Being a Chicago taxpayer got a lot pricier in 2016.

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January 14, 2017

December 31, 2016

To address the city’s worsening financial crises, Chicago politicians turned up the dial on their usual answer to budgetary woes: raising taxes.

Being a Chicago taxpayer got a lot pricier in 2016.
To make up for decades of financial mismanagement and mounting unfunded pension obligations, Chicago City Council and Mayor Rahm Emanuel went to their usual budgetary tactic: taking more money from the state’s most taxed residents.
This is nothing new – since Emanuel took office, the average family is paying $1,700 more per year in taxes now than before he took office. Heading into 2016 already with more than 30 taxes and fees, Chicagoans were greeted with the first wave of Emanuel’s record-high property tax hike, a garbage pickup fee, the now-highest sales tax in the nation and a new 29.5 percent water-and-sewer tax, among several other taxes and fees packed into the mayor’s 2017 budget.
In 2016, Chicago taxpayers were hit with:

Sales tax hike: Cook County officials voted in July 2015 to raise the county’s sales tax, hiking Chicago’s portion to 1.75 percent from 0.75 percent, brining the city’s combined portion to 10.25 percent from 9.25 percent. The hike went into effect on the first day of 2016, and gave Chicago the highest sales tax in the nation.Chicago’s high sales tax hurts its poorest residents the most, and is a disappointing about-face from politicians. Former Cook County Board President Todd Stroger hiked the sales-tax rate in 2008, and lost his re-election bid to current Board President Toni Preckwinkle in 2010 in large part due to the unpopularity of the tax hike. Preckwinkle repealed the sales tax hike, but by raising it once again – and introducing numerous other countywide taxes and fees – she’s shown her reliance on the typical Chicago politician budgetary playbook of taxing residents as a first solution.

Property tax hike: Chicago City Council rubber stamped Emanuel’s $588 million property tax hike in Oct. 2015 as part of his 2016 budget. The tax is to be phased in over four years, and Chicagoans were rudely greeted with the first wave in 2016.The average single-family home in Chicago, worth $225,000, saw a 12.8 percent property tax hike, or a $413 increase, compared with the 2015 bill. The property tax bill on that home will total $3,633.When originally passing the tax in 2015, some aldermen cited the fact that the city has lower property taxes than its surrounding suburbs. But that ignores that the city’s collar counties have some of the highest property taxes in the nation, and – compared to residents of other major cities – Chicagoans already pay some of the highest property taxes in the nation, too.Lumped in with the new property tax hike in 2015, Emanuel also introduced a new $62 million garbage collection fee, $60 million in new fees on ridesharing services like Uber and Lyft, $13 million from higher building permit fees and $1 million from a new tax on e-cigarettes. Chicagoans felt all those new fees this year, all passed in a single day as part of the mayor’s 2016 budget.

Water and sewer tax: The water and sewer tax, which will be phased in over four years, could raise a homeowner’s bill by more than $225 by 2020. In 2017, a 59 cent additional tax will be placed on every 1,000 gallons of water used. In 2018, the tax will be raised to $1.28, by 2019 the tax will be $2.01 and finally in 2020, the tax will come to a stop at $2.51 per 1,000 gallons of water.Much like the skyrocketing property taxes and nation’s highest sales tax, struggling Chicagoans will take a lot of the hit. Not only will a larger portion of income be dedicated to heftier utility bills, but prices at coin-operated laundry machines will increase as well.

Airbnb tax: Chicago City Council passed an ordinance on short-term rentals in June, which among other strict regulations, imposed an additional 4 percent surcharge on short-term rentals, such as Airbnb. This is on top of Chicago’s existing 4 percent hotel tax.Much like the initial hotel tax, this surcharge will be passed on to the city’s visitors, raising fees and possibly limiting competition if Airbnb hosts choose to no longer offer services.Aldermen cited keeping neighborhoods safe as rationale for the ordinance, though that provides no justification for the tax. A better explanation for the 4 percent tax would be City Council’s urgency to protect the hotel industry. According to the Illinois State Board of Elections, in the past year, aldermen and their ward organizations took in nearly $30,000 from the Illinois Hotel & Motel PAC.The Liberty Justice Center is suing the city of Chicago over multiple unconstitutional provisions of the ordinance.

Satellite TV tax: The city issued a notice in Novemberit was expanding its 9 percent amusement tax to include businesses subscribing to paid programming – a creative way to skirt federal law prohibiting taxing satellite providers the same as cable providers, the latter of which the city already taxes. By directly taxing businesses – such as restaurants or bars who often subscribe to satellite TV for sports packages – the tax is applied directly on the consumer rather than the satellite provider. With this, businesses could be paying more than $400 in new taxes every year.The city’s expansion of the amusement tax comes despite already facing a lawsuit for expanding it in 2015 to internet streaming services such as Netflix, Spotify and Xbox live. The Liberty Justice Center filed that lawsuit on behalf of customers.

Plastic bag tax: As part of the mayor’s 2017 budget – which aldermen rubberstamped without debate 48-0 – a 7-cent tax will be placed on plastic bags starting next year.This is the second phase of an ordinance on plastic bags. The first phase, which went into effect Aug. 1, 2015, banned chain stores and franchises over 10,000 square feet from using standard thin plastic bags to carry groceries in, required them to provide reusable bags instead.However, the ban has unintended consequences. There is no guarantee consumers would reuse these bags. Therefore, instead of throwing away thin plastic bags, consumers could instead be throwing away bags made of a thicker plastic. There is also research showing using reusable bags could be hazardous for public health – if not cleaned properly, the reusable bags could carry bacteria from raw meat and vegetables.The 7-cent tax won’t limit those unintended consequences, but will rather layer an extra burden on top of an already bad policy.

The city will likely continue to look for tax increases. With junk-rated bonds, Chicago and Chicago Public Schools, or CPS, have nearly maxed their ability to borrow. And no Chicago politicians have shown a willingness to make necessary reforms to change the trajectory of the state’s finances.
The city needs substantive reform and lower taxes if it wants to keep and attract residents and businesses. Chicago lost 200,000 residents in the latest decennial census, and with tax hikes the only public policy solution coming from City Council, a greater exodus could be coming.

Trump nails CNN reporter: ‘You are fake news’

By

Steve Balich

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January 14, 2017

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Trump nails CNN reporter: ‘You are fake news’

Posted on January 11, 2017 by Sam RolleyViews: 2,450

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If you’ve ever wondered what media blitzkrieg against a politician looks like, you’re witnessing one now as the mainstream news establishment continues to attack President-elect Donald with unverified and highly salacious attacks. But Trump seems to be taking it remarkably well.
CNN on Tuesday cited an unverifiable intelligence report in a story claiming that Trump, along with President Barack Obama and a handful of ranking members of Congress, are aware that the Russian government possesses damaging information on the president-elect that could affect how he leads.

From the report:

Classified documents presented last week to President Obama and President-elect Trump included allegations that Russian operatives claim to have compromising personal and financial information about Mr. Trump, multiple US officials with direct knowledge of the briefings tell CNN.
The allegations were presented in a two-page synopsis that was appended to a report on Russian interference in the 2016 election. The allegations came, in part, from memos compiled by a former British intelligence operative, whose past work US intelligence officials consider credible. The FBI is investigating the credibility and accuracy of these allegations, which are based primarily on information from Russian sources, but has not confirmed many essential details in the memos about Mr. Trump.
The classified briefings last week were presented by four of the senior-most US intelligence chiefs — Director of National Intelligence James Clapper, FBI Director James Comey, CIA Director John Brennan, and NSA Director Admiral Mike Rogers.

Almost immediately after, cat list purveyor and longtime Trump foe BuzzFeed was reporting that the Russians have proof that Trump had prostitutes “perform a ‘golden showers’ (urination) show in front of him” during a trip to Russia.
Trump, of course, has denied the allegations.
And the documents, remember, are unsourced.
BuzzFeed’s decision drew so much criticism from Americans who note that responsible journalism is not about publishing documents whose source cannot be verified that CNN was forced to release a statement distancing itself from the story about the supposed information.
But not before Trump had the opportunity to lay a serious truth on one of its reporters during a press conference.
During a presser today, Trump called intelligence officials “disgraceful” for allowing information that is “false and fake” to be released to journalists.

He then lambasted BuzzFeed and CNN for running with the story without properly verifying details of the report.
CNN’s Jim Acosta then exploded that Trump was “attacking” his news organization.
He shouted, “Since you are attacking us, can you give us a question?”
Trump replied that he would not, adding, “Your organization is terrible.”
But Acosta persisted, yelling over another reporter’s attempt to ask Trump a policy question.
“I’m not going to give you a question,” Trump responded. “I’m not going to give you a question. You are fake news!”
Bravo.

The petrodollar is dying: what to do next?

By

Steve Balich

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January 14, 2017

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The petrodollar is dying: what to do next?

Posted on January 12, 2017 by GS EarlyViews: 886

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There’s an old Chinese curse that seems somewhat benign on the surface — may your wishes come true.
If you’ve ever seen the movie Bedazzled — and you should — you will get the idea. It’s about a guy (Brandon Fraser) who gets three wishes from the comely devil Elizabeth Hurley, in exchange of course for his soul.
The problem is, his broad wishes get him into more trouble than he could have expected. For one wish, he asks to be wealthy and powerful and have the woman at his office he’s pining for become his wife.
The wish is granted. He’s wealthy and powerful all right… the Devil makes him a Colombian drug lord. But his wife is unfaithful and hates him, and he’s betrayed by his henchmen.
You get the idea. Everything isn’t always what you wish for.
What does it have to do with oil?
We’ve heard investors and analysts crying about “low” oil prices and the shuttering of companies in the U.S. energy patch for the past couple years.
And now the wishes for higher prices have been granted.
But will this be the game-changer we wanted? The answer is likely no.
First there are the simple issues. Higher gas prices are like a tax on business and individuals for consuming petroleum products. On the business side, that makes transporting goods more expensive, and that cost is then passed on to consumers as well. That means consumers are pay extra at the pump and extra at the store. And extra for airline tickets. And surcharges for delivering all those packages ordered online…
All this while there’s still no real evidence that the U.S. economy is in any kind of recovery. Yet now we have higher gas prices, which will raise the inflation rate, which will trigger more rate hikes from the Fed. Add to that the fact that this ‘full employment’ isn’t really what it appears.
Now, this is all on the surface. You can see it.
But deeper down lies something truly troubling.
We are at the beginning of the end of the petrodollar economy.
In 1970 the Nixon administration cut a deal with the Saudis. If we protected the Saudis from their enemies, they would price their oil in U.S. dollars.
In this way, every nation that needed to buy oil would have to have some U.S. dollar reserves. Also remember almost all commodities — industrial and agricultural — are priced in dollars as well.
But as the Chinese become more economically powerful, they see that holding U.S. dollars is not in their best interest. They are the world’s largest oil importer and they also buy massive amounts of commodities like iron, pork bellies and corn.
Most countries hold dollars in the form of U.S. Treasuries to secure their transactions. And China became the top holder of U.S. Treasuries in the 2000s.
Given their interest in getting out from under its economic rival’s monetary system, China began to open its currency and build out its markets so it could become a player on the global economic stage.
The petrodollar’s fall really started when Saddam Hussein began selling oil to all interested parties in any currency but U.S. dollars.
In 2012, Iran began taking renminbi laundered through Russian banks in exchange for oil.
Then in 2015, Russia began selling oil to China in renminbi directly. And all the while these countries began to become net sellers of U.S. Treasuries.
Now the Chinese are building up their own commodities markets and as leading producers and consumers of gold, they’ve created a Shanghai gold exchange. This effort continues as the renminbi gains more and global acceptance.
The end of the petrodollar will be a major disruption to the U.S. economy.
The best way to protect yourself is to make sure you are holding gold. Gold prices have been manipulated for decades by the Western banks.
As this old model collapses, gold prices will have to rise to their unrestricted levels. The value of the Midas metal has nowhere to go but to soar upwards.
Oil will not sustain its current levels for long, as the economy swoons again in 2017. There are plenty of things to like about what Trump is doing, but his attitude toward China will only speed the petrodollar’s death.
What’s happening is not conjecture, it’s an inevitability. Don’t wait until it’s too late. In the meantime, if you want some most excellent and complete advice on buying and keeping gold and silver, Bob Livingston has put all the details in his latest exclusive report, which you can get a copy of by going to the bottom of this page.
— GS Early

Massive retaliatory power

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Steve Balich

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January 14, 2017

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Posted on January 12, 2017 by Bob Livingston

Massive retaliatory power

On January 12, 1954, Secretary of State John Foster Dulles announced in a speech at the Council on Foreign Relations that the United States would protect its allies through the “deterrent of massive retaliatory power.” The policy announcement was further evidence of the Eisenhower administration’s decision to rely heavily on the nation’s nuclear arsenal as the primary means of defense against communist aggression.
Dulles claimed that the aim of the Soviet Union was the “bankruptcy” of the United States through overextension of its military power. As History.com notes:

Both strategically and economically, the secretary explained, it was unwise to “permanently commit U.S. land forces to Asia,” to “support permanently other countries,” or to “become permanently committed to military expenditures so vast that they lead to ‘practical bankruptcy.’” Instead, he believed a new policy of “getting maximum protection at a bearable cost” should be developed. Although Dulles did not directly refer to nuclear weapons, it was clear that the new policy he was describing would depend upon the “massive retaliatory power” of such weapons to respond to future communist acts of war.

The Eisenhower administration had two significant objectives in mind at the time, Armscontrolwonk.com notes, (1) Avoiding another long, punishing land war in Asia; and (2) Avoiding budgetary red ink that would result from the maintenance of overly large conventional forces. The Eisenhower administration’s solution? A brief flirtation with the doctrine of massive retaliation.
Eisenhower soon recognized that nuclear weapons were a poor substitute for conventional military capabilities. Yet Eisenhower remained concerned that the rise of the military-industrial complex would bankrupt the country.
It would not be long before the U.S. and USSR would embark on a new nuclear path — that of mutually assured destruction (MAD). MAD, plus Ronald Reagan’s promotion of “Star Wars” missile defense, bankrupted the USSR and led to its collapse.
But it also set the U.S. on the road to bankruptcy. Subsequent U.S. presidents (both Bushes, Clinton and Obama) did not heed Dulles’ warning that it was unwise to “permanently commit U.S. land forces to Asia,” to “support permanently other countries,” or to “become permanently committed to military expenditures so vast that they lead to ‘practical bankruptcy.’”
The U.S. currently has land forces permanently committed to Asia, supports permanently other countries and has become permanently committed to military expenditures so vast they lead to “practical bankruptcy.” And America currently spends more on defense than does China, Russia, Saudi Arabia, France, the UK, India and Germany – the next largest military spenders – combined. And Donald Trump has vowed to spend more.
Also of note, John Dulles’ brother, Allen, was CIA director at the time of John’s speech before the CFR. Just months prior to John’s speech, Allen Dulles’ CIA had instigated Operation Ajax, a coup in Iran to remove the democratically-elected prime minister, Mohammad Mossadegh. The U.S. then had Shah Mohammad Reza Pahlavi installed as its puppet (which led eventually to the Iran hostage crisis in 25 years later). John Dulles encouraged Eisenhower to approve the plan.
Months after his massive retaliation speech, John F. Dulles lobbied Eisenhower on behalf of United Fruit Company to instigate a military coup by the Guatemalan army through his brother’s CIA against the Guatemalan government under the pretext that the ongoing Guatemalan revolution was becoming “too communist.” John Dulles was a former United Fruit Company lawyer and remained on its payroll at the time, and Allen was on the company’s board of directors.
Following the coup the U.S. installed Carlos Castillo Armas – who had led 480 CIA-trained troops into Guatemala City – as president. He quickly moved to grant himself dictatorial powers, banned political parties and locked up and tortured political opponents. U.S.-backed puppets — dictators, really — ruled Guatemala with a similar iron hand until 1996 and the Guatemalan civil war.

Press Release: Homer Township Fire District

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Steve Balich

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January 13, 2017

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With the continuing battle in Springfield for a state budget, and the continuing need for true reform in the State of Illinois, it is increasingly difficult for any local property tax payer to understand where their money goes and how it is spent. Most importantly, is it spent wisely and efficiently by the local taxing bodies? We at the Homer Township Fire Protection District use one sole determination for our annual levy request: public safety as a top priority. The Board of Trustees and the Fire District is continuously faced with numerous unfunded mandates by the State of Illinois and the federal government. Fulfilling those requirements requires the District to look at all sources of funding. These unfunded mandates include 10-year replacement cycles for PPE/Gear ($1,950 per set), SCBA Gear ($5,000 each), Stretchers ($10,000 each) and Cardiac Monitors ($31,000 each). Additionally, the District is mandated by the State to perform annual hose, ladder, sprinkler, and alarm testing. In order to meet these increasing large mountains of unfunded mandates, the District and Trustees must look at all revenue sources to ensure that we provide emergency services to the citizens of our District, while also meeting the strict requirement of the Property Tax Extension Law Limit. Every year, the District is limited to the CPI for its increase in tax revenue, recently this limit was 0.8% over the previous year. This is why the Trustees believe that continued smart commercial growth in the District will enable residential taxpayers to see an easing of their burden in the years moving forward. Understanding this, the District has wisely submitted applications for grant funding, receiving over $238,400 that can offset expenses to the taxpayers. One of our recent grant applications gave us a much needed ATV Gator to use for emergency forest preserve rescue and use at the numerous festivals held in Homer Township for EMS services. While recently submitting grant applications for a replacement of our 1995 era water tanker, which is so important to our rural and large acreage properties, and much needed updates and modernization to our radio/communication equipment. If we are successful, this is further evidence of easing the tax burden on our citizens. Further, the firefighter’s union has assisted the District with substantial savings in manpower costs in the past two contracts totaling nearly $1,000,000. We came to this multi-year agreement to move the District forward, as well as work as a team. The District and Trustees would also congratulate the firefighters on their recent donation of $3,300 in education funds toward a vital $12,000 emergency cutter and coming together to fund an $8,000 thermal imaging camera. These donations are safety priority one for the firefighters and for the citizens of our District they assist every day. We congratulate the Local 4223 for their efforts and their dedication to the citizens of our District and to the forward progress of Homer Township FPD. Realizing the need for extensive fleet and expense review, the Trustees approved a District maintenance review program to downsize its fleet, eliminating a reserve ambulance, a ladder truck, and three service vehicles. Thus reducing maintenance and insurance costs incurred by the District. We also established a reduced rate vehicle maintenance program with Frankfort FPD, allowing us substantial savings and much improved reliability. A long unused piece of property owned by the District since the early 1980s has gone on sale at market price at the Boards recommendation. We have also outsourced our ambulance billing, reducing administrative overhead at the District and increasing revenue for the District from out of District individuals using our services. Lastly, we were able to also reduce utility costs substantially by doing a full review and changing suppliers. We have done all of this with the clear realization that our citizens, our property taxpayers, expect a fire district that provides fire protection, EMS, and fire prevention services 365 24/7. The Board of Trustees and the men and women of the Homer Township Fire Protection District hope that we have met your goals and will continue to do so in a manner that respects the taxpayer, while also protecting the citizen when they are at their most vulnerable. Paul Anderson, Board President Mark Lobes, Board Secretary Ken Fijan, Board Trustee

2017 brings a slew of new sales tax hikes for 20 municipalities in Illinois.

By

Steve Balich

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January 13, 2017

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Local governments raise sales tax in Illinois

January 3, 2017

2017 brings a slew of new sales tax hikes for 20 municipalities in Illinois.

Effective Jan. 1, 20 Illinois cities and local governments increased local sales taxes, according to the Illinois Department of Revenue.
The majority of the sales tax hikes were enacted in the various municipalities’ business districts. However, the city of Danville, located in Vermillion County, is raising taxes for the entire city. Listed as a “home-rule” sales tax increase, the new tax hike will go into effect on nearly every purchase made in Danville. This increase brings the combined sales tax rate to 9.25 percent up from 8.75 percent.
Local governments’ New Year’s cash grab is just the latest in a series of tax hikes that have left many Illinois residents feeling as though their pockets have been picked. Like property taxes, sales taxes are regressive and hit middle-and working-class families the hardest. Illinois has the highest property taxes in the nation and the highest sales tax in the Midwest. Chicago has the highest sales tax of any city in the country. When income, sales, property and other taxes are accounted for, Illinois’ combined tax burden puts the Prairie State at the fifth highest in the nation.
However, it never seems to be enough. Illinoisans are forced to continue paying more in local taxes to prop up Illinois’ 7,000 units of local government – the most in the nation – and the bureaucracies that run them.
And taxes at the local level aren’t the only government cost burdening Illinoisans. The state continues to spend more and more each year.
Despite the fact the state is expecting to take in more than $33 billion in 2017, Illinois is on course to spend $5 billion more than it will take in. From 2003 to 2016, Illinois taxpayers shelled out $70 billion more than if revenues had simply grown with inflation and population trends.
Middle-and working-class Illinoisans should not be forced to pay for the financial bungling of local and state government. Rather than raise taxes that will hurt already cash-strapped residents, these 20 municipalities should look for ways to fix their budgetary issues without going back to taxpayers.

TAGS: local government, municipal government, sales tax, taxes

ISRA Thursday Bulletin – January 12, 2017

By

Steve Balich

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January 13, 2017

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ISRA Thursday Bulletin – January 12, 2017

EXECUTIVE DIRECTOR’S MESSAGE

On January 20, 2017, we will inaugurate Donald J. Trump as the 45th President of the United States. Many are upset by the election of Donald J. Trump. Colleges and universities have been scheduling coloring book, play dough and consulting sessions. We must think of how to comfort these precious cupcakes because they are our future. These people are individuals who have difficulty with life’s challenges, like buttering their own toast and if the butter is too hard it could throw them into a catatonic state. To make everyone feel better, I suggest we have a special ceremony an hour before the inauguration and give participation trophies to Hillary Clinton, Jill Stein and “what is Aleppo?” Gary Johnson. I think that will promote healing with our mentally distraught losers.

Congressmen Jeff Duncan (SC) and Congressmen John Carter (TX) have introduced the “The Duncan-Carter Hearing Protection Act” (H.R.367) in the U.S. House of Representatives. H.R. 367 would remove suppressors from the National Firearms Act, thereby eliminating the $200 transfer fee and other ridiculous burdens on law abiding citizens. Suppressors do not “silence” the discharge of firearms, nor do they stop the sound of the operation of the firearm of the supersonic crack associated with the bullet. What they do is protect the hearing of shooters and others from high decibels, which damage hearing. I recommend supporting this bill at the proper time. I will let you know.

In Georgia, two armed robbers tried to hold up the Top Nails Salon. One of the nail technicians proved she knew more than just how to do great nails when she engaged the gun-toting robbers with her own firearm. The police found one of the robbers hiding nearby with a hole in his butt. The police are still on the trail of the other one. Nail salons have been targets of robberies because criminals assume the people employed there can’t defend themselves. Thanks to concealed carry, more places are becoming hostile work environments for criminals, except Gun Free Zones, of course. Remember that.

This year, the ISRA Academy (Education and Training) will be conducting an assortment of classes. Aside from offering standard classes, we have been concentrating on some non-standard classes that do not involve shooting. The most successful of these is the AR15 Maintenance and Operations Class, taught by Terry Kreimeier. The Emergency Medical Response for Firearm Instructors and RSO’s, taught by John Krupa and Spartan Tactical, have been excellent. Every Instructor and RSO should take this class.

We have added two more classes that I am very excited about. The first is the M1 Maintenance Class, taught by long time CMP Armorer, Joe Smaciarz. ISRA members have thousands of M1’s, but many do not know how to maintain them properly. This class includes having your M1 checked for head space and bore erosion. The second class is the Ruger MK I, MK II, MK III and SR Series Pistol Maintenance Class. These are great target pistols, but are a challenge to take apart, clean and put back together. Rick Allen will simplify that for you. Class space is limited, so reserve your spot now. Proceeds from these classes go to support the ISRA Range.

A federal court judge has denied a motion to dismiss the case known as Shults et al v. Sheldon. The motion to dismiss was brought by the State of Illinois, which limits the Second Amendment rights of foster parents. This case seeks to remedy that situation.

Thanks for being a member.

Upcoming Events:

Check our website for more information!

Saturday, January 14, 2017

Winter Wars at the ISRA Range

Saturday, February 4, 2017

Care & Maintenance of the M1

Saturday, February 18, 2017

Armed Forces Training Camp Instructor Orientation

Saturday, February 25, 2017

Care & Maintenance of the AR-15

WOT Pistol Clinic at Chillicothe Sportsmen’s Club (Sponsored by the ISRA)

Saturday, March 4, 2017

Emergency Medical Response for Firearm Instructors and RSO’s

Saturday, March 11, 2017

Care & Maintenance of the Mark I, II, III, and 22/45

Check out ISRA’s website at www.isra.org! Tell us what you think!

Follow the ISRA on Twitter and Facebook.

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Americans saying goodbye to high-tax states

By

Steve Balich

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January 12, 2017

0

Americans saying goodbye to high-tax states

Posted on January 9, 2017 by Sam RolleyViews: 1,922

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State and local lawmakers take note: a growing number of American workers, business owners and retirees are showing their disgust with sky-high taxes by voting with their feet.
That’s according to information released by the National Movers Association, which illustrates a positive relationship between high taxes and outbound moving vans.
That’s according to information released by the National Movers Association, which illustrates a positive relationship between high taxes and outbound moving vans.
“For 40 years, United Van Lines has been tracking which states people are moving to and from. We also survey our customers to understand why they are moving from state-to-state,” said Melissa Sullivan, director of marketing communications at United Van Lines. “As the nation’s largest household goods mover, the data we collect is reflective of national migration trends.”
The company found that the following states have the highest numbers of residents moving elsewhere:

New Jersey
Illinois
New York
Connecticut
Kansas
Kentucky
West Virginia
Ohio
Utah
Pennsylvania

New Jersey, Illinois, New York and Connecticut, states with the highest number of people moving away, all also hold the distinction of having some of the highest state tax rates in the nation.
It’s also worth noting that each of the states are also havens for harsh liberal union policies, gun control laws and regulatory hurdles to business.

Pension costs alone now consume a quarter of the Illinois state budget.

By

Steve Balich

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January 12, 2017

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Why a budget won’t fix Illinois

January 5, 2017

Pension costs alone now consume a quarter of the Illinois state budget.

Did you feel it?
As 2016 expired at midnight Dec. 31, so too did Illinois’ stopgap budget. That six-month spending plan pushed our state, already the least creditworthy in the nation, further into debt and decay.
But its end looked more like the Y2K bug than a fiscal cliff – nothing really happened. That’s because, even as Illinoisans constantly hear calls to “just pass a budget already,” Illinois already has something of a budget. And it’s not a good one.
It’s true that Illinois does not currently enjoy a traditional budget. The General Assembly hasn’t passed a spending plan that Gov. Bruce Rauner signed. And odds are slim that politicians will agree to a full-year budget in the final legislative session of the 99th General Assembly next week.
But state government is still paying out at a breakneck pace through a mishmash of autopilot spending, court orders and consent decrees.
In fact, state government is set to spend a record amount of taxpayer money in fiscal year 2017: nearly $40 billion. That’s a new high for Illinois, and nearly 8 percent more than when the temporary income-tax hike was in full swing, according to the Commission on Government Forecasting and Accountability.
And yet, Illinoisans are still hearing stories of suffering tied to the lack of a formal, full-year budget.
Low-income students at public colleges and universities are uncertain about the status of the Monetary Award Program, which helps with the tuition costs necessary to invest in their futures. And some social service providers that aren’t funded by court order are barely scraping by.
State spending is breaking records, so one would think Illinois could help these residents in need. But it’s not. How can this be?
Look to the state’s priorities for an answer.
There is plenty of funding to go around. There is more than enough spending growth. And Illinoisans have paid their fair share into the system. But the state’s spending priorities are out of whack.
Here are some key state spending categories and the percent change in each from 2000 to 2015. Note that total state revenues over this time increased a healthy 57 percent:

Spending on culture and the environment decreased 59 percent
Spending on higher education decreased 8 percent, excluding pensions
Spending on human services increased 10 percent
Spending on public safety increased 12 percent
Spending on K-12 education increased 35 percent, excluding pensions
Spending on Medicaid increased 141 percent
Spending on state-employee insurance increased 166 percent
Spending on state-employee pension benefits increased 586 percent

Some of these things are not like the others.
Pension costs alone now consume a quarter of the state budget, suffocating spending on core services such as higher education, human services and public safety.
What residents are witnessing now with human services is not a new phenomenon. Even when Illinois had full-year budgets and one-party rule, social service providers still got stiffed. In 2009, an Urban Institute study ranked Illinois worst in the nation in paying its nonprofit vendors on a timely basis.
Why? Priorities. The current fight over higher education funding is another perfect case study.
College was once affordable in Illinois. But Illinois’ public colleges and universities hiked tuition between 74 and 112 percent over the last decade. Now, college is too often out of reach for many students without them taking on debt and receiving help from the government.
This jeopardizes the future of our state, as young Illinoisans seek opportunity elsewhere. The Land of Lincoln is losing more millennial taxpayers on net than all other states except New York, according to data from the Internal Revenue Service, taking a net loss of more than 80,000 millennial taxpayers during the four tax years between 2011 and 2015.
“Just pass a budget already,” is a common response to this problem. But Illinoisans must first think about the state’s priorities.
Students have received the short end of the stick in this state, budget or not.
For every dollar the state puts toward higher education, half goes to pension costs. Illinois’ system of higher learning is no longer a ladder up to the middle class for students. It is retirement program for those it employs.
But surely that rise in tuition dollars went to ensuring access and affordability. Let’s look at the numbers. Between 2004 and 2010, student and faculty populations in Illinois grew less than 3 percent. The number of university administrators grew by more than 30 percent.
How’s that for access?
A full-year budget without major reforms simply serves to set warped priorities in stone. Before relenting to appeals for any budget at all, Illinoisans would be wise to consider what’s been done before, and why unwavering calls for change are so necessary.

TAGS: balanced budget requirement, Bruce Rauner, budget, John Cullerton, Mike Madigan, stopgap budget

Illinois House Democrats re-elected state Rep. Mike Madigan to his longtime post as House Speaker Jan. 11.

By

Steve Balich

-

January 12, 2017

0

Illinois House Democrats re-elected state Rep. Mike Madigan to his longtime post as House Speaker Jan. 11.
Madigan is now set to become the longest-serving House speaker in modern U.S. history. By the end of his two-year term in 2019, no American will have held a legislative leadership position for longer.
Madigan won the speakership Wednesday on a 66-51 vote along party lines. All Republicans voted for Burr Ridge state Rep. Jim Durkin. A lone Democrat, Scott Drury of Highwood, voted present. This is the first time a House Democrat has voted “present” for the speaker in 30 years.
The remaining House Democrats cast their votes for Madigan.
“You’ll see a man who works seven days a week to get the job done without putting the focus on himself,” state Rep. Dan Beiser, D-Alton, said after seconding the nomination for Madigan as speaker.
This is the 17^th time Madigan has been elected speaker. And he has held the post for 32 of the last 34 years, beginning in 1983.
The votes for Madigan are at once stunning and unsurprising.
Illinoisans have a right to be flabbergasted that Madigan drew unanimous support from House Democrats, while nearly two-thirds of registered voters in Illinois disapprove of the speaker, according to polling from the Paul Simon Public Policy Institute. Despite drawing the state’s legislative map, he’s fresh off a loss of his supermajority in the House, losing four Democrat seats on net.
But Madigan’s re-election seemed inevitable, as not a single sitting House Democrat has ever voted for someone other than Madigan for the speakership (setting aside the 1995 vote, when Republicans controlled the chamber.)
The fear of bucking the speaker’s wishes is warranted. He is the most powerful politician in Illinois. And no other state in the country grants as much power to its House speaker as Illinois does Madigan.
If a Democratic House member doesn’t vote for Madigan, he can take away her campaign money, strip her of any leadership roles and even make sure none of her bills get a hearing.
If House Democrats wanted leadership change, one brave lawmaker is all it would take. Madigan and Durkin were the only House members nominated for the speakership.
Lawmakers have faced unprecedented pressure to justify their vote for the speaker in 2017, as Illinoisans are stuck navigating the highest property taxes in the nation and the worst jobs climate in the Midwest. Many people have responded by leaving – Illinois is also home to the worst out-migration crisis in the country.
Instead of addressing to this suffering by changing the guard, House Democrats re-elected a Cook County property tax lawyer to the most powerful post in the General Assembly.

Austin Berg
Writer

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