Pantagraph.com
NewsWednesday, March 18, 2009 12:15 PM CDT
Quinn trying to sell tax hikes, fee increases in budget address
Advertisement

SPRINGFIELD -- Gov. Pat Quinn will play the role of a salesman Wednesday, pitching a series of politically unpopular tax and fee hikes as part of his prescription for fixing the state's ailing finances.

From raising the income tax to boosting the cost of a pack of cigarettes, the Chicago Democrat will try to convince lawmakers and voters to support his plan, even though the billions of new dollars will be spent mainly to keep the state afloat, rather than on new programs.

Analysts say it is the state government equivalent of spending money to keep an old car running, rather than buying a shiny new one.

And, it shows just how far in the hole state finances have fallen.

"What you really need is a revenue system that can help the state pays its bills," said Ralph Martire, director of the Center for Tax and Budget Accountability.

Quinn's plan seeks to reform the state's tax system by boosting the income tax rate by up to 50 percent, while adding more tax exemptions in a bid to soften the blow for families earning under $60,000 annually.

It would be the first income tax increase in Illinois since 1993, when the current 3 percent rate was made permanent.

Quinn also is mulling a $1 per pack increase in cigarette taxes that would be spread over two years, as well as higher taxes for businesses.

Hoping to win some support for his plan, Quinn said Tuesday that he wants to offer taxpayers a sales tax holiday in late summer, so people can buy clothes and other school supplies without having to pay taxes.

The governor's budget blueprint aims to chip away at a deficit that has ballooned to more than $11 billion, leaving the state unable to pay its bills on time or keep up with employee pension costs.

Quinn is expected to outline $850 million in cuts to the current budget, as well as announce changes aimed at reducing future state pension costs, including a possible extension of the retirement age to 67, up from 65. State workers would also be required to take furlough days as a way to save on payroll costs.

The governor also is expected to announce the merger of the Illinois Department of Natural Resources and the Illinois Historic Preservation Agency as a way to save administrative costs. The fate of historic sites that were closed by former Gov. Rod Blagojevich was not known Tuesday evening.

Analysts say the pension changes would be welcome, but they won't do enough to address the chronic underfunding of the state's pension systems. The state simply needs to start paying a bigger share to the pension systems, said Eden Martin of the Civic Committee of the Commercial Club of Chicago.

"You've got to bite the bullet," Martin said.

Republican lawmakers say Quinn must make an effort to cut costs before asking for higher taxes.

"In order to fill a hole, you've got to stop digging," said state Rep. Dan Brady, R-Bloomington. "To simply try to tax our way out cannot solely be the approach."

Take a look
Illinois Gov. Pat Quinn, center, is surrounded by reporters at the Illinois State Capitol in Springfield, Tuesday, Mar. 10, 2009. The Illinois state government faces a budget deficit so vast that filling it will almost certainly require a painful mixture of tax increases, service cuts and creative accounting. (AP Photo/Seth Perlman)
Video
Most commented stories
Browse online archives
Recent issues:
Reader comments on this story - 21 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

ofc313 wrote on Mar 18, 2009 11:34 AM:

" Illinois already has some of the highest motor fuel tax in the country, Communities tack on their couple cent tax on top and it just keeps going. Decrease corprate taxes and fees, Decrease the fees to truckers, Stimulate local buisness in the State to either keep doing buisness in the State even stay in Illinois ! People will purchase goods and the state coffers will get better. Why do the liberals want to continually increase government and keep us paying for it ? If we have the money great but now is the time to cut back ! "

san1 wrote on Mar 18, 2009 11:22 AM:

" You have all the figures ok what is the stimulis ging to pay. The state has not explained that. They talk about roads SCHOOL, ext The lottert was supose to helo pay for them. I still would like to see the state officials live on what retired people live. They could not do it, They are no better than any of us. My mother always they put their pants one leg at altme like we do. THEY ARE NOT BETTER THAN US. i KNOW A LOT OF PEOPLE THAT WOULD BE HAPPY WITH A SMALL INVREASE IN THE PAY THEY GET, I MEAN THE REGULAR JOES, NOT JUST OLDER PEOPLE. "

lincolnlover wrote on Mar 18, 2009 10:45 AM:

" To all of you posters who think you can cut your way out of this mess, get a clue! State payroll is 3.3 billion a year. If you sent everyone home for 3 years and ablsolutely nothing happened - no state troopers, or corrections officers, no dcfs, no state judges, highway workers. No state food inspectors or licensing processors (so no new doctors, nurses, teachers, etc because there would be no one to make sure they were compliant with standards) etc, etc, etc, etc, You would STILL be about 2 billion short of closing the estimated current gap of 11.2 billion! There is no choice here. The only way to get more revenue is to raise taxes. "

fyi wrote on Mar 18, 2009 10:40 AM:

" Hmm, it's cheaper to smoke pot than tobacco, so please don't legalize it...I can't afford the tax. "

mel wrote on Mar 18, 2009 10:08 AM:

" ...and how about eliminating all those boards and commissions our kleptocrats use to pad their incomes.

And now that they've banned smoking they want to raise taxes on cigarettes. You just can't make this stuff up. "

jj2 wrote on Mar 18, 2009 9:09 AM:

" Heck if you're going to legalize drugs may as well include prostitution.

If God slept, he's rolling over in his bed.

Our forefathers are certainly rolling over in their graves.
And the ones that died fighting for freedom are wondering what they gave their lives for. "

jj2 wrote on Mar 18, 2009 9:06 AM:

" decline of about $150 million in cigarette tax revenue since the 2004

Not many that I know have quit. Alot makes trips over the stateline which'll increase before the fed tax kicks in. Many'll have winter supply.
Taxing tobacco is hurting state. The more they raise, the less they'll collect because people aren't going to pay it.
After the increase in April there'll be a growth in the black market or longer trips to see some of my relatives, the Native Americans. "

jj2 wrote on Mar 18, 2009 9:06 AM:

" Continued
And what's the feds and states going to do, put all those bad tax evaders in jail for revolting and saying NO. Something our forefathers did.
Anyone remember the American Revolution?
April 1st mail a tea bag to our governor and to Oboma at the White House. "

SAN1 wrote on Mar 18, 2009 8:59 AM:

" I tried to send this earlier and it didn't go so hopfully you don't get it twice. Could any of you in Springfield live on $2000.00 or less a month? The elderly have no choice they have to . You raise taxes and utilities, they now have to choose between food and medicine, what else do expect of them. They worked hard all thier lives and now have to scrape and make coices they should not have to. Who is going to help them. "

whattheheck09 wrote on Mar 18, 2009 7:37 AM:

" Let me get this straight. The feds lower the tax rate so we all can have a very little extra money in our paychecks and then our wonderful state wants to raise the state tax??? There goes the extra pay from our paychecks and probably more!!! That makes a whole lot of sense. Wasn't there money in the so called stimulus for the irresonsible to help the states??? Where'd that money go besides into someones pocket??? What a joke. "

moze401 wrote on Mar 17, 2009 11:29 PM:

" Need revenue. How about sports betting at Riverboats and OTB? Reduce pensions like auto workers? "

just a thought 2 wrote on Mar 17, 2009 8:18 PM:

" Time to chime in. Let all of smokers quit and see what new tax they will create. How about cutting some state jobs would be a start. "

Zeva wrote on Mar 17, 2009 7:32 PM:

" With so many people out of jobs, homes in foreclosure, no one buying anything, necessities going up, gas on the rise again, where do they think this tax is going to come from? People can't pay anymore and can't survive either so how do they plan on this helping the economy? Somehow our government hasn't a clue on how the lower people on the totem pole live. The sweet taste of government without a living brain cell. "

san1 wrote on Mar 17, 2009 6:20 PM:

" Well gas just went over $2.00 and raise taxes. Just sit in our homes. can't afford the gas increase, so won't be out spending any money so there goes your increase, now what? What is the stimulis going for, Springfield politics. "

Pirate wrote on Mar 17, 2009 6:14 PM:

" Instead of taxing anyone they should start cutting some of the pork that is in the budget. Surely there are a great many projects that are not necessary to anyone except the Rep who got it for his or her district. Why do they never start with this?
They could also change the law that allows state legislators to receive a retirement after serving on one term. At least I think that is the law. "

TUGGERNUTS wrote on Mar 17, 2009 5:52 PM:

" NO MORE TAXES.

Here's a great idea. Legalize Marijuana. Let the State of Illinois grow it, process it, sell it, and TAX it. That way they would make all the profit and they get to tax it as well. This will stimulate our local economy by creating thousands of jobs. We could also supply other States with medical marijuana and make even more money. We would never have to worry about potholes again. To me it's a no brainer and a win win situation for all. "

Ntwadamela wrote on Mar 17, 2009 5:48 PM:

" Instead of taxing what the poor use to unwind, they should put the burden on those who have the most ability to pay. It's pennies to the rich. "

Stormin Norman wrote on Mar 17, 2009 5:13 PM:

" I suppose I'll have to work harder to get that 50% raise this year to offset a similar hike in my income tax rate. We should really raise the tax on whatever these government officials are smoking these days... "

FollowTheConstitution wrote on Mar 17, 2009 4:52 PM:

" All I can say is, it looks like old Blago was telling the truth that all they wanted was to get him out of the way so they can cram their tax increases down our throats!

How many times do they think every part of government can keep turning to raising taxes on cigarettes to pay for everything? The tabacco companies just raised prices a $1 per pack, Obama is adding 61 cents per pack April 1st, and now the State wants to add another $1 per pack. That is over $2.61 per pack!!! "

Devil's Advocate wrote on Mar 17, 2009 4:44 PM:

" Maybe we could cut about 1/4 of the Democrat patronage jobs in the state? Unemployment would be cheaper than paying them to sit on their @55#4 in Chicago. "

suds4333 wrote on Mar 17, 2009 4:38 PM:

" This guy has NO clue how economics work. Boost taxes and fees to get people to purchase less when then in turn leads to less revenue for the state which will lead to more increases in taxes and fees! "

Add your own comments

Please read the rules before posting comments.

You must be logged in to leave comments.
If you don't have a member ID, please register.

*Member ID:
*Password:
Remember login?
(requires cookies)
  Forgot Your Password?