Illinois to raise income tax by 50% (Chicago: median income, to live in, groceries)

[oakparkdude]

Originally Posted by ajolotl

I don't think anyone posted this yet -- it is the Quinn tax calculator where you can specify and arbitrary income and deductions:
To estimate what you'll really pay, use the Tribune's tax calculator -- chicagotribune.com (http://www.chicagotribune.com/news/local/chi-taxulator-flash,0,5813370.flash - broken link)To estimate what you'll really pay, use the Tribune's tax calculator -- chicagotribune.com (http://www.chicagotribune.com/news/local/chi-taxulator-flash,0,5813370.flash - broken link)

It's not very complex -- I basically owe 50% more than I owed this year. 4K in extra deductions does absolutely nothing for me.

This seems like a huge increase all at once and at a very shaky time. I'll probably have to postpone my new fence project. Pisses me off ...

Don't forget, if you itemize your federal taxes, you can write off your state taxes, so you get at least a portion of it back.

[ajolotl]

I did forget that. thanks. That makes a non-trivial difference. Maybe I'll instead drop the wrought-iron fence in favor of a wood one.

Personally it's not a huge deal since I live simply and with a huge margin. My business though will suffer since to grow I have no choice but to operate on the edge. Small negative perturbations really hurt, especially since other expenses are always rising at the same time.

Originally Posted by sukwoo

Don't forget, if you itemize your federal taxes, you can write off your state taxes, so you get at least a portion of it back.

[coldwine]

You know, I could retire on the amount of money I make doing just retirement planning for people. This international finance and law thing is a dog and pony show in comparison to the sheer wealth I could generate just by explaining estate planning strategies.

[ajolotl]

Here is a short, not very favorable analysis of the proposed tax increase in the WSJ: The Taxin' Illini - WSJ.com

[Avengerfire]

I wonder why nobody has mentioned the state raising the liquor tax making ILLINOIS on September 1st the highest taxing state of liquor in the U.S.! OUTRAGEOUS.

MUCK them. Here comes even more reason to go to Indiana or Wisconsin to buy all kinds of things.


"WSIL-TV- Starting next month every time you purchase liquor in Illinois you'll be paying more.

The sales tax is increasing by 90 % starting September 1st."


http://www.wsiltv.com/p/news_details.php?newsID=8078&type=top (broken link)


"...the increases leave Illinois with the highest liquor taxes in the nation. That's right, the HIGHEST in the nation among non-control states, by a factor of 31% over the next highest state..."

"1. Illinois, as of 9/1/09 - $8.55 per gallon
2. Florida - $6.50
3. New York - $6.43
4. Hawaii - $5.98
5. New Mexico - $5.68
6. Alaska - $5.60
7. Minnesota - $5.03
8. Oklahoma - $4.56
9. Connecticut - $4.50 (Illinois would have been tied for 8th before)
10. New Jersey - $4.40"

http://thinkingofdrinking.blogspot.c...in-nation.html

[surlycue]

I don't have any problem with "sin" taxes, as they are called. The kinds of people that cannot afford the higher costs of cigarettes or liquor are the same people that cannot afford health insurance but contribute to the health care burden at a significantly higher rate with increased cancer, liver failure, etc. The only problem is that the taxes are not going to fund healthcare to offset the cost to the privately insured.

[Avengerfire]

Oh lord. Never mind. There is no use even responding to that.

[Drover]

Originally Posted by surlycue

I don't have any problem with "sin" taxes, as they are called. The kinds of people that cannot afford the higher costs of cigarettes or liquor are the same people that cannot afford health insurance but contribute to the health care burden at a significantly higher rate with increased cancer, liver failure, etc. The only problem is that the taxes are not going to fund healthcare to offset the cost to the privately insured.

First of all, if you don't want to assume the risks of others, don't join the risk pool. Second, the number of people who drink socially far, far outnumbers the number of people whose drinking contributes to the cost of health insurance. For me, beer drinking is a hobby. It pisses me off that my hobby gets taxed because it's an easy target. When I go for a pint at a pub, about half the cost of that pint now is some form of tax or another. I doubt you'd like it if your hobbies got hit up with outrageous taxes. But if they do I'll be there to shrug my shoulders and say "doesn't affect me."

[surlycue]

I don't have insurance and I do drink (and occasionally smoke) so I am being hypocritical but I still don't mind this kind of taxation. I understand that my position on the issue is not a popular one but I'd rather disposable things be taxed at a higher rate than have an across the board taxation increase on necessities.

I'd also like to add that I'd love a decriminalization of drugs so they can be taxed to hell and back as well.

[Avengerfire]

I forgot to add this:

"The following tax and fee increases are expected to provide the funds to support the bonds needed to finance the $29 billion capital bill that Gov. Pat Quinn is expected to sign on Monday (He did of course):

— Legalized video gambling. Permits bars, truck stops, fraternal clubs and veterans clubs with a valid liquor license to operate up to five video gambling terminals (including but not limited to video poker, line-up and blackjack). Projected to bring in at least $375 million a year, although other estimates vary from as little as $287 million a year to as much as $540 million.

— Various vehicle fees. Driver's licenses, good for four years, would increase to $30 from the current $10. The cost for license plates would increase from $79 a year to $99. Vehicle titles would increase from $65 to $95. The changes are expected to provide $332 million a year. Will become effective 90 days after the bill is signed by Quinn.

— Illinois Lottery changes. The state would hire a private company to operate the lottery, which officials believe would allow it to improve sales and boost revenues to the state's general fund. The lottery, which last year yielded about $650 million in revenue to the state, would get an additional $150 million, according to revenue estimates.

— Broadened sales taxes. State sales taxes will apply to soft drinks that contain natural or artificial sweeteners, candy and over-the-counter hygiene products, including soaps, shampoo, toothpaste, mouthwash, antiperspirants and suntan lotions and screens. The broader sales tax is expected to provide an additional $150 million in revenue. It becomes effective Sept. 1.

— Higher liquor taxes. The tax on beer is expected to increase about 2.6 cents a six-pack. A bottle of wine will cost about 13 cents more. A fifth of hard liquor would cost about 81 cents more. The new tax rates will yield about $114 million a year. The liquor tax increase is scheduled to go into effect Sept. 1."

The News-Gazette.com: Distillers: State low-balling potential video gambling revenues (http://www.news-gazette.com/news/print/2009/07/11/distillers_state_low-balling_potential_video_gambling_revenues - broken link)

"SEPTEMBER 1ST SALES TAX CHANGES

On September 1, 2009 there will be changes to the Illinois sales tax laws to account for the recent definitional changes to the definitions of "Grooming and Hygiene Products" and "Soft Drinks" as well as the addition of a "Candy" definition. Currently "Soft Drinks" are taxed at the non-food (high) rate, "Candy" is taxed at the food (low) rate and "Grooming and Hygiene Products" may be either depending on the "medicinal claims" on the label.

Effective, September 1, 2009 each of these product categories will be taxed at the non-food or non-medicine HIGH RATE.

The definitions in the new Statute are taken directly from the Streamlined Sales Tax Project glossary of terms, so if you operate in any other State which uses these definitions and applies the sales tax rate to these products you already know how Illinois will treat specific items."

http://www.irma.org/news/contentview.asp?c=50732 (broken link)