get rid of the retailer's discount on sales tax(for large retailers) and single sales factor, again for large corporations(mom and pop operations are exempt from this handout). But, no...the state of Illinois lawmakers are quivering and licking the feet of the Chamber of Commerce(read...stick it to the little guy) and the Chicago Commercial Club, both of which that have board members who receive 7-8 figure golden parachutes. These Monopoly men don't want any tax reform, that would mean they would have to pay their fair share, nope, let's take it out on the 80 year old secretary who's making under $25000 a year after working for 30+ years!
A couple of weeks ago, Senate Bill 1313 passed both the houses with bi-partisan votes...nice to see our so-called representatives working together to screw us! And quickly! It took all of 2 weeks to pass 1313(ok, the number is ironic...but maybe it shoulda been SB 666), no hearings, no committees, no public comments. Just screw the senior citizen. What this does is change the way retiree insurance is handled and could end up costing retirees whole bunches of money..now, the lie that's told to all is that retirees got "free" insurance...hmm....I have out of pocket expenses that total about $500-600 a month(that includes premiums I pay for my family) and I actually thought I knew the meaning of "free"...obviously, the Chamber, Commercial Club and legislature own a different dictionary than I do.
So now the latest and greatest way to screw employees is either eliminate the cost of living raise, or to cut it to less than 1.5% or to give retirees a so called choice--we can either choose between having some type of health insurance or a cost of living increase...isn't that FUCKING NICE...why do I feel that I'm Oliver saying to Sikes, "please sir, could I have a bit more gruel?" Only problem is no one is going to come and proclaim me an heir! And how does the corporate media report on this? The far right leaning Chicago Tribune had an article about how the general assembly members and governors...have made out like wall street bandits while the average state worker's pension is less than $25,000...and many get only that-no Social Security. But the Trib has been trumpeting "many" trumped up pension scandals...there was the one on 2 men that upped their pension by working for one day at a school, then the ex-representative who doubled his pension by working for Alderman Burke for a month, but not one article on the 27,000 retirees who would be severely effected by cuts to their only form of retirement income.
Now don't get me wrong, I'm sure that if we(union) were able to actually bargain, we could come up with some solutions-we have in the past, but that's not gonna happen. We are an easy target so why would our corporate legislatures allow a few facts about our pensions get in the way???? Yes, these changes would effect the general assembly members who vote on them, but not to the degree that it will state retirees...I mean, I only had one job--in a prison--for 30 years, unlike many of our part time politicians who collect $67,000 a year in salary...and another $69K(representatives) or $80K+(senators) for office "allowances", not to mention mileage and per diem...now, as I said, I worked for the Department of Corrections. I began as clerical, then went to officer and retired as a correctional counselor--I made, after 28 years about $65,000 for a full time job! They start out as $67,000 the first year for their part time job. I did not receive mileage to go to and from work and was expected to take a state vehicle if I had to travel to Springfield...so, again, why is the general assembly working to screw us out of our pensions??????
All I have to say is remember, WE VOTE and we will not be afraid to vote you out of office.
Now, this is because of the rich wanting to be richer and have many of their bills subsidized by what's left of the middle class/working poor. As I've stated in past posts, Illinois is not broke, but the tax system is--we need to get rid of the retailer's discount on sales tax(for large retailers) and single sales factor, again for large corporations(mom and pop operations are exempt from this handout). But, no...the state of Illinois lawmakers are quivering and licking the feet of the Chamber of Commerce(read...stick it to the little guy) and the Chicago Commercial Club, both of which that have board members who receive 7-8 figure golden parachutes. These Monopoly men don't want any tax reform, that would mean they would have to pay their fair share, nope, let's take it out on the 80 year old secretary who's making under $25000 a year after working for 30+ years!
A couple of weeks ago, Senate Bill 1313 passed both the houses with bi-partisan votes...nice to see our so-called representatives working together to screw us! And quickly! It took all of 2 weeks to pass 1313(ok, the number is ironic...but maybe it shoulda been SB 666), no hearings, no committees, no public comments. Just screw the senior citizen. What this does is change the way retiree insurance is handled and could end up costing retirees whole bunches of money..now, the lie that's told to all is that retirees got "free" insurance...hmm....I have out of pocket expenses that total about $500-600 a month(that includes premiums I pay for my family) and I actually thought I knew the meaning of "free"...obviously, the Chamber, Commercial Club and legislature own a different dictionary than I do.
So now the latest and greatest way to screw employees is either eliminate the cost of living raise, or to cut it to less than 1.5% or to give retirees a so called choice--we can either choose between having some type of health insurance or a cost of living increase...isn't that FUCKING NICE...why do I feel that I'm Oliver saying to Sikes, "please sir, could I have a bit more gruel?" Only problem is no one is going to come and proclaim me an heir! And how does the corporate media report on this? The far right leaning Chicago Tribune had an article about how the general assembly members and governors...have made out like wall street bandits while the average state worker's pension is less than $25,000...and many get only that-no Social Security. But the Trib has been trumpeting "many" trumped up pension scandals...there was the one on 2 men that upped their pension by working for one day at a school, then the ex-representative who doubled his pension by working for Alderman Burke for a month, but not one article on the 27,000 retirees who would be severely effected by cuts to their only form of retirement income.
Now don't get me wrong, I'm sure that if we(union) were able to actually bargain, we could come up with some solutions-we have in the past, but that's not gonna happen. We are an easy target so why would our corporate legislatures allow a few facts about our pensions get in the way???? Yes, these changes would effect the general assembly members who vote on them, but not to the degree that it will state retirees...I mean, I only had one job--in a prison--for 30 years, unlike many of our part time politicians who collect $67,000 a year in salary...and another $69K(representatives) or $80K+(senators) for office "allowances", not to mention mileage and per diem...now, as I said, I worked for the Department of Corrections. I began as clerical, then went to officer and retired as a correctional counselor--I made, after 28 years about $65,000 for a full time job! They start out as $67,000 the first year for their part time job. I did not receive mileage to go to and from work and was expected to take a state vehicle if I had to travel to Springfield...so, again, why is the general assembly working to screw us out of our pensions??????
All I have to say is remember, WE VOTE and we will not be afraid to vote you out of office.
Wednesday, March 28, 2012
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.
Friday, March 23, 2012
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.
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.
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