Illinois Eyes 30 Cent Gas Tax Hike, Chicago Eyes Property Tax Hike
Mike Mish Shedlock
In July, the State legislature overrode Governor Rauner's veto and passed the largest tax hike in history. The hike raised the individual rate to 4.95 percent from 3.75 percent and the corporate rate to 7 percent from 5.25 percent.
With those hikes, households making about $100,000 will pay an additional $1,200 in taxes each year.
But that was not enough. It never will be.
Today, the Illinois Policy Institute CEO John Tillman emailed, "The Illinois General Assembly will be back in session next week. And guess what? They’re already talking about raising your taxes again. This time, they’re discussing increasing gas taxes. Lawmakers haven’t released specific numbers yet, but talks have ranged anywhere from an additional $0.05 to $0.30 a gallon."
Tax Hikes in Chicago
The Chicago Sun Times reports Chicagoans face another property tax increase in 2020.
Chicago taxpayers face yet another property tax increase for police and fire pensions in 2020 — and another hike the following year in the tax tacked onto water and sewer bills to save the Municipal Employees pension fund, aldermen learned on the first day of City Council budget hearings.By the city’s own estimate, police and fire pension costs will rise by $297.3 million, or 36 percent, in 2020. The Municipal and Laborers plan costs will grow by $330.4 million, or 50 percent, in 2022.“We’ve done the biggest [property tax] increases,” Chicago Chief Financial Officer Carole Brown said Monday. “But there will be an increase in 2020 for police and fire. The increase for Muni and Laborers will happen a couple years later.“When this Council passed the water and sewer tax last year, there were assumed increases in the tax from the first year to correspond to increases in the ramp. We would anticipate that if those were the revenue sources assigned on a going-forward basis after we got to actuarial funding, there would need to be increases in those revenues.”
Big Round of Thanks
Neighboring governors are offering their thanks to Illinois.
In a fundraiser for Rauner, three neighboring GOP governors, Scott Walker of Wisconsin, Eric Greitens of Missouri, and Eric Holcomb of Indiana each delivered a sarcastic “thank you” to Illinois House Speaker Mike Madigan for “raising Illinois taxes” and “helping create new jobs” in their states.
- "For raising Illinois' taxes, our economy's on fire," Scott Walker stated.
- Missouri Governor Eric Greitens chided Madigan, "We’re growing good jobs."
- Indiana Gov. Eric Holcomb offered, "We’re growing union jobs faster than Illinois. So, we owe you."
- Holcomb added, "Hoosiers love you, Mike Madigan."
Mike "Mish" Shedlock