Monday, December 29, 2014

Assuming no tax policy changes when Governor-elect Rauner takes office… (from the Center for Tax and Budget Accountability)




“The temporary income tax increases of 2011 will begin to phase down January 1st. The personal income tax rate will decline from 5 percent to 3.75 percent; the corporate income tax rate will drop from 7 percent to 5.2 percent.  If spending on services in FY2016 is held constant in nominal, non-inflation-adjusted dollars with FY2015 levels, the state's accumulated deficit in its General Fund will increase to $12.7 billion by the end of June, 2016.
 
“What will this Fiscal Cliff mean for the state's ability to invest in the core services that can help create a socially and economically just society? How will a new administration's policies affect growing income inequality? Who believes we can pay for education, healthcare or human services by overtaxing families that lack the ability to pay? 

“At CTBA, we're offering sound solutions to difficult fiscal problems:

  • Re-amortizing the pension debt
  • Expanding Illinois' sales tax base
  • Enacting a graduated rate income tax  

MARTIRE EXPLAINS FISCAL CLIFF ISSUE BRIEF:

“Listen to Greg Bishop's interview with Ralph Martire about the CTBA issue brief on the fiscal cliff and long term fixes on the Illinois News Network: Click Here. 

“Additional press coverage: Bloomington Pantagraph: Lawmakers, Rauner eyeing business tax updates - The rollback of Illinois' income tax rate.... Without any tax changes, however, the Center for Tax and Budget Accountability said: Click Here.  

“Northwest Indiana Times: Lawmakers, Rauner mull business tax overhaul... Center for Tax and Budget Accountability said Monday the state's deficit could jump to more than $12 billion in the fiscal year beginning July 1: Click Here.   

“Journal Gazette & Times- Courier: Lawmakers, Rauner eyeing business tax updates: Click Here. 

IT'S THE ECONOMY

“Last week the Dow closed above 18,000 for the first time ever. The final estimate for third-quarter U.S. economic growth was revised up to a 5 percent annual pace, its quickest in 11 years. GDP growth, corporate profitability, the Federal Reserve stimulating growth, lower gas prices. Read some good news from the Bureau of Economic Analysis: Click Here. 

“However, prosperity hasn't reached every one. Wage growth is stagnant. As Edward Lawler, a professor at USC's Marshall School of Business, said, ‘These are tough times for workers.’

“‘One key issue, he said, is that labor unions have less clout than they once enjoyed. This denies workers a unified voice at the bargaining table. Improvements in technology have boosted productivity and allowed employers to limit hiring. And it's become easy to ship jobs abroad, where people are willing to work for a fraction of the cost of American workers. All these factors conspire to keep wages down while profits and the compensation of senior managers skyrocket.’ Read more at the L.A. Times: Click Here. 


“The work CTBA takes on is controversial, but we have a track record of success. With you standing beside us, supporting our program, we will continue the fight to ensure core public policy systems work for everyone regardless of ethnicity, or social, racial, or income class. Please make a generous, tax-deductible contribution today!" DONATE HERE!




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