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As Illinois faces over $7 billion in outstanding bills, state legislators argue about how to pay the debt.  Numerous bills are more than 30 days late.  Rep. Esther Golar, a Democrat from Chicago has proposed a controversial bill to pay for some of the state’s debts. Under her bill, the state would borrow $4 billion to pay debts owed to schools, universities, healthcare providers, local governments and state vendors.  Politicians disagree on whether or not taking on new debt to pay current … [Read more...]

“Kinky Boots” had a successful pre-Broadway showing in Chicago but only after the producers received huge tax theater tax creditors offered by the state.  Illinois faces billions of dollars of debt; however, proponents say the tax credit is successful and benefits not only Chicago but also the entire state.  However, critics wonder how the state can offer such huge tax credits when it cannot pay its own debts. For more details about the state tax credit for shows, see “Tax credit luring … [Read more...]

The theme of “fairness” when it comes to paying taxes has spilled over from the presidential election to the State of Illinois.  Lawmakers in Illinois are pushing for new tax laws requiring corporations to provide more information about their income to make sure that publicly traded companies are paying their fair share of state income taxes. Opponents of the measure claim that companies already provide sufficient information.  They argue that the legislation would require companies to … [Read more...]

Bruce Hawkins, the former owner of Aspen Homebuilders, was arrested last week on eight counts of bank fraud.  He was released on a $25,000 bond but he must appear in federal court in Chicago.  If he is convicted, he could face up to 30 years in prison for the more than $1 million he stole from Amcore Bank. Aspen Homebuilders filed for bankruptcy in 2008 just two years after accepting a contract to build luxury condominiums in Algonquin.  The development, known as Riverside Plaza, is now under … [Read more...]

A recent study shows that even though the value of real estate in theChicagoarea has gone down during the past four years, the rate of property taxes has increased.  The study, conducted by the Civic Federation, a Chicago watchdog group, shows that even though homes are worth less than they were several years ago, homeowners are paying more each year in taxes.  Some areas have seen a twenty percent increase in property taxes as the homes decline in value. For the complete story you can read, … [Read more...]

Chicago’s pension system is headed for a meltdown according to a Chicago business group.  Furthermore, the problems facing the pension system may be beyond repair at this time.  According to The Commercial Club of Chicago, the November elections did not force lawmakers to make the reforms necessary to deal with the $200 billion debt that the state faces. The Governor does not have a plan but he does have a new mascot - - “Squeezy, the Pension Python.”    When introducing the new state mascot, … [Read more...]

In an attempt to prevent the liquidation of Hostess Brands through bankruptcy, it has agreed to mediation with the Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union.  Because of continuing strikes, Hostess said that the Union had made it impossible to conduct business and filed for bankruptcy relief.  The Union was striking, in part, because of reduced pay and cuts in pensions. Judge Robert Drain stated in court that he had serious questions about the logic of … [Read more...]

Illinois Attorney General Lisa Madigan urged Congress, along with Attorney Generals from other states, to extend the tax relief granted under the Mortgage Debt Relief Act beyond its current expiration of December 31.  Under the current act, a homeowner that gives up his home through foreclosure, a short sale or loan modification does not have to include the forgiven mortgage debt as taxable income.  Without Congressional action, this tax relief will expire at the end of the year. For more … [Read more...]

After missing a $97 million payment on its unsecured bonds, Edison Mission Energy announced that it might have to file for bankruptcy relief within the month.  Citing decreases in power prices, Edison cannot service its $3.7 billion in unsecured bonds and may need to restructure that debt through a bankruptcy.  However, the process of restructuring through a bankruptcy will not be without its problems. The company has retained the services of restructuring lawyers in hopes of avoiding the … [Read more...]

Steven Huntley tries to teach us a lesson from Denmark’s ‘fat tax’ in his article “A ‘fat tax’ lesson from Denmark” this week. Denmark tried to fight the country’s rising obesity levels by enacting higher taxes on foods that contained more than 2.3 percent saturated fat such a cheese and butter.  Danes were outraged and began finding cheaper versions or crossing the boarder to stock up on their favorite foods. Huntley relates the lessons learned from the ‘fat tax’ to America’s current … [Read more...]