cdrumm4448 Posted January 8, 2011 Share Posted January 8, 2011 I live in IL. Our illustrious governor is about to sign the following into law if he can get the few last votes: -75 percent increase in the income tax rate for individuals and families,retroactive to Jan. 1. -Smokers would pay another $1 in taxes on a pack of cigarettes. -Businesses would pay 8.4 percent instead of the current 4.8 percent. Including a 2.5 percent tax that goes to local government, Illinois' effective tax rate on businesses if the plan passed would be 10.9 percent. That rate would be among the nation's highest. -The state would leverage the tax increase to borrow $8.5 billion to pay down overdue bills. -INTERNET SALES TAX! of 6.25% So, no spending cuts. Are these people deaf? IL is just about the sorriest state in the country financially, and now they want to raise taxes, borrow MORE money, and not cut spending? AND, Amazon informed me that they will terminate affiliates who live in states that adopt internet sales tax. I am going to be terminated. There is a small rebate to partly offset the 75% income tax increase, but it's only about 13% of the increase for us.. AND, I buy my curriculum on the internet, just like most homeschoolers. Half of my property tax ($5,000!) already goes to the schools. Now I'm going to have to pay more, again, to educate my children? I'm really frustrated. This state is in the ditch. I am seriously considering moving to Wyoming. If you got this far, thank for listening to me vent. Quote Link to comment Share on other sites More sharing options...
Tylianna Posted January 8, 2011 Share Posted January 8, 2011 Ouch! :grouphug: Sorry to hear about that. Pretty soon, that is the way the whole country will be :glare: Quote Link to comment Share on other sites More sharing options...
justamouse Posted January 8, 2011 Share Posted January 8, 2011 NJs business tax has already been that for years. :grouphug::grouphug: Quote Link to comment Share on other sites More sharing options...
Sevilla Posted January 8, 2011 Share Posted January 8, 2011 Me too. However, I have a different take on it. -75 percent increase in the income tax rate for individuals and families,retroactive to Jan. 1. The current income tax is 3% and it would be raised to 5%. -Smokers would pay another $1 in taxes on a pack of cigarettes. Ok with me. -The state would leverage the tax increase to borrow $8.5 billion to pay down overdue bills. Right - these are bills to businesses and non-profits all over the state. Do you realize how many non-profits have been unpaid for close to a YEAR because the state gov't can't pay its bills? (And the people they serve who are turned away because of this - many have closed down entirely or severely cut their program). How difficult it is for dr.'s offices to go months without reimbursement? This isn't about the gov't increasing its spending for wasteful programs - it's about paying down old debt. -INTERNET SALES TAX! of 6.25% Technically, you were supposed to be paying this all along ;). It's called "Use Tax" and you're supposed to calculate your purchases that you didn't pay sales tax on (online, out of state) and then send in that bill with your income taxes. Here's the link: http://www.revenue.state.il.us/publications/bulletins/1995/FY95-30.PDF This isn't unique to Illinois - every state that has sales tax also has Use Tax. I'm glad they're doing this b/c it's unfair to local businesses to know that out of state online retailers get an automatic discount just b/c of the sales tax issue (and I know myself and other people who factor that in when they decide whether to buy from a store vs. amazon.com). So, no spending cuts. Are these people deaf? IL is just about the sorriest state in the country financially, and now they want to raise taxes, borrow MORE money, and not cut spending? Even if they cut spending this would still have to happen b/c of how in debt the state gov't is. And in order to make meaningful spending cuts, they would have to touch things like the unions and pensions (which I totally support - don't get me started on the union issues in IL!) but I don't know if they're allowed to by law. The pension issue alone is a significant chunk of the state budget that needs to be reformed but I don't think they can take away the current pensions of retirees which they're paying out (and borrowing to pay). AND, Amazon informed me that they will terminate affiliates who live in states that adopt internet sales tax. I am going to be terminated. There is a small rebate to partly offset the 75% income tax increase, but it's only about 13% of the increase for us.. As more states adopt this (Illinois is not the first one) Amazon will have to change its policy. Within 10 years the majority of states will have internet sales tax. AND, I buy my curriculum on the internet, just like most homeschoolers. Half of my property tax ($5,000!) already goes to the schools. Now I'm going to have to pay more, again, to educate my children? I understand you're frustrated, it stinks. I'm not thrilled about having to pay more. But I feel that it is a civic duty to do so (especially because I have seen the consequences of those unpaid bills for local employment - those nonprofits provided jobs and social services to people in need, businesses need to trust that the government will pay their bills just like regular customers should, etc...). Quote Link to comment Share on other sites More sharing options...
kalanamak Posted January 8, 2011 Share Posted January 8, 2011 So, no spending cuts. Are these people deaf? IL is just about the sorriest state in the country financially, and now they want to raise taxes, borrow MORE money, and not cut spending? . Come out here. Cuts galore. I'm waiting to see how our county is going to deal with taking over the ferry bill. Quote Link to comment Share on other sites More sharing options...
cdrumm4448 Posted January 8, 2011 Author Share Posted January 8, 2011 I understand you're frustrated, it stinks. I'm not thrilled about having to pay more. But I feel that it is a civic duty to do so (especially because I have seen the consequences of those unpaid bills for local employment - those nonprofits provided jobs and social services to people in need, businesses need to trust that the government will pay their bills just like regular customers should, etc...). I agree that IL should pay their bills. If they hadn't overspent in the first place, they wouldn't need more money. That is why I'm frustrated. When my family overspends, we can't just go to my husband's employer and demand more money to cover the bills. The irresponsibility is astounding. They misspent what we gave them. Now they want MORE? I am just supposed to trust they won't do it again? And when do the tax hikes end? Quote Link to comment Share on other sites More sharing options...
cdrumm4448 Posted January 8, 2011 Author Share Posted January 8, 2011 Come out here. Cuts galore. I'm waiting to see how our county is going to deal with taking over the ferry bill. We went to Seattle on our honeymoon. Always wanted to go back. I really loved it there. Quote Link to comment Share on other sites More sharing options...
Elaine Posted January 8, 2011 Share Posted January 8, 2011 I agree that IL should pay their bills. If they hadn't overspent in the first place, they wouldn't need more money. That is why I'm frustrated. When my family overspends, we can't just go to my husband's employer and demand more money to cover the bills. The irresponsibility is astounding. They misspent what we gave them. Now they want MORE? I am just supposed to trust they won't do it again? And when do the tax hikes end? I have no advice for you, I just want you to know that you are not alone in your frustration. I won't say anymore for fear of getting your nice thread deleted.;) Quote Link to comment Share on other sites More sharing options...
dirty ethel rackham Posted January 8, 2011 Share Posted January 8, 2011 Oh. I hear you. I'm in IL and I am sick to death of our corrupt politicians. Gee, Madigan laughed off spending caps, yet is OK with taxing us to death. I think he should pay out of his personal fortune. Just more money to waste. Meanwhile, my husband's HARD EARNED pension - yes folks, HARD EARNED, will continue to be underfunded while they all play political games. Quote Link to comment Share on other sites More sharing options...
cdrumm4448 Posted January 8, 2011 Author Share Posted January 8, 2011 I signed an online petition in opposition to the tax hikes, but there has to be something else a person can do. Quote Link to comment Share on other sites More sharing options...
pqr Posted January 8, 2011 Share Posted January 8, 2011 Sorry to say this, but if you can simply move to another state and take your dollars with you. Quote Link to comment Share on other sites More sharing options...
cdrumm4448 Posted January 8, 2011 Author Share Posted January 8, 2011 Sorry to say this, but if you can simply move to another state and take your dollars with you. I've never said this before, but it's a viable possibility right now. We actually live close to Indiana. They have some problems, but nothing close to IL, FWIU. Quote Link to comment Share on other sites More sharing options...
pqr Posted January 8, 2011 Share Posted January 8, 2011 I've never said this before, but it's a viable possibility right now. We actually live close to Indiana. They have some problems, but nothing close to IL, FWIU. Friends of mine in Indiana love it, some of them are even refugees from IL. Quote Link to comment Share on other sites More sharing options...
Cortana Posted January 8, 2011 Share Posted January 8, 2011 Come out here. Cuts galore. I'm waiting to see how our county is going to deal with taking over the ferry bill. Yup, it's not going to be good here. Thanks to the cuts WA is making to social services programs and Medicaid, my dh may or may not have a job soon. He is a direct care support provider for developmentally disabled adults and between the MCP hour cuts, residential provider pay being cut and the strong possibility of all adult outpatient Medicaid pharmacy benefits being cut, many residential/nursing homes/rehabilitation centers are wondering just how they're going to survive. Quote Link to comment Share on other sites More sharing options...
Debbie in IL Posted January 8, 2011 Share Posted January 8, 2011 I am so with you. Absolutely disgusted. This state is a train wreck. Quote Link to comment Share on other sites More sharing options...
MSNative Posted January 8, 2011 Share Posted January 8, 2011 DH and I were just discussing this topic this morning. We left IL last year because it was a train wreck. Ugh. We just got sick of seeing the waste and lies. (ok and the snow, snow, snow) :) Quote Link to comment Share on other sites More sharing options...
Sahamamama Posted January 8, 2011 Share Posted January 8, 2011 Oh. I hear you. I'm in IL and I am sick to death of our corrupt politicians. Gee, Madigan laughed off spending caps, yet is OK with taxing us to death. I think he should pay out of his personal fortune. Just more money to waste. Meanwhile, my husband's HARD EARNED pension - yes folks, HARD EARNED, will continue to be underfunded while they all play political games. I'm in NJ and I am sick to death of OUR corrupt politicians. :tongue_smilie: http://online.wsj.com/article/SB124835404608875685.html http://www.msnbc.msn.com/id/32103250/ns/us_news-crime_and_courts/ http://www.nj.com/corruption/ http://www.nj.com/news/index.ssf/2010/02/nj_property_taxes_climb_70_per.html Quote Link to comment Share on other sites More sharing options...
ScoutTN Posted January 8, 2011 Share Posted January 8, 2011 Pretty soon, that is the way the whole country will be :glare: Not if we are coherent, loud and consistent in our protests! And vote out people who propose/enact such garbage! And run for office ourselves or support clear thinking fiscal conservatives who do. And educate our children to see why this is disastrous policy. I won't sit by calmly and have my country ruined! OP, move to another state! No income tax here! ;) Quote Link to comment Share on other sites More sharing options...
Guest Cheryl in SoCal Posted January 8, 2011 Share Posted January 8, 2011 I'd invite you to CA but it wouldn't do you any good;) Quote Link to comment Share on other sites More sharing options...
Maria from IN Posted January 8, 2011 Share Posted January 8, 2011 My parents lived in the Champaign area for a time, and I lived in a little hole in the wall west of Terre Haute, and if you weren't from the Chicago area, you might as well be in a different state altogether. Any funding that actually made it to the people stayed north. Love being back in Indiana.:001_smile: Quote Link to comment Share on other sites More sharing options...
Hannah C. Posted January 9, 2011 Share Posted January 9, 2011 Technically, you were supposed to be paying this all along ;). It's called "Use Tax" and you're supposed to calculate your purchases that you didn't pay sales tax on (online, out of state) and then send in that bill with your income taxes. Here's the link: http://www.revenue.state.il.us/publications/bulletins/1995/FY95-30.PDF This isn't unique to Illinois - every state that has sales tax also has Use Tax. I'm glad they're doing this b/c it's unfair to local businesses to know that out of state online retailers get an automatic discount just b/c of the sales tax issue (and I know myself and other people who factor that in when they decide whether to buy from a store vs. amazon.com). Am I the only one who has never, ever heard of this? :confused: (I live in Texas.) I just Googled it, and found the Texas Administrative Code section applicable to it, but it only got me a bit more confused.... (FWIW, the particular section I'm looking at was last amended in 1990 and seems to apply mostly to businesses...) In any case, if they actually want to have people paying sales tax on items bought online, the logical solution seems to be to impose an Internet sales tax. Because I'm betting I am far from the only one who never knew there was a use tax, and the entire process of having people calculate and pay for it themselves just seems extremely complicated.... Quote Link to comment Share on other sites More sharing options...
Guest Cheryl in SoCal Posted January 9, 2011 Share Posted January 9, 2011 Am I the only one who has never, ever heard of this? :confused: (I live in Texas.) I just Googled it, and found the Texas Administrative Code section applicable to it, but it only got me a bit more confused.... (FWIW, the particular section I'm looking at was last amended in 1990 and seems to apply mostly to businesses...) In any case, if they actually want to have people paying sales tax on items bought online, the logical solution seems to be to impose an Internet sales tax. Because I'm betting I am far from the only one who never knew there was a use tax, and the entire process of having people calculate and pay for it themselves just seems extremely complicated.... We have to pay Use Tax in CA. Quote Link to comment Share on other sites More sharing options...
Dayle in Guatemala Posted January 9, 2011 Share Posted January 9, 2011 Wow!!!!! Well, businesses and industry will probably leave the state in droves putting more people out of work. And, truly, families will follow because how can they afford to live? Ridiculous. I'm sorry for your state. Quote Link to comment Share on other sites More sharing options...
Terabith Posted January 9, 2011 Share Posted January 9, 2011 Yeah, your governor has done nothing but show his incompetence and corruption for years. Quote Link to comment Share on other sites More sharing options...
Sevilla Posted January 10, 2011 Share Posted January 10, 2011 (edited) Am I the only one who has never, ever heard of this? :confused: (I live in Texas.) I just Googled it, and found the Texas Administrative Code section applicable to it, but it only got me a bit more confused.... (FWIW, the particular section I'm looking at was last amended in 1990 and seems to apply mostly to businesses...) Use Tax laws weren't designed to account for the internet and in most states aren't well-publicized at all (the only reason I know about it is that I was nerdy enough to read my state's income tax brochure one year - that they have since stopped sending out). These taxes were set up in the mid-20th century. Most people don't encounter them unless they are a business or buy an expensive item from out of state (like importing a car or boat). But within the past decade the majority of the country started purchasing from out of state with no sales tax charged and states have lost billions in revenue due to this. Here's a chart of each state's use tax laws: Use Tax by state[/url. The laws have been very slow to catch up to this new mode of commerce. It's simply unrealistic to ask and expect people to calculate their own sales tax for every transaction and send it into the government (and some states like PA have even crazier use tax laws - Use tax on Itunes?). That's why those laws need to be changed to accomodate the internet business world. Edited January 10, 2011 by Sevilla Quote Link to comment Share on other sites More sharing options...
Guest Cheryl in SoCal Posted January 10, 2011 Share Posted January 10, 2011 Use Tax laws weren't designed to account for the internet. They were set up in the mid-20th century. Most people didn't encounter them unless they were a business or bought an expensive item from out of state (like importing a car or boat). Then the internet sales boom happened and within a decade the majority of the country was purchasing from out of state with no sales tax charged. The laws have been very slow to catch up to this phenomenon. It's simply unrealistic to ask and expect people to calculate their own sales tax for every transaction and send it into the government (and some states like PA have even crazier use tax laws - Use tax on Itunes?). That's why those laws need to be changed to accomodate the internet business world. I'd much rather be paying Sales Tax to the state where the internet business I purchase from is located than pay Use Tax to my state (I'm hoping that's how it would work, does anyone know?). Quote Link to comment Share on other sites More sharing options...
Mary in VA Posted January 10, 2011 Share Posted January 10, 2011 Use Tax laws weren't designed to account for the internet and in most states aren't well-publicized at all (the only reason I know about it is that I was nerdy enough to read my state's income tax brochure one year - that they have since stopped sending out). These taxes were set up in the mid-20th century. Most people don't encounter them unless they are a business or buy an expensive item from out of state (like importing a car or boat). But within the past decade the majority of the country started purchasing from out of state with no sales tax charged and states have lost billions in revenue due to this. Here's a chart of each state's use tax laws: Use Tax by state[/url. The laws have been very slow to catch up to this new mode of commerce. It's simply unrealistic to ask and expect people to calculate their own sales tax for every transaction and send it into the government (and some states like PA have even crazier use tax laws - Use tax on Itunes?). That's why those laws need to be changed to accomodate the internet business world. Yep, they do it here in VA when we file our State Income Tax Return. We're supposed to calculate the sales tax on anything we've purchased over the internet or phone that didn't originally have sales tax paid. We try to calculate it by our credit card bills, but it's ridiculous and I always wonder how many people actually do it! I don't mind so much if the business actually has a presence in the state, they collect that. But when they have NO connection to the state accept the internet it is very annoying! I don't feel too sorry for Amazon in states make them collect it because they are big enough to afford the costs of this, but what about small "Mom and Pop" businesses? Think of the expense of them calculating and collecting the sales tax for all 50 states! Mary Quote Link to comment Share on other sites More sharing options...
Stacy in NJ Posted January 10, 2011 Share Posted January 10, 2011 I'm in NJ and I am sick to death of OUR corrupt politicians. :tongue_smilie: Yes, We also pay the highest property taxes in the nation. :cursing: As Christy refused to raise taxes during the last round of budget negotiations, I am hopeful he'll hold the line on taxes. Although, our underfunded pension obligations are a nightmare. We'll see. Quote Link to comment Share on other sites More sharing options...
the4Rs Posted January 11, 2011 Share Posted January 11, 2011 I was from Indiana and came to IL over 10 years ago. It is a train wreck and has been the entire time I've been here. Every governor since my being here has been corrupt. It sickens me and really makes me long to return to IN. My husband and I are trying to build up our videography business between both states so we can move to IN eventually. I hate it here. Quote Link to comment Share on other sites More sharing options...
CalicoKat Posted January 11, 2011 Share Posted January 11, 2011 ahhh, more fuel to our "Reason's to Move Out of State" list. This is not cool. Quote Link to comment Share on other sites More sharing options...
CalicoKat Posted January 11, 2011 Share Posted January 11, 2011 Sorry to say this, but if you can simply move to another state and take your dollars with you. :iagree: Quote Link to comment Share on other sites More sharing options...
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