Taxes, taxes and more taxes

Income tax returns were due this week, so it's no surprise that taxes in general were a popular topic of discussion in Springfield. Governor Pat Quinn's proposal to raise income taxes hasn't been the most popular idea, obviously. At first glance, his suggestion to triple the personal exemption to $6,000 seems like a good way to help low-income taxpayers avoid a huge jump in their taxes. But there has been plenty of talk around the capitol that the proposal doesn't do enough to help taxpayers who need it most. At the same time, it minimizes the benefit the state would get from new tax revenue.

It sounds like some lawmakers would be more apt to raise the income tax on a temporary basis without the higher exemptions to maximize revenue for the state for a couple years until the economy turns around. Of course, the last time lawmakers passed a "temporary" income tax hike, they eventually made it permanent. But one alternative floated this week by a coalition of citizen advocacy groups was to increase the state's Earned Income Tax Credit, rather than raising personal exemptions. The groups said they support an income tax hike considering the state's budget mess, but they say raising the EITC makes more sense than raising personal exemptions. The EITC is targeted specifically at low-income families, so it would ease the tax burden on those who can least afford a tax hike, while not taking nearly as big a bite out of the new revenue the state could bring in. Currently, families of four who earn less than $42,000 a year can get an EITC of about $240. The groups want to quadruple the EITC to nearly $1,000. They say it would cost the state $350 million -- as opposed to the $2 billion they estimate the state would lose from tripling the personal exemption for all taxpayers.

Meantime, hundreds of people turned out on April 15 for Springfield's "Tax Day Tea Party." It was one of scores of gatherings nationwide to protest government spending, mostly focusing on the federal stimulus package and other economic policies brought forth by the Obama administration. Although organizers claimed the events were non-partisan, speakers and protesters in Springfield focused almost entirely on Obama. Oddly, even though organizers said the event was meant to be in the spirit of the Boston Tea Party of 1773, there were far more people carrying signs than tea bags. And not all of the signs focused solely on taxes or the economy. One guy carried a sign that must have been eight feet tall that read "Buy Guns." A few other signs urged lawmakers to oppose House Bill 2234, which would legalize civil unions for same-sex couples in Illinois. Normally, I wouldn't post links to "The Daily Show" here, but I had to in this case. Jon Stewart's take on the "Tea Party" protests was excellent.

There was more bad news on the job front this week. The national unemployment rate continues to rise and Illinois is no exception. The jobless rate was up to 9.1 percent in Illinois in March, with 27,400 more people losing their jobs. The manufacturing sector continues to be the hardest-hit industry in Illinois with 14,200 lost jobs. But there was one small bright spot as far as unemployment goes. Thanks to the federal stimulus plan, Illinois is getting funding to extend unemployment benefits for an additional 13 weeks. It's good timing too, because many people who have been out of a job for the past year were about to run out of unemployment benefits.

Changing gears a bit, the University of Illinois at Springfield has been dealing with a bit of a controversy inside the athletic department lately. Three coaches resigned last month, including two softball coaches who stepped down after the women's softball team was suddenly called back from a trip to Florida over "serious concerns." The university has refused to elaborate on what happened, citing privacy issues. But many faculty, staff and students have been so upset about what's going on that the Campus Senate was preparing to take a "no confidence" vote in Chancellor Richard Ringeisen and Athletic Director Rodger Jehlicka. They eventually backed off of targeting Jehlicka and have delayed a vote of "no confidence" in Ringeisen for now. But they've approved a resolution organizing an independent investigation of the athletic department. The Campus Senate will wait until a three-member investigative committee issues a report before they vote on the "no confidence" resolution.

The State Journal-Register has been providing some excellent coverage of the situation, including the fact several student athletes are defending how some recent problems have been handled.