Board says Fair Tax needed to lower taxes for the majority of Rock Island County families and save communities from devastating and unprecedented cuts to local services

Rock Island, IL -By an overwhelming majority, the Rock Island County Board passed a resolution this evening calling on lawmakers in Springfield to pass the Fair Tax Act (HJRCA 33/SJRCA 40) as a necessary first step to bring fairness to Illinois' tax code and to avoid devastating and unprecedented cuts to local services.  Right now, Illinois has an unfair tax system in which low and middle income families pay a rate that is twice the rate of the very rich, when factoring in all state and local taxes paid.

The resolution specifically endorses a "Fair Tax - with lower rates for lower incomes and higher rates for higher incomes" that would "lower taxes for the majority of Rock Island County residents and put more money into our local economy."

"Springfield's cheating our middle class families, holding back our economy, and jeopardizing our way of life here in Rock Island County,"said board member Brian Vyncke. "It's time for fundamental budget and tax reform that includes a Fair Tax, which means a tax cut for Rock Island families."

Vyncke noted that Rock Island County competes with its neighbor to the west.  He referenced data presented at last week's Governmental Affair Committee meeting that showed Iowa, which has a Fair Tax, has an unemployment rate that is half of Illinois'.  Scott County, IA has sales and property tax rates that are much lower on average that those in Rock Island County.

"We need to grow on this side of the river.  We need to make sure families choose to work, shop, and live here in Rock Island County and not head over the bridge to Iowa, which has a Fair Tax," said Vyncke.

Board member Don Jacobs noted that the county has already lost $500,000 from the state this year, which included cuts to the state's attorney's office.

"Today it's cuts to public safety. Tomorrow it will be more cuts to public safety and also to our schools, and our roads, services for our seniors, and all the other things that drive Rock Island County's economy and make our communities livable," said Jacobs.  "That's unless Springfield moves forward on the Fair Tax Act."

Mike Malmstrom attended this evening's hearing to offer his support for the Fair Tax resolution.  Mike is a veteran who is concerned about cuts to state programs that assist Illinois' veterans and those who have served in our Armed Forces.  Mike works to make sure Illinois' veterans are not homeless.  His son earned free college tuition from the state after serving in Afghanistan.

"Middle class folks like me will get a tax cut with a Fair Tax and could use one, but the state should not abandon our veterans just because millionaires want a tax cut too," said Malmstrom.

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It remains one of the greatest travesties in the history of American business: In 2001, the 85,000 employees of one of the world's largest accounting firms began losing their jobs in droves. Their employer had become tainted by its loose association with Enron  Corp., a financial house of cards that was imploding and taking with it billions of dollars in employee pensions and shareholder investments.

In 2002, accounting firm Arthur Andersen was convicted of charges related to Enron's fraudulent practices. The charges had nothing to do with the quality of their auditing - or any of Enron's illicit practices. The conviction was appealed, and in 2005, the U.S. Supreme Court struck it down in a unanimous vote. But the damage had already been done.

To date, despite millions of records being subpoenaed, there is no evidence Arthur Andersen ever did anything wrong. Still, perceptions are everything: Most people are not aware that the accounting firm, which led the industry in establishing strict, high standards, became a government scapegoat.

When I speak to groups across the country, I ask the following questions. Below are the typical responses I receive - and the actual facts.

1. What do you remember about Arthur Andersen?

Typical Response: They were the ones that helped facilitate the Enron fraud. They deserved what they got.

Fact: Arthur Andersen was the largest and most prestigious firm in the country. It was considered the gold standard of the accounting profession by the business community.

2. For what was Arthur Andersen indicted?

Typical Response: They messed up the audit of Enron and signed off on false financial statements.

Fact: They were indicted for shredding documents. These documents were drafts and other items that do not support the final product. All accounting firms establish policies for routinely shredding such documents.

3. How long was it between the Enron blowup and when Arthur Andersen went out of business?

Typical Response: One to three years.

Fact: The largest accounting firm in the world was gone in 90 days.

4. Was the indictment upheld?

Typical Response: Yes, that is why they went out of business.

Fact: No. The Supreme Court overruled the lower court in a 9-0 decision, and came to the conclusion within weeks, making it one of their quickest decisions ever.

5. How many people lost their jobs as a result of the false accusations?

Typical Response: Have no idea, but the partners got what they deserved.

Fact: Eighty-five thousand people lost their jobs and only a few thousand were partners. Most were staff people and clericals who made modest sums of money.

6. Who benefited from Arthur Andersen going out of business?

Typical Response: Everyone - we finally got rid of those crooks and made a statement to the rest of business to operate ethically.

Facts: It was not the Arthur Andersen people; they lost their jobs. It was not the clients; they had to go through the stress and expense of finding a new auditing firm. It was not the business world in general: It now has fewer firms from which to choose and rates increased. It was their competitors who benefited- they got Andersen's best people and clients and were able to increase their rates and profitability.

7. What accounting firms now have ex Arthur Andersen partners playing leadership roles in their firms?

Typical Response: None

Facts: The "big four," all the large middle-tier firms and many small firms have former Arthur Andersen partners in leadership positions. Finally, many members of the new Public Accounting oversight Board (PCAOB), which oversees these firms, now have former Arthur Andersen people involved in reviewing the quality of these firms.

About Larry Katzen

Larry Katzen, author of "And You Thought Accountants were Boring - My Life Inside Arthur Andersen," (www.LarryRKatzen.com), worked at Arthur Andersen from 1967 to 2002, quickly rising through the ranks to become a partner at age 30. His new memoir details the government's unjust persecution of a company known for maintaining the highest standards.

Scott has Helped Illinois Become First in Nation in Renewable Energy, Saved Consumers Hundreds of Millions

CHICAGO - Governor Pat Quinn today announced that he has named Doug Scott to a second term as chairman of the Illinois Commerce Commission (ICC). First appointed in 2011, Scott has helped Illinois to become first in the nation in renewable energy and saved consumers hundreds of millions of dollars. Today's announcement is a part of Governor Quinn's commitment to protect consumers and ensure a clean and healthy environment for generations to come.

"Doug Scott has proven himself time and time again as a strong advocate for Illinois' working families," Governor Quinn said. "At the Illinois Commerce Commission, he will continue to fight for Illinois consumers by ensuring strong oversight of utility companies throughout our state."

Prior to being appointed to the ICC, Scott protected Illinois' consumers by working to significantly reduce emissions from the state's power plants as director of the Illinois Environmental Protection Agency (IEPA). He also worked to support low-emission coal technology, wind power, and other alternative energy and fuel sources. Prior to leading the IEPA, Scott served as mayor of Rockford, and from 1995 to 2001 he served as state representative from Illinois' 67th District.

Scott has a Bachelor of Arts from the University of Tulsa and a Juris Doctorate from Marquette University. As mayor of Rockford he held leadership positions in the Illinois Municipal League, United States Conference of Mayors and the national League of Cities. He also served as president of the Illinois Chapter of the National Brownfield Association.

Scott's leadership at both IEPA and ICC impacted policies and initiatives that encouraged and expanded use of renewable energy throughout the state. A report recently released by the Environmental Law & Policy Center, Sierra Club, World Wildlife Fund, LEAN Energy US, the Illinois Solar Energy Association and George Washington University Solar Institute found Illinois leads the nation in the number of communities using renewable electricity.

During Scott's tenure, the ICC has saved Illinois residents $680 million in proposed utility rate increases and in 2013 secured $109 million in consumer refunds from ComEd and Nicor Gas. In addition, it has assisted nearly 60,000 consumers save $4.6 million dollars that had been charged due to billing errors, late charges or deposit requirements. The ICC has also protected the environment by ensuring that the state's renewable portfolio standards are adhered to by its major electric utilities as well as all active Alternative Retail Electric Suppliers.

The ICC's mission is to pursue an appropriate balance between the interest of consumers and existing and emerging service providers to ensure the provision of adequate, efficient, reliable, safe and cost-effective public utility services.

CHICAGO - Governor Pat Quinn today was joined by actor Martin Sheen to continue his ongoing fight to raise Illinois' minimum wage from $8.25 to at least $10. Last year the Governor proposed raising the minimum wage in his 2013 State of the State address and today's visit to Chicago's historic St. Pius V Church is part of his agenda to build an economy that works for everyone.

"Raising the minimum wage is a common-sense proposal that will benefit hundreds of thousands of workers across Illinois," Governor Quinn said. "This is about dignity and decency. Raising the minimum wage will lift hundreds of thousands of people out of poverty and boost more local economic growth."

Martin Sheen, an award-winning actor and strong advocate for social justice, strongly supports increasing the minimum wage and today lent his support to the Governor's fight for Illinois workers.

"I'm proud to join Governor Quinn in helping to stand up for the thousands of hardworking people across Illinois who suffer from poverty," Martin Sheen said. "Raising the minimum wage is about social justice?it's about giving everyone a fair opportunity to live and grow."

Last month, Governor Quinn met with President Barack Obama, Vice President Joe Biden and senior administration officials at the White House in Washington, D.C. to discuss raising the minimum wage. The federal minimum wage is $7.25 per hour and President Obama is pushing to raise the federal minimum wage to $10.10.

The Illinois minimum wage ($8.25) - is less than half of the average U.S. hourly wage. A full-time minimum wage worker in Illinois makes approximately $17,000 annually, which is well below the Federal Poverty Threshold of $19,790 for a family of three. Six in 10 minimum wage employees are female, including many single parents.

"As a low-wage nursing home worker, it is time that we honor, reward and respect the hard and often grueling work that low-income people do every single day by raising the minimum wage," Susana Fragoso, who works at the Grove Of Evanston Rehabilitation Center, said. "Right now, our economy works for the wealthy and big corporations, but it's not working for working families. That's why it is critical that we raise the minimum wage to strengthen our families and our communities."

The Governor supports raising Illinois' minimum wage over the next two years. By increasing the Illinois minimum wage to $10, a half-million Illinois consumers will make an extra $4,800 a year and much of that extra income will typically be spent at local businesses on food, clothing and furniture, providing a strong boost to the local economy.

Studies conducted by the Federal Reserve Bank of Chicago show that an increase of $1 in the minimum wage generates approximately $3,000 in household spending per year, greatly improving purchasing power and strengthening our economy. Nearly two-thirds of small business owners support raising the federal minimum wage because they believe it will help the economy and in turn enable them to hire more workers, according to a recent survey conducted by the Small Business Majority.

Leaders from large companies such as Costco, Starbucks, The Gap, Inc. and Stride Rite also have supported increasing the minimum wage as a way to reduce employee turnover and improve workers' productivity. The Gap Inc. recently acted to raise its own minimum wage to $10 for all U.S. employees. The move is expected to impact 65,000 American workers and more than 4,000 employees in Illinois.