Tag: J.B. Pritzker

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Nathan Reitz Must Follow Jerry Costello’s Lead and Oppose the Graduated Income Tax

One of the last votes Nathan Reitz’s father, former State Rep. Dan Reitz, took was Madigan’s 2011 tax hike; now, Pritzker and Madigan want Nathan Reitz’s first vote to be yet another tax hike


“The fix is in. One of the last votes Nathan Reitz’s father, former State Rep. Dan Reitz, took was Mike Madigan’s 2011 tax hike. Now, Pritzker and Madigan want one of the first votes of Nathan Reitz to be yet another tax hike on Illinois families and small businesses. Tax-hiking is the Reitz family business. Reitz must follow Jerry Costello’s lead and oppose the Pritzker-Madigan-backed graduated income tax. If Reitz supports the tax hike, voters and taxpayers will make Reitz’s tenure in the General Assembly a short one.” – Illinois Republican Party Chairman Tim Schneider


Moments ago, Democratic county chairmen in the 116th House District voted to appoint Nathan Reitz, son of former State Rep. Dan Reitz, to the vacancy created by former State Rep. Jerry Costello’s resignation. Costello resigned to take an appointment from Governor J.B. Pritzker in the Illinois Department of Natural Resources.

J.B. Pritzker and Mike Madigan are looking for a vote in support of their tax-hiking agenda, and they think Nathan Reitz is their guy. One of the very first votes Reitz may take before the end of May is on a constitutional amendment to repeal Illinois’ flat income tax and authorize a graduated income tax. Jerry Costello was one of the first Democrats in the Illinois House of Representatives to oppose the graduated income tax.

Unfortunately, tax-hiking is the Reitz family business. One of the very last votes Nathan Reitz’s father, former State Rep. Dan Reitz, took was Mike Madigan’s 2011 tax hike. After voting for Madigan’s tax hike, Dan Reitz decided he would rather not seek re-election than face voters the following November. The Chicago Tribune Editorial Board published an editorial in 2012 on “tax-hiker” Dan Reitz and others for pushing false premises for the income tax hike.

Now, Pritzker and Madigan want one of Nathan Reitz’s first votes to be yet another tax hike on Illinois families and small businesses. Nathan Reitz must follow Jerry Costello’s lead and oppose the graduated income tax and all associated legislation. If Reitz supports the Pritzker-Madigan tax hike, voters and taxpayers will make Reitz’s tenure in the General Assembly a short one.

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BREAKING: Governor J.B. Pritzker Is Under Federal Criminal Investigation

Feds are looking into Pritzker for his toilet removal “scheme to defraud” Cook County taxpayers, which lowered the property taxes on his multi-million dollar Chicago mansion by $331,000

“An Illinois governor under federal criminal investigation 101 days into office must be a new record – even for Illinois. We already knew Pritzker was a serial tax dodger. He stashes millions offshore in zero-tax Bahamas bank accounts and took the toilets out of his Chicago mansion to dodge over $330,000 in property taxes. The Cook County Independent Inspector General called it ‘a scheme to defraud’ taxpayers. Yet Pritzker continues to push tax hikes on Illinois families and businesses – absurd hypocrisy from Pritzker.

“J.B. Pritzker can’t be trusted. Pritzker must immediately cease all of his efforts to raise taxes, including his graduated income tax, because he’s under federal criminal investigation for not paying his own taxes.” – Illinois Republican Party Chairman Tim Schneider

A law enforcement source has revealed that Governor J.B. Pritzker, his wife, and brother-in-law are under federal criminal investigation for their Chicago mansion toilet removal “scheme to defraud” Cook County taxpayers. Last year, it was revealed that Pritzker, who is worth $3.5 billion, removed the toilets in his Chicago mansion so he could lower his property tax bill by $331,000.

WBEZ broke the story:

“Democratic Illinois Gov. JB Pritzker, his wife and his brother-in-law are under federal criminal investigation for a dubious residential property tax appeal that dogged him during his gubernatorial campaign last year, WBEZ has learned.

” …The developments demonstrate that the billionaire governor and his wife may face a serious legal threat arising from their controversial pursuit of a property tax break on a 126-year-old mansion they purchased next to their Gold Coast home.

“A Cook County inspector general’s report, first published by the Chicago Sun-Times, later found MK Pritzker directed workers to remove all toilets from the mansion in order to have it declared “uninhabitable,” which gave the Pritzkers a huge property tax break. The report also found that Lovely and the governor’s brother-in-law, Thomas J. Muenster, made “false representations” on tax appeal documents.

“The county watchdog said all of that amounted to a “scheme to defraud” taxpayers out of more than $331,000.”

Pritzker is a serial tax dodger. In addition to his “scheme to defraud” Cook County property taxpayers, Pritzker has parked millions of dollars offshore in zero-tax Bahamas, dodging an untold amount of taxes – absurd hypocrisy from tax-hiking Pritzker.

J.B. Pritzker must immediately cease his efforts to raise taxes, including his graduated income tax, because he’s under federal criminal investigation for not paying his own taxes.

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Members of House and Senate Democratic Leadership Critical Of Pritzker’s Plan To Skip Pension Payments

Willis and Lightford join others who have spoken out against Pritzker’s proposal to skip pension payments over the next seven years, including $1.1 billion next year alone


“It’s a good sign for Illinois taxpayers and retired public employees that top Democratic lawmakers in Springfield are throwing cold water on J.B. Pritzker’s plan to skip pension payments. It’s not too late for other Democratic lawmakers to join them. Our state cannot afford a repeat of the past pension gimmicks. With the end of session rapidly approaching, Pritzker and Democratic lawmakers must rein in their unrealistic spending proposals if our state is to protect taxpayers and meet its obligations to public employees and retirees.” – Illinois Republican Party Spokesman Aaron DeGroot

In a misguided effort to increase spending while attempting to close Illinois’ multi-billion dollar budget deficit, Governor J.B. Pritzker has proposed reducing state payments to the state’s five public pension systems for the next seven years. Pritzker’s administration has refused to detail what the total cost of the pension holiday would be to taxpayers in the long-term. One analysis shows that just next year alone, Pritzker is proposing a $1.1 billion reduction in pension payments. Skipping pension payments threatens the integrity of our state’s pension system while exposing taxpayers to increased liabilities in the future.

Capitol Fax’s Rich Miller recently called Pritzker’s proposal “preposterous.”

And Pritzker’s plan was not received well by some top Democratic lawmakers in the Illinois General Assembly:

House Majority Conference Chairperson Kathleen Willis: “[W]e don’t want to repeat history. We don’t want to see this. We’re open to ideas. But that doesn’t necessarily mean this idea.”

Senate Majority Leader Kimberly Lightford: “I hope that [skipping pension payments] isn’t the desired goal.”

Willis and Lightford aren’t the first to speak out against Pritzker’s pension holiday. Here’s what others have said, including some groups who have been aligned with Democrats in the past:

Joint statement by the Illinois Federation of Teachers (IFT) and the Illinois Education Association (IEA): “IFT and IEA oppose underfunding of the pension systems. While we support many of the concepts in the Governor’s proposal, like the sale of pension obligation bonds and re-amortization of the unfunded liability, we would urge that those concepts be implemented in a way that doesn’t fall short of the FY20 required payment.”

Unanimous statement by the Teachers’ Retirement System Board of Trustees: “TRS opposes any Fiscal 2020 budget for the state of Illinois that will appropriate to the System less than $4,813,577,696, the contribution calculated under state pension funding law and certified by the System on January 14, 2019. TRS opposes any extension of the target date currently in statute for the System to reach 90 percent funding. The target should remain no later than fiscal year 2045.”

Illinois Retired Teachers Association President Roger Hampton: “Delaying pension payments just kicks the can down the road again and costs future generations of Illinois taxpayers (if any left) billions of dollars.”

Illinois Retired Teachers Association Executive Director Jim Bachman: “This is the same road that we’ve gone down many times… [Pritzker] said it was his intent to be putting more into the system, if possible, to reduce that debt, but in lieu of that we went the opposite way.”

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J.B. Pritzker Should Domesticate His Overseas Holdings In Illinois And Subject Them To Higher Tax Rates He Proposed

ILGOP Chairman Schneider: “As one of Illinois’ richest residents and leading tax hike proponents, it’s time for Gov. Pritzker to pay his fair share”

“It’s time to end Governor Pritzker’s tax hypocrisy. Pritzker says he ‘chooses fairness’ when it comes to raising taxes, yet Pritzker is the beneficiary of many overseas holdings that allow him to dodge untold millions in state and federal taxes. If Pritzker truly believes that rich people such as himself have an obligation to pay more in taxes to the State of Illinois, Pritzker should take the first step and domesticate his overseas holdings in Illinois so they would be subject to the higher tax rates he has proposed for the people of Illinois.

“As one of Illinois’ richest residents and leading tax hike proponents, it’s time for Governor Pritzker to pay his fair share, before expecting Illinois taxpayers to pay more. Tax fairness should start with our governor.” – Illinois Republican Party Chairman Tim Schneider

Last week, Governor J.B. Pritzker finally released the specific tax rates of his plan to raise taxes on Illinois families and businesses. When you factor in the Personal Property Replacement Tax, Pritzker’s tax hike plan will hit corporations and trusts domiciled in the state of Illinois with a 10.45% and 9.45% tax rate, respectively, making it “one of the highest in the nation.”

During the course of last year’s gubernatorial campaign, Illinois voters learned that Pritzker is the beneficiary of many overseas trusts based in the Bahamas and Cayman Islands. Those trusts are not subject to taxes. Pritzker attempted to skirt the topic by saying there was nothing he could do about the trusts set up by his grandfather in the 1960s, and that all of his money from those trusts go to his charitable foundation.

But a Chicago Tribune investigated found that Pritzker himself utilizes overseas tax havens for his personal business ventures. Several overseas shell corporations were set up by Pritzker and his associates between 2008 and 2011. According to the Tribune, those corporations “are either wholly owned by J.B. Pritzker, his brother and business partner Anthony Pritzker, or list other close associates as controlling executives.”

All told, the Tribune found “35 offshore and domestic trusts and shell companies tied to Pritzker on top of the dozen offshore investment funds.”

Financial experts told the Tribune that the investment tactics used by Pritzker helped him maintain the secrecy of his overseas holdings while minimizing the tax liability.

When the investigation broke, Pritzker tax hike supporter Dan Biss said “J.B. Pritzker set up companies offshore, probably to avoid taxes and spent the entire past year lying about it.”

In 2008, The New York Times said the Pritzker family were “pioneers in using tax loopholes to shelter their holdings from the internal revenue service.” And J.B. Pritzker’s sister, Penny Pritzker, became the subject of media scrutiny after some of her overseas holdings were revealed in the Paradise Papers.

If Pritzker truly believes that rich people such as himself have an obligation to pay more in taxes to the State of Illinois, Pritzker should take the first step and domesticate his overseas holdings in Illinois so they would be subject to the higher tax rates he has proposed for the people of Illinois.

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ILGOP Chairman Tim Schneider Statement on Governor J.B. Pritzker’s $3.4 Billion Tax Hike

Moments ago, Governor J.B. Pritzker released proposed graduated income tax rates as part of his plan to raise taxes on Illinois families and businesses. Pritzker’s proposed tax hike plan also puts in place “one of the highest in the nation” tax rates for businesses. Pritzker claims his tax increase would raise an additional $3.4 billion in tax revenue for state coffers. Illinois Republican Party Chairman Tim Schneider issued the following statement in response:

“More tax hikes will not solve Illinois’ fiscal problems. Pritzker’s proposed $3.4 billion tax increase will lead to even more out-migration of Illinois families, businesses, and jobs. Tax-and-spend Illinois Democrats cannot be trusted with more of our tax dollars. That is why Illinois Republicans stand united against the Pritzker-Madigan tax hike and will continue to support reforms that will lower taxes, create jobs, and make our state thrive once again.”
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 Watchdogs & Analysts: Pritzker’s “Structurally Out Of Balance” Budget May Threaten Illinois’ Credit Rating

Pritzker’s one-time revenue measures, delayed pension payments, new pension borrowing, spending increases, and more threaten Illinois’ already-fragile fiscal condition

“Governor Pritzker’s unbalanced budget proposal is setting our state on a road to fiscal ruin. According to the Big Three credit rating agencies and financial analysts, Pritzker’s pension holidays and one-time revenue gimmicks will threaten Illinois’ already-fragile fiscal condition. To move our state forward, we must change our fiscal course, but unfortunately, Pritzker’s proposals maintain the status quo in Springfield.” – Illinois Republican Party Spokesman Aaron DeGroot

 

Last week, Pritzker gave his first budget address, outlining his Fiscal Year 2020 budget proposal which included:

  • Tax increases, including spending of revenue not yet realized
  • Spending increases, expansion of programs
  • Reduction in pension payments, a flip-flop from Pritzker’s campaign pledge
  • Issuing new pension debt and other general obligation bonds
  • No job-creating, economic reforms

Credit rating agencies did not respond positively to Pritzker’s budget. One financial publication said Pritzker’s one-time revenue measures leaves Pritzker’s budget “structurally out of balance,” contrary to Pritzker’s assertion that he’s resolving the state’s structural budget deficit.

Here’s what financial industry watchdogs and analysts had to say about Pritzker’s proposal:

 

The Bond Buyer: Why Illinois budget proposal raises new rating concerns

Illinois Gov. J.B. Pritzker’s pension and budget proposals raised red flags among watchdogs, investors, and analysts, along with questions about the threat it may pose to the state’s investment-grade ratings.

…The [Municipal Market Analytics] report warns that the risks associated with the uncertainties over the valuation of asset transfers and the arbitrage gamble on POBs are ideas that “can become gimmicks that pose credit negatives potent enough — scaled to management’s desperation to shape its spreadsheets — to smother the plan’s benefits to the state’s credit profile.”

The budget also relies on a series of one-shot revenue measures, leaving it structurally out of balance.

…Moody’s Investors Service would view the move to lower near-term pension contributions and extend the amortization period as a negative but is withholding judgment to see how the legislative session plays out and what is the broader context of the package that’s approved, Moody’s lead Illinois analyst Ted Hampton said.

 

Fitch Ratings: Illinois Governor’s Budget Plan Would Make Insufficient Progress

The fiscal 2020 executive budget plan recently introduced by Illinois’ governor would not materially address the state’s structural budget issues in the current fiscal year or the next, says Fitch Ratings.

…Fitch has indicated that we would lower the state’s IDR if Illinois returned to a pattern of deferring payments for near-term budget balancing. Elements of the governor’s proposal, including a $1.5 billion GO bill backlog borrowing that reduces but leaves largely unresolved the 2019 deficit and numerous one-time measures in fiscal 2020, appear to do that without a clear path toward long-term balance.

 

Reuters: Proposed Illinois budget falls short on filling structural gap, credit rating agency warns

Pritzker’s nearly $39 billion general funds budget for the fiscal year that begins on July 1 depends on $1.1 billion in estimated new revenue, including money from yet-to-be legalized sports betting and recreational marijuana. It also frees up cash by reducing contributions to the state’s five retirement systems.

“Illinois faces significant fiscal problems that will likely take multiple years to fully address, but the executive budget does not provide enough clarity on how the state will deal with them,” Fitch said in a statement.

 

Capitol News Illinois: Pritzker’s budget and pension plans could irritate bond markets

But in order to accomplish that, the state would need to borrow money, a lot of money. And there are significant questions about how the financial markets would respond to that.

All three major credit rating agencies — Moody’s, S&P and Fitch Ratings — currently rate state of Illinois bonds at one notch above “junk” status. And there are elements in Pritzker’s plan that some analysts say could cause those agencies to consider making that downgrade, a change that would have dire financial consequences for the state.

Chicago Tribune: Wall Street credit agency warns Illinois could face credit downgrade under Gov. Pritzker’s budget plan

A Wall Street credit rating agency is warning that Illinois could face another debt downgrade if lawmakers adopt Gov. J.B. Pritzker’s budget plan.

Fitch Ratings said in a news release Tuesday that the plan Pritzker presented last week “would not materially address the state’s structural budget issues in the current fiscal year or the next.” The warning comes four days after S&P Global Ratings panned the new Democratic governor’s spending plan for the budget year that begins July 1, calling it “precariously” balanced.

Like S&P, Fitch took issue with Pritzker’s plan to stretch out pension payments to lower short-term costs while extending the state’s funding deadline by seven years.

Chicago Tribune: With ‘precariously’ balanced budget plan, Pritzker ‘punts’ on difficult decisions, ratings agency says

“This revenue stream is far from certain, and there is no detail yet on rates, brackets, or the amount of revenue it is supposed to generate,” S&P said. “Despite the potential for a more collaborative budget process with single-party control of state government, Illinois has yet to prove its ability to make politically difficult decisions in favor of structural balance and sustainability. If it adopts the budget in its current form, it remains at risk of repeating a pattern of putting off hard choices while eroding pension funding.”

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Illinois Republican Party Chairman Tim Schneider Statement On Governor Pritzker Signing Minimum Wage Legislation

Moments ago, Governor J.B. Pritzker signed legislation into law that will nearly double Illinois’ minimum wage over the next six years. Illinois Republican Party Chairman Tim Schneider issued the following statement in response:

“This is only the beginning of J.B. Pritzker’s war on taxpayers and small business. Nearly doubling the minimum wage will destroy entry-level jobs, raise prices for consumers, and bust budgets at every level of government. Pritzker pledged to govern differently and listen to all parties and stakeholders, but those turned out to meaningless words.”

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