Legislature's Tax, Spending Battle Previews Rauner-Quinn Clash
From Crain's Chicago Business
Between guns, gays and grass—not to mention pension reform—Illinois lawmakers have faced a lot of tough votes since the last election. Extending the temporary income tax hike may be one too many.
While the tax question has loomed over the General Assembly all year, only House Speaker Michael Madigan's legendary last-minute deal-making abilities are keeping it alive.
Meanwhile, his caucus has soundly rejected a doomsday budget calling for billions of dollars in cuts to grapple with the loss of revenue if income tax rates roll back next year.
Whatever happens with the income tax rate, it's going to be the focal point for a clearly drawn election-year debate over the future of Illinois. Either the state needs higher revenues to provide essential services, reduce property taxes and invest more in education, as Gov. Pat Quinn argues, or taxes and spending are too high for the state's economy to grow, as GOP challenger Bruce Rauner would say.
“In November, we end up with a referendum on the action that was taken, pass or fail,” says Steve Schnorf, a state budget director under Republican Govs. Jim Edgar and George Ryan. “Spending less will impose pain, as will raising taxes. The question is, on whom do you impose the pain?”
The debate comes as candidates of both parties head into a campaign season marked by the state's persistent high unemployment, unpaid bills and unresolved municipal pension issues.
“There's a reason why Illinois is at the bottom of many lists,” says Theresa Mintle, CEO of the Chicagoland Chamber of Commerce.
Read more in our daily News Update...
From Crain's Chicago Business
Between guns, gays and grass—not to mention pension reform—Illinois lawmakers have faced a lot of tough votes since the last election. Extending the temporary income tax hike may be one too many.
While the tax question has loomed over the General Assembly all year, only House Speaker Michael Madigan's legendary last-minute deal-making abilities are keeping it alive.
Meanwhile, his caucus has soundly rejected a doomsday budget calling for billions of dollars in cuts to grapple with the loss of revenue if income tax rates roll back next year.
Whatever happens with the income tax rate, it's going to be the focal point for a clearly drawn election-year debate over the future of Illinois. Either the state needs higher revenues to provide essential services, reduce property taxes and invest more in education, as Gov. Pat Quinn argues, or taxes and spending are too high for the state's economy to grow, as GOP challenger Bruce Rauner would say.
“In November, we end up with a referendum on the action that was taken, pass or fail,” says Steve Schnorf, a state budget director under Republican Govs. Jim Edgar and George Ryan. “Spending less will impose pain, as will raising taxes. The question is, on whom do you impose the pain?”
The debate comes as candidates of both parties head into a campaign season marked by the state's persistent high unemployment, unpaid bills and unresolved municipal pension issues.
“There's a reason why Illinois is at the bottom of many lists,” says Theresa Mintle, CEO of the Chicagoland Chamber of Commerce.
Read more in our daily News Update...