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Stratton warns of tax hike on all if tax hike on upper-income earners fails

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* Pearson at the Tribune

Lt. Gov. Juliana Stratton warned Thursday that Illinoisans could face an across-the-board income tax hike of at least 20% if voters reject a proposed constitutional amendment to shift the state from a mandated flat-rate tax to a graduated-rate tax based on income.

For weeks, Democratic Gov. J.B. Pritkzer’s administration has cautioned that severe budget cuts could be on the way if voters don’t approve the proposed amendment to overhaul Illinois’ income tax system. But Stratton’s threat that all taxpayers, regardless of income, could face a tax hike unless the amendment passes on Nov. 3 appeared to represent a new shift in strategy for the Pritzker administration.

“To adequately address the budget crisis under our current tax system, lawmakers will be forced to consider raising income taxes on all Illinois residents by at least 20% regardless of their level of income,” Stratton said during a virtual rally on behalf of the pro-amendment Vote Yes for Fairness group that marked the start of voting in Illinois. […]

A 20% increase would raise the state’s current 4.95% flat-rate personal income tax by nearly 1 percentage point to 5.94%. It would raise an estimated $4 billion a year, even more than the projected $3.4 billion that would be generated under a graduated-rate levy enacted if the amendment is ratified, said professor David Merriman, a longtime expert on state finances at the University of Illinois at Chicago.

* React from the Coalition to Stop the Proposed Tax Hike Amendment on Tax Hike…

“If you need more proof Springfield has too much power and can’t be trusted look no further than telling voters to support a tax hike amendment or politicians will continue to raise them for you.

“It’s clear there’s only three words the Springfield politicians understand: Raising your taxes.”

Lissa Druss
Spokesperson for the Coalition to Stop the Proposed Tax Hike Amendment

…Adding… Illinois Republican Party Chairman Tim Schneider…

Governor Pritzker’s team is so worried that his massive tax hike won’t pass that they have resorted to threatening taxpayers with…an even more massive tax hike. I believe the people of Illinois are too smart to be fooled by these outrageous scare tactics.

We deserve a state government that makes the same hard choices families make every day - to cut costs and live responsibly within our means. It’s clear that state government under the direction of Governor Pritzker and Speaker Michael Madigan are not capable of doing that. We shouldn’t reward their terrible decision-making with more of our hard earned money.

…Adding… HGOPs…

MEDIA ADVISORY: Illinois House Republicans Respond to Pritzker Administration Threats to Illinois Residents for Graduated Tax Amendment

WHO: Illinois House Republican Leader Jim Durkin (R-Western Springs) and Deputy Minority Leader Tom Demmer (R-Dixon)

WHAT: House Republicans respond to the Pritzker Administration’s threat to raise income taxes on every Illinoisan by 20 percent if the unfair tax amendment does not pass in November.

WHEN: 11:00am CT on Friday, September 25, 2020

posted by Rich Miller
Thursday, Sep 24, 20 @ 5:39 pm

Comments

  1. ==they have resorted to threatening taxpayers with…an even more massive tax hike==

    As opposed to spooking retirees with false claims.

    Comment by Jocko Thursday, Sep 24, 20 @ 5:53 pm

  2. === Governor Pritzker’s team is so worried that his massive tax hike won’t pass that they have resorted to threatening taxpayers with…an even more massive tax hike. I believe the people of Illinois are too smart to be fooled by these outrageous scare tactics.===

    lol, for the love of Pete, this is the closing argument seen down the pipe since… forever.

    The open is the 97% won’t see a tax increase, the close is everyone’s taxes will need to go up, unless this fair tax CA passes.

    That said, this is the best response they could come up with since April-ish?

    This is it? The best?

    It’ll be a colossal failure if this fails; $50+ million and the field to themselves, yeah, but it won’t be because of the obvious closing argument.

    Comment by Oswego Willy Thursday, Sep 24, 20 @ 5:53 pm

  3. Somebody should tell Tim and Lisa that no sane legislator has the appetite to cut $6-7 billion out of the budget. Let them get an Eastern Blochead to sponsor that bill and see how many votes it gets.

    It’s either the wealthy pay a tiny bit more or we all pay more. That’s what this ballot question is about.

    Comment by 47th Ward Thursday, Sep 24, 20 @ 5:54 pm

  4. === It’ll be a colossal failure if this fails; $50+ million and the field to themselves, yeah, but it won’t be because of the obvious closing argument.===

    Between early voting (which means “Election Day” is really today until, well, “Election Day”) and VBM, has enough been done to hit the benchmarks given turnout and if requests for ballots is any indicator…

    That’s my point.

    People way-way smarter than me as I sit in my mom’s basement eating hot pockets and slurping slurpees…

    And I say that with respect towards them and a total mocking of myself.

    :)

    Comment by Oswego Willy Thursday, Sep 24, 20 @ 6:06 pm

  5. This is just common sense: given the pandemic-engendered financial crisis imminent for states/municipalities, and in absence of any federal relief funds, the only solution available should the Fair Tax amendment fail is to raise the flat tax by x-percentage for all.

    That’s it - tax the 3% or tax the 97% at a highly regressive rate.

    Comment by dbk Thursday, Sep 24, 20 @ 6:13 pm

  6. ===…as I sit in my mom’s basement eating hot pockets and slurping slurpees…===

    That’s funny. I’m more of a Mountain Dew/Pizza Rolls kind of guy, but mom says I should try diet Mountain Dew and chip in for the Internet bill.

    Comment by 47th Ward Thursday, Sep 24, 20 @ 6:16 pm

  7. Every suburban race will now be hit with mail pieces saying Dem candidate X with Madigan and JB is going to raise your taxes after the election. Then cite this. What a dumb move.
    Why wouldn’t you say 20% across the board cuts? At least then when your opposition says they won’t cut anything you can ask them how they’ll pay for it?
    Again just dumb. 45 days from election and you say on a live mike well we’re just going to raise taxes 20% on everyone if this doesn’t pass? That argument will work great in the collar counties. Does anyone on this team think first before speaking?

    Comment by Frank talks Thursday, Sep 24, 20 @ 6:17 pm

  8. This should have been explicit since the beginning. Surprising low information voters at the last minute is not good. Yet another poor choice for this campaign.

    Comment by Jibba Thursday, Sep 24, 20 @ 6:28 pm

  9. 20% now or another 20% the year after the next gubernatorial election. Probably not a smart tactic , a Hail Mary ? By the way has productivity increased with most of the state government working from home , overtime hours? For those eligible?

    Comment by Curious Gearge Thursday, Sep 24, 20 @ 6:33 pm

  10. What do opponents *think* will happen if the progressive tax doesn’t pass?

    – MrJM

    Comment by @misterjayem Thursday, Sep 24, 20 @ 6:47 pm

  11. In Graduate School I fell between these two stories. During the Congressional hearings to approve Nelson Rockefeller as Vice President, there were numerous multi-thousand dollar loans he never made an attempt to collect upon. President Gerald Ford said “Can you imagine,” he said privately, “Nelson lost $30 million in one year and it didn’t make any difference.”

    Michael Jordan bet $1 K per hole … and in 1992 he owed Richard Esquinas $1.2 million - that’s 1,200 holes, or 66 rounds of golf.

    Sorry Mark Grant, Illinois National Federation of Independent Businesses, they can afford to pay a higher income tax rate than the nurse in my doctor’s office.

    Comment by Anyone Remember Thursday, Sep 24, 20 @ 7:01 pm

  12. The fair tax continues to poll well correct? Why say something so heavy handed?

    Comment by SSL Thursday, Sep 24, 20 @ 7:04 pm

  13. SSL, from Google I don’t see any public information about polling since basically pre-COVID. We know the Fair Tax camp sat on their $50 million warchest all summer. I interpreted that to mean their internal polling maybe said it was not the right time to sell a tax hike in the midst of the pandemic and record unemployment. Maybe it isn’t polling so well after all?

    Comment by natty lite Thursday, Sep 24, 20 @ 7:24 pm

  14. See if threats work. People you need new state politicians.

    Comment by Chichi55 Thursday, Sep 24, 20 @ 7:33 pm

  15. Maybe the retired “community volunteer” in the “vote no” commercial can tell her clients that they should be cut instead of the wealthy shouldering more of the revenue burden. That’s what would happen if not for the LG being straight with people about the need for more revenue.

    Comment by Grandson of Man Thursday, Sep 24, 20 @ 7:50 pm

  16. ===See if threats work===

    It’s basic accounting. It’s not a threat, it’s a certainty. Because math. And reality.

    Comment by 47th Ward Thursday, Sep 24, 20 @ 7:58 pm

  17. As a fair tax supporter, I’m unsure if this is the right messaging strategy. (It makes me think the internal polling is not going well.) But it does have the benefit of being true — if the amendment fails, taxes are going to be raised on everyone. That’s just a fact.

    Comment by Roman Thursday, Sep 24, 20 @ 8:10 pm

  18. Yikes. Been a rough month for the Pritzker administration. Threatening to raise taxes on people during the middle of a pandemic when you’ve already asked them to sacrifice so much is a terrible look. She does realize that one of the biggest functions of government (public schools) is failing for many working parents right now and then you’re coming out with a threat of a tax increase while incomes and employment are stagnant or decreasing? Yikes indeed.

    Comment by Real Defender Thursday, Sep 24, 20 @ 8:17 pm

  19. As I suggested before, if the referendum fails then increase the rate on everybody to the proposed upper rate. Increase the individual deduction so that most families see no increase.

    The state needs more revenue. The largest discretionary spending is on schools. Pay up or cut muscle and bone.

    Comment by Last Bull Moose Thursday, Sep 24, 20 @ 8:17 pm

  20. This doesn’t seem like smart politics to put the phrase “20% tax increase” into the atmosphere at the time you are trying to get a tax amendment passed.

    I sincerely worry low-info voters will see or be led to believe that voting yes on the tax referendum will be voting in favor of a 20% tax increase.

    Comment by hisgirlfriday Thursday, Sep 24, 20 @ 8:26 pm

  21. Give her credit for telling the truth. Look, we ain’t making any cuts people, so somebody has to pay up. You can make the rich pay the freight for a couple years before we come for you, or you can pay up now.Personally I would rather just pay up now as long as everybody else does too. Why? Because that is fair. And I don’t need the rich to pay my obligations for me. The rich are no more responsible for the fiscal dumpster fire that is Illinois than you or I. It is disappointing to me to see so many of my fellow Illinoisans expecting others to pay their way.

    Comment by Captain Obvious Thursday, Sep 24, 20 @ 8:40 pm

  22. === I would rather just pay up now as long as everybody else does too. Why? Because that is fair. And I don’t need the rich to pay my obligations for me. The rich are no more responsible for the fiscal dumpster fire that is Illinois than you or I. It is disappointing to me to see so many of my fellow Illinoisans expecting others to pay their way.===

    If you’d like, if it passes, you can pay the same freight as someone making a million.

    No one will stop ya.

    :)

    Comment by Oswego Willy Thursday, Sep 24, 20 @ 8:42 pm

  23. Can we ask retirees to chip in if everyone else does? If they’ve lived in Illinois their whole lives, they’re the ones who benefited from kicking the can down the road more than anyone else.

    Comment by Real Defender Thursday, Sep 24, 20 @ 9:04 pm

  24. I would love to see what the 6.5% budget cuts encompassed.

    Comment by Blue Dog Dem Thursday, Sep 24, 20 @ 9:07 pm

  25. Repubs will milk this for all it’s worth because they’ve got nothing else. They’re on the wrong side of the facts and are being paid by big business and big money to keep them from paying what is a more reasonable fair share of taxes. I hope voters will put them in their place this November.

    Comment by Shytown Thursday, Sep 24, 20 @ 9:27 pm

  26. The message might be better if they put these two pieces of information together:
    1. They’ve asked all departments to draw up plans to cut expenses by 5-10% this fiscal year and next.
    2. If the amendment fails where the plan is to increase taxes only on the top 3% (by 56-58%), then everybody’s taxes will go up more.

    Cut expenses AND raise more revenue.

    Comment by From DaZoo Thursday, Sep 24, 20 @ 9:37 pm

  27. Real Defender-I like the way you are thinking. All for one and one for all.

    Comment by Captain Obvious Thursday, Sep 24, 20 @ 10:36 pm

  28. -chichi55- ===See if threats work.
    People we need new politicians.=== Illinois needs to get rid of at least 85% of these corrupt politicians that think we are caving in to threats.

    Comment by Latina Thursday, Sep 24, 20 @ 10:39 pm

  29. – I hope voters will put them in their place this November. –

    Because being a historically tiny superminority isn’t enough?

    Comment by JB13 Thursday, Sep 24, 20 @ 10:45 pm

  30. Perhaps JB can ease retirees fears by pledging he will not tax wealthy retirees if the fair tax passes

    Comment by Lucky Pierre Thursday, Sep 24, 20 @ 11:24 pm

  31. It’s the truth. Trying to tell them that services will have to be cut won’t work… because they all think there’s too much waste and fraud in state government. So they will refuse to believe that anything of value will go away. We all know it can (and did in the years with no budget).

    Therefore you have to hit them with something that they believe will happen if they vote no. They will believe it… after all they already believe that saying yes will cause a retiree tax to kick in.

    Comment by thoughts matter Friday, Sep 25, 20 @ 6:58 am

  32. Finally, the threat. Not sure you needed $50 million to have a state employee scold the children.

    ==I would love to see what the 6.5% budget cuts encompassed==

    Agreed. It is their job. Some are paid twice to do it.

    Comment by City Zen Friday, Sep 25, 20 @ 7:20 am

  33. Schneider has ceaselessly criticized JB’s performance, especially IDES where past budget cuts have seriously impacted the ability of the agency to respond to the pandemic. I am not surprised by the hypocrisy of him also wanting more budget cuts. SMH.

    Comment by Jibba Friday, Sep 25, 20 @ 8:32 am

  34. “If you need more proof Springfield has too much power and can’t be trusted look no further than telling voters to support a tax hike amendment or politicians will continue to raise them for you”

    … do they really think we’re that dumb? The ask is “Let us raise taxes on the richest citizens or we will have to raise taxes on everyone.”

    As in, passing the amendment is the only way to avoid higher taxes for the vast majority. We can’t, CAN’T, cut our way out of this.

    Comment by Perrid Friday, Sep 25, 20 @ 8:38 am

  35. There was anti-tax screaming from the right during Pritzker’s gubernatorial campaign, but it failed badly. Many support mitigating harm to students, the most vulnerable and everyone who will be hurt by huge budget cuts.

    The ILGOP to a person is against taxing the rich more and would prefer any other solution, which means either massive cuts or a combo of a flat tax hike and cuts. This is what the party wears, protecting the richest at all costs.

    Comment by Grandson of Man Friday, Sep 25, 20 @ 8:38 am

  36. Will there be even one vote, rather.

    Comment by This Just In Friday, Sep 25, 20 @ 8:49 am

  37. A 67% tax increase plus another threat of a 20% tax increase in the last two decades and you think that that will be the end of the tax increases when none so far have put a dent in the pension fiasco that the state is mired in. The proposed Fair Tax will not cover the current fiscal problems so either pension income will be taxed or a large portion of the 97% will see a tax increase to cover the deficit. And the programs proposed by the Governor that helped get him elected with need substantial revenue to put into place as well which will need even more of our tax dollars. So yes the taxes will increase for everyone and yes there is a good possibility that retirees will get taxed.

    Comment by Arock Friday, Sep 25, 20 @ 9:14 am

  38. ===… 67% tax increase===

    … that Bruce Rauner used every dime in his ONE budget he signed, and the other in the budget that he begged for his veto to be overridden.

    You forgot that, I’m sure.

    :)

    === So yes the taxes will increase for everyone===

    Not if the Fair Tax passes. That’s the sitch.

    ===yes there is a good possibility that retirees will get taxed.===

    Show me your 60/30, or more likely 71/36 to override a governor veto.

    Things you *already* know.

    Good try.

    Comment by Oswego Willy Friday, Sep 25, 20 @ 9:25 am

  39. Here the realities, without the hyperbole;

    The Governor had “71 and 36” to get the CA on the ballot.

    The Governor also had GA pass the rates.

    Two votes, the Dems has for this tax

    The Governor then sat on $50 million+ for weeks and weeks and weeks. Now, with early voting and absentee ballots out, has the governor made a colossal error by not saturating a message on the 97% aspect, and by Stratton bringing in the closing argument, in September (well, people *are* voting) what is going to be discussed more; the 97% not seeing an increase or the increase that will be needed if it fails… for weeks and weeks.

    Then, if it does fail, will the governor find Dem votes to increase as Stratton says (they probably can) but how can you trust a governor who sat on two huge assets (time from spring passage and $50 million) to define the CA, unabated, and make time an asset, which now is squeezed, artificially now, by burning daylight.

    Will Dems legislators say… “Governor, you had the time and the money, why did you wait, you had the field open too?”

    Did Stratton go out on this alone or was this calculated… and now it makes the discussion, with Griffin’s $20 million and his time window still open, about a massive income tax increase, not the 97% seeing no change?

    It’ll be interesting. I dunno if the saturation of the 97% took hold.

    Comment by Oswego Willy Friday, Sep 25, 20 @ 9:37 am

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