Illinois Corporate Tax Increase

Posted in Corporate by admin on April 10, 2011 No Comments yet

illinois corporate tax increase
illinois corporate tax increase

Warning to teachers about those strikes

As a teachers strike came to an end in the south suburbs, I took notice of a news release sent out by a candidate for governor.

Adam Andrzejewski, a Republican candidate, called for a state law that would ban teachers strikes in Illinois. Thirty-seven states already have laws preventing or limiting such strikes.

Prairie-Hills School District 144 – which serves about 3,100 students in Markham, Hazel Crest, Oak Forest and Country Club Hills – on Monday settled its strike after more than a week. The SouthtownStar reported that a source indicated the final agreement included a 12.5 percent salary increase for teachers over the next three years.

Andrzejewski, 40, who created and then sold a phone book publishing company, is a long shot to win the Republican primary election on Feb. 2.

But I think the fact that he’s floating this idea should serve as a warning to teachers.

Many people have lost their jobs in the current recession/depression. Others have taken pay cuts and been asked to take unpaid days off or both. Private businesses are eliminating pensions and asking for larger employee contributions to health insurance plans.

Yet, teachers keep asking for pay raises.

I’m not going to debate the merits of the pay raise in District 144, where teachers said they were paid less than their peers in neighboring school districts. The fact is some educator is always going to be making less than a teacher in a neighboring suburb.

During the strike, there was discussion among the editors here about what position the newspaper should take.

A work stoppage during the middle of the school year seemed unfair to children. A strike in the winter posed a hardship on parents, many of whom rely on schools for day care.

And it all comes back to money, of course. Teachers unions seem to be under the impression that there is an untapped pot of gold out there.

Most school districts get 60 percent or more of their funding from the property tax. As everyone knows, home values are declining. For people struggling to make their mortgage payments and avoid foreclosure, a property tax increase could be the straw that breaks the camel’s back.

In addition, businesses in Cook County pay a higher property tax than homeowners. As taxes continue to rise in South Cook County, existing businesses are closing their doors while new ones look to open in the friendlier tax environs of Indiana and Will County.

Yet, there seems to be no recognition of the declining property tax base by teachers unions.

Gov. Pat Quinn has proposed a two-tier pension system for teachers. Any current teacher would not have his benefits reduced, but any new teachers would have to pay significantly more of their wages into the pension plan.

Teachers unions immediately denounced the plan.

I have long advocated an income tax hike to fund public education in this state, not only to provide more money for the schools but to eliminate the inequities between have and have-not school districts.

Much has changed since I first endorsed that idea more than a decade ago. For one thing, the state is about tapped out, facing a roughly $11 billion revenue shortfall.

That means even if a tax hike were passed, and Springfield insiders tell me that remains an uphill fight, much of the new income tax money would be used to plug holes in the budget outside of education.

Still, it’s difficult to tell local school board members to hold the line on pay raises and benefits when teachers can hold children hostage.

In addition, teachers unions contribute large sums of money to candidates running for the Legislature and in local school board races have the ability to turn out the vote for their favored candidates.

The playing field isn’t level.

Taxpayers are growing increasingly angry and, there’s no doubt, some degree of envy is involved.

While most people are living under the constant pressure of losing their jobs, teachers seem insulated from the economic crisis. They don’t face the fear of losing their jobs through a bankruptcy filing or corporate takeover. Their jobs are not likely to be outsourced to Pakistan or India.

I’m not ready to advocate a law prohibiting teacher strikes. But I would like to see a self-imposed moratorium on teacher pay raises as working stiffs walk a tightrope during the current economic decline.

There needs to be a sense of shared sacrifice. If not, public resentment will grow.

Most Americans feel lucky today if they have a job. One with health insurance and pension benefits, well, that’s a rare and wonderful thing.

Not good enough, someone will say.

“I want a raise.”

Fine. But don’t be at all surprised when folks start thinking you’re greedy.

CapitolVIew | 01/14/11

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