The Wall Street Journal brings us the news that the state of Illinois - which raised it's personal and business taxes by more than two thirds last year - has had its debt downgrated to the lowest level of all the states in the union. Though too few noticed, this month Moody's downgraded Illinois state debt to A2 from A1, the lowest among the 50 states. That's worse even than California. The state's cost of borrowing for $800 million of new 10-year general obligation bonds rose to 3.1%-which is 110 basis points higher than the 2% on top-rated 10-year bonds of more financially secure states. This wasn't supposed to happen. Only a year ago, Governor Pat Quinn and his fellow Democrats raised individual income taxes by 67% and the corporate tax rate by 46%. They did it to raise $7 billion in revenue, as the Governor put it, to "get Illinois back on fiscal sound footing" and improve the state's credit rating. So much for that. In its downgrade statement, Moody's panned Illinois lawmakers...(Read Full Post)