Posted on 07/06/2017 5:13:52 PM PDT by digger48
The Illinois House voted to override Republican Governor Bruce Rauner’s veto of the income tax hike and budget bill. This is the first budget Illinois has passed in two years.
The House voted 71-42, which is the bare minimum House Speaker Mike Madigan needed, after a security incident delayed the vote for two hours.
The House passed the tax hike and budget bill on Sunday with 72 votes, including 15 Republicans. A few flip flopped, according to The Chicago Tribune:
On Thursday, there were some slight changes. One lawmaker who previously voted for the income tax hike on Sunday, Republican Rep. C.D. Davidsmeyer of Downstate Jacksonville, voted against the override. Democratic Rep. Sue Scherer of Decatur had voted against the tax hike on Sunday but voted in favor of the override Thursday. In addition, Rep. Robert Pritchard of Hinckely voted for the tax hike Sunday but was absent Thursday.
The Republicans lacked five representatives with excused absences. One of those voted yes for the bill on Sunday.
Rauner lashed out at the bill on Wednesday as he went around Springfield to try to change the minds of those who voted for the bill. From ABC7:
The first-term governor, already facing several Democratic heavyweights hoping to displace him in the 2018 election, took to the trail Wednesday to implore the House – run by Speaker Michael Madigan of Chicago – to sustain the vetoes.
“This is not just a slap in the face to Illinois taxpayers. This is a 2-by-4 smacked across the foreheads of the people of Illinois,” he told reporters at a bar on Chicago’s far South Side. “This tax hike will solve none of our problems. In fact, in the long run, it will make our problems worse, not better.”
The bill includes an income tax and corporate tax hike and a budget plan of $36 billion:
The budget plan would spend more than $36 billion on primary and secondary education, colleges and universities, social services, medical care for the poor and other government functions, with nearly $5 billion in new taxes to help pay for it. The personal income tax rate would rise from 3.75 percent to 4.95 percent. The corporate tax rate would go from 5.25 percent to 7 percent. The plan also would have the state pay down about half of the nearly $15 billion pile of unpaid bills through a combination of borrowing and using cash from other state accounts.
Illinois’s crating rating is still just a notch above junk. Madigan got all excited because Fitch Ratings and S&P Global Ratings urged Rauner to sign this bill on Sunday. But Fitch told Madigan to calm down because even with the override, nothing guarantees these rating companies will not drop Illinois to junk. From The Chicago Sun-Times:
During that lag, Moody’s Investor’s Services on Wednesday offered a stark reminder, placing the state’s current rating of Baa3 “on review for possible downgrade.” Moody’s and two other credit agencies had warned lawmakers of a “junk” downgrade should they not enact a budget by July 1. But last week, S&P and Fitch called the passage of the budget bills progress.
Still, according to Moody’s, “despite the progress toward budget balance” in the legislative package, “… the plan appears to lack concrete measures that will materially improve Illinois’ long-term capacity to address its unfunded pension liabilities.”
That’s because the budget bill lacks…A LOT. Illinois has “unpaid bills to state contractors and vendors that’s reached about $14.5 billion and roughly $130 billion in unfunded pension liabilities.” Last Friday, a judge ordered the state to “start paying $293 million in state money toward Medicaid bills every month and an additional $1 billion over the course of the next year.”
The House should have started its session at 1:30PM CT, but emergency officials had to lockdown the building “after a woman allegedly threw a powdery substance in the governor’s office.”
Have you ever heard of "Laboratories of Democracy?"
Your analogy to King George is irrelevant. IL is not a nation. The Founders knew that some states would be more liberal than others, so they created a mechanism via the 10th Amendment to give states powers not delegated to the Feds.
So if people are fed up with leftist states, they can leave. That's the beauty of federalism and it's not "cutting and running."
I sort of run with “Manny’s” take in ‘The Moon Is A Harsh Mistress’, when it comes to standing up to a foul government: If there’s a 1 in 10 chance to win, I’ll take it. But, I want at least a 1 in 10 chance...
“Your analogy to King George is irrelevant. IL is not a nation. The Founders knew that some states would be more liberal than others, so they created a mechanism via the 10th Amendment to give states powers not delegated to the Feds.
So if people are fed up with leftist states, they can leave. That’s the beauty of federalism and it’s not “cutting and running.””
Not so! The end result of people leaving the currently liberal states is to foster the movement of Liberals to states that currently are at least semi-conservative, because in reality, not a one of them is really conservative and Liberals tend to “move on” once they’ve terminally crapped up their current places of abode. The net result of people running rather than standing and fighting is that in the end, most, if not all states will become Liberal.
I just love the turkeys here from Texas who puff out their chests about how “conservative” Texas is (which in and of itself is complete BS). They are almost to the tipping point where California was twenty years ago and they are too stupid to see that Texas is on the cusp of becoming Mexias, with a “generous helping” of Black Freeloaders in their major cities. And when they look up one day and have a Illegal Alien Mexican for their governor, and a Mexican majority legislature, they will be saying WTF happened!
We should not be “ceding territory to Liberals anywhere.
Welfare is not treated as income, so it is unaffected by an income tax. However, sales taxes directly make welfare pay dollar-for-dollar the same as earned income. Texas has a sales tax, but no income tax.
Is so! That's the way our system of government was set up. The Founders had the foresight to know that some states would be more statist than other states. Hence the reason why federalism was adopted. Look, WI in the 80s was the welfare magnet of the nation. IL residents double-dipped in both states. But now look at WI. We have a Republican Governor and a Republican legislature on the verge of passing constitutional-carry. These liberals might leave their hellholes but over time I think they wise up and start becoming conservatives, and they're just a fraction of the people leaving anyway. The people that will leave IL are conservatives and then IL will get their wake-up call and become conservative. Just like the Founders envisioned. Circle of life.
politicians sole focus is to keep getting elected...get the big campaign funds from someone, they don’t care who...
its not reasonable to attack one group and not the other....
the "other" group has all the power and they should be the ones crucified...
There are no corporate taxes or business taxes. End user pays everything.
Best post of the day!
However, corporate taxes or business taxes can certainly drive away businesses.
They say that a boat is simply a hole in the water that one throws their money in to.
Chicago is just like a boat Illinois throws their money away in to.
Meanwhile places like southern Illinois are ignored and hardly any state money flows to.
As the crew of the Titanic runs to the bow and proclaims: “This ship is unsinkable!”
I'd prefer to lock them in to prevent them from infecting sane states. (Proven conservatives excepted.)
I'd prefer to lock them in to prevent them from infecting sane states. (Proven conservatives excepted.)
Yep. ‘Rats fleeing a sinking ship.
Citizen-Run Co-ops! :)
Will we hit them with rocks?
Bump(ing) - With a heavy heart....
Yes, it would be a great time to have a U Haul business in IL. It would be hard to keep trucks and trailers in stock, because they would all be 1-way rentals out to other states.
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