Sunday, January 9, 2011

A "Temporary" Tax Hike? Not Without Serious Spending Reform

This morning, the Chicago Tribune is awash in coverage of the state's financial morass which is supposedly going to be addressed by a 75% tax increase -- but that increase will not be permanent, so the Dems say. Well, even if you believe the intention today is to make this a temporary budget fix (ha ha), the Trib points out that without serious spending reforms and more accountability in state government, nothing will be fixed:

For four years, the state might approach something like a truly balanced budget for the first time in a long time. Come year five, however, a large part of the tax increase is supposed to expire.

"If you don't control spending, then after four years, there's no question you'll have a big deficit," said Dan Long, executive director of the bipartisan Commission on Government Forecasting and Accountability.

Thus, in four years, when the 'temporary' tax hike is due to expire, whaddya think is going to happen? Even the citizens of Illinois, many of whom were bilked into voting for the Dems, can't possibly be this foolish, can they?

The Trib also points out that the cut in federal taxes that everyone was looking forward to (unlike many deductions, the reduction in the Social Security payroll tax was not limited by income) is probably going to get swallowed up by the increase in state taxes. Swell.

Senator Mark Kirk stated:

"I am concerned that just as President Obama and congressional Republicans protected Americans from a huge tax increase, Gov. (Pat) Quinn and the Illinois Democratic leadership will impose new taxes in the teeth of the Great Recession. While citizens of well-run states like Indiana and Wisconsin will see their total tax bills go down, the unfortunate citizens of Illinois will see their taxes go up."

As one wise commentor quoted in the print edition of the Tribune today said,

"Once taxes go up, they don't ever go back."


Anonymous said...

Balancing the budget on the backs of the producers with confiscatory taxes assumes tax revenue will go up and stay up.
After all of those producers and job creators leave to neighboring more tax friendly states, that hoped for revenue increase will be a decrease.
Duh. Also, stealing more of my income with these income tax increases leaves me less to spend in the sad state and thus sales tax revenue will decrease.
Double Duh.
Oh but wait, their going to give me a $300 property tax credit.
So no, the temporary tax increase will be permanent, till the state goes bankrupt.

Anonymous said...

It's ironic that our new GOP controlled Congress touted their 5% cut in their own operating budget while each and every GOP member of the Illinois Senate voted AGAINST the same 5% cut in the Illinois Senate's budget last year. The blame game for the budgetary problems of Illinois, exemplified by this blog's repeated posts, is neither accurate nor a path to a solution.

As for the Tribune's article, it's crusade against the entirety of the General Assembly, it's endorsement of GOP candidates who failed to even submit responses to the Tribune's endorsement questionnaire, and it's own lack of fiscal discipline, color both its reporting and it's opinions the yellow of newspapers from years ago.

The need for spending reform is obvious. I just see the GOP's need for political posturing remaining more important than reform.

Anonymous said...

Governments tend to spend $1.30+ for every $1.00 of tax revenue they receive. Raising Illinois taxes will allow the dems to continue their uncontrolled spending addiction! Cut, cut, cut some more and then maybe consider raising taxes a small amount...otherwise will the last person to leave Illinois please turn out the lights.

Trebor of Libertyville

Anonymous said...

I love the fact that people are touting the "$300" property credit as awesome... It's nothing compared to how much one pays in property taxes. And it only makes sense if you make enough money to actually afford a house to begin with. Those of us who don't make enough money to purchase a house and have chosen to live within their means are the ones who are going to really get screwed by the tax increase. And yes, having to pay an extra 1.25% in taxes hurts when you're already living paycheck to paycheck

Anonymous said...

Pity that Joe Walsh wasn't one of those who chose to live within his means.

Anonymous said...

again I think this springfield mess is great for the gop and the congressional delegation because it pretty much soils the careers of every springfield democrat and really opens it up for a grassroots revival next year. It ruins sheila simon's chances of taking on mark in 6 years because all he has to say is she raised your taxes (huge win).

as borat would say, happy times.

Fan of King Louis Astaves the Ellen Slayer

Anonymous said...

The proposed property tax credit is a sham. We already have the ability to take 5% of our property tax bill as a credit against our income taxes in IL.
Anyone who pays more than $6,000 in property taxes is getting hosed with additional income tax because their credit is less than that currently offered.

Anonymous said...

Happy times, foklaes?

Your inexhaustable supply of creepiness is amazing.

edsullivanjr said...

Update from the Capitol:

The tax bill passed with 60 votes. There were no Republican votes. In Lake County Mayfield and May voted for the increase while Sente voted no.

Rep. Ed Sullivan

Team America said...

Thanks, Ed. Keep the reports coming. We've started a new thread. Why did Sente vote "no"? Was she 'allowed' to by Madigan, or did this actually show some spine?

Anonymous said...

rep sullivan, where was the effort by springfield republicans to fight this?