 In fact, he said raising the personal income tax by 33 percent would a good spot
to start talking.
Toward the end of his luncheon appearance before the City Club of Chicago, the
speaker of the House caught a potential hand grenade of question: “How high do
you think taxes need to go?”
Madigan, D-Chicago, smiled and started with, “Let me avoid creating a headline
for tomorrow’s newspaper.”
After laughter from the audience, Madigan continued “…and say a good place to
begin — a good place to begin — would be the level we were at before the income
tax (increase) expired. Starting there, you can go whatever direction you want
to go.”
The temporary income tax increase of 2011 ramped Illinois’ personal income tax
rate to 5 percent and the corporate rate to 7 percent. Those increases rolled
back to 3.75 and 5.25 percent, respectively, at the beginning of this calendar
year.
Madigan’s answer wouldn’t appear to lock him into a set number, especially as he
indicated there was room to talk, but it does comport with his frequent
statements that more revenues, along with some cuts, will be needed to address
the state’s financial problems.
Of course, “tax increase” remains a charged term in the Capitol, as many
Illinoisans favor no increases at all, but instead advocate cuts well into the
billions.
Republicans are holding to the position that they won’t support tax increases
unless they get some of the main items from Rauner’s “turnaround agenda,” which
they consider fundamental reforms to the state’s political and business
environments.
“Taxpayers need to pay close attention,” Sen. Republican Leader Christine
Radogno said of Madigan’s income tax remark Wednesday. “The powerful Democrat
leadership is proposing a whopping 33 percent income tax increase — with no
reforms to change the way we do business in Illinois.”
She said, “The citizens of Illinois want structural reforms that will lead to a
more competitive Illinois economy and middle class economic growth, while
protecting the taxpayers.”
The speaker’s remark about the income tax rate isn’t terribly surprising, said
Kent Redfield, a political scientist and professor emeritus at University of
Illinois, Springfield.
[to top of second column] |
 “The state is certainly going to need new revenue, although I
don’t know whether it will come from income tax or somewhere else,”
Redfield said.
The state’s in a bind, said Jim Nowlan, a political analyst and
former GOP member of the House. Madigan and other lawmakers know the
state has to not only pay what it now owes but also must someday
resume covering the obligations it has been shoving to the side of
late.
“I think higher education in particular has a concern that once they
(lawmakers and the governor) agree to a tax increase, will that tax
increase be sufficient to fund future budgets but not pay them what
they’ve funded on their own this year?” Nowlan said.
Higher education has taken a hit so far in fiscal year 2016, he
noted, with universities in some cases fronting tuition for
thousands of students who’d been relying on state-funded grants from
the Monetary Assistance Program.
Madigan’s office on Wednesday evening issued a statement saying he
wasn’t advocating a specific tax increase but still believes in a
combination of new revenues and spending cuts.
“We have no plans to advance legislation to change the income tax
rate, and I am committed to working with the governor to develop a
budget that provides for a balanced approach to solving our budget
deficit,” the speaker said in that news release.
The governor has said he wants to avoid raising taxes but might be
able to live with some increases, perhaps temporary, if they come
with what he considers reforms.
“Compromise will be the key,” he said last week during the public
portion of meeting with the legislative leaders.
Illinois is in the sixth month of fiscal year 2016 without a budget.
Meanwhile, the state is spending at pace that could put it roughly
$5 billion into the red as it funds primary and secondary education,
satisfies its debt service and pays for items specified by courts
and in continuing appropriations.
Click here to respond to the editor about this article
|
