A year ago today, the Illinois General Assembly decided to raise the individual income tax rate by a whopping 67%. The corporate income tax rate was increased by 46%.
Even a few of the libs here (those with partial regrowth of their frontal lobes) knew this would happen. What, then, is wrong with Gov. Quinn and the rest of the mentally-challenged Democrat legislators in Springfield?
“We have some temporary tax increases that are designed to pay our bills, get Illinois back on fiscal sound footing and make sure that our state has a strong economy.” - Gov. Pat Quinn, Democrat, Illinois
Note Gov. Quinn's use of the phrase "temporary tax increases." Turns out it might be as "temporary" as the tolls on Illinois highways: It's here for good, in other words.
A stunning (but not surprising) report released today by the Illinois Policy Institute (IPI) notes that Quinn's tax hike not only didn't work, it caused more damage to the state's economy. "One year later,"says IPI, "it’s clear the tax hike was the solution to neither Illinois’ fiscal problems nor its continuing economic decline. Today things are worse." IPI's report, called "The Verdict Is In: The Tax Hike Failed," goes on to cite reasons why:
1. Spending grew, bills went unpaid and pension reform stalled.
2. Illinois’ unemployment problem worsened.
3. The tax hike made Illinois less competitive and forced businesses to leave the state.
The full report, of course, gives very detailed information about the above reasons for the tax hike's failure to mend the Illinois economy.
IPI also points out that "The tax hike spurred a number of companies to leave or threaten to leave. The state resorted to handing out tax incentives to keep large businesses from leaving. This reinforced Illinois’ reputation of favoring the powerful and connected at the expense of everyone else. It is this perception – grounded in reality – that keeps many entrepreneurs from even considering Illinois as a place to found or grow their business," and "Overall, Illinois fell to 28th place in 2012, from 16th place in 2011 (revised). In particular, Illinois fell 16 places in the corporate sub-index, dropping to 45th in the nation, from 29th prior to the tax hike."
WJBC notes today that "The increases are estimated to bring in about $7 billion in revenue for 2011, but even that shot of cash is not expected to cover expenditures. Quinn’s budget office projects that the state will run a deficit of $507 million this fiscal year and an even larger deficit of $818 million in fiscal 2015, when the majority of income tax increases are set to expire, and he has not identified how to balance that budget." Well, ain't that great? Happy new year, Illinois.
The Illinois budget is still out of control, thanks to Quinn's band of progressive liberal morons in Springfield. "Quinn’s budget office projects that the state will run a deficit of $507 million this fiscal year," says the WJBC report, "and an even larger deficit of $818 million in fiscal 2015, when the majority of income tax increases are set to expire, and he has not identified how to balance that budget."
Please also see "Taxburgers and Fee Fries."
