Schaumburg Reps. Froehlich, Crespo, and Walker Break Sales Tax Campaign Pledges
March 19th, 2009 | by Brian Costin Published in Blog, Schaumburg Politics, Taxes | 8 Comments
Rep. Froehlich (D-Schaumburg) Breaks Promise to Voters on Sales Tax Rollback
Representatives Paul Froehlich (D-56), Fred Crespo (D-44), and Mark L. Walker (D-66) opposed a bill that would have lowered the sales tax rate in Schaumburg from 10% (second highest in nation to Chicago) to 9%, breaking key campaign pledges, for all 3, in the process. This bill would have rescinded the huge sales tax increases in Cook County from last year and would have provided for public referendums in home rule municipalities for sales tax increases.
The 10% sales tax is more damaging to Schaumburg than any other municipality in the state. No city has a bigger portion of its economy dependent on retail activity than Schaumburg. While many communities are experiencing an economic downturn across the state, the 10% sales tax is killing Schaumburg business at a rate much faster than most.
Reps. Froelich, Crespo, and Walker decisively stated their preferences that they don’t want the people of Schaumburg to have a voice when it comes to sales taxes. They see no problem in Schaumburg having the second highest sales tax in the nation. A sales tax that is causing a slow and painful death to our local economy.
Rep. Mark Walker who made a campaign promise to “back legislation to repeal Todd Stroger’s sales tax increase and require future tax increase proposals be put to a vote in a public referendum” has gone back on his word less than 3 full months into his first term.
Rep. Paul Froelich and Rep. Fred Crespo, introduced virtually identical legislation in July of 2008, while campaigning for re-election and have conveniently forgot their campaign pledges now that they have been safely re-elected.
Fortunately, Schaumburg does have one representative who supported lowering the sales tax rate. Suzanne Bassi (R – 54), representing parts of Northern Schaumburg, was a co-sponsor of the bill and was the only Schaumburg representatives who kept a campaign promise to support a rollback of the Cook County sales tax increase.
Here is a synopsis of the bill as introduced.
Amends the Home Rule County Retailers’ Occupation Tax Law of the Counties Code and the Home Rule County Service Occupation Tax Law of the Counties Code. Provides that the maximum tax rate that is permitted under those Laws is 0.75%, unless a higher rate is authorized by referendum. Amends the Home Rule Municipal Retailers’ Occupation Tax Act of the Illinois Municipal Code and the Home Rule Municipal Service Occupation Tax Act of the Illinois Municipal Code. Provides that the maximum tax rate that is permitted in the City of Chicago under those Tax Acts is 1.25%, unless a higher rate is authorized by referendum. Preempts home rule powers. Effective immediately.
Repost from Illinois Review below
Cook County residents should be up in arms against Democratic House members who voted Tuesday against a House legislative proposal to roll back Cook County sales tax by 1 percent. In an unsuccessful House floor maneuver, Republicans tried and failed to get House Speaker Mike Madigan to call for a floor vote HB 3948. Democrats sustained the speaker’s call, and for now, the tax rollback is dead.
The House Republicans are especially focusing on Cook County’s Paul Froehlich (D-Schaumburg), who sided with Cook County Board President Todd Stroger to protect the highest county sales tax in the nation.
House Republicans point out and explain:
Since the Stroger Tax Increase, Chicago has held the title of the single highest sales tax in the nation at 10.25 %. Comparatively, New York City and Los Angeles are both below 8.5 %. The tax took effect July 1.
Paul Froehlich voted against House Bill 3948 on Tuesday. The Republican-sponsored legislation would roll back the current Cook County home rule sales tax by 1% within 30 days, which is the rate it was before the tax hike was voted upon late before the budget deadline Feb. 29, 2008. The bill would also require any future proposed increases to be approved by popular referendum.
On Tuesday, Freshman Democrat Paul Froehlich voted in lock-step with Chicago Democrat leaders in opposing House Republican legislation that would have repealed the Cook County tax hike by rolling back the sales tax by 1%.
The House Republican legislation would have rolled the sales tax back by 1%. The measure also instituted key reforms, including requiring any new tax increase to be approved by popular referendum.
“Democrat Paul Froehlich’s continued support of Todd Stroger and his tax increases is hurting Cook County families and small businesses,” said Pat Brady, Republican National Committeeman. “During a time when families are struggling and small businesses are on the brink of collapse, it’s hard to fathom why Paul Froehlich is supporting Todd Stroger and his tax increase that is funding excessive spending and waste in Cook County.”
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March 20th, 2009 at 7:55 PM (#)
Look up HB 663 and HB 3820. I am the chief sponsor of both. One would roll back the Stroger sales tax hike. The other would empower voters via initiative and referendum to roll back the county sales tax.
It’s disingenuous to accuse someone who takes a vote on a parliamentary manuever of opposing a bill that was not even on the floor. When the bill does come up for a direct vote, however, I will support it. I have no doubt that Crespo and Walker will as well.
Crespo, Walker and I merely voted to uphold the ruling of the chair that a motion was out of order to discharge a bill out of committee ahead of my nearly identical bill that had been filed first.
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March 20th, 2009 at 7:59 PM (#)
My bill (HB 663) to repeal the Stroger sales tax is on second reading in the House. It is co-sponsored by Reps. Crespo and Walker. I will call it at the earliest opportunity. In short, I am following through on my commitment to fight the Stroger tax hike.
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March 20th, 2009 at 10:43 PM (#)
Rep. Froehlich. I am currently looking up your two bills and upon completion of investigation I may modify this web post with pertinent information.
Apparently, the Daily Herald has the same take on this as me, that the Democrats were blocking the Sales Tax Rollback.
http://www.dailyherald.com/story/?id=278101&src=109
A pledge to support ALL legislation that would repeal the Stroger/Cook County sales tax increase means just that.
HB 3948 is a bill that would have rolled back the sales tax increase and you chose to block the bill.
I sincerely hope that you are genuine in your support of repealing the sales tax, and not trying to pass legislation that would makes it easier for the Cook County board to pass future sales tax increases.
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March 22nd, 2009 at 6:16 PM (#)
HB 3948 is nearly identical to my HB 663. Mine was introduced Feb. 5, 2009. The Republican copycat version was introduced Feb. 26, 2009. When HB 3948 comes up for a vote on the House floor, rest assured I will support it. That’s a straight up or down vote, unlike when the vote is whether to sustain the ruling of the chair that a motion is out of order to move a bill directly to the floor — ahead of my bill — without passing committee.
If you’re just going to uncritically repeat GOP press releases, then you’re embracing half-truths, distortions and lies.
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Brian Costin Reply:
March 22nd, 2009 at 7:47 PM
How can the people of Schaumburg & Cook county believe you will reliably support HB 3948 when you have already voted against it? Didn’t you pledge to support ALL legislation that would roll back the recent sales tax increase?
HB 663 is not identical to HB 3948 as you purport. Your HB 663 is not nearly as strong in protecting taxpayers as HB 3948. Your bill does nothing to limit the Chicago Sales Tax Increases imposed on Chicago retailers & consumers who are suffering underneath the highest sales tax burden in the nation at 1.25%. In fact the word Chicago doesn’t even appear in your bill. If you included this in your bill it would set a precedent statewide that would limit home rule municipalities all across the state in raising sales taxes without asking the voters first by referenda. Referenda would have given Schaumburg Taxpayers the ability to stop Mayor Al Larson and the Village board’s Sales tax increases in Schaumburg in 1989 and 2004.
Here is part of the text of the HB 3948 legislation that doesn’t appear in your HB 663 bill.
Except as otherwise provided in this Section, beginning on the first day of the first month to occur not less than 30 calendar days after the effective date of this amendatory Act of the 96th General Assembly, the maximum rate of any tax imposed under this Section by the City of Chicago is 1.25%. If the rate of tax imposed by the City of Chicago exceeds 1.25% on the effective date of this amendatory Act of the 96th General Assembly, then the rate shall be reduced to 1.25% beginning on the first day of the first month to occur not less than 30 calendar days after the effective date of this amendatory Act of the 96th General Assembly. The corporate authorities of the City of Chicago may increase the rate to more than 1.25%, but only after the question is approved by the voters residing within the City of Chicago at an election held in accordance with the general election law. The corporate authorities shall certify the proposition to the proper election officials who shall submit the proposition to the voters at an election in accordance with the general election law. The proposition shall be in substantially the following form: “Shall the City of Chicago be authorized to increase its retailers’ occupation tax (commonly referred to as its sales tax) to (percent)?” Votes shall be recorded as “Yes” or “No”. If a majority of the votes cast on the proposition are in favor of the increase, then the increase is authorized.
Why not co-sponsor the stronger taxpayer protections of the HB 3948 bill, and create a bi-partisan effort to reduce sales taxes both on the county and local level?
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March 23rd, 2009 at 5:47 PM (#)
The original topic was the Cook County sales tax. That’s the one that affects my constituents when they shop where they live. That’s the one my constituents are up in arms about. By contrast, not one of my constituents has complained to me about the City of Chicago’s sales tax.
Regarding the County sales tax, the two bills are almost identical. My unequivoal opposition to the Stroger tax is reflected in my two bills. A vote to uphold the Chair on a motion to overrule is hardly identical to voting down a bill. It’s only partisan gamesmanship to claim otherwise. Now I know what your game is.
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March 23rd, 2009 at 5:53 PM (#)
By the way, why not asked Rep. Mathias, the sponsor of HB 3948, if he’ll extend the sales tax limit he wants to impose on Chicago to, say, Buffalo Grove, Wheeling and Arlington Heights, towns he represents and where his constituents live? If his limit is good enough for Chicago, why not for his towns, each of which has a sizable village sales tax?
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March 26th, 2009 at 11:03 PM (#)
Rep. Froehlich-
I was wondering if none of your constituents are concerned about the 12% sales tax at restaurants in Schaumburg. I know I am. This 12% is obscene and exactly why HB 3948 is so important.
You are absolutely right that the municipality sales tax limit should be extended in Mathias’ bill. But to his credit at least he has got some type of municipality sales tax limit. Your bill has no municipality sales tax limit at all. Why?
That’s why I prefer HB 3948 to your bill.
I would very much like to see all Schaumburg Reps. take a stand against the ridiculous 12% local restaurant sales tax on Schaumburg families and businesses, both from the county level and municipality level. Will you?
A good first step would have been to not to vote down the stronger of the two bills like you did.
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