Progressive income tax would put heavy burden on small Illinois business

---

by Bryce Hill, Senior Research Analyst
Illinois Policy

---

COVID-19 and state-mandated restrictions already damaged Illinois small businesses, but the extra challenge of a 50.3% marginal income tax rate awaits if Gov. J.B. Pritzker’s "fair tax" is added to their state and federal income tax burdens.

Despite wide-spread agreement that you should not raise taxes during an economic downturn, Pritzker insists Illinois needs his $3 billion income tax hike now more than ever. But massive job losses and stubbornly high unemployment rates mean there might not be a worse time for a tax hike. Hiking taxes during a recession, or just as the economy attempts to get back on its feet, would be a clear policy mistake. One reason is the income tax hike would hit the state’s largest job creators – small businesses – the hardest.

Small businesses are responsible for 60% of the net job creation in Illinois and are the businesses most at risk from the economic fallout of COVID-19. Changing to a progressive income tax in Illinois could mean a massive tax hike for these businesses and create marginal income tax rates in excess of 50% when all state and federal income taxes are included. Research has shown an increase in the top marginal tax rate is associated with a decrease in hiring activity of entrepreneurs and lower wages for their employees.

When considering all of the layers of income taxes Illinoisans face, small businesses – who pay taxes as individuals – could be left paying 50.3% of their top-end income in taxes. Total marginal income tax rates would range from 31.6% to 50.3% thanks to federal income tax, Social Security tax, Medicare tax, state income tax, and Illinois’ Personal Property Replacement Tax.

The increase in the state income tax from the current flat rate of 4.95%, to up to 7.99% under the progressive income tax, would mean that some small businesses would face a state income tax hike 5 times larger than big businesses.

While the total corporate income tax rate – including the Personal Property Replacement Tax – will be hiked by 10% (from 9.5% to 10.49% when including the replacement tax), the tax hike for pass-throughs could be up to 47% (6.45% to 9.49% when including the replacement tax).

Research from April showed fewer than half of all U.S. small businesses expected to re-open this year if the crisis lasted more than four months. For the small businesses that do manage to survive, the last thing their owners and employees need is a tax hike to crush them while they’re attempting to get back on their feet.

Small businesses such as S-corps, partnerships, LLCs, and sole proprietors make up a large majority of business establishments in Illinois, representing 71% of all private for-profit businesses, totaling more than 210,000 establishments. These small businesses also employed nearly half of Illinois’ private for-profit workforce prior to the COVID-19 downturn, or more than 2.3 million Illinoisans.

Contrary to the governor’s claims, a progressive income tax hike is the exact opposite of what Illinois lawmakers should be doing in the midst of the COVID-19 crisis.

Nearly 700,000 Illinoisans remain out of work as a result of the pandemic. That is after the first year on record in which Illinois lost private-sector jobs amid a national boom.

Imposing marginal tax rates exceeding 50% for Illinois’ largest job creators during the current economic crisis would be a painful mistake.

---

Originally published by Illinois Policy on October 8, 2020. Published by permission.

Photo of the Day - October 12, 2020

---

SJO piles on the TD

St. Joseph-Ogden's Lucas Gones races to the end zone on a long punt return on October 17, 2009. The senior was tripped up short of the TD but scored later in the home game on a pass from quarterback Blake Hoveln. The victory also clinched SJO's 19th consecutive playoff appearance with their 41-7 win Saturday afternoon.

(Photo: PhotoNews Media/Clark Brooks)

Village sewer rate increase goes into effect in St. Joseph

At the beginning of this month a scheduled sewer rate increase went into effect for the Village of St. Joseph. The new rates will be reflected on residents' upcoming November billing.

The schedule rate increase, approved in April 2019 by the St. Joseph Board of Trustees and put on hold due COVID-19 pandemic, will pay for upgrades as the aging plant nears its maximum operating capacity according to a release from the village.

The 15-year plan created last year is a detailed road map to ensure costs, operating expenses and plant capital maintenance needs are met to keep pace with the community's growth. The plan included incrementally increasing rates, which will be determined annually by the board, on a yearly basis rather of one or more large jump in monthly fees.

While the increase will impact low volume users minimally, heavy users will see likely see a noticeable change on their statements.

The new rate, starting on October 1, is $17.50, up from $15.00, for the first two units. Each additional unit used will be billed at at $1.75 more then the previous amount of $5.25 at $7.00 each.

Unity takes 2nd at conference meet, SJO girls 5th

Unity's Taylor Joop runs the first lap around the course at the 2019 IHSA cross country state meet. Joop finished in 9th place at Saturday's Illini Prairie Conference meet in St. Joseph.

Photo: PhotoNews Media

---

Fourteen area long distance runners competed in this year's Illini Prairie Conference meet held Saturday at the Woodard Family Park and Sports Complex. By the time trodden grassy surface settled, the Unity girls cross country squad learned of their second place team finish via 45 points tallied in the team competition. Ninety-six points behind them, host St. Joseph-Ogden finished in fifth place with 136.

Individually, Rockets' Erica Woodard paced all area runners around the course closing out her race in 18 minutes, 18 seconds for a fourth place overall finish. Nearly a minute later, teammates Caelyn Kleparski (8th) and Taylor Joop (9th) crossed the finish line at 19:12 and 19:15, respectively.

Ava Knap let the Spartan contingent finishing the 3-mile course with a time of 20:19.21. She was followed over the line by Helene Jones and Chloe Burkholter to round SJO's top three finishers. Jones finished two spots behind Knap in 23rd place overall. Meanwhile, Burkholter ended her run 30th out of 56 runners on Saturday.

This year's meet champion was Monticello with 29 points. Olympia won third place honors with a score of 90 points.

Illini Prairie Conference meet results:

4	Erica Woodard	Unity	18:18.00
8	Caelyn Kleparski	Unity	19:12.99
9	Taylor Joop	Unity	19:15.09
11	Elizabeth Hulick	Unity	19:26.23
13	Olivia Shike	Unity	19:38.08
16	Malla Fairbanks	Unity	19:55.97
20	Ava Knap	SJO	20:19.21
22	Helene Jones	SJO	20:28.93
26	Audrey Remole	Unity	20:45.34
29	Chloe Burkholter	SJO	20:58.85
31	Malorie Sarnecki	SJO	21:03.39
34	Kailyn Ingram	SJO	21:11.77
35	Addie Allen	SJO	21:22.56
39	Ashlyn Lannert	SJO	21:49.06

Village Administrator job on St. Joseph board agenda

The Village of St. Joseph moves one step closer to hiring a Village Administrator. A proposal from the Finance, Personnel, and Economic Development department will ask the board to approve a job description and new ordinance for the position of Village Administrator at Tuesday's board meeting.

The Village Administrator would be responsible for day-to-day operation of village services, keep track of financial health and capital projects, assist in zoning enforcement as well as ensuring permit fees are collected.

"The way we do things now, we are far from being efficient," said Tami Fruhling-Voges, Village President/Mayor. "The Village should be ran like a business."

She said the Village Administrator is needed to help her and the trustees with research and policy recommendations. The person in the new position would also actively apply for state and federal grants.

"It will truly be a benefit to the community."

According to agenda for Tuesday, Mayor Fruhling-Voges will present a new Village Public Works calendar and announce the recipient of the St. Joseph's first Employee Appreciation Award. She will also unveil a Halloween Proclamation as well as tax levy comparisons and late distributions from the County Treasurer's Office.

The board will also hear and vote to approve an audit report from Feller & Kuester CPAs LLP, receive an updated from the recent Sewer Committee meeting and an update on the Linden Street retention pond.

If you have something that you want to bring up at the Village Board Meeting but do not want to attend, residents are encouraged to email the information to tasmetzer@gmail.com. Your email should include your full name, address and phone number.

If you would like to attend the meeting in person, please use the side door which enters directly into the Village Board room. It will be the only door available for entry. Visitors may address the Board /Committee on subjects listed and not listed on the agenda during the Public Comment portion of the meeting. Speakers will must state their name and address for the meeting records. Masks and social distancing will be observed.

You can find the October 13 agenda here.

Photo of the Day - October 11, 2020

---

SJO upsets Sabers, 2-1

(left to right) Lindsey Aden, Kennedi Burnett, Rylee Stahl, Kenly Taylor and Payton Vallee celebrate a point for St. Joseph-Ogden in their Illini Prairie Conference road match at St. Thomas More in October 2018. After dropping the first set 25-22, the Spartans rallied back to take the last two for the victory, 25-21 and 26-24.

(Photo: PhotoNews Media/Clark Brooks)

Photo of the Day - October 10, 2020

Spartans unable to answer Manteno challenge

Jacob Shaw kicks the ball down the field in St. Joseph-Ogden's home game against Manteno in 2018. The Spartans fell 4-0 in the non-conference match. Other members of the team that season included Logan Ingram, Justyn Frisby, Cailer Kellenberger, Sophia Martlage, Jared Emmert, Zac Seeley, Tyler Sullivan, Bryce Froeschl, Jordan Kelly, Brayden Grimsey, Kolton Batty, Joshua Baldner, Nathan Emmert, Luke Cohen, Seth Wedig, Cade Hausman, Joel Branson and Mason Behrens.

---

Photo: PhotoNews Media/Clark Brooks

Halloween parade, trunk-or-treat set for Tolono

The Tolono Fun Day group will host a Halloween parade starting at 3pm in Tolono on October 31. Open to walkers as well as to decorated floats, vehicles, tractors and golf cars, the parade will start at East Side Park and wind through town to West Side Park.

Participants are asked to line-up for the parade starting at 2:45pm at East Side. 

---

Parade route for the Tolono Halloween parade

---

"This is our first year doing anything like this," said Brian Booher, one of seven members of the group running the Halloween event. "We’re really not sure what our turnout will look like. It’s peaked the interest of some local businesses this time, too."

Booher, who lives in Tolono and graduated from Unity High School, said past participation in similar events has been modest, but with the parade open various vehicles, he is hoping for more participation and a decent size crowd along the route.

Our past golf cart parades we got around 20 carts," he said.  "With this parade also being open to vehicle, bike, and walkers, we hope to get a little bit larger turnout."

Once the procession reaches its destination at West Side Park, there will be a Trunk-or-Treat event for kids to enjoy.

"Trunk-or-Treat is where folks will decorate their car trunks or back of golf cart with some Halloween decorations and hand out candy to the kids," Booher said. "I personally have never participated or seen one before, but I’m told it’s fun."

Photo of the Day - October 9, 2020

Barnes, Spartan hoops off to a good start

St. Joseph-Ogden's Ryan Barnes tries to make a save on ball headed out of bounds with a pass under the basket on the baseline. Barnes and the Spartans knocked off the Rockets 54-37 in their early season game on December 6, 2005, to earn their second win of the season. The two teams met again later in the season at the Rocket Center in Tolono on February 17 in their two-game series.

 

Photo: PhotoNews Media/Clark Brooks

---

National Fire Prevention Week: Play it safe in the kitchen

While annual Fire Prevention Week ends today, it is important to remember that fires as a result of preparing meals or snacks can occur at any time.

Data collected from around the country that between 2014 to 2016 notes that cooking was by far the leading cause of all residential building fires, nearly 50 percent of all fires in home across the nation.

"The most important step you should take before making a meal is to 'Serve Up Fire Safety in the Kitchen!'" says Fire Chief Jim Kreher, President of the Illinois Fire Safety Alliance. "A cooking fire can grow quickly. I have seen many homes damaged and people injured by fires that could easily have been prevented."

Cooking is the leading cause of home fires and home fire injuries in the United States. Almost half (44%) of reported home fires started in the kitchen according to the National Fire Protection Association. Two-thirds of home cooking fires start with the ignition of food or other cooking materials. The most frequent cause of home fires is from cooking oil and grease.

"We know cooking fires can be prevented," said Lorraine Carli, VP of Outreach and Advocacy at the NFPA. "Staying in the kitchen, using a timer, and avoiding distractions such as electronics or TV are steps everyone can take to keep families safe in their homes."

The IFSA has safety tips that anyone cooking on a stove or open fire should observe to prevent accidental fires or flare-ups.

1. Never leave food to cook unattended. Stay in the kitchen while you are frying, grilling, or broiling. If you must leave, even for a short time, turn off the stove.

2. Create and maintain a "kid-free zone" of at least three feet around the stove and areas where hot food or drink is prepared or carried.

3. Always keep an oven mitt and pan lid nearby when you’re cooking.

4. If a small grease fire starts, slide the lid over the pan to smother the flame. Turn off the burner, and leave the pan covered until it is completely cool.

5. If you are simmering, baking, roasting, or boiling food, check it regularly, remain in the home while food is cooking, and use a timer to remind you that you’re cooking.

6. Be alert when cooking. Avoid cooking or baking if you are sleepy, have taken medicine or drugs, or consumed alcohol that can make you drowsy.

Photo of the Day - October 8, 2020

Spartans beat Pontiac in straight sets

St. Joseph-Ogden's Rylee Stahl passes the ball to the front row during her team's home Illini Prairie Conference match against Pontiac in October of 2019. SJO defeated the visiting Indians 25-12, 25-17. Finishing the remainder of the season undefeated, Stahl and the Spartans closed out the season with a final record of 37-5 after securing a third-place state trophy at the Illinois High School Association volleyball state tournament.

---

Photo: PhotoNews Media/Clark Brooks