Illinois USA - How the Rich Bought Political Power

ꕤ Article SOURCE as indicated Illinois USA Bruce Rauner Governor of Illinois Swedish-German descent venture capitalist private equity firm GTCR (30 years) father lawyer / senior VP Motorola Wife #1 Beth Konker Wessel (3 ch.) Wife #2 Diana Mendley Rauner (3 ch.) Son: "In 2010, Eric, then 21, got arrested for trying to rob a Walgreen’s drive-through in Missoula, Montana. He gave a pharmacist “a note threatening to blow his head off unless he handed over prescription painkillers, according to charging documents in the case,” reported the Daily Missoulian. The paper further reported that he told authorities that he was drunk at the time and addicted to pills. Originally charged with felony robbery, Eric, who had been unarmed, pleaded guilty in July 2012 to an amended charge of felony criminal endangerment and received a three-year deferred sentence." [Comment:  Eric was 1 years old when his parents separated, before divorcing (affair allegedly discovered by wife #1)   Siblings were 4 and 6 years old] http://www.chicagomag.com/Chicago-Magazine/October-2014/Bruce-Rauner/ D.I.V.O.R.C.E. Article & Divorce Court Documents Affair allegedly discovered by Wife #1 Rauner allegedly sought reconciliation & continued to live in house However, Wife #1 allegedly discovered  consultation with lawyer http://www.businessinsider.com.au/bruce-rauner-1993-divorce-2014-5?r=US&IR=T ---------------------- ꕤ ---------------------- NYT Wealthy Governor & His Friends Remaking Illinois Unprecedented Political Spending By NICHOLAS CONFESSORE NOV. 29, 2015 SUMMARY - as per my understanding Kenneth C. Griffin billionaire founder one of the world’s largest hedge funds -- Griffin & friends ('the families') -- poured tens of millions of dollars into the state -- concentration of political money -- unprecedented in Illinois history -- wealth forcefully shifted state’s balance of power -- 2014:  'the families' helped elect Bruce Rauner governor -- Griffin friend of Rauner (elected governor) [Wealthy Election Buyers] Agenda: cut spending overhaul state’s pension system impose term limits weaken public employee unions Formula: change the power structure change way business conducted change status quo taking advantage of shifts in: regulatory factors legal factors cultural factors Rich families remaking Illinois: channelled vast wealth into political power infusion of money into campaigns via newly carved paths "reshaping government with fortunes so large as to defy the ordinary financial scale of politics" 2016 USA Presidential Campaign - 158 Families New York Times analysis -- just 158 families -- provided nearly HALF of early campaign money -- donors from FINANCE INDUSTRY -- finance field = more new political wealth than other Following helped elect Rauner: John Childs -- Florida-based leveraged-buyout pioneer Sam Zell -- private equity investor Paul Singer -- hedge fund manager, NY Richard Uihlein (Dick) -- Chicago suburbs businessman -- General Bindings Corp -- plastic binding manufacture, family business -- family co-founded: Schlitz Brewing -- Uline, Inc - shipping supplies distribution company Philosophies of donors becoming widely adopted blueprint for public officials in USA -- critical of powerful unions -- want reduction of public (government) spending -- want reduction of taxation -- want to undermine govt-led efforts to redress gap b/w rich/poor -- consider strong public unions root of all evil -- re governance:  Chicago, New York & California Increasing Amounts of Money -- much stronger last 5-6 years To usurp political power in Illinois -- the rich have pumped BIG money into political campaigns -- money that outstrips that of unions --{unions were formerly 'financial lifeblood of both parties'} -- Rauner:     "triggered a state law that removes limits on campaign contributions when a wealthy candidate spends heavily on his or her own race."     "The law, intended to limit the influence of the wealthy by providing a level playing field, had the opposite effect: Freed of the restraints, supporters of Mr. Rauner poured millions more into his campaign, breaking state records." Rauner - Campaign Spending v. Unions -- abt half of $65 million Rauner spent in 2014 -- came from Rauner & x9 others -- (other individuals, families or companies they control) -- $13.6 million Griffin family contributions -- MORE than --> 244 labour unions combined donations Kenneth C. Griffin Biggest Donor - re Rauner -- Griffin:   $5.5 million -- private plane at Rauner’s disposal HOW MILLIONS OF ELECTION FUNDS SPENT -- political advocacy groups -- research organizations -- party committees -- credit union on Chicago’s predominantly black South Side -- depositing $1 million to support small-business loans -- $20 million (Rauner, Griffin & Uihlein)     Note:  Rauner as given “$27 million of his own money to public education, both CPS and charters.” (Rauner publicly stated figure is:  $20 million) [ChicagoMag] -- to beat back union pressure Other -- Rauner advocacy of school choice -- African-USA voter appeal - stuck in worst schools [ChicagoMag] Result -- Rauner elected -- agenda to shrink govt -- agenda to make state more business friendly -- however:  Democrats supermajority in both houses DEMOCRATS Democrat majority want: -- minimum wage -- millionaires-only income tax increase -- both items against Rauner position REPUBLICANS Rauner - governor (thus opposed to Democrat majority) Chicago Sun-Times  |  PRESS -- reversed no-endorsement policy to back Rauner -- Rauner, part-owner prior to run for governor Illinois State: -- mismanagement by state officials -- both parties -- over $100-Billion in UNFUNDED pension liabilities -- x10 governors went to prison -- public employee unions unaware re absence of retirement benefit funding by state -- lobbied for other spending -- state owes billions in unpaid bills NOTE:  Illinois state constitution BANS raising taxes solely on rich SOURCE http://www.nytimes.com/2015/11/30/us/politics/illinois-campaign-money-bruce-rauner.html?_r=0 Illinois' flat income tax places it in the 'Terrible Ten' Written By sswerdlow Posted: 06/25/2014, 06:52pm Illinois is one of the ten most regressive states in the country ... A state is regressive if it requires the poor to pay a greater share of their income in taxes than the rich. In Illinois, the state’s poorest residents—those in the bottom 20 percent of the income scale—pay almost three times as much of their earnings in taxes as the top one percent do. Illinois’ flat income tax is one of the primary reasons ITEP ranks the state as the fourth most regressive. A flat income tax means the state takes the same percentage of income from everyone, regardless of how much or how little they earn. Illinois is one of only ten states with a flat tax rate. There are seven states that collect no taxes on individual income. See which states have flat, graduated, or no income taxes in the map below. Illinois increased the tax rate on individual income from 3 percent to 5 percent in 2011. That increase is set to expire January 1, 2015. Speaker Michael Madigan reports that the House Democratic caucus is almost 30 votes shy of the 60 needed to make what was a temporary increase permanent. If Illinois fails to extend the tax rate of 5 percent, it will have the third lowest individual income tax rate of any state with a flat tax. According to the Tax Foundation, only Indiana and Pennsylvania will have lower rates, at 3.4 and 3.07 percent respectively. Illinois depends on individual income taxes for 42 percent of its tax revenue, according to the U.S. Census Bureau. Taxes on individual income bring in more money for the state than any other tax. This wasn’t the case in 2009, when half of the state’s tax revenue came from sales tax. Sales tax revenue has steadily declined since then, though, due to the Great Recession. http://chicago.suntimes.com/chicago-politics/7/71/876236/chicago-budget-revenue-tax-ideas ---------------------- ꕤ ---------------------- COMMENT The word 'gubernatorial' is unpleasant sounding to me: "C18: from Latin gubernator governor." Really enjoyed checking this out. American politics is sooooooo disgusting. USA doesn't even pretend to be democratic. This story has everything ... & the state's broke.  Quick, someone write a TV-series.  It should be interesting to see what happens when the opposition (Democrats) have the majority in both houses.  Second article on income tax is also very interesting.  Those rates are bizarre.  It's so low it's like there is just about no income tax. ꕤ