Wednesday, February 25, 2015

Rep. IL Governor Rauner Gets $750,000 Tax Break, Proposes Slashing Services to Middle Class and Poor

http://www.huffingtonpost.com/robert-creamer/il-governor-rauner-gets-7_b_6742500.html

Robert Creamer
Feb. 24, 2015

Illinois' new GOP Governor, Bruce Rauner, will personally receive a $750,000 per year tax cut as a result of his decision not to continue the state's temporary 1.25% income tax surcharge that expired last year.

His taxes were cut by an amount equal to the annual income of 14 families of four making the median income. And remember that after adjusting for inflation, that median income number has not materially increased in about 35 years, since virtually all of the income growth resulting from the massive increase in worker productivity over that period has been siphoned off by speculators like Rauner.

Rauner, who made $61 million in 2013 - or $29,000 per hour - is one of a small group of multi-millionaire speculators who would directly benefit enormously from lower state tax rates. Among them is his friend Ken Griffin, reputedly the wealthiest man in Illinois, who contributed $2.5 million to Rauner's campaign for Governor - and has also pitched in $10 million to a $20 million campaign war chest that Rauner plans to use to run opponents to members of the Legislature that oppose his policies.

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Just by way of comparison, remember that a highway worker for the state of Illinois who makes an average income of $49,000 a year laying hot asphalt and filling pot holes, would take about 244 years to make $12 million. But Griffin's pal, Rauner, says he wants to cut the pay for such workers - claiming they make too much and should be paid something closer to the $39,000 a year he says they make in surrounding states.

None of this seems to bother Rauner one bit, since at the same time he and his friends get that big tax cut, Rauner's new state budget promises draconian cuts in services that benefit the middle class and the poor.

Rauner proposed six billion dollars in cuts for state spending on universities, health care, local governments and pensions for state employees.

Here are some high points:

Limiting eligibility for Department of Aging Community Care Programs.
Cutting health care benefits for homecare workers.
Slashing funding for the Department of Children and Family Services.
Eliminating all Department of Children and Family services for youths 18-21.
[See article for many more examples]

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The fact is, of course, that Illinois - like most other states - are not in the midst of dramatic declines in economic performance that would require this kind of "belt tightening." In fact, Illinois, like most of America, is wealthier today per person, than at any other time in its history.

The problem is that the wealthy have rigged the economic rules of the game to allow people like Bruce Rauner and the millionaires who got him elected to siphon off most of the wealth for themselves and leave middle income incomes flat.

One of those rigged rules is found in the Illinois State Constitution. It would make sense to get much of the money needed to finance public services from those who have benefited most from the state's economy - rather than those whose incomes have been flat. You'd do that with higher income tax rates on millionaires and billionaires than the one charged for ordinary working people.

But when the state constitution was rewritten in the 1970's, the wealthy organized to insert a provision preventing State Government from having progressive income tax rates. They wanted to keep their own share of taxes low, and to shrink state revenue in general by requiring that if tax rates go up for them, they have to go up for ordinary people as well.

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