Progress Illinois

An all too common sight in American politics these days is the fiscal conservative who works diligently to protect the interests of the wealthy -- no matter how costly those protections are. The fight over the estate tax (imposed on the assets of a deceased person) perfectly embodies this phenomenon. And that debate might bubble up in Illinois very soon.

First, let's review how the estate tax operates here in the Land of Lincoln. Prior to this decade, the federal and state estate tax laws worked in tandem. Taxpayers received a dollar-for-dollar credit (up to a specified amount) against their federal estate tax liability. Every state then applied their own estate tax, which was identical to the value of the credit. (Colloquially, it was known as a "pick-up tax.") Let's say you had an estate with taxable income totaling $2,000,000. The feds provided you with a credit of roughly $150,000. (See the state estate tax credit schedule here.) Illinois then levied its own tax equaling $150,000.  In the end, the combined Illinois and federal tax liability were the same as the total federal tax before the credit. But in the process, state legislatures earned a little bit of extra scratch

That all changed in 2001 when Congress enacted President Bush's first major round of tax cuts (legislation known as EGTRRA). That bill phased in a full repeal of the federal estate tax over a 9-year period (set to take effect in 2010). It also gradually increased the federal estate tax exemption -- the amount of money that the wealthy were allowed to shield from the tax. (It was raised to $1 million per individual in 2002, $1.5 million in 2004, $2 million in 2006, $3.5 million this year.) And it phased out the state credit, thereby depriving state governments of the "pick-up tax" revenue. If they didn't want to forgo that money, lawmakers were forced to decouple from the federal statue and establish their own, independent estate taxes.

In early 2003, Illinois did just that.

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Right on schedule, President Obama signed into law this morning H.R. 3548, a federal extension of unemployment insurance. The bill extends jobless benefits to unemployed Americans set to exhaust their insurance by December 31 in states (like Illinois) where unemployment rates are high. According to the Illinois Department of Employment Security, 28,000 unemployed individuals have already run out of benefits and 12,000 more will by year's end. The legislation also extends through June an $8,000 tax credit for new homebuyers. In a statement following the signing, the president said the bill "will help grow our economy, help create and save jobs, and help provide necessary relief to small businesses." The Illinois AFL-CIO's Michael Carrigan agrees. From the Sun-Times:

"With Illinois' unemployment rate still over 10 percent, many families need this extension," said  president of the Illinois AFL-CIO. "For most, their unemployment check is what keeps food on the table, and as we head into winter, their homes heated. Our economy is slowly rebuilding, but until the job market rebounds we have to protect those who have lost their jobs."

But Congress might not be done.

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If he's to survive the rough-and-tumble Republican gubernatorial primary, State Sen. Kirk Dillard is going to have to appease his party's conservative base. That includes providing justification for his appearance in the first biographical television ad produced by then-Presidential candidate Barack Obama. "Sen. Obama worked on some of the deepest issues we had, and he was successful in a bipartisan way,” the Hinsdale lawmaker said in the ad. “His negotiation skills and an ability to understand both sides would serve the country very well.”

At a "tea party forum" in Homer Glen Wednesday night, one attendee wanted to know if Dillard still believed that his former colleague was "serving the country well." Dillard quickly said no before launching into a revisionist attack on the president, claiming that he doesn't like the "socialistic policies" that are being implemented in Washington and that he "warned people back then that [Obama] was a socialist." Watch it:

DILLARD: I disagree with Barack Obama on about 95 percent of what he stands for or is. One of the reasons I'm here tonight is I don't like those socialistic policies and I warned people back then that he was a socialist and took him on on socialized medicine on the floor of the Illinois State Senate.

This clip raises a few questions.

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It's no secret that Illinois conservatives hate the Democrats' cap-and-trade legislation with a passion. Indeed, their intense opposition is likely what led U.S. Senate candidate Mark Kirk to backtrack from his earlier support for the House climate bill. So it's not surprising that the Republicans running for governor in Illinois would express reservations about the proposal in front of a packed "tea party forum" in Homer Glen last night.

But the GOP candidates didn't simply criticize cap-and-trade as the wrong way to address climate change -- four of them denied that humans have even contributed to global warming.

When asked whether they believe "climate change is caused by human activities," State Sens. Kirk Dillard (R-Hinsdale) and Bill Brady (R-Bloomington), DuPage County Board Chair Bob Schillerstrom, and commentator Dan Proft responded by rejecting that premise. Watch thevideo (pardon the shaky camera work):

Apparently Proft thinks that the 2,500 scientists and other climate experts who make up the Intergovernmental Panel on Climate Change (IPCC) qualify as "enviro-terrorists."

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Twenty-seven days after they first passed an unemployment benefit extension, the U.S. House is returning to the issue today.

Following the passage of H.R. 3548 in the Senate last night, House Majority Leader Steny Hoyer (D-MD) told reporters that he will schedule a vote on the more generous compromise forged in the Senate sometime today, which would grant 20 weeks of extra insurance to workers in high-unemployment states and 14 additional weeks everywhere else. One new point of contention is the carryback provision attached as an amendment to the bill, which allows all businesses to deduct income losses in five profitable years instead of two.  Progressive lawmakers view this an unnecessary giveaway to big business, but none are expected to peel off as a result.

Assuming that the House does pass the measure today, National Journal's Congress Daily reporter Daniel Friedman told C-SPAN viewers this morning that President Obama is "expected to sign it tomorrow."

As we post this, debate has started on the House floor.  We'll keep an eye out for the final roll call.

UPDATE (12:57 p.m.): The House is now holding a 15-minute vote on H.R. 3548.  We'll have the final roll call shortly.

UPDATE (1:20 p.m.): The House has passed the bill, with 403 members voting in favor and 12 Republicans voting nay. It's now off to the president's desk.  

UPDATE (2:30 p.m.): A statement from Rep. Phil Hare (D-IL):

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How federal health care reform will affect state finances is a concern held by many policy wonks across the country, especially those from states dealing with devastating budget shortfalls. It worries Illinois' own Rep. Phil Hare, as well. But speaking on C-SPAN's Washington Journalthis morning, the Quad City Democrat said he is confident that betweennow and 2013 -- when most of the major provisions of the bill will beimplemented -- reformers can develop safeguards to prevent any unfundedmandates on state governments.

Hare also talked up the high cost faced by American families andhealth care providers if no action is taken on this issue. Heillustrated the point by citing data from his own district, where anestimated 100,000 people lack insurance.He reported that, three years ago, Monmouth Hospital administered$400,000 worth of care to the uninsured. Two years ago,that number jumped to $1.3 million. Last year, the facility -- locatedin a town of 13,000 -- dolled out $2.8 million in charity care."If anybody doesn't think we have a financial problem out here onhealth care," Hare said, "they need to go to Monmouth, Illinois." Watchit:

The latest news from the health care reform battle -- both in D.C. and here on the homefront.

A Final Bill By Christmas?

Now that health care legislation has passed out of the five relevant committees on Capitol Hill, health care advocates are starting to wonder when both chambers of Congress will take up the bills in earnest. While House leaders are moving quickly, Illinois' own Dick Durbin says that progress might be slower in the Senate. The Hill has a quick story up today outlining the reasons for the possible delay:

Even while House leaders pressed forward for a vote on a House version this week, [Senate Majority Leader Harry] Reid and Durbin said their hands are tied until the CBO releases its cost estimate of the Senate bill. Then the document would be published online for public review, possibly revised and re-analyzed by the CBO, and then several weeks would be needed for House-Senate conference talks.

Despite months-old predictions of a bill before Christmas, with only six weeks of legislative time remaining in the year Durbin acknowledged a healthcare bill in 2009 “is certainly a challenge.”

Will Sen. Roland Burris join Durbin and vote in favor of health care reform when he's eventually presented with the final bill? In the past few weeks, Illinois' junior senator has received heaps of media attention for his principled stance in favor of a robust public option. But the vast majority of those media outlets have failed to ask him the most relevant question: Does he intend to filibuster a bill lacking a public option or just vote against its final passage. All indications are that he would stand with his party and approve cloture, undercutting the severity of his threat:

"It's certainly going to be tough, in terms of getting this done," [Burris] told WGN-TV. "I've let it be known unequivocally that I would not support any legislation -- now they may get the 60 votes to pass it. I'm not going to be an obstructionist. I'm not here for some ego trip. I'm here to speak out for the people who have spoken to me."

Unfortunately, Sen. Joe Lieberman's threat seems very real. Yesterday, Reid's office denied reports that the lawmakers agreed in private to vote for cloture on health care. If no Republicans cross the aisle, the Democrats will need Lieberman's support to break a filibuster, a obstructionist tactic he has previously called "unfair."

Abortion Funding

While the Senate moves forward cautiously, the House is barreling ahead, preparing to vote on a final bill Saturday at about 6 p.m ET.

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Last fall, GOP Rep. Mark Kirk wasn't sure that Sarah Palin had the proper qualifications to serve as vice president. But apparently he thinks she has what it takes to help him wrap up his U.S. Senate primary bid.

According to the Washington Post's Chris Cilliza, Kirk recently penned a memo to Republican bigwig Fred Malek soliciting a formal endorsement from the former Alaska governor when she swings through Chicago to appear on Oprah Winfrey's television show:

After noting that Palin will be in Chicago later this month to appear on "Oprah", Kirk writes that "the Chicago media will focus on one key issue: Does Gov[ernor] Palin oppose Congressman Mark Kirk's bid to take the Obama Senate seat for the Republicans?"

Kirk goes on to write that he is hoping for something "quick and decisive" from Palin about the race, perhaps to the effect of: "Voters in Illinois have a key opportunity to take Barack Obama's Senate seat. Congressman Kirk is the lead candidate to do that."

The Chicago media's sole focus will be on whether Palin "oppose[s] Congressman Mark Kirk's bid to take the Obama Senate seat for the Republicans?"  Really?

The only explanation for this bizarre memo is that Kirk is genuinely worried that some conservative challenger might undercut his campaign before it gets off the ground, even though no one who fits that profile has yet emerged.  But is pursuing Palin's support really worth it?  After all, she is pretty darn unpopular outside the hardcore conservative base.

Moreover, his efforts to secure her endorsement represent yet another flip-flop. Indeed, Kirk initially praised John McCain's selection of a running mate last September, only to change his mind when it became clear that she was dragging down the Republican ticket, telling the Tribune editorial board that he would have picked someone else as a running mate.  Now we've come full circle.

UPDATE (2:47 p.m.): Here's a response from Democratic Senate candidate Alexi Giannoulias:

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The last time a local congressperson tried to amend a bill creating a Consumer Financial Protection Agency (CFPA), the intent was to protect lenders against stricter regulations. Illinois' Luis Gutierrez is taking a different approach. According to Politico, Gutierrez may soon introduce a bill to help protect borrowers from some of the worst abuses of the payday loan industry. From an article today:

Illinois Rep. Luis Gutierrez, a longtime foe of the payday industry, is considering offering a payday-specific amendment to CFPA legislation when it reaches the House floor that would cap interest rates on payday loans at 48 percent — and also force lenders to provide a 90-day fee-free repayment plan if a borrower couldn’t meet the original terms.

“We think it’s important that we give the clearest, most specific guidelines and instructions to our new consumer protection agency as possible. And we think that if there is an actor in the nonbanking financial institutions arena ... it is the payday lenders. Some of the most egregious violations in the consumer section occur under their watch,” Gutierrez said.

We might quibble with calling Gutierrez a "longtime foe" of payday lenders. But regardless, this proposed amendment represents a dramatic -- and welcome -- shift for the congressman.

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After attempting to derail the process because their counterparts would not hear a series of unrelated amendments, Senate Republicans have finally exhausted all of their options for blocking a bill extending federal unemployment insurance to jobless Americans. Moments ago, the Senate passed its third cloture vote on H.R. 3548 by a 97-1 margin. Sen. Jim DeMint (R-SC) was the only dissenter.

On Monday night, the Senate voted to end debate on an amendment written by Senate Majority Leader Harry Reid (D-NV) tacking a business-friendly tax write-off benefit onto the bill. Today, the upper chamber approved the final language of the complete measure, which includes an extension of the popular $8,000 homebuyer's tax credit. In 30 hours, they can officially pass the legislation, 26 days after the House passed their own, less-generous version.

The good news is that House Majority Leader Steny Hoyer (D-MD) has promised that his chamber will take up the Senate bill as soon as it arrives. That's likely to happen Friday morning. Stay tuned.

UPDATE (4:40 p.m.): The Senate moved on final passage quicker than we thought.  They're currently voting.  We'll have the final vote tally shortly.

UPDATE II (4:53 p.m): The tally is in. H.R. 3548 passes by a 98-0 margin. It now will move back to the House, which is expected to take up the bill quickly.

UPDATE III (5:45 p.m.): Here is Hoyer's latest statement (via commenter "Mystic 1982"):

“I am pleased the Senate has passed legislation that is vital to Americans who have lost their jobs as a result of the deepest recession in over three-quarters of a century.  For too long, Senate Republicans blocked progress on extending unemployment insurance, which would provide immediate and tangible help to those who need it most, while also boosting our economy.  Democrats remain focused on doing everything we can to assist Americans struggling to make ends meet, and extending unemployment benefits is part of that effort.  Now that this legislation has passed the Senate, I will bring it to the House Floor for a vote as early as tomorrow.”