Senate Grand Bargain Negotiations
Over the past few days, many constituents in my district have received robo-calls from organizations informing them to contact my office to oppose potential tax increases being negotiated in the Senate Grand Bargain proposal. Bipartisan conversations in the Senate are ongoing; however, in the House chamber, we have not achieved similar fluid communication.
- Broadening of the sales tax is estimated to bring in approximately $149 million in new revenue. This includes taxes on streaming services, satellite, cable, storage, laundry and dry cleaning, landscaping, and maintenance repair of property.
- Increases in Personal and Corporate Income taxes. Increasing the Personal Income tax from 3.75% to 4.95% will generate annually $4.4 billion. The Corporate Income Tax would increase from 5.25% to 7% which will annually bring in $514 million.
- Individuals making more than $250,000 and joint filers making over $500,000 will lose various state income tax breaks such as the personal exemption, property tax credit, and education expense credit. New revenue gained is expected to be $81 million.
- Cap of $1,000 per month on the retailer’s tax rebate will net the state more than $83 million.
- Increases the family Education Expense Credit from $500 to $750.
- A 50% increase to the Earn Income Tax Credit (EITC) over 5 years.
- The revival of the expired Manufacturing Purchase Credit and Graphic Arts Equipment Sales Tax Exemption.
- Pension reform that would create a new tier for new employees that would be a defined contribution model that would also allow for current employees to voluntarily modify their plan for options.
- Some Workers Compensation reform that would allow for reductions in costs for employers.
- 4 year overall property tax freeze. Your actual amount due on your property tax bill would be frozen for 4 years.
- At this time in the Senate there is a tentative agreement to $3.8 billion in structural spending reductions such as: State Employee Group Health Insurance ($435 million), Medicaid ($400 million), 10% reduction to higher-education institutions ($148 million), 5% spending reduction to state departments and agencies ($100 million) and bonding to IT programs ($94 million).
There will be many conversations and sadly rumors occurring over the next two weeks as the House and Senate attempt to pass a balanced and affordable budget for taxpayers. To keep up to date on those conversations I encourage you to join me and Rep. Steve Reick for a live tele-town hall from Springfield on Thursday, May 25th at 6:30 pm. Next week there will be a call going out to constituents in both our districts encouraging your participation.
Summer Reading Programs
Rep. Sosnowski’s to the Library and Beyond Summer Reading Program – For Kindergarten through 6th Graders
North Suburban Library District Summer Reading Club for all ages!
The 2017 theme is: READING by Design. Programs are available for children, teens and adults. May 30th is the start date to sign up, obtain your reading log, and begin earning rewards. For program details, inquire at the Children or Reference Services desk at either library location. Fun events and special performers are also planned for all ages. For more information visit NSLD website here.
Rep. Sosnowski’s 2017 Kids Health & Safety Fair
This year’s Kid’s Health & Safety Fair is scheduled for Saturday, August 5, 2017 from 11 am to 2 pm. At Rockford Christian Schools, 1401 North Bell School Road in Rockford.Pictures from last years event can be found here. If your business or organization would like to be a vendor at the event or if you have any questions please feel free to contact my district office at (815) 547-3436.
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Sincerely,
Joe Sosnowski
State Representative
69th District