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Crucial “decoupling” bill falls way short in House

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* A bill that would separate the state from a federal tax break and which Democrats said would prevent as much as a $1 billion state revenue hit received just 50 votes tonight - 10 shy of the minimum passage number. Here’s the screen shot…

There was some debate over whether the bill had been properly put on the order of Postponed Consideration, which would allow another floor vote. But the Democrats brushed back the challenge (of course) and now the governor can try to run it again.

By my late-night eyes, 11 House Democrats voted “Present” or “No,” and another 8, including Speaker Madigan, didn’t vote. Several members of the Black Caucus did not vote for the bill.

This is a huge setback for the governor. He absolutely has to pass this bill to save his budget.

* But there were some very significant complaints about the Illinois Department of Revenue only figuring out about this budget hole in December and not informing legislators until this month. Other states, like New York, were all over this in the spring…


Hey General Assembly if the Revenue Director didn't realize back in April 2020 the CARES Act NOL decoupling was a huge problem - TELL THEM TO GET BETTER GOOGLE NEWS ALERTS - New York knew this in April. Why is SB1199 HFA2 now sandbagging IL small biz?

https://t.co/98CZfYufeg

— Chicago Bars (@chicagobars) January 13, 2021

It was a busy year, but this issue was identified by many other states and reported on by public finance outlets many, many months ago. https://t.co/Z6wKZC47DN

— Chicago Bars (@chicagobars) January 13, 2021

posted by Rich Miller
Wednesday, Jan 13, 21 @ 2:04 am

Comments

  1. Yikes!

    Comment by Precinct Captain Wednesday, Jan 13, 21 @ 2:08 am

  2. Pritzker had better get used to losing without Madigan’s help. Members are free to vote NO on everything.

    Comment by Realtalk Wednesday, Jan 13, 21 @ 2:17 am

  3. I was giving IDOR the benefit of doubt because the IRS takes a while to figure out what Congress passes. But if NY can do it you there is no excuse for us not too.

    Comment by Been There Wednesday, Jan 13, 21 @ 2:17 am

  4. When would they re-run this?

    Comment by Advocate Wednesday, Jan 13, 21 @ 2:17 am

  5. ===When would they re-run this?====
    Tick Tock. They have until noon tomorrow but realistically it needs to be soon as I think it would still need to go back to the Senate to concur.

    Comment by Been There Wednesday, Jan 13, 21 @ 2:23 am

  6. Andy Manar is getting to the administration at exactly the right time when they could really use someone to pull their messiness together.

    Comment by The Most Anonymous Wednesday, Jan 13, 21 @ 2:26 am

  7. Welch with the non vote.

    Comment by Anonymous Wednesday, Jan 13, 21 @ 2:43 am

  8. It’s almost starting to feel as if the GA should have found a way to meet for more than 15 days in the past ten months.

    Comment by Quibbler Wednesday, Jan 13, 21 @ 2:45 am

  9. That was me at 2:43

    Comment by SAP Wednesday, Jan 13, 21 @ 2:45 am

  10. Welch was in the well, or … on the stage, I guess.

    Comment by CmdrNorton Wednesday, Jan 13, 21 @ 2:46 am

  11. So, uh, because the state was late to recognize the problem, the GA isn’t going to help fix it? Pass the dang bill, then haul people into committee so you can yell at them and pound the table to your hearts content.

    Comment by Perrid Wednesday, Jan 13, 21 @ 6:51 am

  12. Elections do have consequence

    Comment by Rabid Wednesday, Jan 13, 21 @ 6:56 am

  13. Shocking news from such a well run and informed state

    Comment by Curious George Wednesday, Jan 13, 21 @ 7:01 am

  14. This bill eliminated a State pandemic tax credit that will be available to almost all independent (S-corp and pass through LLC and sole proprietor) bars and restaurants that the State has kept closed to indoor service for almost half the past year, including the over 40,000 of the small businesses that got nothing from the DCEO BIG grant program.

    The solution to IDOR’s debacle handling this is not to punish the independent spots. Next GA can deal with it - and with comprehensive state help for hospitality.

    Comment by ChicagoBars Wednesday, Jan 13, 21 @ 8:01 am

  15. Passing this would probably mean more layoffs in the private sector.
    Of course someone on Team Pritzker should have figured this was a problem. It probably is about time to rethink some executive hires.
    While this may have the Gov. looking a bit like an empty suit on fiscal management, more Illinois employees headed toward the unemployment lines during this pandemic would be tough to see.
    In these times the GA is probably taking the correct fiscal approach.

    Comment by Back to the Future Wednesday, Jan 13, 21 @ 8:08 am

  16. Isn’t this what you get when you put a military General and Legislator in charge of a Revenue Dept? I wondered when this would catch up to us. Harris should be fired. This is a huge failure. Plus he’s a Republican. Why are we still coddling Republicans and shielding them from accountability?

    Comment by Honeybear Wednesday, Jan 13, 21 @ 9:18 am

  17. The CARES act that created this issue became law March 27, 2020. Giving them the benefit of the doubt about when they were “informed,” what has the GA done since then that makes anyone think they would have acted on this any sooner?

    Comment by Whatever Wednesday, Jan 13, 21 @ 10:23 am

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