This article is incorrect.
The explanation can be found here.
Since it is the Democratic Party’s version of the 32% income tax hike bill that passed, more than one percent of your income will be deducted in everyone’s pay check.
The amount of income tax that will be withheld from salaries during the last half of 2017 will be high enough to make up for the 32% income tax hike’s not having been in effect since January 1, 2017. (The above graphic is from the Illinois Revenue Department’s web site.)
That’s because the Democrats (and Republicans who supported the veto override) made the tax hike retroactive until New Year’s Day.
Some employers have just increased withholding by 32%, however.
Looks like pitchfork time is upon us.
I prefer a short rope and a tall tree, that being said:
“The tree of Liberty must be refreshed from time to time with the blood
of patriots and tyrants. It is it’s natural manure”.
Thomas Jefferson – 11.13.1787.
Sigh…
Once again, this isn’t true. The income tax increase was made retroactive back to July 1st (it passed a few days after that), not to January 1st.
The Department of Revenue website tells us this:
“Effective July 1, 2017:
4.95 percent of net income”
The graphic that you used has nothing to do with the income tax increase.
And you can read the actual language of the law here, on page 252:
http://www.ilga.gov/legislation/100/SB/10000SB0009ham003.htm
If my sunshine blogger said it went back to January 1st, it was January 1st, period! Why bother with facts? Tic, tock, tic, tock…
The withholding income tax changes referenced on the Illinois Department of Revenue (IDOR) website above are presumably not referring to the state income tax hike, but to other changes.
To avoid confusion IDOR could put a further explanation on that website.
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YouTube
Illinois Department of Revenue channel
2017 Illinois Withholding Income Tax Changes (#1 in a series)
published on February 1, 2017
“Provides a general overview of changes that affect taxpayers who file Form IL-941 and make Withholding Income Tax Payments.
For more information, see Publication 131, Withholding Income Tax Payments and Filing Requirements at …”
http://www.youtube.com/watch?v=Kj3PMZwqoKo
The agitating Mr. Llavona earned $132,720 in 2016 in his 22nd year as an Illinois English as a Second Language (ESL) teacher so his beginning pension after 35 years of service will be $99,540 if he never received another pay hike.
The state income tax hike is in large part to fund state pensions including the TRS (teacher and administrator) pension which as of June 30, 2016 was 39.8% funded.
Thus interest is accrued on the 60.2% underfunded portion, which makes the pensions very expensive from a taxpayer perspective (the taxpayers are responsible for interest in lieu of investment returns on the underfunded portion).
Wonder why Dept. of Revenue has that graphic.
Any idea?
Teachers, their administrators and other government workers in Illinois who now get hugely lavish pensions, or will get hugely lavish pensions, do so on the backs of everyone living in Illinois who never was an Illinois government worker.
This is all happening in Illinois, the absolute worst State in the U.S. fiscally, AND made so by Democratic Party politicians.
They are the ones who caused this fiscal disaster and they refuse to take steps to fix it such as by changing the Illinois Constitution.
Voters who continue to elect Democrat politicians must share the blame for the fiscal mess in Illinois.
Do you have the URL to the graphic?
Maybe the graphic is referring to taxpayers who file Form IL-941 and make Withhholding Income Tax Payments.
In other words a specific set of taxpayers.
Really, there are English as a Second Language teacher’s?
That is pure horseshit.
Choke on it Llavona.
There are lots of English as a Second Language and bilingual education (he has been classified as both) teachers and Mr. Llavona is one of the highest paid in the state especially when taking into account years worked.
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The implementation can vary but here is one way it can work:
– ESL teachers only speak English and students can come from a variety of language backgrounds (nonnative speakers).
– Bilingual teachers speak both languages (English for example and the student’s native language) and the students all come from a common language background.
Learn the pay & years worked for each ESL teacher and bilingual education teacher in your school district.
Mark, when you comment on years worked v. pension, do you also include Cal in that thought process? He gets a ton for 24 years service.
Our tax-fighter, freeloader, sunshine blogger and our obsessed prodigious researcher; a cyber-marriage which can only be possible in our compassionate McHenry county sunshine blog. 2018, are you here yet? Tic, tock, tic, tock…
Just comparing Mr. Llavona to other teachers.
The main point is years worked to achieve a certain salary.
A subset of that is the lane movements (college credits, which is the horizontal axis on the salary grid), which would have to be obtained via FOIA.
Others are free to produce their own statistics.
If every retired politician put the time and effort into a blog that Mr. Skinner does we would be much more informed and presumably the government would be in better financial standing.
Great comment by Mark at 9:21 PM in his last sentence.
Might the left wing extremist Democrat types in McHenry County (a tiny, tiny, tiny, tiny, tiny minority of squeaky wheels) start their own blog for the interchange of ideas?
Nah.
Probably won’t happen.
They are just complainers that never have any real solutions to the issues facing us.
Thank you Mark and thank you ‘bred winner’.
Does someone have the time to post the pension numbers for the “round mound”?
Remember, the ‘liar’ said he would only serve for a few terms?
The “tic toc” poster is nothing but a leach who is taking advantage of the federal government’s failure to enforce our immigration laws.
I don’t think he is old enough to take his legislative pension.
So, Cal – you’re going to leave this post up, with no correction, even though its blatantly false?
And this is what the graphic that Cal wrongly uses links to: http://www.revenue.state.il.us/News/2016_WITChanges.htm
This explains Angels discontent with any discussion of reducing Govt expenditures. Please keep this in mid everytime you read her defense. She is counting on the last 3 years of double digit increase so she can retire with $100k plus in pension for being an ESL teacher working 9 months a year.
Mr. Llavona earned $132,720 in 2016 in his 22nd year as an Illinois English as a Second Language (ESL) teacher so his beginning pension after 35 years of service will be $99,540 if he never received another pay hike.
The state income tax hike is in large part to fund state pensions including the TRS (teacher and administrator) pension which as of June 30, 2016 was 39.8% funded.
Let’s be clear.
Without the tax increase, pensions are going to get funded anyway.
Not one of you have put forward a real proposal that would be constitutional that is going to impact Angel’s pension.
Because it doesn’t really exist.
Ya’ll want to pretend that the Constitution doesn’t matter, and the IL Supreme Court decisions don’t matter.
There is a hope pensions will be paid in full by those benefiting from the scheme.
The pensions were hiked due to benefit hikes and salary hikes.
The resulting pension payouts, and the estimated future payouts have grown exponentially.
The impact of the hikes were not clearly disclosed to taxpayers.
So now after the credit card is charged, taxpayers are being asked to pay the credit card bill.
Is there a method to do that which is agreeable to taxpayers?
The taxpayers never agreed to what they are being forced to pay.
Disclosure in a way the taxpayer could understand was abysmal.
The unions, lobbyists, special interests, and such believed they are so clever….a financial scheme linked to the state constitution in that one sentence added to the constitution on December 15, 1970 states benefits are contractual and cannot be diminished or impaired.
But the benefits can be hiked, even if existing pensions are underfunded.
That is stupid.
Stupid happened repeatedly for decades.
Can stupid be funded?
Will enough taxpayers stay to fund stupid?
Only time will tell.
One thing is for sure, taxpayers need a plan B to leave the state, if taxes get beyond what they are willing to pay.
It is quite clear those benefiting from the pension don’t want to renegotiate and don’t want their pensions taxed.
What has transpired is a scam.
Pensions will only get funded, if enough taxpayers stay to fund the pensions.
In another state, there is still the Federal unsustainable problem, but at least the Illinois problem is eliminated.
There are consequences to high taxes.
For instance high property taxes can result in depressed property appreciation, and property is the biggest investment of many taxpayers.
What we have in Illinois is a government monopoly that had little regard for taxpayer and was interested in its own good at the expense of the taxpayer.
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To understand pensions one has to to consider many points.
One point is the total pension liability.
The total pension liability is the estimated future pension payout for all members (those employed, disabled, retired, etc.) for the benefits they have earned to date (as of a given point in time).
There are various names for the total pension liability.
Here is an article looking at the TRS total pension liability.
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Illinois Policy Institute
Education Finance Solutions: Making Illinois’ System Fairer Through Pension Reform, Consolidation and Accountability to Parents and Students
Spring 2017
by Ted Dabrowski and John Klingner
Page 20 of the document has the following chart:
Accrued teacher pension benefits in Illinois have grown nearly 1,000% since 1987
source: Actuarial Valuation Reports, 1987 – 2015, Teachers Retirement System
“Accrued teacher pension liabilities – not unfunded liabilities, but the total benefits teachers have earned – have grown at a rate of 9 percent a year since 1987.”
https://files.illinoispolicy.org/wp-content/uploads/2017/02/Ed-Finance-Debunk-rev.pdf
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Illinois is playing a political game that has been going on for decades.
Those most at risk to fund past services via unfunded liability pension payments are the children being educated with this credit card scheme.
The left has a blog in McHenry and Kane County.
It’s called Gold Pin Independent.
http://www.goldpinindependent.com
The reason Moderate, Angel, and Alabama post here has nothing to do with the lack of a Democrat blog.
There could be a 100 left blogs in the county and they would still post here.
Their ultimate goal is to win elections, and they hope agitating and discrediting the blog will help them achieve their objective.
Agitating, discrediting, rewarding friends and punishing enemies, all tried and true Democrat strategies for decades.
The left has been busy in McHenry County and everywhere.
They short circuited after Trump won the election, then regrouped and went on a rampage.
Mr. Llavona is the current blog agitator, with Moderate showing up to defend Jack Franks.
But the McHenry County Democrat push goes far beyond them.
The Democrats have appointed a lot of precinct committeemen in the County recently, but as of yet have not caught up to the Republicans.
In McHenry County:
Democrats have Precinct Committeemen in 140 of 212 (66%) Precincts.
Republicans have Precinct Committeemen in 158 of 212 (75%) Precincts.
Time will tell if the Republicans wake up to match the Democrat push.
The mostly leftist media in Illinois apparently is in the tank with government workers’ unions and their Democrat politicians and has not adequately covered the pension mess in this State.
The outrageously high salaries and benefits of teachers and government workers, along with the COLA provision, is destroying this State and has put it in crisis stage.
The Illinois Constitution has to be changed to remove the part about diminishing worker benefits.
But, this will likely never happen as long as Democrats have control of the Illinois Legislature.
People who vote for Democrats are either on the public dole or are too stupid to understand that Democrat politicians have been destroying our State.