• Welcome to BradleyFans.com! Visitors are welcome, but we encourage you to sign up and register as a member. It's free and takes only a few seconds. Just click on the link to Register at the top right of the page, and follow instructions. If you have any problems or questions, click on the link at the bottom right of the page to Contact Us.

OT: Make sure to thank Pat Quinn...

B

BradleyBrave

New member
...For the eventual demise of Peoria and Bradley University. The newly approved raises in state income tax (+66%) and corporate tax (+69%) passed in the waning moments of a lame duck session are going to drive even more residents and businesses out of the state. Caterpillar will eventually be one of those businesses. Regardless of what they may say about it being 'temporary', the toll roads were supposed to be temporary too. If (and likely when) Cat leaves, Peoria will be losing its largest private employer. BU will be losing its biggest donor. Peoria will take on the look of a dying rust belt town, and that will be all she wrote for our fine institution.

I think the best take on the recent events came from state senator Kyle McCarter of Lebanon -

“Here’s an investment tip, put a lot of money into moving vans.”

http://newsblogs.chicagotribune.com...on-tax-hike-our-fiscal-house-was-burning.html

Whether it's by choice or not, if you live in Illinois the chances of you needing one just went up, perhaps by as much as 69%. ;)
 
Tax rates

Tax rates

BradleyBrave said:
...For the eventual demise of Peoria and Bradley University. The newly approved raises in state income tax (+66%) and corporate tax (+69%) passed in the waning moments of a lame duck session are going to drive even more residents and businesses out of the state. Caterpillar will eventually be one of those businesses. Regardless of what they may say about it being 'temporary', the toll roads were supposed to be temporary too. If (and likely when) Cat leaves, Peoria will be losing its largest private employer. BU will be losing its biggest donor. Peoria will take on the look of a dying rust belt town, and that will be all she wrote for our fine institution.

I think the best take on the recent events came from state senator Kyle McCarter of Lebanon -

???Here??™s an investment tip, put a lot of money into moving vans.???

http://newsblogs.chicagotribune.com...on-tax-hike-our-fiscal-house-was-burning.html

Whether it's by choice or not, if you live in Illinois the chances of you needing one just went up, perhaps by as much as 69%. ;)
Click to expand...


Do you think Illinois should put a system in place more like Republican Governor Christie has in New Jersey, where personal state income tax tops out at 8.97% (compared to the new 5% in Illinois) and the New Jersey state corporate tax rate is 9% upon entire net income, or the portion of entire net income allocated to New Jersey (compared to the new 7% in Illinois)?

No one likes to pay more in taxes, but I fail to see an alternative in this case. Illinois state income tax will still be lower than 33 of the states. It was one of the very lowest in the nation before this increase.
 
BU Firsty said:
It was one of the very lowest in the nation before this increase.
Click to expand...

And one of the more regressive.

Sure this tax increase does not sit well with me either, but I wouldn't jump off a cliff at the prospect of a mass exodus of companies leaving. I've heard on the news about small business owners threatening to leave, but how many of them are just saying that to pound their chests? Are they even successful, if not then of course more taxation is going to kill them.

Caterpillar could have left a long, long time ago, but they're in Peoria. If they did move their corporate HQ out of state, they'd still have a presence in Peoria. The big industry know darn well if they left that this state would go down the crapper. It would not surprise me if tax breaks for the big guns of industry are implemented to stay here.
 
Raising taxes on people never makes them MORE productive...and in the end it might result in LESS tax revenue if business earners and wage earners disappear or move out of state.

I know this is a way out idea...but did they ever think of cutting their reckless and irresponsible spending?

I just read where $100,000 in tax dollars was given to our sheriff so he can run ads telling people not to do drugs...
Duh...if the state would just do their jobs, then families can tell their kids better and the sources of drugs would dry up if those crooks were caught and penalized sufficiently hard.
 
BU Firsty said:
Do you think Illinois should put a system in place more like Republican Governor Christie has in New Jersey, where personal state income tax tops out at 8.97% (compared to the new 5% in Illinois) and the New Jersey state corporate tax rate is 9% upon entire net income, or the portion of entire net income allocated to New Jersey (compared to the new 7% in Illinois)?

No one likes to pay more in taxes, but I fail to see an alternative in this case. Illinois state income tax will still be lower than 33 of the states. It was one of the very lowest in the nation before this increase.
Click to expand...

The issue is not just whether the Illinois income is not high enough, it is whether the citizens of Illinois pay enough taxes. And it is hard to argue that we don't pay enough taxes when you consider the entire tax burden Illinoisans face.

Illinois was already in the higher end of all states in cumulative taxes, and this income tax hike will put the citizens of Illinois at or near the top of all states in the cumulative taxes that their state imposes.
http://www.e50plus.com/public/203.cfm

Illinois sales taxes are among the nation's highest-
http://articles.moneycentral.msn.com/Taxes/best-and-worst-taxes-by-state.aspx

And property taxes in Illinois rank near the top when compared with other states-
http://www.taxfoundation.org/publications/show/1913.html

http://www.kiplinger.com/tools/retiree_map/index.html?map=9#anchor

http://articles.moneycentral.msn.com/Taxes/Advice/PropertyTaxesWhereDoesYourStateRank.aspx

And Illinois also has one of the highest tax rates on gasoline, and other commodities that are taxed separately.

And Illinois is one of only 14 states that have their own Estate tax-
http://www.kiplinger.com/tools/retiree_map/index.html?map=11#

I understand the reason for raising our taxes to bail out the state, but the problem is not that we aren't taxed enough, it is the reckless spending of those that have controlled this state for decades.
Note that there are alternatives, but the democrats who control the Illinois legislature and governor were opposed to any kind of spending cuts.
http://newsblogs.chicagotribune.com...on-tax-hike-our-fiscal-house-was-burning.html
 
tornado said:
Raising taxes on people never makes them MORE productive...and in the end it might result in LESS tax revenue if business earners and wage earners disappear or move out of state.

I know this is a way out idea...but did they ever think of cutting their reckless and irresponsible spending?

I just read where $100,000 in tax dollars was given to our sheriff so he can run ads telling people not to do drugs...
Duh...if the state would just do their jobs, then families can tell their kids better and the sources of drugs would dry up if those crooks were caught and penalized sufficiently hard.
Click to expand...

1) $100,000 is nothing to this budget

2) If that ad keeps 5 people from doing drugs, it pays for itself in preventing the police investigation, paying for the suspect to live in jail, paying for the court proceedings
 
BU Firsty said:
Do you think Illinois should put a system in place more like Republican Governor Christie has in New Jersey, where personal state income tax tops out at 8.97% (compared to the new 5% in Illinois) and the New Jersey state corporate tax rate is 9% upon entire net income, or the portion of entire net income allocated to New Jersey (compared to the new 7% in Illinois)?

No one likes to pay more in taxes, but I fail to see an alternative in this case. Illinois state income tax will still be lower than 33 of the states. It was one of the very lowest in the nation before this increase.
Click to expand...

See T's post!

tornado said:
Raising taxes on people never makes them MORE productive...and in the end it might result in LESS tax revenue if business earners and wage earners disappear or move out of state.

I know this is a way out idea...but did they ever think of cutting their reckless and irresponsible spending?

I just read where $100,000 in tax dollars was given to our sheriff so he can run ads telling people not to do drugs...
Duh...if the state would just do their jobs, then families can tell their kids better and the sources of drugs would dry up if those crooks were caught and penalized sufficiently hard.
Click to expand...

+1

DeltaBrave03 said:
1) $100,000 is nothing to this budget

2) If that ad keeps 5 people from doing drugs, it pays for itself in preventing the police investigation, paying for the suspect to live in jail, paying for the court proceedings
Click to expand...

Yea like an ad really makes a difference. Reminds me of the 80's when Nancy Reagan ran campaigns of just say no. At that time the economy was terrible and we were in a crack epidemic like this country has not seen since this meth epidemic. Good jobs and education do a lot more for our drug problems then a stupid billboard.
 
tornado said:
Raising taxes on people never makes them MORE productive...and in the end it might result in LESS tax revenue if business earners and wage earners disappear or move out of state.

I know this is a way out idea...but did they ever think of cutting their reckless and irresponsible spending?

I just read where $100,000 in tax dollars was given to our sheriff so he can run ads telling people not to do drugs...
Duh...if the state would just do their jobs, then families can tell their kids better and the sources of drugs would dry up if those crooks were caught and penalized sufficiently hard.
Click to expand...

Here is just more proof-
Neighboring states gleeful over Illinois tax increase-
http://www.businessweek.com/ap/financialnews/D9KN3F0G2.htm

Illinois has passed a major tax increase to resolve a budget crisis.
Now neighboring states are gleefully hoping to lure business away from Illinois.
Wisconsin Gov. Scott Walker resurrected an old tourism slogan Wednesday and told Illinois companies that now is the time to "Escape to Wisconsin."

Wisconsin governor likes Illinois tax hike-
http://www.suntimes.com/news/metro/3282850-418/illinois-wisconsin-tax-quinn-business.html

Wisconsin thinks it has a new strategy to make a buck off of Illinois thanks to Gov. Quinn and the state Legislature’s backing of a 46-percent increase in corporate income taxes.
New Wisconsin Gov. Scott Walker, a Republican, launched an unprecedented blitz of the Chicago media Wednesday to woo tax-weary Illinois businesses into the Dairy State with his vision of two years of tax-free existence there if they move.

The new 46% boost in corporate income taxes will mean dwindling tax revenue due to businesses fleeing Illinois for states with friendlier tax climates. The state of California has already tried what Illinois is doing, and is has failed miserably. They have lost thousands of businesses that have moved out of state.
 
Da Coach said:
Here is just more proof-
Neighboring states gleeful over Illinois tax increase-
http://www.businessweek.com/ap/financialnews/D9KN3F0G2.htm

Illinois has passed a major tax increase to resolve a budget crisis.
Now neighboring states are gleefully hoping to lure business away from Illinois.
Wisconsin Gov. Scott Walker resurrected an old tourism slogan Wednesday and told Illinois companies that now is the time to "Escape to Wisconsin."

Wisconsin governor likes Illinois tax hike-
http://www.suntimes.com/news/metro/3282850-418/illinois-wisconsin-tax-quinn-business.html

Wisconsin thinks it has a new strategy to make a buck off of Illinois thanks to Gov. Quinn and the state Legislature??™s backing of a 46-percent increase in corporate income taxes.
New Wisconsin Gov. Scott Walker, a Republican, launched an unprecedented blitz of the Chicago media Wednesday to woo tax-weary Illinois businesses into the Dairy State with his vision of two years of tax-free existence there if they move.

The new 46% boost in corporate income taxes will mean dwindling tax revenue due to businesses fleeing Illinois for states with friendlier tax climates. The state of California has already tried what Illinois is doing, and is has failed miserably. They have lost thousands of businesses that have moved out of state.
Click to expand...


You have to give Governor Walker credit for his marketing capability. I am not exactly certain how you make the pitch "Hey! Move that business to Wisconsin! Escape that new Illinois tax of 7.0% by moving to Wisconsin where our corporate tax is 7.9%"

How can you applaud that? Don't you think it is more than slightly hypocritical to criticize a state with a LOWER corporate tax rate than your own?

Stay tuned...I am expecting Republican Governor Mitch Daniels of Indiana to join in next. After all, Indiana's corporate tax rate is only 8.5%.
 
BU Firsty said:
You have to give Governor Walker credit for his marketing capability. I am not exactly certain how you make the pitch "Hey! Move that business to Wisconsin! Escape that new Illinois tax of 7.0% by moving to Wisconsin where our corporate tax is 7.9%"

How can you applaud that? Don't you think it is more than slightly hypocritical to criticize a state with a LOWER corporate tax rate than your own?

Stay tuned...I am expecting Republican Governor Mitch Daniels of Indiana to join in next. After all, Indiana's corporate tax rate is only 8.5%.
Click to expand...

Fiction can be fun! It's actually 9.5%...

http://www.chicagotribune.com/news/local/ct-met-0113-biz-taxes-20110112,0,619610.story

Corporations also pay a 2.5 percent tax on income, called the personal property replacement tax, which is collected by the state and flows to local governments. The two rates taken together come to 9.5 percent, the third-highest rate in the U.S., according to the Tax Foundation, a non-partisan Washington-based research group.

The earlier tax plan would have raised the total corporate rate to almost 11 percent, which would have been the highest in the country.

Some more independent analysis...

http://www.taxfoundation.org/publications/show/26965.html

The enacted tax increases will severely impact Illinois's attractiveness to business and individuals. The state's individual income tax, in particular, has been one of the best features of Illinois's tax system, helping mitigate a high sales tax and burdensome property tax. It remains to be seen whether the weak spending cap and other changes will resolve the state's long-term structural budget gap. The tax changes, however, have great potential for undermining Illinois's ability to attract and cultivate business activity as the economy recovers.

Lastly, an article from Investors Business Daily...

http://www.investors.com/NewsAndAna...926/Illinois-Taxes-How-Blue-Can-You-Get-.aspx

Temporary tax hikes are like unicorns — they exist only in legend. Even if this promise is kept, four years is long enough to drive out more businesses and workers and accelerate Illinois' death spiral into bankruptcy.

Yes, I am sure companies are going to be lining up to come here. I am sure ones that are currently here and struggling love this news too. Sounds like you're all in favor of it though, so by all means, enjoy your socialist paradise and make sure to thank Pat Quinn!
 
Taxes

Taxes

BradleyBrave said:
Fiction can be fun! It's actually 9.5%...

http://www.chicagotribune.com/news/local/ct-met-0113-biz-taxes-20110112,0,619610.story

Corporations also pay a 2.5 percent tax on income, called the personal property replacement tax, which is collected by the state and flows to local governments. The two rates taken together come to 9.5 percent, the third-highest rate in the U.S., according to the Tax Foundation, a non-partisan Washington-based research group.

The earlier tax plan would have raised the total corporate rate to almost 11 percent, which would have been the highest in the country.

Some more independent analysis...

http://www.taxfoundation.org/publications/show/26965.html

The enacted tax increases will severely impact Illinois's attractiveness to business and individuals. The state's individual income tax, in particular, has been one of the best features of Illinois's tax system, helping mitigate a high sales tax and burdensome property tax. It remains to be seen whether the weak spending cap and other changes will resolve the state's long-term structural budget gap. The tax changes, however, have great potential for undermining Illinois's ability to attract and cultivate business activity as the economy recovers.

Lastly, an article from Investors Business Daily...

http://www.investors.com/NewsAndAna...926/Illinois-Taxes-How-Blue-Can-You-Get-.aspx

Temporary tax hikes are like unicorns ??” they exist only in legend. Even if this promise is kept, four years is long enough to drive out more businesses and workers and accelerate Illinois' death spiral into bankruptcy.

Yes, I am sure companies are going to be lining up to come here. I am sure ones that are currently here and struggling love this news too. Sounds like you're all in favor of it though, so by all means, enjoy your socialist paradise and make sure to thank Pat Quinn!
Click to expand...

What is your proposal? How do you think the current crisis could be addressed? I am extremely curious to hear your plan.

Further, I am absolutely not "socialist," but certainly am realistic. Does the State of Illinois need to cut spending? Without a doubt. Do they need to raise taxes? I think that is just as certain.

According to the Tax Foundation's "State and Local Tax Burdens: All States, One Year, 1977-2008" [http://www.taxfoundation.org/taxdata/show/336.html], Illinois has consistently for 30+ years had a below average tax burden compared to other states, ranging from a high of 19 to a low of 35 (with low being a lesser tax burden). For the past decade, this has been particularly so, with almost all the years being 30+. Now, we have to pay for those years.

Again, do I want to pay more taxes? Absolutely not. However, I can't bury my head in the sand and think our current situation is going to go away. I think it is naive to think this situation was going to be addressable through spending cuts alone without increased revenue from taxes.
 
BU Firsty said:
According to the Tax Foundation's "State and Local Tax Burdens: All States, One Year, 1977-2008" [http://www.taxfoundation.org/taxdata/show/336.html], Illinois has consistently for 30+ years had a below average tax burden compared to other states, ranging from a high of 19 to a low of 35 (with low being a lesser tax burden). For the past decade, this has been particularly so, with almost all the years being 30+. Now, we have to pay for those years.
Click to expand...

I am not sure why, but the site you cited differs from other sources regarding total tax burdens. Maybe it's because your reference omits property taxes and local taxes, and considers only taxes collected by the state. It also appears to disregard business taxes, which are very high in Illinois.

Other sites show Illinois residents' tax burden much higher (currently ranked 14th out of 50 states, and this will go much higher with the tax hikes)-
http://www.e50plus.com/public/202.cfm

http://www.scribd.com/doc/45338883/Fact-Finder-Is-Illinois-a-Low-Tax-State

Also, Illinois ranks 6th nationally in property taxes as a percentage of income-
http://www.wbez.org/story/news/economy/task-force-says-illinois-property-tax-burden-too-high

Business income taxes are already high in Illinois, and the new proposal will raise the corporate income tax in Illinois to one of the highest in the country. The citizens of Illinois end up paying for those excessive tax rates in the end, too.
http://chicagobreakingbusiness.com/2011/01/illinois-business-leaders-bristle-at-tax-hike-plan.html

http://www.taxfoundation.org/taxdata/show/230.html
 
CzechBrave said:
There is always Delaware or the United Arab Emirates.....
Click to expand...

Do not forget Switzerland's 5% tax overall! How can a prosperous country only have a 5% tax rate? Our taxes are becoming very much like the European countries that we have always chided about socialism and taxes. I believe there needs to be a bit of safety nets in our public policy but the creation of so many entitlement programs has changed the mind set of the citizens of this country. The cultural mid set of doing what it takes has changed to well if it becomes to hard we can ask the government for a handout.
 
Here is more evidence of the greedy tax grab by Illinois Democrats-
http://illinoisreview.typepad.com/illinoisreview/2011/01/democrats-push-internet-sales-tax.html

http://www.internetbits.com/internet-tax-bill-approved-illinois-may-lose-more-than-jobs/56652/

Now they want to tax internet commerce with out of state retailers, only one of a couple states with such laws.
Can someone explain any logical reason why Pat Quinn thinks Illinois should tax business you do with merchants who are in another state?
Of course, like most overbearing taxes, this one will backfire, and cost more jobs. Note that most states who have tried this have quickly repealed these taxes because of the unwanted negative economic effects they have had.
 
You must log in or register to reply here.
Back
Top