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Bad News For Our Chicago Readers: Illinois House Committee Passes Bill To Hike Taxes
From Dow Jones
- Illinois House Committee Passes Tax Bill To Cut Deficit
- Illinois Income Tax Would Jump To 5% From 3%
- Illinois Corporate Tax Would Jump To 7% From 4.8%
- Illinois Bill Now Goes To Full House
h/t London Dude Trader
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This is bullish right?
Absolutely! They're getting their house in order. It's sort of like Greece and Ireland, once there is a "rescue" plan/package, the market will react accordingly, which is move higher.
So, yes, this is bullish for equities.
I don't know if this is bullish for equities in general, but it is going to make the state less competitive overall in terms of attracting jobs and other investment.
Illinois, esp Cook county, is already a very high tax environment and I think this will not work in the state's favor.
Besides, whatever revenue is raised with this tax will be used in additional spending on top of the already existing deficit spending.
PAY UP BITCHEZ !!
Signed: Julius Ceasar
Let the mass exodus from the land of Lincoln begin
Well, I don't know....could be the State of IL has turned into a bad landlord whereby rent, fees, and assessments have increased to the point where the renter (i.e.: inhabitants) cannot afford to move out, winding up trapped, perforce.
~Misstrial
Just wait till the higher sales taxes and food inflation kick in. Chicagoans will soon learn to say, "HELLO $5 MAXWELL'S AND $6.50 ITALIAN BEEF'S!"
As a longtime Illinois resident who owns property in other states, I can state definitively that the mass exit, both of business and residents, has already started. Taxes are only 1 part; a State run by democratic unions is extremely disfunctional.
Most of my family is still in Illinois. Will of the people is now officially a sick joke.
California is next. Mish had a good post on this topic yesterday:
-----------------------------------
http://globaleconomicanalysis.blogspot.com/2011/01/brown-seeks-10-pay-re...
California Agencies
Look at this disgusting list of California Agencies.
I sorted out some but not all of the more ridiculous ones.
Does the state need a ....
....the only agency that did a fucking thing ever is Cool California. I'm freezing my ass off. 59F
IL creeps me the fuck out even more than CA does. At least CA has some nice views and weather... IL is just a big, flat, boring nanny state that alternates between too damn hot and too damn cold, with that sad excuse for a city Chicago sitting on top of it.
Then what in the world are you doing here fuckhead? Get back to your dumbass corner of the US and mind your own business.
Here is a list of the top 100 salaries and pensions for teachers and administrators in Illinois:
http://www.championnews.net/article.php?sid=1023
It's truly phenomenal how much money they make and are entitled to. Many of the pensions add up to over $10 million each. They work a little over 30 years, retire at 56 and live a life of luxury making a few hundred thousand a year in retirement.
Here is a list of the top 200 salaries, without listing the pension benefits. All of them make over $200k/year.
http://www.championnews.net/ftf_salaries.php
It's no wonder Illinois is jacking up taxes.
Who are you and what did you so to Repugnifuck?
He's the original Red Neck - the other guy (Repugnicunt) is a troll.
I wish ZH would close accounts on known trolls. I know of four at least;
JohRny Bravo
Red Neck RepugniCunt
HarMy Wanger
I forget the spelling on the fourth, but it's a Chumbawamba troll.
Not everyone who adopts a similar name is a troll. Hamy Wagner is carrying out a brilliant parody of Harry Wagner (who is a troll and/or blinded) and Hamy's posts have made me lmao on numerous occassions. The "Red Neck RepugniCunt" I would guess yes might be a troll as well as some guy whose handle suggests critical thinking. The posters here are pretty good at sussing out who to respond to, who to listen to and who to have fun with. No bans.
I view these jokers as a further intelligence test, guess you don't pass! :>D
Well the Digital Library isn't too bad. I tend to think any information you can put online should reduce the number of workers required to administer the dessiminatation of that information. That said, what the heck is a Barbering board - sounds scary!
Speaking of Cali gov, I came this at the Daily Bail where Arnold seems to be telling the legislative body to ...
http://dailybail.com/home/gov-schwarzenegger-says-f-you-to-california-legislature.html
Could be coincidence but if you calculate the probabilities .... hmmm
The barbering board is similar to a watering board. Unfortunately, due to cutbacks (and styles and perms!), they haven't been doing their job(s) of providing tonsorial ministrations to CA Bondholders. :>D
I'm stuck. My kids are here, I cannot sell my house, and I'm a teacher. We are not really all that well paid. There are some schools in the collar counties that pay well, but the rest of us . . . All those years believing the BS about 'being there for the kids." It's, as you say, "a sick joke."
Our youngest is a jr in HS and my wife and I have a lot of flexibility with our jobs. We live in a town, Oak Park, IL, where the elementary schools are putting on the ballot a request to sell $75M in working capital bonds. IL, OP, it's the same thing - more money to maintain the status quo. It's as if they are unaware of what's occurring in ALL of the states surrounding us!?! It only takes a tiny amt of people to adversely impact state revenues via moving to another state. I've been here for 51 years and the grass is definitely looking greener (and warmer!) in other states.
Just make sure you load up on Petersen's cinnamon ice cream before you leave...damn good stuff there in Oak Park!
Only three or four states left in the black right now: Montana, North Dakota, Alaska and curiously enough, Arkansas.
The only thing I miss about Il/Chicago is the italian beef and lou malnottis. But you can have both freeze shipped all over the states, so that's a moot point now. :)
It's not a 75% increase, it's only a 67% increase. So see, they actually cut taxes, so quit your whining and get back to work.
Holy shit Harry... what isn't bullish for equities? I'm being serious... please name something and enlighten us.
It wouldn't have been bullish if they let the state go bankrupt. They are taking action to address fiscal concerns. That's good news and an excellent example for other states that are dealing with similar crises.
If Illinois went bankrupt... you would be on here in two seconds telling us to buy everything because they got bailed out.
ok, ok, pass me the psychotropics ill have what your havin
Would it even be more "bullish" if IL increased spending and taxation? In bizarro world, yes. Every where else, no.
A good action to take would be to cut spending. Have they done that at all??
I used to think you were just trying to be a contrarian on this site, after the last few days now I know you're just a troll.
The difference between a Troll and a Koolaid drinker is somewhere at the Planck scale...
Good One :)
If the Fusebox at the FED headquarters blows. Then the DOW would be 1000 in 30 minutes.
The politicians will find a way to spend the difference this tax increase generates. It will not make Illinois any more fiscally sound.
HarryWanger is an agent provocateur.
exactly....only its Not a buying oppty! People forget how fragile that thing is, getting lulled to sleep with old ratios, earnings expectations and unusual faith in old stories about the business cycle! What freakin part of todays mkt fits into any past cycle?
I was being sarcastic you idiot
Heh.
Are you F***ing crazy? No corporate CFO with a business domiciled in Illinois is going to resist the urge to move out now. The state will end up with LESS tax revenue than it gets now and states like Texas with no or low state income taxes will benefit.
Guess the Laffer (curve) is on HarryWanger! :>D
Harry,
You're an IDIOT! Move to Illinois and see how you feel. Then again it wont matter where you live because this is the future for all of America! And I remember the speech well coming from the voice of Illinois!
http://www.youtube.com/watch?v=Q8erePM8V5U
Now, now, Tahow,
You're taking Harry the wrong way. He has the most subtle sense of sarcasm I've seen in the history of economics!
Actually, he's just rehearsing his commentary skills for when he gets hired by CNBC.
Don't get angry, have a few laughs and be happy.
So, yes, this is bullish for equities.
The more important question - is this bullish for the sale of small, discretionary, home-decor items in the State of Illinois?
Getting their house in order? LMAO. You seem to gloss over everything that is wrong in Illinois. You do not get it. This solves nothing in the long run.
It is always great to screw the wage earners. Corrupt politicians screwing the people that carry the burden. Illinois should declare bankruptcy and screw the bondholders.... IMHO
By they way, I was until last week looking to relocated from the east coast to Chicago. NO LONGER!!!!!
yep, for every govt employee suckin on the states nipple
You reap what you sow.
Move, bitchezzz!!!!
+1
Careful, they might seal the borders and make it really hard to leave Il: For your own protection of course.
+1
Yeah, the Democratic Republic of Germany stated that the Berlin wall was to keep all those undesirable reprobates from West Germany out...
Considering it....
Squeezing blood from a stone.... but at least, unlike the Federal gov't, they are making an effort to close the budget gap.
Hot news Texas raises income tax 100%
To 0%
They make up for it in property taxes.
As well as sales (8.5%+) tax on everything.
Unfortunately, Illinois does both of these as well.
By the way, I read an article in the Chicago Tribune that said the state plans to borrow against the anticipated increased revenue so it can pay last year's past due bills and make up a contribution to the way underfunded public pension system...and just like that, POOF, it's gone.
? funny. not really. Perhaps they can make the tax increase retroactive to 2010. That way they will have more anticipated revenue and can borrow more.
(I hope they are not reading this)
The plan also replaces the property tax credit with a direct pay check that will state the check is the result of (I shit you not) the “Taxpayer Accountability and Budget Stabilization Act passed by the General Assembly and signed into law by the Governor.”
Let's see...they're taking away my tax credit which accelerates revenue to the state and replacing it with a direct pay check, which delays the benefit to me...I feel especially good about this considering the state is about 6 to 8 months behind on paying their fucking bills!
I am looking to move to texas... property tax is higher in TX, by about 30% on average but a similar home is 34-50% LESS (so its a wash or net decrease). Sales tax in Cook Co, is 10.25% and most burbs are 8ish% (wash or net decrease). Other cost of living factors in TX are better as well... plus the weather is better.
Rent a nice new apt with granite attached garage pool the works in Texas = $0 property taxes
Work in Texas = $0 income taxes
Buy everything online = almost $0 sales taxes
Works for me.
NH has no income tax or sales tax. Of course we get hammered on property tax, but if you rent you doN't pay it. Funny how they make taxes work. My house was valued at $340K last year and my taxes were $5800 a year. This year they reassessed all the properties and (insert KY here) my house was revalued at $304K and my taxes went up to $6200.Creative huh? We will reassess to make it more fair, and then jack up all the rates. Still I feel fortunate these are the only taxes we have.
My house in (Central) Illinois appraises around $250k and my property taxes run $5,900+. I also pay 7.5% sales tax (state + city), which bumps to 10% at restaurants, and now (if it passes the general assembly) my income tax will be going from 3% to 5%...oh, and I also can't carry a gun, concealed or open.
Be happy you get to "Live Free or Die"...I am envious. I have got to get out of this fucked up state!!!
Jesus whoring Christ! I think I'll just stay here in lukewarm Cascadia.
Apparently this isn't a good week to move my massive Torah printing operation to Skokie after all.
You pay the property taxes. It just isn't itemized.
There's no such thing as a free lunch. If the property tax rate was zero, it would be passed on to you in the form of reduced rent, or better digs.
Rent = paying property tax, its included in the payment... you just can't write it off on your taxes. But otherwise you're on point.
no fuckin way, serious, like the little bears said, am i in an episode of the twilight zone. when will the sheeple revolt?
Probably not until Rush, Glenn, John and Keith give the word.
"Wait a minute. Did Colbert just tell us to start revolting? Damn, let's see what Conan's up to."
Are these the same loons that borrowed/floated bonds to pay interest on their bonds??
As of July, this was a list of the vendors owed money, which as one time was over $5 billion: http://illinoisisbroke.com/vendors.aspx
They are also the worst state for funding their pensions at 47%: http://illinoisisbroke.com/facts.aspx
+1
Lived there for a few years and bought a house. Property taxes are very high for the given value of said property: big shock for people who go out and by huge pieces of land because on paper it looks cheap. The gun laws are nice though :)
Property taxes are determined by the county or city you live in, not the state. The state doesn't see money from property taxes. I live in a low service, low tax area. Basically, we have road maintenance and a sheriff's office. The tax rate is around 0.3%.
Further, sales taxes are split between city, county, and state, and each sets their own rate. Depending on where you go, your sales taxes will vary from 6.25% (the state's rate) to 8.25% (the maximum rate allowed by the state).
tmosley, you must not be familiar with the sales taxes in Chicago and Cook County. They are 9.5%+. Perhaps in the collar counties or downstate they are less (and I know that the are), but since the majority of citizens live in Cook County, well, ouch, ouch, ouch. In the meantime, are you aware that there are NO SPENDING CUTS being proposed?!? This was true in 2009, 2010 and now with the large tax increase. NOT A NICKEL. Is this the proverbial straw that precipitates more people fleeing from this D state?
I had to look it up, but I did it while at work, so I don't have the source. I thought it was straight from the state. It matched with my personal experience, as it is 8.25 here, and everywhere else I have bought anything lately (Houston, Dallas, Austin, and San Antonio).
But seriously, look into moving to Lubbock. They are VERY aggressive about cutting spending here. Live outside the city. Property taxes are practically nothing. A $100K house (nice 4 bedrooms can be had for that) pays about $350 in taxes a year.
Seriously, moving to TX IS on our radar screen. Youngest is a jr in HS and both my wife and I have some flexibility with our employment - with my wife's employer have many locations (retail - high end) in Texas. Does TX has a multi-cultural center like our school district? My town voted 85-15 percent for Obama. I just read where the IL House passed the tax increase and it is probable to pass in the Senate. It isn't the end of the world but I do wonder if it'll be the last straw for a lot of people here. Michigan didn't die overnight and I see a lot of similarities. What is absolutely crazy is that there are NO spending cuts even being proposed - just raises and business as usual!?! I think that we just want to vamoose before it's too late - just like the homeowners in Grosse Pt, etc. Nice areas, but no one wants to buy their houses now. They stayed too long.
Does sales tax include services? Food?
No sales taxes on services and 2.25% on food and medicine.
Thank-you.
Shhh, do you hear that? It is the sound of many companies closing up their Chicago offices and moving to a lower tax State.
Yes. These tax projections always backfire because they cannot account for people getting pissed off and leaving.
Like perhaps Boeing is wondering why they moved there from Seattle. Or perhaps they get a pass............
and the new United...
Where is my QE-IL printing press? (seeings how I am from IL)
More taxes please, thank you!
1 year til I can move outta IL, you should too!
Wonder how many people will move to border towns in neighboring states...
They will be welcomed with a warm heart in Wisconsin.
I've long advocated we give Chicago to Wisconsin and the rest of the state can either stay independent or get annexed by Indiana...I'm fine with either.
From the looks of all the blue license plates in Lake Geneva, I think we already got most of Chicago. FIBS go home. And shut your carp-infested canal.
I hate to say it but FIBS also pay most of WI property taxes since they own most of the state... enjoy your nice schools and roads thanks to the IL tax payer! And I would rather be a FIB than cheese head. Plus, I lived on the boarder for a while and the tax differce between IL and WI is very close, even w/ the increase maybe a 1% (all depends were you live and tax bracket).
I always wondered how people chose to inhabit Milwaukee when Chicago was an just hour South...
Double the tax rate and I would still choose to live in Chicago over anywhere in WI - all the state is good for is fishing, cheese, and sausage. Milwaukee and its surrounding areas should serve as Chicago's landfill and/or storage area - see how quickly Cook's fiscal situation would improve...
Illinois -Cook County:)
The assbags Illinoians give Indiana a bad rap because they constantly jump the line to buy tobacco at about 60% less. It makes it look like everyone in Indiana is French. Oh, and I hope they drive the taxes higher as punishment for giving us the Teleprompter in Chief.
Thank Kenya for that last one
that reminds me of this asshat from Mass. He voted to raise liquor taxes in Mass, then he goes to NH to buy his liquor.
http://www.youtube.com/watch?v=cNtKiAMnHwU
Illinois House Committee Passes Tax Bill To Cut Deficit
It will fail. Utterly.
this makes me happy
AND YET AGAIN, NOBODY CARES ABOUT THE HARDWORKING MILLIONAIRES!!
Is this really the world we live in?
+1
I must say that I too am a fan of bad behavior. When the world went into a depression in the 30's, they raised taxes three times. More taxes bitchez.
Chicago will = Detroit
Doin' it Jersey style.
Illinois is 10 years behind the Jersey curve.
Not to mention the rest of us poor saps who live in the state...but just like your Chicago readers, we don't matter to you either.
The Chicago readers are getting exactly what they voted for, the rest of us just get to shut up and deal with it.
++
True Dat. Us poor mid and down state peons just get to pay for this shit. Which will turn into exactly that. New midnight basketball courts and other such luxuries.
that's okay though, so long as they realize that they're pissing away any good intentions I might have ever held.
No worries, few actually work in Illinois anyway which is why their deficit is so high to begin with.
Imagine owning a business in Chicago where the sales tax is 10.25%, parking is the highest in the country and now this.
For those in Illinois, I hope you enjoyed your two weeks of SS tax reduction.
Still, this pails in comparison to what Governor Brown is proposing for California.
Top bracket of income tax in Australia is 45%. So, what are you complaining about??!
http://en.wikipedia.org/wiki/Income_tax_in_Australia
Oh, and we have a Goods an Services Tax on everything we buy too. Another 10%.
Dont you mates get Universal Health care? That costs somthin.
Yes, and it does. An additional 1.5% tax on your income.
Funny, here in the States, family health insurance costs about $13,200 per year. Average gross household income is around $49K, so that's 27% of gross income. And that's not even accounting for deductibles and copays.
Funny how that works. Fucking retards, our populace.
I don't know much about Australian Healthcare but I'm going to guess that 1.5% tax doesn't come close to covering the actual cost.
Dont know, but perhaps Aussie's aren't as law suit happy and doctor liability insurance is much less.
Total farce. There is little or no correlation between increased medical malpractice insurance and medical malpractice awards. I'm actually about to try and finish off our state's tort reform law, since it's patently unconstitutional (numerous portions already declared unconstitutional), which among other things limits the amount of punitive damages.
In short, insurers got behind the eight ball with investments and started pointing the finger. It's less than 2% of med mal claims that get awards... we defended a single client in no less than 20 (yes, twenty) med mal claims... and were successful in every single claim. Malpractice is a pretty difficult standard... very difficult standard... Essentially, if there is any question whatsoever, the doctor will likely win.
I'm guessing you weren't representing the client pro bono. Who paid your fee?
What does that have to do with limitations on jury awards? The possibility of frivolous claims happens to walmart moreso than local doc. Why does one's insurance skyrocket and is cited as an emergency requiring immediate legislation? In other words in the late 90's/early 2000s, was it the cost of standard litigation cited as the reason for premium increases or "excessive" jury awards?
Keep working on your math then add quality to your equation or better yet move to Australia..
A friendly slap at the Aussie:
http://www.youtube.com/watch?v=WGk_TPzTGZM&playnext=1&list=PL8234101D111082F8&index=38
Pfft, Canada 46.5% (over $125K/yr) income and then 13% on anything you buy.
Corporate tax is 20% under 200K and 40% over.
Belgium 57% (over €45K/yr) income and then 21% on anything you buy AND 15% off the interest from what you save.
Gas is now at €1,495/Liter (thanks to wallmart you all should now know what a liter is :) )
GET RICH QUICK AND MOVE TO BELGIUM*
*Bring your own money.
How are you figuring out those numbers? There isn't one tax rate across the country because it depends on which province you live in. Glad you pointed out the corporate tax rate which, in general, is lower than the corporate tax rate in the states.
In any case, grabbed these numbers from Wikipedia (so they may be wrong) for 2009 but I can't see how you would get to 46.5%. Appreciate any info and links - thanks
Federal:
Canada's federal government has the following tax brackets for the 2009 tax year (all in Canadian dollars). Note that the "basic personal amount" of $10,320 effectively means that income up to this amount is not subject to tax, although it is included in the calculation of taxable income.[7]
Taxable income Tax on this income
$0 - $10,320 Nil
$10,321 - $40,726 15%
$40,727 - $81,452 22%
$81,453 - $126,264 26%
Over $126,264 29%[8]
Ontario
5.05% on the first $37,774 of taxable income, +
9.15% on the next $37,776, +
11.16% on the amount over $75,550
This is just a state income tax...federal income tax is much larger
taxes up 67%, gas at $3.50 a gallon here (in chicago) and food prices soaring. no wonder SVU's sales in chicago were down. people cant even afford groceries anymore.
SVU=special victims unit, did I miss something?
Apparently they're putting SVUs into SUVs and shipping them to Chicago, which is destroying the automotive market and screwing up law enforcement at the same time.
Or so it seems to me!
This is the way it always works. Politicans ramp up spending. Then they cry "Emergency!" and enact "temporary" tax increases to reduce the deficit. And in a couple of years they ramp up spending again. Rinse and repeat.
Give a politician a dollar and he'll spend two.
Will never be enough, they're in the state of denial
Ironic that Newt Gingrich's idea to allow states bankruptcy may save them
The looting by politicians will get ridiculous just prior, if it comes to pass
a 52% net increase in taxes. Why not make it 100%?
I was stationed in Chicago in the mid 80s with a US Army reserve unit. One day into work, they were talking about on the freeways being a parking lot and one of the announcers stated they should collect a parking tax, and the other announcer said, Don't give them any ideas."
Gotta pay for those civil service pensions and free-healthcare-for life somehow.
Shalom sez the Fed won't be doing helicopter drops over state capitals, so bend over the table (again) taxpayer.
We've seen this before. Higher taxes cause the rich to flee. Home prices fall because it's harder to afford a house. Defaults surge. Revenues shrink.
Chicago will soon look like Detroit.
Well, when the population of Illinois is reduced to 3 or 4 people, it should cure their deficit problem.
The only people left will be civil servants and they'll have a direct line to the federal government for more tit milk.
This about jobs, with one of the highest corporate rates now, with several much lower rate states surrounding Illinois.
And it's about the idea that any taxpayer has any moral obligation to pay for contracts made between politicians and (for instance) the unions. This is absurd, but definitely NOT to be talked about or considered.
Lastly, it won't work to reduce anything, it is likely tax collection will be flat or even less.
A-holes.
Beautiful intraday turn around on SPX as expected. I wonder if this news boosted some confidence with traders. Or it could just be the usual dip buying.
You could almost say it was manipulated
almost!
Seriously Harry. You really have lost your mind. I can't tell if you are paid to do this, or are just plain delusional. Tell me how raising taxes 50% and still having a budget deficit is bullish for equities. This does not solve the pension problem Harry. Illinois Unfunded Pension obligation is 54 billion and the problem is compounding every year with each and every deficit. In 10 years time, some of the biggest pension funds in the state will literally have $0 in assets. But thats ok, in your fairy tale dream world of apple and US led global recovery, all is well.
All wanger does is spam and run. Hope he goes away soon.
Give him head Richard!
The point is, they are taking action on working toward a solution. This may not solve their woes but at least they are attempting to address it. That's a definite positive.
Ok Harry if you think their attempt to address the issue is the right thing to do then why do you continually praise the FED and the Government for increasing our National debt??? I'm waiting patiently for you insight....
Using your logic then why don't they just raise the income tax rate to 50% and start singing "Happy Days Are Here Again?"
Were you a boy scout?
Guess not ....
Gypsies, tramps and thieves - and Keynesian liars. Every one of them.
Of course, the cure for excessive government spending is ... excessive taxation.
My sympathies to anyone living in Il, NY, CA, or any of the other soon-to-go-broke states, cities, and countries in the world.
Gypsies, tramps and thieves - and Keynesian liars. Every one of them.
Equating gypsies, tramps, and thieves with politicians is doing an extreme disservice to gypsies, tramps and thieves.
and most of the civil servants collecting on all these bennies drop the tent and hall ass up out of there as soon as they retire to locals with lower tax rates.
Remember, first, they have to sell their house.
Thought someone would post this first:
http://www.youtube.com/watch?v=TOSZwEwl_1Q