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Archive → January 23rd, 2017

Illinois Senate proposes tax hike in face of record wealth flight

Illinois Policy Institute

The Illinois Senate’s proposed budget plan would raise the personal income tax rate to at least 4.95 percent with no real reforms to address the state’s skyrocketing debt and unsustainable spending. This proposal comes despite Illinois’ loss of $14 billion in annual income and hundreds of thousands of people in the wake of the 2011 income tax hike.

Illinois taxpayers are leaving in droves, and Senate leaders are pushing a budget plan that will drive out still more people from the state.

Illinois’ population is shrinking. The Land of Lincoln lost one Peoria’s worth of people to other states in just the past year. People with higher incomes are leaving for other states, and Chicago is experiencing a millionaire flight that is happening nowhere else in the United States.

And Illinois Senate leaders are proposing to make all of this worse. Their original plan was to raise the personal income tax rate by 32 percent. Now reports note that the rate could go even higher, with as much as a 40 percent income tax hike on the table. With no meaningful spending reforms in the discussion, Illinois’ personal income tax rate could hit an all-time high of 5.25 percent.

If the proposal is structured like the income tax hike legislation introduced earlier in January, the law will be retroactive to the beginning of 2017. Anyone with plans to leave Illinois this spring would effectively pay a border tax of hundreds or thousands of dollars on the way out the door.

Here’s a review of what happened in the years following 2011, the last time Illinois raised its income tax rate without reforming any structural spending drivers.

First, the average income of people leaving Illinois shot up. As of tax year 2014, the most recent year of data, the average income of people leaving the state was $77,000, while the average income of people entering the state was $57,000. This income differential of $20,000 between out-migrants and in-migrants is the worst in the United States.

Senate blast_Graphic 1

In total, Illinois lost record amounts of income-earning power to other states during the years of the income tax increase. More than $14 billion of annual adjusted gross income, or AGI, left the state during the four years of the tax hike, far worse than any other period in Illinois’ past.

Senate blast_Graphic 2

The loss of more than $14 billion of annual AGI is equivalent to permanently losing all the nonmigrant AGI earning power of Kane County, the state’s fifth-largest county by AGI. Put another way, the loss is like losing all the AGI of Kendall, Rock Island, LaSalle, Macon and Kankakee counties, permanently. The $14 billion of annual AGI Illinois lost due to out-migration while the 2011 tax hike was in effect is also equal to all the nonmigrant AGI of Illinois’ 50 smallest counties combined. Of course, it will only get harder for the state to make budgets work if tax dollars keep flowing out the door.

But Illinois hasn’t just lost income since the 2011 tax hike. Illinois has lost record numbers of people, too. In the most recent year of data, from 2015 to 2016, Illinois lost 114,000 people on net to other states, the worst level of out-migration the state has ever experienced. And that happened even after the income tax hike partially sunset to 3.75 percent in 2015. Residents are clearly voting with their feet after seeing the results of decades of failure from their political leaders.

Senate blast_Graphic 3

On top of all this, Illinoisans are struggling under the burden of property taxes that continue to climb in many parts of the state. Add to that the state’s pension debt, which soared during the tax hike years. Just in the past year, Illinois’ pension liability shot up to $130 billion from $111 billion. Tens of billions more in Other Postemployment Benefits, or OPEB, debts sit uncounted and unfunded.

Residents of Illinois’ largest city, Chicago, have seen both property taxes and crime surge simultaneously. Many lower-income Chicagoans are stuck – with rising taxes, diminishing opportunities and few resources with which to leave. Meanwhile, wealthy Chicagoans are in flight. Research from a South African wealth migration firm shows that in 2015, Chicago was the only American city with recorded net millionaire flight – more than every city except Rome and Paris.

Senate blast_Graphic 4

Analysts at Moody’s Investors Service have warned that Illinois might be facing what could be described as a financial death spiral because so many people are leaving the state as Illinois’ debt surges. But instead of cutting spending, the state Senate has proposed raising taxes.

The State of Illinois Economic Forecast for 2017 says that four Illinois metro areas are already in recession, with four more in danger of falling into recession. The report lists Bloomington, Carbondale, Peoria and the Quad Cities as already in recession, with Elgin, Danville, Decatur and Kankakee at risk of sliding out of their economic recoveries.

The Illinois Senate plan is the equivalent of a failing cable company that is raising service rates on a fleeing customer base right before the company goes bankrupt. Instead of providing better services at a lower cost to constituents, the Senate proposal would raise rates on its remaining “customer base,” undoubtedly driving more of them out of the state, and ultimately deepening Illinois’ crisis.

The primary financial problems Illinois faces are massive retirement debt and operating expenses for government workers. The pension and OPEB debts could be addressed if the General Assembly would put an amendment to the Illinois Constitution on the ballot for Illinois voters to consider, as should have happened years ago. And the state’s unsustainable spending on union contracts for government workers could be reined in if the General Assembly changed the laws to reduce the extraordinary power government-worker unions have in the collective bargaining process.

Finally, Illinois desperately needs economic growth. The state should adopt policies to attract more businesses, such as cutting the reams of red tape that strangle businesses and stifle innovation, and minimizing the tax burden.

TAGS: budget, Christine Radogno, income tax, John Cullerton, outmigration, taxes

Source: Will County News

Trump to stand up for all Americans – including the unborn

Editors note: I see no reason to pay for funding anything outside the United States unless it is of a most important issue affecting our people in a bad way. We borrow money and pay interest driving up our national debt only to give people outside out country the dollars we borrow. You would not borrow $10 from your neighbor promising to pay back $11, then give the $10 to your other neighbor. It is even worse when we are funding abortions in foreign countries while our citizens have a hard time making ends meet each month. Trump is a pro-Life President that wants to stand against spending taxpayers money over seas. Abotion is not expressly written in the Constitution so it belongs to each State to make its own law Per the 10th Amendment. 

I am pleased Trump is stopping spending our tax dollars outside the U.S.


Independent Journal 1/23/2017


Activists have condemned as an “assault on women’s health”, a decision by Donald Trump to block US funding for health clinics around the world that provide abortion services.

One of the three executive orders Mr Trump signed on his first Monday morning as president, was to reinstate the so-called Mexico City Policy, a rule originally introduced by Ronald Reagan.

The rule, which was revoked by Barack Obama, forces NGOs to agree to “neither perform nor actively promote abortion as a method of family planning in other nations” as a prerequisite for federal funds. It does not matter if non-US funds are being used for the abortions.

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Trump’s 3rd executive order today is assault on women’s health. “Mexico City policy” strips US support from health clinics around the globe

Activists say the rule threatens to undermine the viability of countless groups that provide healthcare, including contraception and abortion services, to millions of women in the developing world. Campaigners had said ahead of Mr Trump’s inauguration, they feared he would reintroduce the policy as a gift to Vice President Mike Pence, known for his staunch opposition to abortion rights.

Donald Trump: 11 things that have happened since he became US President

The rule, first introduced in 1984, was named for the location of the UN conference on population where it was announced.

Groups that support abortion rights have long opposed the policy and urged politicians not to back. Republican and Democratic presidents have taken turns to impose and rescind the rule.

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Bill Clinton revoked it in January 1993 upon taking office, and George W Bush reinstated it when he assuaged the presidency eight years later. Barack Obama most recently rescinded it again in 2009.

Mr Clinton and Mr Bush signed their orders on 22 January, the anniversary of the 1973 landmark Roe v Wade decision.

Mr Trump’s press secretary, Sean Spicer, told reporters: “The president has made clear he is a pro-life president. He wants to stand up for all Americans – including the unborn.”


Source: Will County News

Illinois State Rifle Association Press Release

Press Release – January 20, 2017


LAS VEGAS, Jan. 20, 2017 /PRNewswire-USNewswire/ — The following is the text of a statement released today by Illinois State Rifle Association (ISRA) Executive Director, Richard Pearson:
ISRA: Goodbye Barack… Hello Donald
“About eight years ago, I penned a letter to gun owners nationwide about my experiences lobbying Barack Obama when he was an Illinois State Senator. Among the adjectives, I used to describe Senator Obama were arrogant, rude, self-righteous, indignant and aloof. I warned gun owners that an Obama presidency would cast the darkest of days upon supporters of our Second Amendment. I advised gun owners that the only hope for preserving gun rights would be a sustained pushback against Obama’s attempts to obliterate civilian firearm ownership.
There was never any doubt in my mind that Obama would seek to crush the Second Amendment.  Obama entered office with the very firm intention of satisfying the globalist ideal of knocking America down a couple of pegs. Thus, in no time at all, President Obama attacked two great American icons – General Motors and our superlative health care system. Next on his plate was an assault on the uniquely American sense of rugged individualism. As we all know, self-reliance is predicated upon the existence of the Second Amendment. Plain and simple – without a Second Amendment, individualism is just a fantasy. Yes, early in his tenure, Barack Obama was achieving his objective of making America more like the rest of the world rather than encouraging the rest of the world to be more like us.
When Obama charged headlong into the gun control fray, he was met with stubborn and determined opposition from everyday gun owners. We fought him in Congress. We fought him in the federal courts. We fought him in the court of public opinion. In the end, the good guys won and the promise of a nation-wide version of Chicago-style gun control faded into irrelevance. For that, gun owners owe themselves a hearty pat on the back.
Now enters Donald Trump – President Donald Trump. Trump has made a lot of promises to gun owners and I hope he keeps them. Copious promises notwithstanding, the nation’s gun owners must remain mobilized and prepared to fight the gun control movement whether the battle is at the national, state, or local level. The fight for gun rights is not over and will never be over.
In closing, I’d like to bid Barack Obama “good riddance,” and wish President Trump well in the monumental job he is about to undertake.”
The ISRA is the state’s leading advocate of safe, lawful and responsible firearms ownership. For more than a century, the ISRA has represented the interests of millions of law-abiding Illinois firearm owners.
SOURCE Illinois State Rifle Association
Check out ISRA’s website at www.isra.org! Tell us what you think!
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Source: Will County News

Help Hadley students build a brighter future for others

News Release

Homer CCSD 33C

Goodings Grove   Luther J. Schilling   William E. Young   William J. Butler

Hadley Middle   Homer Jr. High


Contact: Charla Brautigam, Communications/Public Relations Manager

cbrautigam@homerschools.org | 708-226-7628


For Immediate Release:

Jan. 18, 2017


Help Hadley students build a brighter future for others

Donations now being accepted

Hadley Middle School Student Council leaders and their sponsor, Alison Pikus, shared their collection efforts with district office staff in December.

Hadley Middle School students are building a brighter future for others by collecting donations that will enable a Joliet day care center and preschool to become a 21st century learning center.


Students recently “adopted” the Vilaseca Josephine Center (VJC), a non-profit school run by nuns, and began collecting crayons, markers, paints, toys and learning tools for the center.


Their goal is to help VJC build a curriculum that uses Science, Technology, Engineering, the Arts and Math (STEAM) to guide student inquiry, dialogue and critical thinking — just like they do at Hadley.


“Most of the students (at VJC) come from modest homes and many of the students do not speak English,” explained Charlie, a sixth-grader at Hadley Middle School and co-president of the school’s Student Council.


“The center stays open by individual donations and through funding by the United Way,” he added.


Under the direction of Hadley Principal Kristen Schroeder and Student Council Sponsor Alison Pikus, the Student Council launched a campaign in November to raise money and supplies for the school.


They created a video (viewable a https://youtu.be/5ZcfDQ3tfes) and placed collection boxes at each of the Homer 33C schools and invited students and their families to donate school supplies, learning games and technology items, such as iPads.


In December, they asked Homer 33C employees to donate to the center on a regular basis by signing up for a payroll deduction to the United Way.


Their goal is to raise $45,000 annually.


“This is a great opportunity for our school community to reach out and make a difference in the lives of others,” said Pikus, who has been humbled by the students’ efforts. Together, they have:

  • Created a bilingual website for the center
  • Created and donated flyers
  • Partnered with Homer 33C’s technology department to donate recycled technology


Students in Catherine Clayton’s Spanish class at Homer Junior High School, Jamie Bouche’s Spanish class at Hadley Middle School and Laura Collins’ Spanish class at Homer Junior High School joined the effort by creating bilingual preschool learning books for each VJC student.


In January, Hadley’s Student Council launched a “Pennies from Hadley” competition with a portion of what they raise going to purchase more learning tools for VJC.


“As you can see, this is more than a month-long campaign,” said Mia, a Hadley Middle School sixth-grader and co-president of the Student Council.


“So please help the children of VJC,” she added. “Help us build the future day-by-day … helping others the Hadley Way.”


If you would like to join the effort, please contact the school at 708-226-7725.



Source: Will County News