The plans by Illinois' DEMOCRATIC politicians who have run this state right into the ground now will definitely provide for a deeper recession and worse financial crisis as actions they are taking will push all new business out of this state, will motivate present businesses to move elsewhere, and will suck out more funds from the wallets of working taxpayers.
Illinois has already started losing population, now this will worsen and home values will plummet as well as people move out and sell.
Top Illinois State Legislators, all Democrats, have agreed to push a plan that would temporarily boost income taxes by 75 percent and double cigarette taxes, Senate President John Cullerton said Thursday.
Why are we not setting up the flogging gallows for this spending and spending legislature?
This BLUE state is so broke we are the laughing stock of the entire world together with California, Ohio and New York! Notice each of these states is controlled by the runaway spending policies of their majority Democratic legislators.
If one was to forecast the future spending in these states, theoretically over the next century, at the present rates of entitlements and other spending increases, every resident would have to be taxed at 100% of their income ( every corporation and business too)!
ARE THESE PEOPLE CRAZY, DO ANY OF THEM OWN A checkbook to understand how it is supposed to work? No money in the checkbook, no spending!
Illinois’ personal income tax rate, now 3 percent, would climb to 5.25 percent for four years under the plan Cullerton outlined. After that, it would drop to 3.75 percent. OH, that is really something we can believe...it will never happen!
That means someone who now owes $1,000 in state income taxes would owe $1,750 at the new rate, then $1,250 after four years ( right!).
The permanent portion would be used several ways. Some would be devoted to schools ( yes just like the Lottery was supposed to do, but then other funds were deleted and the lottery was substituted, for a net effect of ZERO) and some to repaying an $8.5 billion loan ( and the rest to fraud and corruption we assume) that would be used to pay overdue bills, Cullerton said.
Do not forget that Illinois is well known for the fact that literally most of its Governors in the last few decades have gone right to prison after their term ended and at present we have one who was thrown out of office for attempting to sell Obama's Senate seat for personal gain, and is scheduled for trial.
Another chunk would go to property tax relief in the form of annual $325 checks, he said. The checks would replace the property tax exemption that homeowners can now claim on their income taxes. WOW A $325 CHECK to offset my $11,000 property tax bill, what a grand gesture!
Cullerton said House Speaker Michael Madigan and Gov. Pat Quinn fully support the tax proposal, although Quinn once promised to veto any increase of that size. These politicians are so entrenched in their offices that each of them profits handsomely from personal ownership in law firms that do a lot of business with large corporations seeking tax relief or other favors in the State.
Madigan’s spokesman said he couldn’t discuss the speaker’s position ( because he had no real defense perhaps?). The Senate has approved tax increases in the past, so the biggest question about this proposal is whether Madigan can find enough votes to get it through the House.
The governor’s office put out a statement that stopped short of saying the three leaders had reached a final agreement. Rank-and-file legislators said Quinn described the tax plan to them earlier in the day and portrayed it as a deal among all three of the powerful Democrats.
Democrats say they have no choice but to raise taxes as one part of a solution to Illinois’ massive budget crisis. The state deficit could reach $15 billion in the coming year. The government is borrowing money to cover some obligations, letting bills go unpaid for months and cutting corners everywhere from state prisons to state parks.
Yet, they did not cut enough, did they? In fact Illinois is actually INCREASING its spending instead of cutting back, not a dime of cutting back of the budget.
It is time to slash, slash by 25%-30% or more everything including the overly generous and out of control pensions for retiring workers that see 85% of their salaries paid!
“We are in desperate need,” Cullerton said at a news conference in his office.
Cullerton said the higher taxes would generate about $7.5 billion a year during the four years they’re at their highest.
The tax on cigarettes, now 98 cents a pack, would jump to $1.98, Cullerton said. The money would be earmarked for education.
Quinn, Cullerton and Madigan want to pass something before the current General Assembly formally ends Jan. 12. After that, they lose some of their Democratic majority as well as outgoing legislators who might be persuaded to support a tax increase as they leave office.
Madigan has repeatedly said he doubts that a tax increase could pass in the House without Republican support. But Republican leaders have not been included in tax and budget negotiations, and there was no indication Thursday that they were prepared to cooperate with the Democrats.
“If they think this is a solution, they should go ahead and put their own votes on it,” said Senate Minority Leader Christine Radogno, R-Lemont.
Cullerton emphasized that taxes would be just one part of the solution.
Quinn and the Legislature already have cut spending significantly. They’ve also reduced pension benefits for future state employees and passed a plan to help limit the cost of providing health care to the poor.
Cullerton said there also will be a moratorium on new programs and spending growth would be held to 1 percent a year.
“We are not doing a short-term fix,” he said.
The tax proposal puts Quinn in an awkward position. It would boost the tax rate by 2.25 percentage points, but the governor promised last year to veto any increase above 1 percentage point.
Last summer, a Quinn aide suggested taxes might have to be raised by 2 points. Quinn quickly disavowed the comments and said he opposed anything beyond his proposed hike of 1 percentage point.
“I’m going to veto anything that isn’t my plan,” Quinn said at the time.
Quinn’s office didn’t comment Thursday on the conflict between the tax plan and his campaign promise.
Radogno said it would be “dishonest” for Quinn to approve it after promising a veto.
“To me, that’s kind of a bait and switch,” she said.
The Illinois residents have got to wise-up and throw out all these spend and spend liberals that are destroying the economic viability of the state and its residents.
What services is the State providing that we can not live without?
The local jurisdictions clean the snow, the state does not.
The driver license is self supporting from that department.
The schools and their overpaid staff is mostly supported by local property taxes.
Oh, yes now I remember, the state needs all those welcome to Illinois signs with the governor's name on them.
