Political Parties

Amended Illinois Tax Hike Plan To Hit Taxpayers, Businesses, And Employment?

Back on January 16 I published a post on Survival And Prosperity entitled “Illinois ‘Grand Bargain’ Legislation Includes 32 Percent Personal Income Tax Hike.” I started the piece with:

Illinois taxpayers may get hit with a significant income tax hike pretty soon…

Yesterday morning, I learned the potential “hit” could be a “combination of punches” directred at taxpayers, businesses, and employment.

From the Greg Hinz On Politics blog on the website of Crain’s Chicago Business:

There’s still no word on when lawmakers are going to vote on it, but an amended tax-hike plan has been introduced in the state capital.

It’s a doozy, with an even higher income tax, a limited service tax and a sort of minimum tax on business. But the soda pop levy is gone, as are a couple of those corporate loophole closings that business groups didn’t like…

The highlights:

The Individual income tax would go to 4.99 percent from the current 3.75 percent, and the corporate income tax to 7 percent from 5.25 percent. Combined, that would pull in about an additional $5 billion a year.

A new “business opportunity tax” ranging from a fee of $225 to $15,000 a year would be imposed, based on payroll. The intent is to make sure that all companies pay something, whether they are profitable or not. The state’s net on this is an estimated $750 million a year.

However, the research and development tax credit would be made permanent and the manufacturers purchase and graphics arts credits would be combined, as some businesses wanted.

A service tax—extension of the sales tax—would be imposed on certain items including repair and maintenance of personal property, use of amusement services including gyms, landscaping, laundry and dry-cleaning, and storage of personal goods such as cars and property. This would pull in a projected $400 million a year.

The telecom excise tax would be extended to cable and satellite services.

Both Radogno and Cullerton are said to have negotiated and support the above, pending action on the rest of the package…

Hinz does a good job summarizing the proposed expanded revenue grab. At this point, I want to go back to that bit about a new “business opportunity tax.” From the actual legislation for the so-called “Business Opportunity Tax Act”:

Section 1-10. Tax imposed.
(a) Beginning on July 1, 2017, a tax is hereby imposed upon each qualified business for the privilege of doing business in the State.
(b) The tax under subsection (a) shall be imposed in the following amounts:
(1) if the taxpayer’s total Illinois payroll for the taxable year is less than $100,000, then then annual tax is $225;
(2) if the taxpayer’s total Illinois payroll for the taxable year is $100,000 or more but less than $250,000, then the annual tax is $750;
(3) if the taxpayer’s total Illinois payroll for the taxable year is $250,000 or more but less than $500,000, then the annual tax is $3,750;
(4) if the taxpayer’s total Illinois payroll for the taxable year is $500,000 or more but less than $1,500,000, then the annual tax is $7,500; and
(5) if the taxpayer’s total Illinois payroll for the taxable year is $1,500,000 or more, then the annual tax is $15,000…

I can see a number of existing and prospective Illinois business owners having concerns with the proposed “Business Opportunity Tax Act.”

First, Illinois already has poor business reputation. For example, early last year Chief Executive magazine asked 513 CEOs to rank states they are familiar with on the friendliness of their tax and regulatory regime, workforce quality, and living environment. The “Land of Lincoln” came in as the 48th worst state in this annual survey, beaten only by New York and California in that order. The “Business Opportunity Tax Act” has the real potential of increasing the perception that Illinois is business-unfriendly.

Second, if my understanding of the legislation is correct, the larger the payroll an Illinois business has, the more taxes they will pay. Consider the following. If I’m an Illinois business owner with a payroll just shy of $250K who would like to bring on more staff, I may be dissuaded from doing so to avoid forking over an additional $3,000 to the state (unless I’m convinced the hiring would offset the $3K hit). And how might employee raises be impacted once payrolls start approaching a higher tax bracket? The proposed “Business Opportunity Tax Act” may not be too terrific for Illinois employment.

Third, readers of this blog may know that I am in the process of rolling out a research business focusing on specialized asset protection. It’s been my intention to launch in the Chicago area. Lately, however, I’ve been thninking of opening up shop in southeast Wisconsin (where my family has a residence) due to the direction Illinois looks to be heading with taxes and its treatment of the business community. The passage of the “Business Opportunity Tax Act” could be the straw that breaks the camel’s back. I wonder how many other prospective Illinois business owners might be in the same boat?

Stay tuned…

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Hinz, Greg. “New, wider tax plan rolls out in Springfield.” Greg Hinz On Politics. 24 Jan. 2017. (http://www.chicagobusiness.com/article/20170124/BLOGS02/170129931/springfield-lawmakers-roll-out-new-wider-tax-hike-plan). 26 Jan. 2017.

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Thursday, January 26th, 2017 Business, Employment, Fiscal Policy, Government, Political Parties, Taxes Comments Off on Amended Illinois Tax Hike Plan To Hit Taxpayers, Businesses, And Employment?

Warren Buffett: U.S. ‘Will Work Fine’ Under Trump, Stocks Headed ‘A Lot Higher’

Last Thursday, famed investor and Hillary Clinton backer Warren Buffett spoke to CNBC about his thoughts on the United States with Donald Trump at the helm. The third-richest man in the world told viewers:

Certainly he has the most important job in the world. But, America works. And I’ve said this before, it would work wonderfully under Hillary Clinton. I think it will work fine under Donald Trump. We’ve got the “secret sauce.” And it doesn’t work all the time perfectly. But you just look at where we go- milestone after milestone. And, never bet against America.

(Editor’s note: Bold added for emphasis)

The chairman and CEO of Berkshire Hathaway also talked stocks. He predicted:

I have no idea what the stock market’s going to do in the next year. I do know it will be a lot higher 10 years from now and 20 years from now

(Editor’s note: Bold added for emphasis)


“Warren Buffett says the US will do fine under Trump, because we’ve got the ‘secret sauce'”
CNBC Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

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Wednesday, January 25th, 2017 Government, Investing, Political Parties, Stocks Comments Off on Warren Buffett: U.S. ‘Will Work Fine’ Under Trump, Stocks Headed ‘A Lot Higher’

Illinois State Rifle Association: ‘Good Riddance’ Barack Obama

A January 20 press release from the Illinois State Rifle Association (“dedicated to education, safety training and support of Illinois firearm owners”) is making the rounds on the Internet. Executive Director Richard Pearson penned:

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.

For more information about the Illinois State Rifle Association, head on over to their website here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Wednesday, January 25th, 2017 Firearms, Government, Gun Rights, Health, Hunting, Legal, Political Parties, Self-Defense, Shooting Sports Comments Off on Illinois State Rifle Association: ‘Good Riddance’ Barack Obama

Trump To Chicago: ‘I Will Send In The Feds!’ To Deal With Escalating Violence

U.S. President Donald Trump tweeted the following Tuesday night about dealing with Chicago’s escalating violence (blogged about here):

If Chicago doesn’t fix the horrible “carnage” going on, 228 shootings in 2017 with 42 killings (up 24% from 2016), I will send in the Feds!

(Editor’s note: Bold added for emphasis)

Back on January 2, then President-elect Trump tweeted this about Chicago’s bloody 2016:

Chicago murder rate is record setting – 4,331 shooting victims with 762 murders in 2016. If Mayor can’t do it he must ask for Federal help!

(Editor’s note: Bold added for emphasis)

No response from “The Machine” as I type this.

UPDATE: The Chicago Tribune is reporting that the aldermen’s response to that Trump tweet is that they would welcome federal money to combat the violence. I’m sure they would.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Wednesday, January 25th, 2017 Crime, Government, Political Parties, Public Safety Comments Off on Trump To Chicago: ‘I Will Send In The Feds!’ To Deal With Escalating Violence

More Wisconsin Welfare Reform Coming?

Wisconsin Governor Scott Walker is pushing for additional welfare reform in the state. Reid Wilson reported Monday afternoon on The Hill website:

Twenty years after a Republican governor of Wisconsin spearheaded an ambitious welfare reform package, the current governor is trying to build momentum for a new round of reforms.

Wisconsin Gov. Scott Walker (R) on Monday said he would ask the state’s Republican-led legislature to undertake one of the most aggressive welfare reform packages since a wave of new measures passed in the mid-1990s.

Walker’s plan, “Wisconsin Works for Everyone,” would impose new work requirements on both able-bodied adults with school-age children who receive state food assistance and those who receive housing assistance. Both work plans, which would be tested on a pilot basis, would require recipients to be employed for at least 80 hours per month, or to be enrolled in job training programs. Those who do not meet work requirements would see part of their benefits cut…

(Editor’s note: Bold added for emphasis)

Food stamp work requirements for abled-bodied adults without dependents have existed in Wisconsin since April 2015.

As for it’s neighbor to the south, critics contend the food stamp program in Illinois is ripe for abuse. A work requirement does not exist for even abled-bodied adults without dependents. According to the Illinois Department of Human Services:

“We expect people who can work to try and do so.”

Hmm.

Head on over to The Hill website here to read the entire piece.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Tuesday, January 24th, 2017 Employment, Government, Housing, Political Parties Comments Off on More Wisconsin Welfare Reform Coming?

CNN: Inauguration Day ‘Disaster Could Put Obama Cabinet Member In Oval Office’

And here I was thinking the local PBS station (WTTW11 Chicago) airing a show Saturday night about JFK’s assassination was in “bad taste.” From CNN yesterday:


“Who is ‘designated survivor’ at inauguration?”
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Thursday, January 19th, 2017 Crime, Government, Mainstream Media, Political Parties, Terrorism Comments Off on CNN: Inauguration Day ‘Disaster Could Put Obama Cabinet Member In Oval Office’

Chicago Mayor Rahm Emanuel To ‘Kneel Before Zod’- Donald J. Trump?

The editorial board at Crain’s Chicago Business published the following about Chicago’s impending loss of clout in Washington, D.C., on the Crain’s website this past Saturday:

Chicago residents, regardless of their personal politics, are going to miss having one of their own in the White House.

As President Barack Obama moves on to his post-presidential life, he takes with him the last vestiges of our once-formidable clout in the nation’s capital. Chicagoans have become accustomed to the idea that, with the right connections, they can be just a phone call away from the highest levels of power. With the incoming Trump administration, that’s about to change

(Editor’s note: Bold added for emphasis)

Regular readers of Survival And Prosperity may recall what I blogged back on December 7:

If readers still don’t think there will be repercussions to Chicago from a Trump administration despite its unabashed support for Hillary Clinton on Election Day (the Democrat received 83.63% of the city’s votes on Election Day), its official policy of providing “sanctuary” to illegal aliens, and political grandstanding (Trump’s honorary street signs downtown were removed this past weekend, courtesy of the City Council), then consider what was published on the Bloomberg website yesterday:

“Chicago Faces Political Power Outage as Trump Succeeds Obama”

Chicago is racing the clock.

Nowhere will political power evaporate more dramatically at noon on Jan. 20 than in the third-largest U.S. city, a bastion of Democratic power that’s enjoyed special access to Washington during President Barack Obama’s eight years in the White House.

When Donald Trump becomes the 45th president, Chicago will trade a first family and top advisers with deep ties to the city for a chief executive who has repeatedly called it a violent mess embodying the failed policies of his predecessor and the Democratic Party…

Not since the era of Abraham Lincoln have Chicago and Illinois enjoyed such strong ties to the White House and Washington. Obama’s exit will bring an end to that

I wrote back on November 11 in a post entitled “Chicago Could Lose Billions In Federal Funding Under Trump Administration”:

Drip. Drip. Drip.

That’s the sound of federal funds to the “City By The Lake” drying up.

A real possibility. And a lot of moolah at stake…

Crain’s editorial board brought up the much-publicized planned renovation of Chicago’s Union Station in their piece. They penned:

As City Hall pushes for federal funding to revamp Union Station—a project that will require Trump administration support—Chicago may soon learn the limits of its clout in this new era.

(Editor’s note: Bold added for emphasis)

If the presence of Trump International Hotel & Tower in downtown Chicago isn’t enough to gain the President-elect’s support for the renovation, then I wouldn’t be surprised if Trump requires the city to renounce its “sanctuary city” status and/or other concessions he deems important before federal funds are made available.

Will Mayor Emanuel be forced to “kneel before Zod”?

Stay tuned…


“Kneel before Zod!”
Clip from Superman II (1980)
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Editorial Board. “Chicago’s D.C. clout exits with Obama.” Crain’s Chicago Business. 14 Jan. 2017. (http://www.chicagobusiness.com/article/20170114/ISSUE07/301149996/chicago-will-miss-president-barack-obama). 17 Jan. 2017.

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Tuesday, January 17th, 2017 Crime, Government, Immigration, Infrastructure, Political Parties, Transportation Comments Off on Chicago Mayor Rahm Emanuel To ‘Kneel Before Zod’- Donald J. Trump?

Illinois ‘Grand Bargain’ Legislation Includes 32 Percent Personal Income Tax Hike

Illinois taxpayers may get hit with a significant income tax hike pretty soon. John O’Connor of the Associated Press reported Sunday on The State Journal-Register website:

If last week’s action is any indication, the Democratic and Republican leaders of the Illinois Senate are serious about attempting to bust the state’s 18-month budget deadlock – quickly…

Promising to act on a package by month’s end, they introduced 13 measures Wednesday that included non-budget-related sweeteners for both sides. By Thursday, they had been rapidly assigned public committee hearings…

Here’s a look at other major pieces of the legislation some in the Capitol have nicknamed the “grand bargain”:

* Income tax increase: The personal income tax would jump from 3.75 percent to 4.95 percent, a plan to generate $4.1 billion a year. With spending cuts, Democrats argue, that could eliminate what the governor’s office estimates will be a $5.3 billion deficit on the June 30 end of the fiscal year…

(Editor’s note: Bold added for emphasis)

The proposed 32 percent income tax hike is not a sure thing, as O’Connor noted:

The outstanding question is if a Senate-approved deal would ultimately pass muster with Democratic House Speaker Michael Madigan, who has refused to entertain Rauner’s pro-business agenda as part of budget talks…

Six years ago, the 3 percent personal income tax rate jumped to 5 percent until 2015, when the rate rolled back to the current 3.75 percent.

Like I just suggested to Chicago taxpayers in the previous post, Illinois taxpayers might want to take heed of what’s potentially coming down the pipeline.

Other pieces of legislation include $7 billion more borrowing to pay off overdue bills (now at $10.7 billion), which you can read about on the The State Journal-Register site here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Monday, January 16th, 2017 Borrowing, Debt Crisis, Fiscal Policy, Government, Income, Political Parties, Taxes Comments Off on Illinois ‘Grand Bargain’ Legislation Includes 32 Percent Personal Income Tax Hike

Mexican Paper Reports ‘Migrants Flee To Chicago Before Trump Becomes President’

In a post yesterday about Chicago, I offered up the following to residents who look to remain in the city through what I suspect will be increasingly tough times:

Do yourself a favor and take a good, hard look at your financial and personal safety capabilities for successfully navigating any “storm” that may lie ahead…

Here’s one more thing these Chicagoans might want to consider:

Learn to speak Spanish, if you don’t already.

Back in high school, I informed one of my Spanish teachers that I wanted to learn the language because I envisioned a future where being able to speak it might come in handy around Chicagoland and in other parts of the country.

It has. Immensely.

Almost a decade ago, I mentioned to my girlfriend that Chicagoans had better get used to a growing Hispanic influence in the city, based on the demographic trends I was observing.

Perhaps even more so now, after reading an article on the website of Mexican financial newspaper EL FINANCIERO. In the piece entitled “Migrants flee to Chicago before Trump becomes president,” Anabel Clemente reported Tuesday:

Before Donald Trump is acting president, on January 20, Mexico’s consul in Chicago, Carlos Martín Jiménez, reported that there is already a displacement of migrants to that city, as a point considered a sanctuary .

During the 28th Meeting of Ambassadors and Consuls, he said that undocumented people, living in localities near Chicago, began moving to that city, where their mayor, Rahm Emanuel, has implemented support measures , such as establishing a Special office called New Citizens , and has put a free phone for those who do not have documentation.

“We have Indiana, which is quite anti-immigrant, almost half the state, and we have a lot of people in Wisconsin . Although there is a new consulate, people are already very accustomed to the Chicago consulate and then they are migrating to Chicago, precisely because of the sanctuary issue, “he said…

(Editor’s notes: Bold added for emphasis; Translation exactly as provided by the Google Translate website.)

You can read the entire article here in English via Google Translate or here in Spanish on the EL FINANCIERO website.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Friday, January 13th, 2017 Demographics, Government, Immigration, North America, Political Parties, Population, South America Comments Off on Mexican Paper Reports ‘Migrants Flee To Chicago Before Trump Becomes President’

Chicago Tribune Letter: ‘Chicago, And Its Surrounding Areas, Have Become Hell on Earth’

This morning I headed over to the Chicago Tribune website to see what’s cooking locally. On their homepage was a “story” link with the following headline:

“Letter: I’m leaving Chicago and I’m never coming back”

Figuring this should make some “entertaining” reading while I finished my coffee, I checked out the proclamation. The author sure didn’t pull any punches. Here’s a snippet:

I’ve come to understand that Chicago, and its surrounding areas, have become Hell on Earth for any thinking person with a modicum of self-respect.

The caustic combination of corrupt politicians with nothing but contempt for the public; a police force so broken down in spirit it visibly resents interaction with even law-abiding citizens; a criminal underclass empowered by the incessant drone of liberal rhetoric wandering the streets posing clear and present danger to everyone around them; and the enablers, who are everywhere, to say nothing of the ugly, decaying infrastructure, poor economy and joyless entertainment and leisure opportunities – it is for these reasons I have made the decision to disconnect forever…

(Editor’s note: Bold added for emphasis)

As regular readers of Survival And Prosperity know, I am one of those who left Chicago (Northwest Side) only three-and-a-half years ago due to concerns over increasing government mismanagement, crime, and costs of living- in no particular order. Besides, even though I really liked the neighborhood I had lived in for eight years, it was time for a new pad and home prices were just too damn high!

My girlfriend and I did what was right for us at the time and in advance of what we suspect lies ahead. But Chicago is still a great city with fantastic people (minus the criminal element), so much so not only do I understand why one might still choose to reside there, but even I won’t go so far as to proclaim “I’m never coming back.”

I remain optimistic about the long-term prospects for the “Windy City.” That being said, I do believe conditions in the city will erode before improving again. For those dead set on remaining in town, please do yourself a favor and take a good, hard look at your financial and personal safety capabilities for successfully navigating any “storm” that may lie ahead. For example, how do your finances look with the real prospect of future tax hits down the road?

More later. And to read that entire letter sent to the Chicago Tribune, head on over to their website here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

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Thursday, January 12th, 2017 Crime, Debt Crisis, Essential Reading, Fiscal Policy, Government, Housing, Infrastructure, Political Parties, Public Safety, Security, Self-Defense, Taxes Comments Off on Chicago Tribune Letter: ‘Chicago, And Its Surrounding Areas, Have Become Hell on Earth’
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