IVCA Provides Updates for State and Federal Legislative Issues - 02.14.18

IVCA Provides Updates for State and Federal Legislative Issues - 02.14.18

 

IVCA Illinois Legislative Report
David Stricklin / Stricklin & Associates
February 14, 2018

 

PRIVILEGE TAX IN THE ILLINOIS HOUSE

HB 4293 (Welch) is the bill to watch (at least so far) in 2018 for the 20% “privilege tax” on capital gains income earned by investment managers.  The bill was introduced 1/19/18 and referred to the House Committee on Revenue and Finance 2/5/18.  It was posted for a hearing today, but was not called.  Please take two minutes to submit a witness slip against HB4293. Witness slip can be found HEREAnyone in your firm, your family, your friends are all invited to fill out a slip and establish a record of opposition to this bill. Please forward this witness slip to all your friends and family.

Unlike the privilege tax bills in 2017 (SB 1719 and HB 3393) HB 4293 has no additional cosponsors.  IVCA is joined by a coalition of business interests opposing the bill and we are meeting one-on-one with members of the Revenue Committee as well as with an identified group of House members we believe are likely to join us and our coalition in opposition.  You may help by contacting your House and Senate member and letting them know why this would be unwise and help them explain the impact it would have on Illinois businesses we help finance and grow, and how it would drive away IVCA members from the state of Illinois.  Contact Maura O’Hara for background information you may use and for how to contact your legislator if you need any further assistance. 

You may follow this link to see the complete information on the bill and its status:

http://www.ilga.gov/legislation/BillStatus.asp?DocTypeID=HB&DocNum=4293&GAID=14&SessionID=91&LegID=108804

 

GOVERNOR PROPOSES FY2019 BUDGET

The FY19 budget battle is joined fully today as Governor Rauner introduces his blueprint for fy 2019 which begins July 1.  Historically legislative Democrats have criticized the governor’s budget proposal for being unbalanced or lacking certain specifics on how to square revenue with expenditures.  As you recall, the governor and the legislature have been locked in conflict over the budget and went without a complete budget agreement for FY 16 and FY 17.  Even before the ink is dry on his FY 19 budget proposal, the Capitol is coming to grips with how to close shortfalls for FY 18.

Look for the governor to propose rolling back the personal income tax rates approved last year, and to also continue his call for systemic reforms such as term limits for legislators or at least legislative leaders, and business-oriented reforms which he argues would make Illinois more competitive and create a stronger economy.  He is likely to acknowledge recent studies which document the continued out-migration of Illinois population and point to policies in other states which have spurred economic growth and activity.

  

PRIMARY COMPETITION

The budget address will be delivered against a backdrop of intense political activity in the state which you are no doubt consuming at least in part through the torrent of television advertising from all sides.  Governor Rauner is being challenges by Illinois State Rep. Jeanne Ives (R-Wheaton) who has aggressively pursued a critique of the governor’s first term which has included television advertising which even some of her staunchest allies in the legislature have deemed inappropriate.

On the Democratic side, advertising featuring FBI wiretaps of conversations between then-Governor Rod Blagojevich and Democratic candidate J.B. Pritzker appear to have slowed Pritzker’s momentum as the leading candidate for the Democratic nomination, and some polls now show a highly competitive competition between Pritzker, Illinois State Senator Daniel Biss and Chris Kennedy.

 

UPROAR ON SPEAKER’S OFFICE

A top aide to House Speaker Michael J. Madigan was relieved of his duties after allegations of inappropriate conduct made by a female staff member.  This news consumed the Capitol this week and resulted in calls on the House floor for the Speaker’s resignation by Illinois State Rep. Scott Drury (D-Highwood) who was joined by Representative Ives.

Attached are some articles which go into further detail re the allegations and the subsequent response. 

http://www.ilga.gov/legislation/BillStatus.asp?DocTypeID=HB&DocNum=4293&GAID=14&SessionID=91&LegID=108804

http://www.chicagotribune.com/news/local/politics/ct-met-speaker-madigan-chris-kennedy-sexual-harassment-20180213-story.html