Monday, January 10, 2011
 
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Support scarce, tax hike vote delayed

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[January 10, 2011]  SPRINGFIELD -- Democratic leaders in Springfield may have an agreement on a 75 percent income tax. But they do not have the votes to pass it.

InsuranceLawmakers, at the Capitol for a rare, Sunday lame-duck session, didn't even talk about the plan to raise taxes and borrow so Illinois can get out from under a $15 billion deficit. They now face Monday's inauguration of the governor and a Wednesday deadline to do something.

Legislators are quick to say there is little support for the current plan, and there is little agreement on a Plan B. State Rep. Frank Mautino, D-Spring Valley, said hundreds of millions of dollars in new money for schools is as much of a problem as the 75 percent income tax increase.

"The main concern is that there can't be any new spending. All of our members know that the structural deficit here is equal to a 2 percent income tax (hike)."

The current plan would raise the personal income tax 2.25 percentage points, or 75 percent. There is money earmarked for schools and social services. The tax package also includes property tax relief that would result in $325 checks being mailed to homeowners. And then there is the corporate income tax hike.

Democratic leaders paint the increase as a jump that mirrors the personal income tax, saying that businesses would see their tax rate go to 8.4 percent. But Republicans point out that those calculations do not include the personal property replacement tax, which is paid by businesses. State Rep. Mike Tryon, R-Crystal Lake, said once you add those taxes into the mix, Illinois businesses will be paying over 10 percent to the state.

"I think to put a 10.9 percent increase on the income tax on businesses really puts us at a disadvantage in comparison to where we need to (be) with Indiana and Missouri and Wisconsin," said Tryon.

But for many lawmakers the problem with the tax increase is not in the math, it's on the phone. Mautino said legislators left Springfield Friday and Saturday and got an earful from voters.

"I image that when they got home they heard quite a bit about it. Since I've been back (to Springfield) I've talked with (Democrats) and they raised those concerns," he said.

State Rep. Mike Boland, D-East Moline, said his phone rang off the hook with complaints about the 75 percent hike.

"I've had hundreds of calls, both to my office down here and district office, and even my home. And I've only had one call that was for a tax increase."

Boland said he's "leaning against" voting for the 75 percent plan, and he guesses that maybe only 50 Democrats have lined up behind the tax increase.

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Few Republicans, if any, are expected to vote for the income tax increase. That could leave Democrats to do it on their own.

State Rep. Jack Franks, D-Woodstock, thinks that might be easier if Gov. Pat Quinn would do more.

"You have to look at the guy who's getting sworn in (Monday) who campaigned on a (1 percentage point) tax increase. We've never even seen that proposal. I presume that if that's what he was campaigning on, and really believed in it, we'd have seen legislation to that effect. But we haven't," said Franks.

If the 75 percent plan, or even Quinn's 33 percent tax increase, are not voted on soon, there may not be enough time to pass them.

Tryon said the ticking clock is getting loud.

"I think if it doesn't pass by Tuesday, it's not gonna happen," he said.

Quinn is set to be sworn in Monday afternoon. A new Legislature will take its oath on Wednesday.

[Illinois Statehouse News; By BENJAMIN YOUNT]

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