Rutherford warns Illinoisans about new service taxes

PONTIAC, IL - The State Senate recently voted in favor of the largest income tax increase in Illinois history, but that pales in comparison to what else was in the legislation, according to State Senator Dan Rutherford (R-Pontiac). The bill, HB 174 Senate Amendment 2, also created, for the first time in Illinois, a tax on services.

“The new tax on services would be on such services as cable TV, dry cleaning, bowling, pet grooming, Internet service, gym memberships, sports tickets and diaper service. It would take billions of dollars out of the wallets and purses of Illinoisans and cause thousands of businesses to start collecting and remitting this new tax to the state,” noted the Senator who voted against the legislation.

Rutherford added, “Most people comprehend when something is going to go up 67 percent, especially their income taxes. They may not like it, but they know what it is. The Service Tax is much more of a ‘stealth tax.’ It would be similar to a sales tax on products and would definitely increase the price of those services.”

“With the current financial situation our economy is in, now is not the time for government to ask taxpayers for more money through an increased price in their services,” Rutherford explained. “Once a new tax on services is established, it will be easy to add even more services to the list of hundreds. It could easily soon include barbers, beauticians and auto repair.

The Illinois Senate has passed the Service Tax Legislation with all Democrat votes. It has not yet been voted on in the House of Representatives, but could be acted upon this summer.

“The debate on raising the income tax has received much of the media attention, but a new tax on services would permanently change the landscape of taxing opportunities in our state. The public needs to be aware,” emphasized the Senator.

Senator Rutherford has posted the list of hundreds of services that would be impacted, on his Web site www.DanRutherford.com


 

State Senate approves massive expansion of gambling

SPRINGFIELD -- A week after rejecting a similar plan, the Illinois Senate narrowly approved a massive expansion of gambling late Saturday.

The plan, approved on a 30-28 vote, would add four additional casinos to the state’s current fleet of nine and allow horse racetracks to install slot machines.

State Sens. Mike Jacobs of East Moline and Gary Forby of Benton were among Democrats voting for the measure.

Most Republicans, including state Sens. Bill Brady of Bloomington, Dale Righter of Mattoon, Dan Rutherford of Chenoa, Kyle McCarter of Lebanon and Dave Luechtefeld of Okawville, voted “no.“

Senate OKs tax hike on income, many services

Senate Democrats late Saturday night approved a plan to raise personal income taxes by 67 percent and broaden the Illinois sales tax to include services such as cable TV, but the measure faces an uncertain future in the House with a late Sunday deadline to fix the state budget.

The 31-27 vote shifted Statehouse dynamics after Democrats spent much of the day struggling to find support for a tax increase. With lawmakers on the brink of blowing their deadline, the focus now turns to the House, where Speaker Michael Madigan of Chicago repeatedly has insisted he lacks the votes among his Democratic majority to approve a tax hike. The uncertainty for the major Senate tax plan also was illustrated by Democratic Senate President John Cullerton's acknowledgment that Republican votes are needed to get the plan through the House.

But House Republicans have said they won't support a higher income tax.

Beyond that, House Democrats have been reluctant to vote for a temporary 50 percent income tax rate increase for two years. The Senate plan they are being asked to approve is a 67 percent increase that would be permanent. And it's one that would tax individuals at the same rate as corporations.

Getting back into U.S. about to get tougher

U.S. citizens planning a summer camping trip to Canada, a beach vacation in Mexico or a Caribbean cruise had better pay attention to new, tougher requirements for identification at the border.

For years, Americans who visited Mexico, Canada, Bermuda and the Caribbean were exempt from presenting identity papers at U.S. borders and seaports.

Rutherford helping connect constituents with unclaimed property

PONTIAC, IL – In an ongoing effort to help the constituents of the 53rd District, State Senator Dan Rutherford has obtained the latest unclaimed property list and it is available here.

“The Illinois State Treasurer’s Office provides a listing of unclaimed property to legislators twice a year and I make the listing available on my legislative website,” Rutherford said. “Citizens should periodically take a look at my website to view the latest listing for any property they may be missing.”

The Senator explained that these unclaimed assets generally consist of checking or savings accounts, dividends, un-cashed payroll checks and safe deposit box contents, although they could consist of nearly any unclaimed financial asset. Most claims will be assets of at least one hundred dollars.

After assets have been abandoned or inactive for five years, the holder of the property must attempt to locate the owner. If the effort fails, the assets are turned over to the Illinois State Treasurer's Office. The Treasurer then holds the assets indefinitely until they are claimed.

Out of concern for the privacy interests of the owners of unclaimed property the Treasurer will not release information about your assets over the telephone, so please do not call with your inquiry.

The address is: The Office of the Illinois State Treasurer, Unclaimed Property Division, PO Box 19495, Springfield, IL 62794-9495. Inquiries must be in writing and include the name, address and county of residence of the claimant.

Residents of the 53rd district can view the complete listing here.

Quinn chooses Ohio man as prison chief

SPRINGFIELD – A 19-year veteran of the Ohio prison system will head the Illinois Department of Corrections.

Michael P. Randle, assistant director of the Ohio Department of Rehabilitation and Correction, replaces Roger Walker, who served in the post for six years.

Gov. Pat Quinn unveiled his out-of-state pick for the $150,000 per year post at a news conference in the Capitol.

He said Randle, 42, was chosen after a nationwide search that started soon after Quinn took office in January.

“We looked all over the country,” Quinn said, calling Randle the “best of the best.”

Chicago wants more downstate money for road work

SPRINGFIELD -- Chicago and its suburbs have fewer roads and bridges than the rest of the state.

But, in a move that is already sparking a classic downstate vs. Chicago legislative battle, some Chicago-area lawmakers want more money for road construction than the area has traditionally received.

Armed with a study by the legislature's research office, state Sen. Martin Sandoval, D-Cicero, said that between 1999 and 2007, road fund expenditures in the Chicago area ranged from about 32 percent of the statewide total to 44 percent.

Rutherford statement on Blagojevich indictment