Rauner to Chicago: Drop dead.

DO NOT USE WITHOUT PERMISSION FROM PHOTO DESK-tp Rahm Emanuel, Bruce Rauner, and Amy Rule arrive for dinner at the Paradise Valley Grill, Paradise Valley (near Livingston, Montana), August 2010. Mandatory photo credit: David Lewis. This image can not be republished online or in print. Any reuse must be cleared through David Lewis and the photo desk. Lewis-406.222.5126 406.581.3357 mtpioneer@wispwest.net

They may share wine and Wall Street connections.

But in the words of Vito Corleone, this is just business.

Mayor Rahm needs a property tax increase. In order for it to be politically palatable he wants an exemption for those whose home is valued at less than $250,000.

But Illinois is a flat tax state and not just on income. Our system favors the wealthy friends of the Governor.

And the friends of the Mayor too, to be honest about it.

The city has no home rule on this. In order to exempt low income homeowners from a property tax increase the city needs permission from the state.

“Nope,” says the governor.

In a statement late today, the GOP governor moved from being cool toward the plan to virtually promising to veto it, saying that Chicago first needs labor reforms, like cuts in workers compensation and lesser wages for those involved in city construction jobs.

“We applaud the mayor for proposing a property tax freeze for some families,” Rauner spokesman Mike Schrimpf said, “but he should support a property tax freeze for all Chicagoans.” Rauner has proposed a freeze, offsetting increased spending mostly reducing pay and benefits for government workers.

Now, there is plenty wrong with the Mayor’s property tax proposal that even a low-income waiver won’t solve.

But that isn’t the Governor’s concern. He wants cuts to construction workers’ wages and reductions in salary for cops, firemen and teachers.

This is just another way to get his right-to-work, anti-union turnaround agenda implemented.

But look north, Governor Rauner.

Wisconsin’s Governor Scott Walker had his anti-union turnaround agenda too.

Now his popularity and poll numbers are lower than the standing of the Milwaukee Brewer’s in the NL Central.

The Brewers have just been eliminated from the playoffs, by the way.

10 thoughts on “Rauner to Chicago: Drop dead.

  1. I don’t expect Bruce to look north. Unlike the useful idiot, capitalist tool, in that Governors mansion, Bruce doesn’t seem to have any aspirations to higher office. I think he looks at his term as governor as one and done, destroy unions and move on. Probably try to pick that few million or so he needs to be a full fledged member of the Billionaire Boys Club

  2. For all the bitching about these guys in office, it’s not like the chosen candidates of the labor unions have done anything over the years but buy union voters and run the state into the ground. This state will never recover form the hole they are in, Anybody that thinks that just raising taxes can do it is smoking some of that medical mary jane.
    You point to Wisc as a failed try on the part of the republicans, take a look at Conn. Lying chief executive driving major corps out of state. The lying part is consistent across all parties/politicians.
    Point is that yiou win some and lose some, but in the end Illinois is going in the shitter.

  3. Seems as if Rauner is deliberately trying to bankrupt the state. Perhaps his goal, influenced by ALEC and the Kochs, is to changed federal policy to allow state bankrupcy. If not, this idiot has no clue nor care about the damage he is inflicting upon all of us and the remnants if which we will be dealing with for decades…after he is long gone.

  4. The flat-taxers have been saying for decades that it encourages businesses, and jobs would stream into states with a flat tax. They say it will be an incentive for businesses to increase, whereas a progressive tax discourages increases in businesses. Flat-taxers say it brings jobs and prosperity for all, and solves all problems. WE SEE JUST HOW WELL THIS HAS WORKED OUT IN ILLINOIS! (NOT)
    In order for the flat-tax income tax to work, it has to be at a rate that provides enough revenue for the state to pay it’s bills. The 5% rate was just enough to slowly pay down the backlog and reduce the backlog time for state vendors. Rauner then demanded the tax be allowed to drop, he deliberately caused a budget crises to fool the public to buy into his union-busting agenda. His offer to “help CPS” by advancing part of their money was ridiculous, CPS would than run out of money in mid-year. Incredibly, it was reported as “Rauner’s offer to help Chicago and CPS” on TV news. Clever PR for Rauner, nothing more. Millions of people saw and remember that headline, and incorrectly think “Rauner offered to help but Chicago and CPS refused.”

    1. Rauner won’t allow Chucago to help itself. His unrelenting opposition to public workers in slashing salaries and benefits will lead to more social dependency and less tax revenue.
      Helping CPS? Never. Any additional funding they might receive should be considered nothing more than a rebate for the decades of making double pension payments.

    2. In order for a flat tax to work, you need to tax all income. IL exempts retirement income from taxation, leaving a $1.5-2B budget hole every year in this state. A $30,000 salary as an assistant manager at McDonald’s is no different than a $30,000 pension, yet one guy pays taxes and the other gets off tax free.

      Exempt Social Security (taxes were already paid on that income) and tax all 401k/pension income. There’s your new baseline. Then, if you want a progressive tax, everyone has skin in the game. Exempting retirement income is just as regressive as a flat tax rate.

      1. “Exempt Social Security (taxes were already paid on that income) and tax all 401k pension income.”

        Taxes were paid on which income? I assume that you mean the regular income of an “active” as opposed to a “retired” employee. Based on your logic, weren’t the salaries of “active” teachers also taxed before the 9.4% contribution to TRS? If teachers and other active public employees already paid taxes on their salaries while “active,” and if their pensions (retirement incomes) were to be taxed, wouldn’t that mean that teachers would be taxed twice?

        By the way, when the McDonald guy retires, his retirement income (Social Security and 401k) won’t be taxed either. When you’re comparing the taxation of salaries between an “active” employee and a “retired” employee, you’re comparing “apples and oranges.”

        A flat tax is always regressive because the same rate of taxation applies to both very wealthy and lower income people. A 5% flat tax would always be a bigger burden on someone who earns $10,000 than on someone who makes a million. Even if we were to tax “all incomes,” a flat tax remains a regressive tax. Ben Carson, one of the Republican presidential candidates, is also proposing a federal “flat income tax.” That’ll be a big boon to the very wealthy. That’s beyond unconscionable; it’s just plain lunacy.

      2. Karl – Sorry, just saw your reply. What I meant was that 401(k) and pension contributions are pre-tax, meaning they’re deducted from your gross pay before calculating your federal income tax liability. That means you haven’t paid taxes on those contributions. Technically, you only deferred taxation until retirement, but since IL doesn’t tax retirement income, that money is forever un-taxed. Social Security, on the other hand, is a post-tax deduction, so you’ve already pay taxes on those wages. That’s why I call out the difference.

        Many states have a progressive tax structure. Even more states tax retirement income. Once again, that’s $2B of much needed tax revenue the state never collects. If we go to a progressive tax structure, it would mean even more than that. A progressive income tax on ALL income is truly a progressive tax plan.

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