Taxing Tuesday: Feds Take an Interest in Chicago Shenanigans?
by meep
Hmmm.
Democratic Illinois Gov. JB Pritzker, his wife and his brother-in-law are under federal criminal investigation for a dubious residential property tax appeal that dogged him during his gubernatorial campaign last year, WBEZ has learned.
A law-enforcement source familiar with the investigation confirmed to WBEZ that the probe, which has not been revealed publicly until now, began last October and remains active. There are no signs that criminal charges are imminent.
WBEZ has also confirmed that Illinois First Lady MK Pritzker’s personal assistant who was involved in the property tax appeal, Christine Lovely, is being represented by one of Chicago’s most high-powered lawyers. Her attorney, Reid Schar, is a former federal prosecutor who helped convict ex-Illinois Gov. Rod Blagojevich on corruption charges.
The developments demonstrate that the billionaire governor and his wife may face a serious legal threat arising from their controversial pursuit of a property tax break on a 126-year-old mansion they purchased next to their Gold Coast home.
Or, maybe it’s nothing.
The property tax scandal picked up steam just a month before the November 2018 gubernatorial election, when the Chicago Sun-Times published news of a confidential memo from Cook County Inspector General Patrick Blanchard.
The report found the Pritzkers had caused the residence they had purchased next to their home to fall into disrepair, in part, by removing its toilets in October 2015 in order to lower the home’s property taxes by having it declared “vacant and uninhabitable.”
On that basis, the Pritzkers’ lawyers persuaded then-Cook County Assessor Joseph Berrios’ office to lower the home’s market value from more than $6.25 million to slightly less than $1.08 million. That ultimately led to a dramatically lower property tax bill for the mansion.
According to the report, MK Pritzker had ordered workers to reinstall one working toilet after the house was reassessed at a lower rate, though it’s unclear whether that happened.
Hmmm.
Well, I had noticed the story back in October, and didn’t find it terribly impressive then. I knew it would have no effect on the election (and it didn’t.)
I dunno, it sounds legit to me. Keep in mind I do not like Pritzker as a politician, and I can only imagine how bad Illinois finances will get with him as governor (not that Rauner has been able to accomplish much), but this really does sound like hewing to the rules.
Is it really Pritzker’s fault that 1. Cook County has silly property tax rules and 2. Cook County is really desperate for tax money?
Ok, he may have a hand in #2.
….
Okay, now I’m seeing what the fraud is. They made it “uninhabitable” for the few hours when the assessment was done, and then made it re-habitable on the sly.If only they had kept it uninhabitable during the whole renovation, they wouldn’t have had this problem.
….
I’m very annoyed that the use of sending info via U.S. mail makes something a federal case. I know “wire fraud”, etc., but come on. If he did something illegally, it should be in state court.But I see the “no Dems to be indicted” aspect in Illinois — so, Illinois, make this a state court matter by actually doing something about this other than bafflegab. Bring some kind of charge, even if minor. Being indicted for something has never been a bar to Democrats being successful politicians in Illinois.
One might be a bit wary over whether Pritzker gets to be the next of many Illinois governors to spend some time in the federal pen, but hey. It’s a tradition by now.
I don’t think this will take Pritzker down. If it does… I would be ashamed of getting taken for such a small charge compared to prior governors.
MORE ILLINOIS TAX STUFF
Yeah, I know I said I’d lay off Illinois for a while. Well, when it comes to taxes, it is very difficult to ignore what’s going on (and I’ve been watching the latest pension tussle in Illinois, but I want to hit: Kentucky, Oregon, and others before I get back to that.)
Instead of filling up all my tax stories below with Illinois-tax-related stuff, let me put it here:
- Wirepoints: The myth of the progressive tax panacea: What you need to know
- Watchdog.org: Op-Ed: Toilet scam throws water on Pritzker’s ‘fair tax’
- Wirepoints: Loaves, Fishes and the Illinois Graduated Income Tax – Quicktake
- Dark Money at Play as Graduated Income Tax Fight Begins
- Civic Foundation: A City of Chicago Income Tax?
- Wirepoints: Toilets and skyscrapers: How Chicagoland’s elite push their property tax bills onto ordinary residents
- Prarie State Wire: Ideas Illinois Chairman Baise believes Pritzker probe should flush any chance of a new tax hike
- Illinois Policy Institute: SPRINGFIELD AREA RESIDENTS PAY SOME OF THE NATION’S HIGHEST PROPERTY TAX RATES
- Illinois Gov. JB Pritzker confident his ‘fair’ income tax plan will pass as he marks 100 days in office
- Illinois Policy Institute:EVENTBRITE BEGINS COLLECTING 9% AMUSEMENT TAX ON CHICAGO TICKET SALES
- Illinois Policy Institute:PRITZKER ON PROGRESSIVE TAX: ‘NO GUARANTEES’ AGAINST MIDDLE-CLASS TAX HIKES
Let me address that last one:
In an ABC 7 interview marking Pritzker’s first 100 days an office, the governor said he could not promise his “fair tax” proposal would shield those earning less than $250,000 from further income tax hikes, but that he’d continue fighting for it nonetheless.
“As you know, we currently live in a system in which the taxes can be changed at any moment so there’s certainly no guarantees,” Pritzker said. “But what I will tell you is that I am fighting for the plan that I put forward.”
Yes, the plan that requires amending the state constitution to be able to impose different tax rates on different people, to make it that much easier to raise taxes in general. Because the initial plan is so inadequate to raise revenue, Pritzker is also talking up a plan to severely underfund the Illinois Teachers pension system (which has been underfunded since at least 2001), and which is running into trouble as a ‘plan’. Given Illinois TRS is only 40% funded (and, of course, Chicago pensions are in an even worse position), undercontributing to the fund is obviously weakening it further.
Everybody (who is non-delusional) knows Illinois revenue is going to have to step up a lot if they’re going to meet their pension obligations as currently constituted.
There are not enough “rich” people to soak to hit that mark. Once you allow for a graduated tax rate, it’s obviously easy to just increase small portions of the tax brackets at a time… just enough to prevent electoral revolt.
With a flat tax, everybody knows it’s going up for everybody.
A graduated tax simply makes it easier to increase taxes in the future.
I know this is not a new idea, and many have stated it: if you want to build credibility for making sure taxes don’t grow too high with a graduated tax, then when you open up that state constitution, there should be some more amendments reining in the spending side of the equation (and, at least, allowing pension COLAs to be cut.)
NOTIFICATION
As the recipient noted: I will determine my own level of rage
TAX STORIES
- Governing: States Want Trump to Release His Tax Returns. What About Governors?
- Tax Foundation: Sources of Government Revenue in the OECD, 2019
- Governing: Do Tax Breaks Help or Hurt a State’s Finances? New Study Digs Deep.
- The fate of Philly’s soda tax
- Workers barely benefited from Trump’s sweeping tax cut, investigation shows
- Millionaires Flee Their Homelands as Tensions Rise and Taxes Bite
- 5 ways to cut your 2019 tax bill now
- Yes, Amazon Pays Taxes
- It took 119 days for N.J. to work off this year’s tax burden. It’s Tax Freedom Day!
- Oil companies dodge tax bills under Trump reforms, study says
- Pew: Tax revenue in 41 states at new record high since Great Recession
- Hot Air: California Governor Wonders Why Gas Prices Are So High In State With High Gas Taxes
- WaPo letters to the editor: Dems want climate change, tax hikes in infrastructure deal
- Newsmax: High Tax States Like NY Are Sign of Inefficiency
- Newsweek: Donald Trump Says ‘People are Fleeing New York’ Partially Because of His Tax Plan
On the last… see the next tweet.
TAX TWEETS
….People are fleeing New York State because of high taxes and yes, even oppression of sorts. They didn’t even put up a fight against SALT – could have won. So much litigation. The NRA should leave and fight from the outside of this very difficult to deal with (unfair) State!
— Donald J. Trump (@realDonaldTrump) April 29, 2019
…. Uh. I have nothing to say to this. Ok, I do. With respect to the NRA (maybe more later – I don’t know what’s going on there), even the ACLU stepped in last year:
t’s no secret that New York Gov. Andrew Cuomo is no fan of the National Rifle Association. A mailer his campaign sent to New York voters this week proclaims, in bold letters: “If the NRA goes bankrupt, I will remember them in my thoughts and prayers.”
There’s nothing wrong with the governor singling out a political adversary for criticism, or even mockery. That’s just politics, and the NRA itself is no stranger to hardball tactics.
But in a lawsuit the NRA filed against Cuomo this spring, the organization contends that he did more than criticize it. The NRA alleges that Cuomo and top members of his administration abused their regulatory authority over financial institutions to threaten New York banks and insurers that associate with the NRA or other “gun promotion” groups, and that those threats have jeopardized the NRA’s access to basic insurance and banking services in New York.
It’s not just the NRA that would be at risk, obviously, which is why the ACLU had something to say on the NRA’s behalf. They’re not total hypocrites re: civil rights for conservatives.
With respect to not fighting SALT… no comment on that right now. I’m not even sure if he’s talking about those fleeing NY not trying to fight for lower taxes (true) or if he’s talking about the lawsuits over the SALT cap or what. I don’t really care. I assume he has kept his NYC residency…. for some reason.
Joe Biden: "The stock market is roaring. But, you don't feel it. There was a $2 trillion tax cut last year, did you feel it? Did you get anything from it? Of course not. Of course not. All of it went to folks at the top." pic.twitter.com/RSk9VlaOLk
— The Hill (@thehill) April 30, 2019
.
— Adam Schuster (@Adam_Schuster) April 30, 2019JBPritzker</a>'s tax hikes will drive more people out of IL and hurt the economy, he's presenting a false choice to voters: massive tax hikes or severe service cuts. <a href="https://twitter.com/illinoispolicy?ref_src=twsrc%5Etfw">
illinoispolicy has a common sense 3rd way to fix our fiscal crisis -> https://t.co/wHN05zMOFG https://t.co/eBBr6cNk6U
He should be forced to live in North Jersey before raising taxes https://t.co/wGTkZrH3×2
— Seth Mandel (@SethAMandel) April 30, 2019
.
BetoORourke</a>'s $5 trillion climate plan calls for:<br><br>-Raising corporate taxes<br>-Ending tax breaks for "fossil fuel companies"<br>-$1.5 trillion in direct federal funding <a href="https://t.co/xoTOvC6DzU">pic.twitter.com/xoTOvC6DzU</a></p>— TicToc by Bloomberg (
tictoc) April 30, 2019
(I don’t ‘get’ TikToc… is it like Vine was?)
If you own a home, you’re already paying a wealth tax—it’s called a property tax. I just want the ultra-rich to pay a wealth tax on the diamonds, the yachts, and the Rembrandts too. pic.twitter.com/NIXntBg8yI
— Elizabeth Warren (@ewarren) April 30, 2019
I didn’t realize I pay a federal property tax. Seriously, think about this before opening your mouth, lady.
It’s the last day to file your taxes! We’ve put a price on pollution and we’re giving the money back to Canadians. If you live in Manitoba, New Brunswick, Ontario, or Saskatchewan, make sure you claim the Climate Action Incentive rebate when you file your taxes! #ClimateActionNow pic.twitter.com/u57Bmwltsh
— Catherine McKenna (@cathmckenna) April 30, 2019
Oh, happy tax day, Canada!
love too pay thousands of more dollars in taxes than the companies destroying my future https://t.co/medR2dUUNE pic.twitter.com/M2sF4SK5wp
— Kate Aronoff (@KateAronoff) April 30, 2019
How about a 10-year history of their taxes & earnings, for those of us who understand finance?
#Trump really really doesn’t want the public to see his loan documents or tax returns. Americans should be asking why. https://t.co/lEraLg6waA
— Maya Wiley (@mayawiley) April 30, 2019
This is bizarre.
— Anand Giridharadas (@AnandWrites) April 30, 2019
A Canadian plutocrat, ex-media baron, and convicted fraudster wants his country to adopt a wealth tax*.
*Except not really because he wants rich people to control how they pay out the money, through charity or by employing people.
Conrad, taxes aren’t charity. https://t.co/mEg0GLpTZK
I agree, taxes aren’t charity.
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