Achieved Articles
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(Articles appear from the newest to the oldest. To read the articles in the time line in which they were posted, scroll down to find the oldest in the tread and read upwards from oldest to newest.)
June 25, 2015
"Fraud Exposed in Illinois" by Joyce Geiler
The mission of the U.S. Securities and Exchange Commission (SEC), which was established after the Great Depression, is to "protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation." In 2010 the Securities and Exchange Commission stepped up its policing efforts. Some examples of fraud charges announced by SEC are recorded below beginning with the most recently reported:
On June 19, 2015 The SEC announced enforcement actions that included fines against 36 municipal underwriting firms who violated federal securities laws by using false statements and by omitting necessary information in municipal bond offerings. Nearly a quarter of the firms are based in the Chicago area.
In April of this year, the SEC announced fraud charges against the former controller of a suburban Chicago company's Japanese subsidiary, Molex Incorporated. The Lisle, Il based company designs, manufactures, and sells electronic components. The scheme reportedly began in the late 1980’s. The accused controller cost his company millions of dollars in trading losses and manipulated accounting records to avoid detection.
The Securities and Exchange Commission reported that 2014 was a record year for its enforcement program and noted cases that spanned the spectrum of the securities industry. Actions against municipal securities issuers and underwriters particularly stand out among the many areas of aggressive enforcement in 2014. On the individual business front, SEC charged a Chicago-based investment fund manager, Neal Goyal who owned Blue Horizon Asset Management and Caldera Advisors, with operating a Ponzi scheme that used new investor funds to pay redemptions to existing investors and fund his own lavish lifestyle.
In March of 2013 The SEC charged the State of Illinois with securities fraud for misleading municipal bond investors about the state’s approach to funding its pension obligations. An SEC investigation revealed that Illinois failed to inform investors about the impact of problems with its pension funding schedule as the state offered and sold more than $2.2 billion worth of municipal bonds from 2005 to early 2009. Illinois failed to disclose that its statutory plan significantly underfunded the state’s pension obligations and increased the risk to its overall financial condition. The state also misled investors about the effect of changes to its statutory plan.
Fraud has also been exposed on the health care front. Doctors, nurses and a Medicaid recipient are among the Illinois residents facing federal criminal charges on June 18 as part of a nationwide health care fraud sweep that ensnared nearly 250 people. Included were a Chicago dermatologist and 7 employees of Chicago home health care companies. Eleven of the 12 people charged in southern Illinois worked as personal care assistants to Medicaid recipients. On June 5, fourteen people were charged, including those claiming to work as personal care assistants and some of the people they claimed to be assisting in the home services program, which is designed to reduce Medicaid costs by helping people stay out of health care facilities.
This is the third wave of an ongoing investigation into Medicaid fraud. During the first two phases of the investigation, called Operation Home Alone, 29 defendants were charged with fraud. The charges carry a maximum penalty of 10 years imprisonment, a $250,000 fine and up to 3 years of supervised release. Federal authorities say the crackdown is part of a cross-country dragnet involving allegedly fraudulent billings of Medicare and Medicaid totaling more than $700 million.
As fraud and corruption in Illinois continue to be uncovered, Christians need to remember Jesus admonition to His disciples as he told them not to be afraid in their ministry because there is nothing hidden that will not be revealed. (Matthew 10:26 and Luke 12:3)
Illinois Has Lowest Credit Rating of All the States by Dean and Joyce Geiler
Depending on the source used, the economy of Illinois is listed either third worst or the worst of all the states. According to a May 28 article in Bloomberg Business, Illinois has the lowest credit rating of all the states. Illinois has just 40 cents available for every dollar promised in pensions. The state currently faces a budget deficit of $6 billion.
A bill proposed by former Governor Quinn would have increased the percentage paid into pensions by the employees and lessened the amount paid out to the employees. It was judged unconstitutional. Article XIII, Section 5 of the Illinois State Constitution reads in part: “...any relationship, the agency or any instrument thereof, shall be an enforceable contractual benefit of which shall not diminished or impaired”. Illinois has one of the most explicit constitutional pension guarantees of any state.
Courts in other states, including Colorado and Minnesota, have sometimes approved certain pension cuts for public workers, especially for benefits that current workers have not yet earned. In Detroit, Michigan and Stockton, California federal judges had said pensions could be cut in bankruptcy.
With the sharp divide between current Republican governor, Bruce Rauner, and a Democratically-controlled Congress, the debate over options is heated. Options include tax increases, large spending cuts, changes to the state's constitution and legislation to permit Illinois municipalities to file for bankruptcy. Amending the constitution is difficult. As stated in Article XIV, Section 1 of the Illinois State Constitution, three-fifths of both houses must assent before the question of a Constitutional Convention can be placed on the ballot. Since both the House and Senate are controlled by Democrats, who are partial to unions, a Constitutional Convention on this matter is not likely to be on the horizon.
The pension system of the state is broken and fixing it is no simple matter. Is it hopeless in God's economy? With God, all things are possible, even broken finances.
Depending on the source used, the economy of Illinois is listed either third worst or the worst of all the states. According to a May 28 article in Bloomberg Business, Illinois has the lowest credit rating of all the states. Illinois has just 40 cents available for every dollar promised in pensions. The state currently faces a budget deficit of $6 billion.
A bill proposed by former Governor Quinn would have increased the percentage paid into pensions by the employees and lessened the amount paid out to the employees. It was judged unconstitutional. Article XIII, Section 5 of the Illinois State Constitution reads in part: “...any relationship, the agency or any instrument thereof, shall be an enforceable contractual benefit of which shall not diminished or impaired”. Illinois has one of the most explicit constitutional pension guarantees of any state.
Courts in other states, including Colorado and Minnesota, have sometimes approved certain pension cuts for public workers, especially for benefits that current workers have not yet earned. In Detroit, Michigan and Stockton, California federal judges had said pensions could be cut in bankruptcy.
With the sharp divide between current Republican governor, Bruce Rauner, and a Democratically-controlled Congress, the debate over options is heated. Options include tax increases, large spending cuts, changes to the state's constitution and legislation to permit Illinois municipalities to file for bankruptcy. Amending the constitution is difficult. As stated in Article XIV, Section 1 of the Illinois State Constitution, three-fifths of both houses must assent before the question of a Constitutional Convention can be placed on the ballot. Since both the House and Senate are controlled by Democrats, who are partial to unions, a Constitutional Convention on this matter is not likely to be on the horizon.
The pension system of the state is broken and fixing it is no simple matter. Is it hopeless in God's economy? With God, all things are possible, even broken finances.
Rights of Conscience by Laura Morey
As last week's Illinois Cultural News article pointed out, religious liberties in the United States are under attack. The Illinois legislature has been a hot bed for such conflicts the past few weeks as the 2015 spring Legislative Session came to an end. Discussions and debates have been held, decisions made, and votes counted, all impacting the culture in Illinois. These contests have not been between political parties, rather, as Dr. Patti Amsden has been explaining, between tow spiritual kingdoms.
One battle that continues to rage is over SB 1564, a bill that would significantly erode the liberties promised under the Illinois Healthcare Right of Conscience Act. For the past 20 years, this Act has allowed medical personnel and healthcare facilities to avoid participating in or offering medical procedures that would violate their conscience; procedures like abortions and certain end-of-life measures. It has provided legal protection for those involved in healthcare to follow their personal convictions about the sanctity of life. The proposed changes outlined in SB 1564 would force those who object to a procedure to provide information on where that procedure can be obtained. This change would not only compel individuals such as pro-life Doctors, Nurses, and Pharmacists to compromise their integrity, but would also impact facilities that choose not to offer an offensive procedure. For example, crisis pregnancy centers would be required to refer clients seeking abortion to places that promote abortion, like Planned Parenthood. This is an attempt by the kingdom of darkness to superimpose a death structure over an important religious liberty.
This bill, SB 1564, has already been passed in the Senate, and is pending a vote in the House of Representatives. The Illinois General Assembly is expected to convene for an overtime session as early as this week, so a House vote on this bill could occur soon. Last week, Dr. Amsden exhorted us that as believers we “hold great responsibility to enforce the victory of Christ over the person, plans and schemes of the enemy and to claim the earth, which is the prize of the contest.” In this instance that responsibility calls us to be informed, to intercede, and to get involved in enforcing the victory of Christ in the battle over the Right of Conscience in Illinois.
As last week's Illinois Cultural News article pointed out, religious liberties in the United States are under attack. The Illinois legislature has been a hot bed for such conflicts the past few weeks as the 2015 spring Legislative Session came to an end. Discussions and debates have been held, decisions made, and votes counted, all impacting the culture in Illinois. These contests have not been between political parties, rather, as Dr. Patti Amsden has been explaining, between tow spiritual kingdoms.
One battle that continues to rage is over SB 1564, a bill that would significantly erode the liberties promised under the Illinois Healthcare Right of Conscience Act. For the past 20 years, this Act has allowed medical personnel and healthcare facilities to avoid participating in or offering medical procedures that would violate their conscience; procedures like abortions and certain end-of-life measures. It has provided legal protection for those involved in healthcare to follow their personal convictions about the sanctity of life. The proposed changes outlined in SB 1564 would force those who object to a procedure to provide information on where that procedure can be obtained. This change would not only compel individuals such as pro-life Doctors, Nurses, and Pharmacists to compromise their integrity, but would also impact facilities that choose not to offer an offensive procedure. For example, crisis pregnancy centers would be required to refer clients seeking abortion to places that promote abortion, like Planned Parenthood. This is an attempt by the kingdom of darkness to superimpose a death structure over an important religious liberty.
This bill, SB 1564, has already been passed in the Senate, and is pending a vote in the House of Representatives. The Illinois General Assembly is expected to convene for an overtime session as early as this week, so a House vote on this bill could occur soon. Last week, Dr. Amsden exhorted us that as believers we “hold great responsibility to enforce the victory of Christ over the person, plans and schemes of the enemy and to claim the earth, which is the prize of the contest.” In this instance that responsibility calls us to be informed, to intercede, and to get involved in enforcing the victory of Christ in the battle over the Right of Conscience in Illinois.
Maintaining Religious Liberty; Restoring Foundational Covenants
by Dr. Patti Amsden
Religious liberties in the United States are under attack. Jesus said we should expect persecution; but we don't expect persecution in the United States, a country that was founded on religious freedom. However, as anti-Christian voices and forces become louder and louder Christian Americans are indeed experiencing persecution.
High school valedictorians are told not to mention Jesus or their faith in their graduation speeches. A public high school student was told that she could neither discuss God nor her biblical views on creation in a class assignment. An Oregon judge fines Aaron and Melissa Klein $135,000 for living by their beliefs and refusing to make a same-sex wedding cake, even though they sell other baked goods to homosexuals. Yvette Cormier is told by Planet Fitness that if she wants to exercise her right to free speech to complain that a transgender man was using the women's changing room, she will have to find another gym.
The Green (Hobby Lobby) and the Hahn (Conestoga Wood) families have faced years of opposition while fighting all the way to the Supreme Court merely to follow their consciences in their business operations. And even though they have won some measure of legal support for their right to refuse to pay for abortion causing contraceptives, nonprofit religious organizations like the Little Sisters of the Poor have not been granted that right.
A case is currently being considered by the Supreme Court on whether the town of Gilbert, Arizona can restrict the directional signs posted by Good News Community Church. The town of Gilbert had divided signs up based on whether they were ideological, political, or directional and imposed different restrictions on each category of sign. Signs pointing the way to the Community Church's Sunday morning service, which contained religious speech, were treated less fairly than if the signs had contained only the name of the church.
The military has been hard hit. More than one chaplain has been reprimanded for expressing his faith when counseling troubled troops. A general shared his faith with a subordinate contemplating suicide and was reprimanded for personally speaking to the man instead of sending him first to the chaplain. Mikey Weinstein at the Military Religious Freedom Foundation regularly objects to expressions of faith in the military and seems to have the ear of the Pentagon. The MRFF's latest target is a two-star general, the Air Force's Maj. Gen. Craig Olson, who was invited to speak at the national day of Prayer Task Force meeting. For talking about God, the Foundation is demanding that the general be court martialed.
Defense of Marriage Act
In 1966, Illinois passed a law that said marriage was only between a man and a woman. The law, H.R. 3396, was cited as the Defense of Marriage Act. The law reads: “In determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word ‘marriage’
means only a legal union between one man and one woman as husband and wife, and the word ‘spouse’ refers only to a person of the opposite sex who is a husband or a wife.”
In January, 2011, Illinois legalized civil unions in the Senate Bill 1716 and created the Illinois Religious Freedom
Protection and Civil Union Act. The newer law allowed same-sex and heterosexual couples to enter into civil unions
granting them many rights given to married couples. Those rights included automatic hospital visitation rights, the ability to
make emergency medical decisions for partners, the ability to share a room in a nursing home, adoption and parental rights, pension benefits, inheritance rights and the right to dispose of a partner’s remains.
H.R. 3396 and Senate Bill 1716 have governed the state until contested by the activist organizations Lambda Legal and the ACLU of Illinois. The agencies filed two lawsuits on May 30, 2012 against the clerk of Cook County charging that the refusal of his office to issue marriage licenses to 25 homosexual couples violated the equal protection and due process
clauses of the Illinois Constitution. Attorney General Lisa Madigan and Cook County State’s Attorney Anita Alvarez, both
Democrats, declined to defend the state’s Defense of Marriage Act.
However, two county clerks from other parts of the state rose to challenge the lawsuits filed by Lambda Legal and the
ACLU. Christie Webb, a Democrat of Tazewell County, and Kerry Hirtzel, a Republican of Effingham County, asked
the court to allow them to defend the state law. Attorneys with the Thomas More Society were appointed Special Assistant State’s Attorneys to represent Ms. Webb and Mr. Hirtzel in this litigation.
On, Tuesday, July 3, 2012 at 9:15 a.m., Cook County Circuit Judge Sophia Hall granted a request from the two clerks to intervene in the case. According to the Chicago Tribune’s reporter Rex Huppke, “John Knight, the ACLU attorney,
said that he is confident same-sex marriage rights can be won through the state’s judicial system and that there is no reason to wait for lawmakers to act.” Peter Breen, executive director and legal counsel of the Thomas More Society
stated, “Legal claims similar to those asserted here by the ACLU and Lambda Legal have been rejected by every
federal appellate court and the substantial majority of state courts. Illinois’ law is valid and constitutional. Our state’s laws deserve a robust defense, and with this motion to intervene, we intend to ensure that defense.”
The next step in the case is a hearing on September 27 on a motion from the two clerks to dismiss the case.
High school valedictorians are told not to mention Jesus or their faith in their graduation speeches. A public high school student was told that she could neither discuss God nor her biblical views on creation in a class assignment. An Oregon judge fines Aaron and Melissa Klein $135,000 for living by their beliefs and refusing to make a same-sex wedding cake, even though they sell other baked goods to homosexuals. Yvette Cormier is told by Planet Fitness that if she wants to exercise her right to free speech to complain that a transgender man was using the women's changing room, she will have to find another gym.
The Green (Hobby Lobby) and the Hahn (Conestoga Wood) families have faced years of opposition while fighting all the way to the Supreme Court merely to follow their consciences in their business operations. And even though they have won some measure of legal support for their right to refuse to pay for abortion causing contraceptives, nonprofit religious organizations like the Little Sisters of the Poor have not been granted that right.
A case is currently being considered by the Supreme Court on whether the town of Gilbert, Arizona can restrict the directional signs posted by Good News Community Church. The town of Gilbert had divided signs up based on whether they were ideological, political, or directional and imposed different restrictions on each category of sign. Signs pointing the way to the Community Church's Sunday morning service, which contained religious speech, were treated less fairly than if the signs had contained only the name of the church.
The military has been hard hit. More than one chaplain has been reprimanded for expressing his faith when counseling troubled troops. A general shared his faith with a subordinate contemplating suicide and was reprimanded for personally speaking to the man instead of sending him first to the chaplain. Mikey Weinstein at the Military Religious Freedom Foundation regularly objects to expressions of faith in the military and seems to have the ear of the Pentagon. The MRFF's latest target is a two-star general, the Air Force's Maj. Gen. Craig Olson, who was invited to speak at the national day of Prayer Task Force meeting. For talking about God, the Foundation is demanding that the general be court martialed.
Defense of Marriage Act
In 1966, Illinois passed a law that said marriage was only between a man and a woman. The law, H.R. 3396, was cited as the Defense of Marriage Act. The law reads: “In determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word ‘marriage’
means only a legal union between one man and one woman as husband and wife, and the word ‘spouse’ refers only to a person of the opposite sex who is a husband or a wife.”
In January, 2011, Illinois legalized civil unions in the Senate Bill 1716 and created the Illinois Religious Freedom
Protection and Civil Union Act. The newer law allowed same-sex and heterosexual couples to enter into civil unions
granting them many rights given to married couples. Those rights included automatic hospital visitation rights, the ability to
make emergency medical decisions for partners, the ability to share a room in a nursing home, adoption and parental rights, pension benefits, inheritance rights and the right to dispose of a partner’s remains.
H.R. 3396 and Senate Bill 1716 have governed the state until contested by the activist organizations Lambda Legal and the ACLU of Illinois. The agencies filed two lawsuits on May 30, 2012 against the clerk of Cook County charging that the refusal of his office to issue marriage licenses to 25 homosexual couples violated the equal protection and due process
clauses of the Illinois Constitution. Attorney General Lisa Madigan and Cook County State’s Attorney Anita Alvarez, both
Democrats, declined to defend the state’s Defense of Marriage Act.
However, two county clerks from other parts of the state rose to challenge the lawsuits filed by Lambda Legal and the
ACLU. Christie Webb, a Democrat of Tazewell County, and Kerry Hirtzel, a Republican of Effingham County, asked
the court to allow them to defend the state law. Attorneys with the Thomas More Society were appointed Special Assistant State’s Attorneys to represent Ms. Webb and Mr. Hirtzel in this litigation.
On, Tuesday, July 3, 2012 at 9:15 a.m., Cook County Circuit Judge Sophia Hall granted a request from the two clerks to intervene in the case. According to the Chicago Tribune’s reporter Rex Huppke, “John Knight, the ACLU attorney,
said that he is confident same-sex marriage rights can be won through the state’s judicial system and that there is no reason to wait for lawmakers to act.” Peter Breen, executive director and legal counsel of the Thomas More Society
stated, “Legal claims similar to those asserted here by the ACLU and Lambda Legal have been rejected by every
federal appellate court and the substantial majority of state courts. Illinois’ law is valid and constitutional. Our state’s laws deserve a robust defense, and with this motion to intervene, we intend to ensure that defense.”
The next step in the case is a hearing on September 27 on a motion from the two clerks to dismiss the case.
Illinois and America's Next Oil Boom
Illinois legislators have passed comprehensive fracking regulations, which have the potential to open the state to new shale oil and gas exploration.
Prior to the House passing the legislation, requests had been filed to open a well in White County, which promises to yield large quantities of oil. Campbell Energy based in Carmi also filed and estimates an initial production rate of 204 barrels of oil per day. That volume parallels the Eagle Ford shale play in Texas, which is reported to be one of the hottest fracking areas in the nation.
The New Albany shale play is the site of the largest deposits of shale in Illinois. Although no one actually knows how much fossil fuel is actually in the
New Albany play, some estimates put the gas reserves between one and eight trillion cubic feet. About two-thirds of Illinois sits upon this play, which also stretches into Kentucky, Tennessee, and Indiana.
National Resource Defense Council’s Midwest Director stated, “We’re moving from essentially an unregulated situation where Illinois Department of Natural Resources had very little ability to structure what would happen in the state on fracking.” Although statistics concerning actual production and job creation, fracking has the potential to strengthen the economy in financially depressed sectors of the state. According to the Chicago Tribune, companies have leased land more than triple the size of Chicago hoping that fracking will unleash billions of dollars in of oil production.
House Bill 2615 – Illinois Hydraulic Fracturing Regulatory Act - was signed into law by Governor Pat Quinn. “This new law will unlock the potential for thousand of jobs in Southern Illinois and ensure that our environment is protected,” Governor Quinn said. “As I said in my budget address, hydraulic fracturing is coming to Illinois with the strongest environmental regulations in the nation. It’s about jobs and it’s about ensuring that our natural resources are protected for future generations. I applaud the many environmental advocates and representatives from government, labor and industry who worked with us to make Illinois a national model for transparency, environmental safety and economic development.”
Illinois legislators have passed comprehensive fracking regulations, which have the potential to open the state to new shale oil and gas exploration.
Prior to the House passing the legislation, requests had been filed to open a well in White County, which promises to yield large quantities of oil. Campbell Energy based in Carmi also filed and estimates an initial production rate of 204 barrels of oil per day. That volume parallels the Eagle Ford shale play in Texas, which is reported to be one of the hottest fracking areas in the nation.
The New Albany shale play is the site of the largest deposits of shale in Illinois. Although no one actually knows how much fossil fuel is actually in the
New Albany play, some estimates put the gas reserves between one and eight trillion cubic feet. About two-thirds of Illinois sits upon this play, which also stretches into Kentucky, Tennessee, and Indiana.
National Resource Defense Council’s Midwest Director stated, “We’re moving from essentially an unregulated situation where Illinois Department of Natural Resources had very little ability to structure what would happen in the state on fracking.” Although statistics concerning actual production and job creation, fracking has the potential to strengthen the economy in financially depressed sectors of the state. According to the Chicago Tribune, companies have leased land more than triple the size of Chicago hoping that fracking will unleash billions of dollars in of oil production.
House Bill 2615 – Illinois Hydraulic Fracturing Regulatory Act - was signed into law by Governor Pat Quinn. “This new law will unlock the potential for thousand of jobs in Southern Illinois and ensure that our environment is protected,” Governor Quinn said. “As I said in my budget address, hydraulic fracturing is coming to Illinois with the strongest environmental regulations in the nation. It’s about jobs and it’s about ensuring that our natural resources are protected for future generations. I applaud the many environmental advocates and representatives from government, labor and industry who worked with us to make Illinois a national model for transparency, environmental safety and economic development.”
Proposed Amendment to Illinois Constitution for Graduated Income Tax
Illinois is proposing amendments to change the Illinois Constitution to impose a graduated income tax on both personal and corporate income. Currently, the state levies a flat income tax, which places separate but uniform rates on individuals and corporations. From 1990 until 2011, the individual flat income tax was 3% and the corporate tax was 4.80%. On January 11, 2011, on the last day of a lameduck session, the Legislature approved temporary increases to both the personal and corporate income taxes of 67% and 46% respectively. With the passage of that action, the individual rate became 55 and the corporate flat income tax became 7%. The rates are due to be reduced to their former level in 2015.
With the amendments SJRCA 40 and HJRCA 33, the Legislature is seeking to change the Illinois Constitution in order to move from a flat tax to graduated income tax. The citizens of Illinois have three times defeated attempts to adopt graduated income tax. On December 12, 1922, the Fifth Illinois Constitutional Convention submitted a proposed document for the people to ratify. The proposal was defeated 921,398 to 185,298. Two other subsequent statewide referenda to amend the Constitution were presented in 1926 and 1930. Both were, likewise, defeated.
In 1932, the 57th General Assembly passed a graduated income tax resolution, which was signed into law by Governor Louis L. Emmerson. The law created six brackets of graduated tax rates ranging from 1% tax on net income less than $1000 (equivalent to about $17,000 today) to 6% tax on net income greater than $25,000 (equivalent to about $425,000 today). The law was contested in the courts in the case of Bachrach vs. Nelson. The Illinois Supreme Court found that the law violated the constitution and struck down the law. Illinois returned to a flat income tax.
The Center for Tax and Budget Accountability (CTBA) has called for the creation of an octa-bracket schedule of graduated taxation ranging from 5-11%. Anyone earning more than $5,000 would have an increase to their Illinois taxes. Under the CTBA plan, Illinois would be on par with Hawaii as the second highest state for graduated income tax rates. The only state with higher rates is California.
Illinois is currently ranked the fourth worst state in unemployment rates. Between 2000 and 2010, Illinois experienced a migration out of the state of staggering proportions. The state lost 626,622 citizens and about $20 billion in personal income to other states. The non-partisan Tax Foundation ranks the state 31st on their 2014 State Business Tax Climate Index. Coupled with the federal tax rate, Illinois now has the fourth highest corporate tax rate anywhere in the industrial world. According to the American Legislative Exchange Council (ALEC), the state is almost at the bottom of their Economic Outlook Rank. Of the ten states on the bottom of the ALEC Outlook Rank, the other nine states have progressive income tax.
Illinois is proposing amendments to change the Illinois Constitution to impose a graduated income tax on both personal and corporate income. Currently, the state levies a flat income tax, which places separate but uniform rates on individuals and corporations. From 1990 until 2011, the individual flat income tax was 3% and the corporate tax was 4.80%. On January 11, 2011, on the last day of a lameduck session, the Legislature approved temporary increases to both the personal and corporate income taxes of 67% and 46% respectively. With the passage of that action, the individual rate became 55 and the corporate flat income tax became 7%. The rates are due to be reduced to their former level in 2015.
With the amendments SJRCA 40 and HJRCA 33, the Legislature is seeking to change the Illinois Constitution in order to move from a flat tax to graduated income tax. The citizens of Illinois have three times defeated attempts to adopt graduated income tax. On December 12, 1922, the Fifth Illinois Constitutional Convention submitted a proposed document for the people to ratify. The proposal was defeated 921,398 to 185,298. Two other subsequent statewide referenda to amend the Constitution were presented in 1926 and 1930. Both were, likewise, defeated.
In 1932, the 57th General Assembly passed a graduated income tax resolution, which was signed into law by Governor Louis L. Emmerson. The law created six brackets of graduated tax rates ranging from 1% tax on net income less than $1000 (equivalent to about $17,000 today) to 6% tax on net income greater than $25,000 (equivalent to about $425,000 today). The law was contested in the courts in the case of Bachrach vs. Nelson. The Illinois Supreme Court found that the law violated the constitution and struck down the law. Illinois returned to a flat income tax.
The Center for Tax and Budget Accountability (CTBA) has called for the creation of an octa-bracket schedule of graduated taxation ranging from 5-11%. Anyone earning more than $5,000 would have an increase to their Illinois taxes. Under the CTBA plan, Illinois would be on par with Hawaii as the second highest state for graduated income tax rates. The only state with higher rates is California.
Illinois is currently ranked the fourth worst state in unemployment rates. Between 2000 and 2010, Illinois experienced a migration out of the state of staggering proportions. The state lost 626,622 citizens and about $20 billion in personal income to other states. The non-partisan Tax Foundation ranks the state 31st on their 2014 State Business Tax Climate Index. Coupled with the federal tax rate, Illinois now has the fourth highest corporate tax rate anywhere in the industrial world. According to the American Legislative Exchange Council (ALEC), the state is almost at the bottom of their Economic Outlook Rank. Of the ten states on the bottom of the ALEC Outlook Rank, the other nine states have progressive income tax.
Illinois Graduated Tax
At its June 26th Board of Directors meeting, the Illinois Chamber Board voted unanimously to oppose a graduated income tax for Illinois. You'll be hearing a lot more about this topic in the coming year -- proponents will be doing everything they can to convince you -- the citizens of Illinois -- to vote "yes" for a Constitutional Amendment that would, for the first time in our state's history, permit the Illinois General Assembly to impose a graduated income tax.
The November 2014 general election will be the last opportunity to pass
a Constitutional Amendment authorizing a change in tax structure before the temporary income tax rate increases enacted in January 2011 begin to
roll back.
The 1970 Illinois Constitution prohibits a graduated income tax. In order to amend the state constitution, both chambers of the General Assembly must pass a resolution by a three-fifths vote to authorize a voter referendum. The ballot question would then need to be approved by either three-fifths of those voting on the measure or the majority of those voting in the election.
Resolutions to offer an amendment to the Illinois Constitution are pending
in both houses of the General Assembly. If the proposed amendment to the
revenue article of the constitution is to appear on the November 2014
ballot, the General Assembly must vote to approve the amendment no later
than May 4, 2014.
If the General Assembly approves such an amendment, this must emerge as a critical policy debate topic among legislative and state wide candidates in the 2014 election cycle, because if the Constitutional Amendment is approved in November, the newly elected officials will be responsible for setting the course of action.
At its June 26th Board of Directors meeting, the Illinois Chamber Board voted unanimously to oppose a graduated income tax for Illinois. You'll be hearing a lot more about this topic in the coming year -- proponents will be doing everything they can to convince you -- the citizens of Illinois -- to vote "yes" for a Constitutional Amendment that would, for the first time in our state's history, permit the Illinois General Assembly to impose a graduated income tax.
The November 2014 general election will be the last opportunity to pass
a Constitutional Amendment authorizing a change in tax structure before the temporary income tax rate increases enacted in January 2011 begin to
roll back.
The 1970 Illinois Constitution prohibits a graduated income tax. In order to amend the state constitution, both chambers of the General Assembly must pass a resolution by a three-fifths vote to authorize a voter referendum. The ballot question would then need to be approved by either three-fifths of those voting on the measure or the majority of those voting in the election.
Resolutions to offer an amendment to the Illinois Constitution are pending
in both houses of the General Assembly. If the proposed amendment to the
revenue article of the constitution is to appear on the November 2014
ballot, the General Assembly must vote to approve the amendment no later
than May 4, 2014.
If the General Assembly approves such an amendment, this must emerge as a critical policy debate topic among legislative and state wide candidates in the 2014 election cycle, because if the Constitutional Amendment is approved in November, the newly elected officials will be responsible for setting the course of action.
