Illinois tax hikes to cover deficit while increasing spending
As the city of Chicago and the state of Illinois join the rest of the nation in displaying increasingly large "budget gaps" they are responding as any good, corrupt government would--calling for more spending and increased taxes.
So called "reform" governor Pat Quinn (D), who just assumed the reins of office from impeached Governor Rod (a Senate seat is a bleeping valuable thing) Blagojevich, declared
"divine intervention would help" deal with a budget gap as big as $9 billion and pay for a massive public-works construction plan, but state lawmakers increasingly say a state income tax increase is the only realistic way to meet the demands. (snip) One House Democrat said privately that Quinn has indicated he was thinking of raising the state's flat 3 percent personal income-tax rate to 4 percent, with a corresponding hike in the 4.8 percent corporate income tax. The current rates have been in place since 1989.
Legislators estimate a 1 percentage point increase in the rate could bring in close to $4 billion while taking the individual rate to 5 percent would generate nearly $8 billion.
Notice, there is not a hint of reducing spending by eliminating that "massive public-works construction plan,"eliminating half of the wealth redistribution (welfare recipients and certain government workers are the only ones with a current guaranteed annual income) and rooting out just half of the corruption in the state which should easily close the budget gap.
Raising the personal and corporate income tax will not solve the problem; it will merely increase the budget gap as those most affected will flee the state, taking their money and jobs with them. The Jerry Springer Show and some other television shows originating in Chicago are already planning to decamp to Senator Chris Dodd's (D) Connecticut where they have been promised certain production tax breaks in addition to the state's lower income and corporate taxes. While the aesthetes may say good riddance to Jerry, the secretaries, electricians and all the "little people" on the show won't find it so easy to uproot themselves. So, they will be left jobless and collecting unemployment instead of contributing while the state will also lose the taxes from the highly paid Springer and staff.