Dbiss05102017A measure that would bring fairness to Illinois’ income tax system, close the wealth divide and help to resolve the state’s budget crisis passed in the Senate this week.

Senate Bill 1719, sponsored by Senator Daniel Biss (D-Evanston), would close the carried interest loophole that enables ultra-wealthy hedge fund and private equity managers to avoid paying millions of dollars in Illinois taxes.

“Wealthy hedge fund managers are exploiting an archaic tax loophole and profiting off the backs of Illinois taxpayers,” Biss said. “We have a corrupt tax system in which ordinary people aren’t receiving the government services they help to pay for because the state is broke, in part because of a tax loophole that helps the rich get richer.”

The legislation would establish a 20 percent privilege tax on a former of compensation known as carried interest beginning July 1, 2017. The tax is on the fees earned from the investment strategy of the investment manager, not on the investment itself.

Estimates are that the legislation annually could generate between $473 million and $1.7 billion for the state.

Amisha Patel, executive director of Grassroots Collaborative, a Chicago-based organization, commended Biss and the Illinois Senate for passing the legislation.

“This is great news for Illinois residents who have been languishing under an extended budget impasse,” Patel said. “Illinois needs new revenue. Senate Bill 1719 generates significant revenue, raising it from those who have profited for years off a rigged tax system, instead of asking for more sacrifices from our most vulnerable residents.”

Biss said this is just another step toward correcting inequities that are baked into Illinois’ tax system.

“There is no reason for the State of Illinois to aid billionaires in finding ways to shelter their income,” he said. “Everyone should have to pay their fair share of income taxes. And if lawmakers in Congress won’t help us right this wrong, we’ll have to do it ourselves.”

Category: Press Releases

Senator Daniel Biss (D-Evanston) issued the following statement regarding Gov. Bruce Rauner’s role in implementing the package of bills considered today by the Illinois Senate:

“Gov. Rauner expects lawmakers to give him unchecked freedom to overhaul the state’s Medicaid program that insures the poorest Illinois children and senior citizens, but he’s given us absolutely no reason to trust his judgment about what’s best for the people of Illinois.

“Gov. Rauner has refused to do his job and introduce a balanced budget and instead has claimed in public to support bipartisan Senate negotiations while secretly torpedoing that same work. We have no reason to trust him with carte blanche authority to destroy our safety net and punish the most vulnerable.

“I am not willing to give Gov. Rauner emergency rulemaking authority to implement Trumpcare in Illinois or cause undocumented children to lose coverage.

“In the meantime, Gov. Rauner is doing his best to dismantle the Community Care Program that tens of thousands of seniors rely on to live in dignity in their homes, and I cannot support a budget that facilitates his efforts to do just that.

“Our state urgently needs a budget, and I will continue to do all I can to move us toward a fair budget resolution that adequately funds our priorities. I stand ready to work with anyone toward that goal, and I am prepared to compromise.

“But I will not accept the premise that we must balance our budget on the backs of senior citizens and the poor.”

Category: Press Releases

Measure would amplify ordinary people’s voice in government

SPRINGFIELD – State Senator Daniel Biss’ measure to bring small donor matching to Illinois to ensure government better reflects the people it serves advanced out of the Illinois Senate Tuesday.

“Everyone who is frustrated today by the influence that corporations and billionaires wield over politicians and the policy decisions they make should support the concept of small donor matching,” said Biss, an Evanston Democrat.

“This is one way we can restore the balance of power in government and ensure that average people – those who represent Main Street America and middle-class values, not Wall Street and the corporate class – have greater influence over the decisions that are made in Springfield and elsewhere.”

Senate Bill 1424 would establish a small donor matching system for statewide races in Illinois, including governor, attorney general, comptroller, treasurer, secretary of state, state senators and state representatives. The system empowers ordinary people to compete financially and ideologically with special interests and wealthy donors. It also opens up the playing field to more diverse candidates for office and leads to more options at the ballot box.

Senate Bill 1424 would weaken the influence of money in Illinois elections by doing the following:

  • Contributions between $25 and $150 from local donors would be matched 6:1 by public funds.
  • Limits would be set on the amount of public funds available to each candidate.
  • Candidates would not be able to accept contributions of more than $500 from a single donor.

Under the legislation, the General Assembly could appropriate money to a special fund in the state treasury. The funds would be either $1 per Illinois resident or 1/20th of 1 percent of the state’s annual budget, whichever is greater.

“It’s time for Illinois to step up to the plate and implement this important reform, which would ensure that the voices of local donors are amplified in Illinois elections,” said David Melton, senior advisor to the Illinois Campaign for Political Reform, which supports the legislation. “Everyone should have an opportunity to run for office and participate in the political process.”

Proponents from Common Cause Illinois said fair-election initiatives like small donor matching are gaining momentum all over the country. Such efforts are borne of people’s frustration with the growing influence of wealthy special interests in government and the political system. Illinois is no exception, said Jay Young, political director with Common Cause Illinois.

“During the last election, we watched campaign spending in this state spiral out of control with nine local statehouse races exceeding $2 million in contributions,” Young said. “Proposals like Senate Bill 1424 provide candidates with the option to break the cycle of chasing larger and larger checks.”

Biss added that Illinois can’t afford not to pursue small donor matching, particularly in light of the state budget stalemate and the harmful influence of the corporate class at the highest levels of state government.

In 2014, Illinois saw the highest percent of total contributions from large donors in the United States, with $108.8 million from just 21 donors. Fifty-one percent of total candidate contributions were from donors who gave over $1 million in that election cycle.

“This is a structural reform that everyone should be able to agree is good for Illinois and its future,” Biss said.

Category: Press Releases

biss floor fall2015SPRINGFIELD — In response to the recent announcement from the comptroller’s office that Illinois will skip its November pension payments, Sen. Daniel Biss (D–Evanston) issued the following statement:

"The budget impasse continues to wreak havoc on the people of Illinois, and the longer we go without a resolution, the more pain that will be felt. With each day comes more news about Illinoisans unable to get basic services, devastating nonprofit closures and additional mistakes that will take far longer to remedy than they take to create.

"Indeed, just this week, Comptroller Leslie Munger announced that she will not make the state's November pension payment, a practice that has indisputably led to the current condition of our state pension systems. Skipping this payment is simply repeating the biggest mistake of our past, and it puts our state's fiscal stability at even greater risk. We know what happens when we short our pension systems, and credit agencies do, too.

"For all the talk about getting rid of 'business as usual' in Springfield, this certainly feels like more of the same."

Category: Press Releases

Contact Me

District office:
3706 Dempster St.
Skokie, IL 60076
(847) 568-1250
(847) 568-1256 FAX

Springfield office:
417B Capitol Building
Springfield, IL 62706
(217) 782-2119

Email:
biss@senatedem.illinois.gov

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