Third State Rep. Criticizes Madigan’s 32% Income Tax Hike

From Lombard’s State Rep. Peter Breen:

Blackmail Budget Passes

Peter Breen

I’m writing you from Springfield, where the Illinois General Assembly is still in legislative session. Since we’re stuck here in Springfield, with budget bills to consider, we’ve reluctantly decided to cancel our entries in the┬áJuly 4th parades.

I will very much miss seeing friends and neighbors in Wheaton and Glen Ellyn, but my focus is wholly on the work of serving those folks here at the Capitol.

Last night, the Illinois House voted for a permanent 4.95% income tax and a $36 billion spending scheme, both of which I opposed.

I called them a “Blackmail Budget,” and I’ve provided the video below so you can see my argument against this permanent, no-reforms tax increase.

The measures now move to the Senate, where action is expected today.

The governor has said he will immediately veto the bills, after which veto overrides in the House and Senate are also expected. However, everything is still very fluid here, so we’ll see.


Comments

Third State Rep. Criticizes Madigan’s 32% Income Tax Hike — 9 Comments

  1. The permanent 4.95% personal income tax bill (personal income tax is currently 3.75%) is Senate Bill 9 (SB 9) and is also referred to as the revenue bill.

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    The $36 billion spending scheme is Senate Bill 6 (SB 6) which is also referred to as the spending bill and the appropriations bill.

    +++++++++++++++

    Both bills passed the Illinois State House on Sunday July 2, 2017 and now move to the Senate for concurrence votes.

    The bills already passed the Senate once, but the House made changes to the bills, so now the Senate has to vote on the changes in a concurrence vote.

    Senate President Cullerton has indicated the Senate will be in session Tuesday July 4, 2017.

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    YouTube

    Illinois House GOP Channel

    Rep. Breen opposes “Blackmail Budget”

    published on July 2, 2017

    http://www.youtube.com/watch?v=04Rj7Ax46nI

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    The Republican State Representatives near Peter Breen in the video:

    To the right of Rep. Breen is Rep Keith Wheeler (North Aurora office in Kane County).

    Behind Rep. Breen and to his left is House Minority Leader Jim Durkin (Burr Ridge office in Cook & DuPage counties).

    To the left of Jim Durkin is Lindsay Parkhurst (Kankakee office in Kankakee County).

  2. Even a 32% income tax hike will not put Illinois on a sustainable path, as coupled with the lack of reforms and the spending portion of the budget.

    A major reason is pension interest.

    The daily pension interest of $25 million dollars ($25,046,731 to be exact) on the unfunded liability for the state pensions creates enormous pressure on the state budget.

    The annual interest is $9 billion dollars ($9,142,056,750 to be exact).

    The interest gets lumped in with the unfunded liability, and the unfunded liability amortized over a period of years to achieve the state set 90% (should be 100%) funding, so the interest flies under the radar.

    But the interest charges add up year after year.

    An analogy would be interest charges resulting from one not making the full monthly payment on a credit card, and doing that for decades, while continuing to charge more on the card (benefit hikes, salary hikes, etc.)

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    The unfunded liability for the 5 state pension funds as of the end of FY 2016 was $129,817,900,000 (assets at market value without asset smoothing).

    For comparison purposes, the unfunded liability was $126,503,600,000 when calculated using assets at actuarial value with asset smoothing.

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    Illinois Policy Institute

    Interest on Illinois’ Pension Debt is $9.1B Per Year

    by Michael Lucci

    March 6, 2017

    http://www.illinoispolicy.org/interest-on-illinois-pension-debt-is-9-1b-per-year

  3. Thanks for the link, Mark. Looks like our state is taking notes from our county board. So much incompetence, it’s hard to fathom.

  4. Cindy, Most of the time your hard to fathom.
    You and rainman ought to get together.
    You would be good for each other, LOL!

  5. stand4truth, you ought to get together with Moderate.
    You two would be good for each other, LOL !

  6. stand4 still doesn’t understand the language. You are is the contraction you’re NOT your. If you cannot fathom the differences, then you have no business trying to express your opinions. They are completely confusing to others that actually understand language. You cause consternation every time you type nonsense. Your sentences do not make any sense. I cannot talk to people that do not understand their own language. They are too stupid to bother trying to speak to.

  7. Don’t you love it when our conspiracy theorist, English language queen makes us laugh with ridiculous parallel universe nonsensical corrections? Sit back, relax, and enjoy more compassionate conservative nonsense as the great United States celebrates its 241th birthday. Or is it not? Tic, tock, tic, tock…

  8. Illinois exports tax money to D.C at about 3-1 ratio.
    This State tax rate increase will dilute that ratio less than one might anticipate, because when teachers et al retire at age 53 they pay no State taxes on defined benefit annuity earnings.

    There seems to be zero downside to those who are stripmining Illinois resources.

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