Illinois is facing the largest deficit in its history, with estimates ranging from $4 billion to $9 billion. Citizens hope the state has reached the bottom of a snake pit of corruption because its embarrassing and there are some serious obstacles to climb.
 The U.S. and state economies are experiencing the worst recession since the Great Depression. Unemployment is on a steep rise, investment portfolios are spiraling downward and there simply isn’t enough money in the taxpayers’ checkbook to keep up with the 6,904 units of government (including state government) in Illinois that appears to have all spent more than they’ve brought in.
Gov. Pat Quinn has the unenviable task of cleaning up government, restoring public confidence, addressing the budget deficit and rebuilding the state’s economy. He’s desperately looking for new ideas.
He won’t get them from the Center for Tax and Budget Accountability (CTBA), led by Ralph Martire, who has released a report, Moving Forward, which recommends:
To Counter the Current Recession, Illinois State Government Should Maintain or Enhance Spending—Even if it Means Progressive Tax Increases—Rather Than Cut its Budget
The CTBA believes the state’s best hope of growing its economy and countering the recession is to close its deficit by raising taxes progressively and maintaining or expanding spending on (government) services.
If it wasn’t for the influence the CTBA has in state government there might be some humor to apply to the idea of spending your way out of a budget deficit.
But the CTBA are the master crafters of SB750 (House version 855) which as of March 12 is up for 2nd reading by the General Assembly in Springfield. The income tax hike is generating the most discussion, for now, but this bill is loaded for the tax and spend bears.
Martire’s group has been trying to convert Consumer Price Index (CPI) clauses in government salaries to Employee Cost Index (ECI) for nearly a decade now. If funding (taxes) are tied to automatic ECI increases, well, let’s just say advantage public sector jobs.
Yes, for those taxpayers’ who pay attention and have memory, this is HB750 all over again. Except there does not appear to be any language in the 239 page bill for property tax relief as was the marketing slogan for the original bill.
Sales tax on the following services: (note item #74 for those wanting to keep the media quiet when raising taxes)
“Sale at retail” includes all of the following services, as enumerated in the North American Industry Classification System Manual (NAICS), 1997, prepared by the United States Office of Management and Budget:
(1) Specialized good warehousing and storage (4931902).
(2) Household goods warehousing and storage (4931901).
(3) Marinas (7131901).
(4) Travel arrangement reservation services (5615).
(5) Consumer electronics repair and maintenance (811211).
(6) Personal and household goods.
(7) Carpet and upholstery cleaning services (56174).
(8) Dating services (8129902).
(9) Hair, nail, and skin care (81211).
(10) Other personal services other than hair, nail, facial, or nonpermanent makeup services (81219).
(11) Dry cleaning and laundry, except coin-operated (81232).
(12) Consumer goods rental (5322).
(13) General goods rental (5323).
(14) Diet and weight reducing services (812191).
(15) Investigation services (561611).
(16) Bail bonding (8129901).
(17) Telephone answering services (561421).
(18) Photographic studios, portrait (541921).
(19) Linen supply (812331).
(20) Industrial launderers (812332).
(21) Interior design services (54141).
(22) Computer systems design and related services (5415).
(23) Credit bureaus (56145).
(24) Collection agencies (56144).
(25) Other business services, including copy shops (561439).
(26) Automotive repair and maintenance (8111).
(27) Parking lots and garages (81293).
(28) Motor vehicle towing (48841).
(29) Racetracks (711212).
(30) Amusement parks and arcades (7131).
(31) Bowling Centers (71395).
(32) Cable and other program distribution (51322).
(33) Circuses (7111901).
(34) Coin operated amusement devices, except slots (7139905).
(35) Golf courses and country clubs (71391).
(36) Fitness and recreational sports centers (711211).
(37) Sports teams and clubs (711211).
(38) Performing arts companies (7111).
(39) Miniature golf courses (7139904).
(40) Scenic and sightseeing transportation (487).
(41) Limousine services (48532).
(42) Unscheduled chartered passenger air transportation (481211).
(43) Motion picture theaters, except drive-in theaters (512131).
(44) Drive-in motion picture theaters (512132).
(45) Horse boarding and training (not race horses) (11521).
(46) Pet grooming (81291).
(47) Landscaping services (including lawn care) (56173).
(48) Carpentry, painting, plumbing and similar trades (238).
(49) Construction service (grading, excavating, etc.) (23593).
(50) Water well drilling (23581).
(51) Income from intrastate transportation of persons (485).
(52) Automotive storage.
(53) Sewer and refuse, industrial (33132/562).
(54) Mini -storage (53113).
(55) Household goods storage (49311).
(56) Cold storage (49312).
(57) Marina Service (docking, storage, cleaning, repair) (71393).
(58) Marine towing service (incl. tugboats) (48833).
(59) Packing and crating (488991).
(60) Water (22131).
(61) Service charges of banking institutions (522).
(62) Investment counseling (52392/3).
(63) Income from funeral services (81221).
(64) Garment services (altering & repairing) (81149).
(65) Gift and package wrapping service (5619).
(66) Gift and package wrapping service(81231).
(67) Shoe repair (81143).
(68) Massage services (81299).
(69) Swimming pool cleaning & maintenance (56179).
(70) Tax return preparation (541213).
(71) Tuxedo rental (53222).
(72) Water softening and conditioning (56199).
(73) Armored car services (561613).
(74) Advertising agency fees (not ad placement) (54181).
(75) Commercial art and graphic design (54143).
(76) Temporary help agencies (56132).
(77) Employment agencies (56131).
(78) Test laboratories (excluding medical) (54138).
(79) Maintenance and janitorial services (56172).
(80) Exterminating (includes termite services) (56171).
(81) Packing and crating.
(82) Tire recapping and repairing (326212/811198).
(83) Private investigation (detective) services (561612).
(84) Printing (32311).
(85) Internet Service Providers-Dialup (518111).
(86) Sign construction and installation (54189).
(87) Internet Service Providers-DSL or other broadband (518111).
(88) Automotive washing and waxing (811192).
(89) Automotive road service and towing services (48848112).
(90) Auto service. except repairs, incl. painting & lube (81119).
(91) Parking lots & garages (81293).
(92) Automotive rustproofing & undercoating (811198).
(93) Amusement park admission & rides (71311).
(94) Circuses and fairs — admission and games (7113).
(95) Cable TV services (51751).
(96) Admission to school and college sports events (7112).
(97) Membership fees in private clubs (71391).
(98) Admission to cultural events (7111).
(99) Pinball and other mechanical amusements (71312).
(100) Rental of video tapes for home viewing (53223).
(101) Personal property, short term and long term (generally) (5322).
(102) Taxidermy.
(103) Custom fabrication labor.
(104) Repair labor, generally.
(105) Rental of hand tools to licensed contractors (532412).
(106) Trailer parks – overnight (7212).
(107) Welding labor (fabrication and repair).
(108) Custom meat slaughtering, cutting and wrapping.
(109) Installation charges – other than seller of goods.
(110) Custom processing (on customer’s property).
(111)Installation charges by persons selling property.
(112) Labor charges on repair of aircraft.
(113) Labor charges – repairs to intrastate vessels.
(114) Labor – repairs to commercial fishing vessels (336611).
(115) Labor charges on repairs to railroad rolling stock.
(116) Labor – repairs or remodeling of real property.
(117) Labor charges – repairs other tangible property (811).
(118) Labor on radio/TV repairs; other electronic equip (8112).
(119) Labor charges on repairs to motor vehicles (811111).
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“The CTBA believes the state’s best hope of growing its economy and countering the recession is to close its deficit by raising taxes progressively and maintaining or expanding spending on (government) services.”
Are these people out of their minds??
Let me get this straight. Stores are closing and businesses are laying people off. The construction workers have no idea when they might return to work. So their plan is to increase the cost of services? Their plan is to raise the cost of labor by 6-8% without putting a dime more in the workers pockets? Heaven help us! Where do these people come from???
This is the darn mentality that starts at the local level. Tax and spend. The attitude that if we pass it they will pay it. It must stop now!
Let’s clean up this attitude locally because we can this election. Voting for change is a start and we need to oust our local Acting Mayor and all of his tax to spend or tax to fix City Hall’s mistakes and miscalculations. Time to fight back starts here and now.
Note the second definition.
parasitism:
Main Entry: par·a·sit·ism
Pronunciation: \ˈper-ə-sə-ˌti-zəm, -ˌsī-, ˌpa-rə-\
Function: noun
Date: circa 1611
1: the behavior of a parasite
2: an intimate association between organisms of two or more kinds ; especially : one in which a parasite obtains benefits from a host which it usually injures
This really could turn into a nightmare. Jacking up the taxes on things like auto repair would be expensive, and unlike some of the luxury items listed, probably cannot be avoided.
I have a question about this:
“(10) Other personal services other than hair, nail, facial, or nonpermanent makeup services (81219).”
Does “other personal services” mean lawyer services? That was kind of a joke but I will say that I do not see lawyer services as an item that has a proposed tax jack up. Or did I just not see those listed?
Hey, why stop with this list? Why not jack up the taxes on emergency room visits, and all other medical services, too? How about taxing Girl Scout cookies, lemonade stands hosted by eight-year-olds, babysitters, sweet corn sold on the side of the road, and garage sales? Oh wait, I would not want to give those people in Springfield any stupid ideas. They seem to find enough stupid ideas on their own.
Illinois has a new opportunity to earn that moniker of “The Sucker State.” Insert your own Ross Perot “giant sucking sound,” taxes, and Springfield joke.
I hate to say it Kay, but why does it matter? When did nails or a facial become a sin tax? Where does this end? We’ve already paid state and federal income, property, sales and licensing. Not to mention the absurd wireless, phone, fuel, B&R, and numerous other taxes. I once joked about O2 but are we that far off? Taxidermy?? I can’t even get Sam the family pet stuffed without getting pinched?? I quit. Let’s look into creating our own sovereign nation. From what I understand all I need is to buy an island, create a form of currency and establish some sort of trade with another country. Ebay has to qualify.
Remember, you tax something when you want less of it over time. This will kill many small businesses and make big business hate this state even more.
Alz is correct about small businesses. Max–Selling the land on eBay would be easier than the research these groups did: http://www.texasrepublic.info/ and http://www.hawaii-nation.org/
Maybe the Potawatomi and other Indian groups would like to have the whole state back, or maybe France would like to buy it back? Why would any of those groups want it after what the politicians did to it? We would not want France buying back Illinois–their taxes are even higher than ours, and they do not invest in infrastructure in their colonies (e.g. Vietnam from decades ago).
Two other items about forming a new country: 1. Debt incurred by the old country can be wiped clean from creditors by the new country, sort of like a bankruptcy on steroids. 2. Other sovereign countries have to recognize a new country. That is actually one key sticking point as to why the Texas independence movement failed in the 1990s and took a nasty turn, and also why independence movements in other countries failed.
But, declaring independence from Illinois would certainly earn a spot on the ten o’clock news and maybe scare politicians even more than home rule.
what are burzynski and pritchard saying about this one?
Good question and I’ll see if I can get an answer from either of them. It’s probably a good idea for all concerned to communicate with their legislators.
Senate Actions to date:
Date Chamber Action
2/6/2009 Senate Filed with Secretary by Sen. James T. Meeks
2/6/2009 Senate First Reading
2/6/2009 Senate Referred to Assignments
2/25/2009 Senate Added as Chief Co-Sponsor Sen. Jacqueline Y. Collins
3/4/2009 Senate Assigned to Education
3/5/2009 Senate Senate Committee Amendment No. 1 Filed with Secretary by Sen. James T. Meeks
3/5/2009 Senate Senate Committee Amendment No. 1 Referred to Assignments
3/6/2009 Senate Added as Chief Co-Sponsor Sen. Kimberly A. Lightford
3/6/2009 Senate Added as Chief Co-Sponsor Sen. Heather Steans
3/11/2009 Senate Do Pass Education; 007-003-000
3/11/2009 Senate Placed on Calendar Order of 2nd Reading March 12, 2009
Note: Burzynski is a member of the Education Committee
HOUSE Actions to date:
Date Chamber Action
2/9/2009 House Filed with the Clerk by Rep. David E. Miller
2/10/2009 House First Reading
2/10/2009 House Referred to Rules Committee
2/18/2009 House Assigned to Executive Committee
3/13/2009 House Rule 19(a) / Re-referred to Rules Committee
I may be completely off base, but feel free to correct me if I’m wrong which I often am. As we’re so often told it’s “only Tif money”. Ok, let’s look at it from this perspective. If in fact we need a new police station though Tif doesn’t allow for new construction it does however provide for rehabilitation and expansion of existing properties such as the monies we’ve already spent for expansion of the current facility and the outlay already in place from the land purchases for that block. So, if we really need (which we do) a new facility then why aren’t we putting the funds toward expanding existing structures? Are we all so fascinated by something shiny or do we spend based on our means? I’m thinking the $350k + the rink and demolition we spent on Locust and First could have been a big step in moving in that direction? Am I nuts? And for those Baker supporters, as few as you might be, if you believe for one moment he doesn’t want to increase property taxes then get the minutes from the city council meeting where he said that the new police station should come completely from “property taxes” rather than any form of sales tax. Bright answer from a business owner who would have it dip into his bottom line.
And, if we’re dipping into the general fund for any of the following (http://www.illinois-tif.com/about_TIF.asp) such as streets and san within that area then how are we not mugging Peter to pay Paul?
Silly Max, TIF money comes from the Magic Pixies (not related to the Tooth Fairy or the Easter Bunny). It is not real money from real people.
4/3/2009..Senate Rule 2-10 Third Reading Deadline Established As April 30, 2009
Silence will be costly.
It seems that New York is tops among at least 10 other states considering major tax hikes, including Oregon, Illinois, Wisconsin, Washington, Arizona and New Jersey.
The federal “stimulus” bill was sold as necessary to help states prevent such tax increases.
More from the Wall Street Journal…
Mac, this just doesn’t seem to be a bill that is going to be stoppable. No one seems to take it seriously but you know what, this is the kind of a tax that will put my business out of business.
When I build a home or remodel a home or just fix a door for a customer, I’ll have to now add a sales tax for the labor that project has incurred. Think about the cost of a home now, look who is going to have to charge a sales tax on that home that never did before this bill. Architect, surveyor, excavator, concrete man, waterproofing guy, tile installer, framers, roofers, siding men, bricklayers, plumber, electrician, heating and A/C guys, insulator, fireplace installer, central vac installer, drywaller, painter and stainer, stair installer, flooring and carpeting installation, trimmer, cabinet installer, garage door installer, mirror installation, shower door installation, closet shelving installation, appliance installation, landscaper for installation, blacktop company for driveway,and even the curtain installer.
This is going to be a major increase in homes to be built along with many communties now adopting the new energy codes which require taller seated trusses for more insulation over exterior walls and 2×6 exterior walls for more insulation (average cost per average home is about $6,000 to $7,000.00 and now figure the additional sales tax for labor to easily add another $7,000 to $9,000.00 not even figuring the additional sales tax increased for goods lately and the ever increasing prices of material, permits and of course the impact fees.
I’d say if you are looking for a new home, better buy one that’s built, you really don’t realize how good of a deal there is out there today.
Did anyone get Rep. Pritchard’s or Sen. Burzynski’s view on this bill? I notice the bill (SB750) is currently in the Senate Education committee consisting of 7 tax and spend democrats but only 4 republicans. Doesn’t sound like a good match up to me. TIME WARP: Does anyone else remember as I do that labor was taxed for a short while in the late ’60s? One of my first jobs was in a mechanical shop and we were told to charge sales tax on service, but only for a short time. I think the ‘labor tax’ was overturned about as fast as it was instituted. Don’t remember the exact details, though. Maybe there are some court decisions from back then to look at? In any event, another example of how the tax and spend crowd running this state (and frequently the local scene, too) is doing everything they can to run responsible and productive people (and businesses) right out of Illinois! And what about some form of linkage reducing property tax if this bill passes? I don’t suppose that’s in there…but I’ll have to finish reading the entire 239 pages to find out! What a mess!
Ivan it’s possible that all labor in building a home “Architect, surveyor, excavator, concrete man, waterproofing guy, tile installer, framers, roofers, siding men, bricklayers, plumber, electrician, heating and A/C guys, insulator, fireplace installer, central vac installer, drywaller, painter and stainer, stair installer, flooring and carpeting installation, trimmer, cabinet installer, garage door installer, mirror installation, shower door installation, closet shelving installation, appliance installation, landscaper for installation, blacktop company for driveway,and even the curtain installer” is like when I purchase a part for a vehicle. Since I’m the final sale of that part now it get taxed, nothing is taxed from the manufacture down to the wholesaler.
Not the same Jon, I am actually charged by each of these mentioned with a bill for the labor and materials. You do not have labor being attached by that supplier of that part. A builder is hiring a company to provide materials and the labor to apply or install that material. As I see it, if this bill becomes law, I will be charged a sales tax on labor from each of the subcontractors mentioned.
I think Ivan is correct. Right now, we pay taxes on the ‘things,’ for lack of a better word. If this tax increase happens, then we will be taxed on all the things as well as all of the labor that takes place to install those things.
I think we need to go to ALL these local meetings and read the Declaration of Independence, that should be the starting point. Next we need hundreds of people to show up with pitch forks (if needed) to remind the politicians our Founding Fathers threw out the largest military force of the time. If that does not get their attention then I guesss we will be doomed to repeat history as many Americans are taxed out, and feed up with corruption, and special interest groups getting rich off of our tax dollars.