Without a Fair Tax, the state's looming fiscal collapse would mean an $8.3 million cut to Rock Island County schools and the continuation of unfair tax and budget policies that stifle middle class families

Rock Island, IL - By a vote of 5-1, the Government Affairs Committee of the Rock Island County Board passed a resolution this afternoon calling on lawmakers in Springfield to pass the Fair Tax Act (HJRCA 33 /SJRCA 40) as a necessary first step to avoid devastating and unprecedented cuts to local services and to provide tax relief to a majority of Rock Island County families.

"While some extreme partisans in Springfield are ready to drive our state right off the fiscal cliff, a large and broad coalition of citizens in Rock Island and throughout Illinois are fighting for long-term budget reform that includes a Fair Tax," said Brian Vyncke, a member of the committee who voted in favor of today's resolution.  "Beyond stable and sustainable revenues, a Fair Tax represents a tax CUT - not an increase, but a cut - for the overwhelming majority of Rock Island County residents."

The resolution endorses a Fair Tax, with lower rates for lower incomes and higher rates for higher income, which would provide immediate tax relief for the majority of Rock Island families. Right now, Illinois poor 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.

Peter Starzynski of the A Better Illinois coalition unveiled the findings of a new report by the Fiscal Policy Center at Voices for Illinois Children that shows the state will cut $8.3 million from Rock Island County schools if lawmakers in Springfield take us over the fiscal cliff.  He also explained how Springfield's broken budget process is rife with late payments to vendors and local governments, continues to cut vital programs, and provides wasteful giveaways to corporations through unfair loopholes designed by the rich.

"Springfield needs to decide what's more important: coddling millionaires or supporting our local schools," said Vyncke.  "We need fundamental, long-term budget reform that includes a Fair Tax because our kids, our seniors, and our middle class cannot endure Springfield's broken budget and tax policies any longer."

Starzynski presented data showing Iowa, a Fair Tax state, has an unemployment rate that is half that of Illinois.   He also noted that Scott County, IA has sales taxes and property tax rates that are much lower on average that those in Rock Island County.

"We need a Fair Tax in Illinois, so people live here, work here, raise families here, and make great communities here in Rock Island County - instead of Iowa," said Vyncke.

Illinois lawmakers are currently prohibited? constitutionally barred?from enacting tax fairness. If Springfield passes the Fair Tax Act, voters will have an opportunity to modernize Illinois' Constitution in November to allow a Fair Tax with lower rates for lower incomes and higher rates for higher incomes.

"Why shouldn't Illinois be allowed to tax millionaires at a rate higher than minimum wage workers if that's what citizens decide is best?" said committee Member Don Jacobs.

Momentum for a Fair Tax has grown significantly since the A Better Illinois launched its campaign in the Quad Cities back in October.  The number of petitions signed has doubled to nearly 250,000 and the Fair Tax is now atop the legislative agenda in Springfield.

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A Better Illinois is a statewide coalition of civic and community organizations, small business, labor and faith leaders, educators, service providers, and tens of thousands of ordinary taxpayers seeking to modernize Illinois tax structure to create greater fairness and long-term economic growth.

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Q&A on the President's budget with U.S. Senator Chuck Grassley                      

Q:        Will the President's budget be "dead on arrival" when it reaches the U.S. Capitol on Tuesday?

A:        It appears lawmakers from the President's own political party are set to mark "Do Not Resuscitate" on the proposal before it even crosses the legislative threshold.  In fact, the leadership in the U.S. Senate has abandoned even the pretense of producing a budget as required by law.  The head of the Senate Budget Committee announced last Friday that the panel on which I serve would not write a 2015 fiscal blueprint to avoid "relitigating" details of the two-year budget deal approved in December.  Seems like a cavalier attitude when we're talking about $1 trillion in discretionary funding that will operate government agencies, including those responsible for administering military, transportation and education dollars.  It's a slap in the face to taxpayers who foot the bill and who would face fines, penalties, liens and fees if they opted not to comply with federal tax laws.  Previews of the White House budget proposal suggest the President himself has abandoned any pretense of getting serious about putting America's fiscal house in order. And when the President pitches adding more projects and programs to the federal ledger, it may tempt lawmakers to take a bite at the shiny red apple.  But the reality is these programs would not only grow the size and scope of the federal government, they also would extend Uncle Sam's reach even deeper into taxpayers' pocketbooks.  Apples grow on trees; money doesn't.  It's reckless and irresponsible to continue lifting the lid on spending again, and again and again.  The President also has proposed to fix stagnant wages and joblessness in America by raising the minimum wage and extending unemployment benefits. If only that would cure what ails the sluggish economy.  When the president talks about narrowing the wage gap and addressing income inequality, he's targeting the architecture of America's extraordinary system of free enterprise, productivity, innovation and economic mobility.  That's why it's so important to vet the tax and spending details of the federal budget.  What the President is selling as economic elixirs may bear negative side effects that the taxpaying public won't want to swallow.  Restoring fiscal discipline and demanding accountability for the way tax dollars are spent are a sorely needed reality check in Washington.  Economic growth is what drives the creation of good-paying jobs that will lift standards of living for people working hard to make ends meet.

Q:        What happens next?

A:        What the President proposes, the Congress disposes.  Despite the President's proclamation earlier this year to sidestep Congress, the legislative branch holds the purse strings and bears constitutional responsibility to write the laws of the land.  No doubt, the minority party in the U.S. Senate has an uphill climb.  That's because the majority party has shown time and again it is marching in lockstep with the White House, including the damaging decision to trample on the Senate's longstanding filibuster rules that protect the views of dissent in the greatest deliberative body in the world.  Enough is enough.   I'm not about to join the march to madness that allows America to tax, spend and borrow on the backs of generations yet to come.  With eight months to go before the midterm congressional elections, the White House seems more focused on scoring political points by pushing expansive health care and education entitlements and provoking divisive class and cultural issues rather than swallowing a dose of fiscal responsibility and tackling tax, immigration and entitlement reform to help grow the U.S. economy.  As millions of hardworking taxpayers file their tax returns in the six weeks remaining until April 15, I will continue working to hold the line on unbridled federal spending and regulatory overreach.  It's time to change the mindset that believes Washington knows best.

Illinois Rises from Last Year's Ranking; Governor Highlights Growth at Small Businesses Like Punchkick

CHICAGO - Governor Pat Quinn today announced that Illinois has moved up to third in the nation?and the Chicago area is now the number one metro market in the country for new and expanded corporate facilities. Illinois moved up two spots from last year's fifth place ranking and the Chicago region went from second place last year to first place this year, according to the annual analysis by Site Selection magazine, one of the nation's premier corporate real estate and economic development publications. Today's announcement is part of Governor Quinn's commitment to economic development and job creation in Illinois.

"Illinois is on a roll and these new rankings are proof we are making a comeback," Governor Quinn said. "With our ideal central location, our commitment to building a world-class infrastructure and recent reforms to strengthen our business climate, Illinois is near the top of the list when it comes to choosing a place to do business."

In 2013, Illinois had 383 corporate facilities locate or expand in the state, including Catamaran, Century Aluminum, Coeur d'Alene Mines Corp., CPG International, CVS Caremark, Durata Therapeutics, FER-PAL Construction, Home Depot, Mike's Hard Lemonade, Rittal Corp. and Univar. The Chicago-Naperville-Elgin metro area had 373 new or expanded corporate locations, more than any other major city in the country. Chicago had ranked second on the list the past two years.

As an example of local economic growth, Governor Quinn also announced that Punchkick Interactive Inc., a mobile commerce firm that works for many large corporations, will expand its Chicago operations and has committed to creating at least 60 new jobs within two years.

Founded in 2006, Punchkick now has about 55 employees but needs larger offices due to growth. Punchkick co-founder Ryan Unger said the company considered expanding in the Washington D.C. area to be near a major customer but chose Chicago instead. The company qualified for a tax credit under the state's Economic Development for a Growing Economy (EDGE) program.

"For Punchkick, this was about finding the best location to expand our company and serve our customers," Unger said. "The talent we need and the access to markets nationwide is right here in Illinois. Having such a wonderful culture of innovation in the Chicago region just reinforces the decision for us."

Punchkick showcases the support Illinois can provide small businesses and the company's success also represents the growth in Illinois' technology sector. Venture capital funding for technology startups rose 169 percent in the Chicago region last year, to $1.06 billion, according to the group Built In Chicago.

The new Site Selection rankings follow last week's announcement that the $320 million Digital Manufacturing and Design Innovation Institute, the first-of-its-kind digital hub with the capability to transform American manufacturing, is being established in Illinois.

To be included in the Site Selection rankings, new corporate facilities and expansions had to meet at least one of three criteria: Involve a capital investment of at least $1 million, create at least 50 jobs or add at least 20,000 square feet of new floor area. The rankings are regarded by corporate real estate analysts as "the industry scoreboard." Site Selection, published by Conway Data, Inc., is the senior publication in the corporate real estate and economic development field. The magazine's circulation base consists of 49,000 executives involved in corporate site selection decisions, most at the CEO/President/COO level.

The new rankings follow other recent data that document vitality in the Illinois economy. These reports include :

• A study by CareerBuilder and Economic Modeling Specialists International that placed Illinois third among states in growth of business establishments. It said total establishments in Illinois rose by 18,222, or five percent, to 383,103, from 2009 to 2012.
• The Flash Index published by the University of Illinois, measuring trends in the state's economy, stands at 107.2, its highest point since April 2007.
• Independent analyses show that values of residential and commercial real estate are rising steadily and vacancy rates in commercial property are declining, sometimes to lows not seen in years.

"Illinois has what corporations want?a strong economy, first-rate logistics network, a highly trained and skilled workforce and a proven track record of fostering innovation," Illinois Department of Commerce and Economic Opportunity Director Adam Pollet said. "Moving up to third place in the Site Selection standings is great, but we aren't going to be satisfied until Illinois is number one on the list."

For more information on why Illinois is the right place for business, visit illinoisbiz.biz.

The Next Phase of the American Dream:
Growing & Preserving Your Wealth
Financial Planner Shares 3 Smart Tips for Retirement

Ever since the financial crisis of 2008, many pundits and experts have openly doubted the viability of achieving the American dream.

With homeownership, job opportunity and retirement security in decline, an Allstate/National Journal Heartland Monitor poll shows that most Americans agree with what the experts have said. Seven in 10 think that tomorrow's adults - today's kids - will have less financial security than adults today.

"There are several long-term issues we need to address, including our estimated $17.3 trillion debt, a legacy that our children are poised to inherit; but I think the United States will be stable for the next 10 years, and maybe longer if we get our financial house in order," says Stephen Ng, founder and president of Stephen Ng Financial Group, (www.stephenngfg.com).

"Many Americans who've worked their entire lives for a comfortable, if not luxurious, retirement want to know their money will be there - that's their dream."

Ng is an international financial planner with certifications in 19 states. He's passionate about teaching sound wealth practices to both clients and his community. Here are three important tips every pre-retiree and retiree should know to help preserve their wealth.

• Go to an independent retirement-planning advisor. Financial planning can be confusing. For most retirees who are not professionals, the numbers, rules and terminology can seem like a foreign language. An independent advisor, who is licensed in multiple products - insurance, annuities and more - allows for a higher degree of objectivity, tailoring options for a client's specific needs. He or she will not be bound to a corporate agenda or limited in their knowledge. Also, talk to the person who will be the architect of your financial future. Find out his or her values. How do they feel about their job? Are they patient in explaining your options? Do you trust your advisor?

• Pre-retirees: know your start-date options for retirement. Be aware that in most cases, withdrawals from tax-deferred retirement plans before age 59½ may be subject to a 10 percent federal income tax penalty. The latest date to begin required minimum distributions is usually April 1 of the year after you turn age 70½. In most cases, withdrawals are taxed as ordinary income. There are 10 common planning options, some of which are funded by employers. They are the defined benefit pension; money purchase pension; profit-sharing plan; savings plan; employee stock ownership plan; tax-sheltered annuities, or 403(b) plans; individual retirement accounts; self-employed plans; simplified employee pensions; Savings Incentive Match Plans for Employees; and annuity contracts.

• Make sure you feel good about your annuity. An annuity is a contract with an insurance company in which you make one or more payments in exchange for a future income stream in retirement. The funds in an annuity accumulate tax-deferred, regardless of which type of annuity you choose. Fixed annuity contracts are issued with guaranteed minimum interest rates. Although the rate may be adjusted, it should never fall below a guaranteed minimum rate specified in the contract. Keep in mind that annuity guarantees are subject to the claims-paying ability of the insurance company and contain fees and charges which are not limited to sales and surrender charges. All withdrawals of tax-deferred earnings are subject to current income tax, and, if made prior to age 59½, may also be subject to a 10 percent federal income tax penalty. Additionally, if purchased within a qualified plan, an annuity will provide no further tax deferral features. The contract, when redeemed, may be worth more or less than the total amount invested.

"This may be plenty of information to take in for now, but this is only the tip of the iceberg," Ng says. "Don't be afraid to ask questions. And, the more education you have about your own money, the better."

About Stephen Ng

Stephen Ng is the founder and president of Stephen Ng Financial Group™ (www.stephenngfg.com). Since 1992, he has helped pre-retirees and retirees preserve and increase their wealth by, in part, helping them avoid common mistakes. He regularly holds financial management, retirement investing and insurance planning seminars at businesses, churches and non-profit organizations. Ng is a Chartered Life Underwriter, Chartered Financial Consultant and a Certified Estate Planner. He is also an Investment Advisor Representative offering securities and advisory services through SagePoint Financial, Inc., member FINRA/SIPC. Stephen Ng Financial Group and SagePoint Financial, Inc. are unaffiliated entities. Stephen brings a national and international perspective to his financial advice, with professional and educational roots in Australia and Asia, and certifications in 19 states.