In case you missed it, in January 2011, Democrats in the Illinois Legislature raised the state income tax on individuals 66 percent -- from 3-5 percent -- and Illinois' corporate income tax to 9.5 percent. Not one Republican voted for the increases.
Democrat Gov. Pat Quinn ecstatically signed the tax increases into law. The increases have generated between $7 billion and $8 billion each year since, all of which has been ripped from the pockets of taxpayers. And of course, if Speaker Michael Madigan was to be believed, those tax increases were "temporary!"
What good did it do? These days, the only way Illinois can keep big businesses from leaving the state, and bring new ones in, is to bribe them with incentives. Big corporations, who provide jobs, don't like paying 9.5 percent corporate income taxes.
Have all these tax increases helped the state's credit rating? Hardly.
Here is what the Chicago Tribune reported on June 6, 2013:
"Moody's Investors' Service on Thursday downgraded Illinois' general obligation credit rating by one notch -- to the lowest rating in the state's history -- following a move earlier this week by Fitch Ratings.
"Moody's downgraded Illinois' $27 billion of general obligation debt to A3 from A2, with a negative outlook after state lawmakers last week failed to pass a plan to deal with a $100 billion unfunded public pension liability."
And on March 14, 2013, Huff Post Chicago headlines, "Illinois budget deficit worst in the nation: State is reportedly $43.8 billion in the red," based on a report issued by Illinois Auditor General William Holland. Mr. Holland states that "the state's overall budget deficit has more than doubled in the past five years."
The audit analyzed the Illinois Comptroller's comprehensive annual financial report which lists all state government assets and liabilities for fiscal year 2011.
When Democrats rammed through the 2011 tax increases, then-House Minority Leader Tom Cross, R-Oswego, said, "It's a cruel hoax to play on citizens to say this is temporary."
Two years later, as if to prove Tom Cross a prophet, Rep. Lou Lang, D-Skokie, a top House Democrat, said, "The state's temporary income tax increase from 2011 should become permanent. ... I think most legislators in this building, even those who will never vote to extend that income tax increase, would tell you we need the dollars."
Now Democrats are not even satisfied with that; they want a graduated income tax for Illinois. A coalition delusionally calling itself "A Better Illinois" is leading the charge.
"If Illinois were to adopt the same graduated income tax rate structure as Iowa, Illinois would raise $6.3 billion more in revenue than it does from its current five percent flat rate, while 54 percent -- over half -- of all taxpayers would pay less in state income taxes," from The Case for Creating a Graduated Income Tax in Illinois.
But if 54 percent of taxpayers would pay less, the 46 percent who pay more will have to pay the additional $6.3 billion PLUS billions more to make up for what the 54 percent who will be paying less won't be paying!
And look who is supporting this newest effort to plunder productive citizens -- the usual suspects! Indeed, at their March 19, meeting 17 of out 25 esteemed Rock Island County board members -- ALL DEMOCRATS --at the urging of state Rep. Mike Smiddy, D-Hillsdale, voted to support the campaign to put the proposal for a graduated state income tax on the November ballot. The five Republican members had the good sense to vote no!
And look who else is supporting putting on the ballot the extra $6.3 billion tax increase (on top of the billions approved in 2011. DEMOCRATS)! They include state Sen. Mike Jacobs, D-East Moline, with his bland, "the voters will ultimately decide."
When does it end?
Moline aldermen in December 2013 approved sewer rate increases for each of the next five years. The public schools just unsuccessfully sought a 1 percent increase in the sales tax. The county wanted and didn't get a .25 percent increase in the sales tax for the sheriff. The county is expected to vote in November for a tax increase to support Hope Creek Care Center.
And in Washington, the president never tires of demanding that the "rich" pay their fair share ("fair share" equals "more").
If this keeps up, Illinois will go the way of the bankrupt city of Detroit. If this keeps up, the productive and vilified "rich" will head south. Corporations will continue to choose not to locate here without being incentivized (bribed) to do so (and yes, you and I are taxed to provide those incentives!).
The tax-and-spend Democrats and their beloved taxes are wrecking the country, the state and the county. And if you doubt me, here is what President Obama said in his 2014 State of the Union Address:
"Average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that ... too many Americans are working more than ever just to get by; let alone to get ahead. And too many still aren't working at all."
Posted Online: March 26, 2014, 11:00 pm - Quad-Cities Online
by John Donald O'Shea
Copyright 2014
John Donald O'Shea