The Illinois legislature moved a step closer Tuesday to passing its first tax-rate increase in nearly two decades to dig the state out of a $13 billion budget hole despite steep opposition from Republicans.Read the rest here.
Tuesday afternoon, the House Revenue and Finance committee passed a scaled back version of a tax-increase proposal that was struck last week by leaders of the Democratically controlled legislature and Illinois Gov. Pat Quinn, also a Democrat.
Under the current version of the bill, the individual income-tax rate would jump to 5%, from the current 3%, a 67% increase. That is more conservative than last week's proposed 5.25% rate, a 75% increase. Also, the corporate tax rate would increase to 7%, from the current 4.8%.
Illinois, is the only state that seems determined to make California look semi-responsible. The Governor of Indiana responded to Illinois' planned tax hike with laughter. The Governor of New Jersey told his state to take note of Illinois plight, cautioning that they (IL) were moving in a dangerous direction.
It is probably unreasonable to expect that one could close the budget gap confronting the all Democratic state government in Springfield without some tax hikes. But there has been almost no serious discussion of spending cuts. This is nuts! It is economic suicide being committed by a legislature of cowards afraid of offending their special interest masters. If I owned a business in Illinois I would be packed and heading for the door by the months end.
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