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Bad News For Our Chicago Readers: Illinois House Committee Passes Bill To Hike Taxes
From Dow Jones
- Illinois House Committee Passes Tax Bill To Cut Deficit
- Illinois Income Tax Would Jump To 5% From 3%
- Illinois Corporate Tax Would Jump To 7% From 4.8%
- Illinois Bill Now Goes To Full House
h/t London Dude Trader
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Wow! 66% increase in the income tax!
This is very sad. I am an Illinois resident and I can say with certainty, this WILL NOT fix their budget issues. Currently, the budget is only funded by 50%. A 50% increase in taxes will likely leave a gaping 30% hole or so. The real issue is spending. Illinois has one of the most defunct pension obligations in the country, and the problems are only going to compound (interest can be a bitch). The top 100 school administrators in Illinois have pensions worth a combined 1 billion dollars. There is no tax cut that will save us. I don't know if it will be next year or a couple years from now, but this state will defacto default and the government will take over its obligations. Then it will only be a matter of time to wait for the eventual Sovereign collapse in the US.
http://newsblogs.chicagotribune.com/clout_st/2011/01/quinn-supports-tax-increase-plan-top-aide-says.html
Now I'm torn. I wanted to see some serious belt tightening to go along with the tax increases, but as an Illinois tax payer, I'm kind of hoping they blow it and send me back to 3%.
http://chicago.cbslocal.com/2011/01/11/major-bizarre-fish-die-off-along-lakefront/
Guess who's back in town?
Rumor has it that the fish were nibbling on Jimmy Hoffa's body.
Nvm, delete plz.
When the dust from this clears, Rahmbo may wind up being the Mayor of the city with the biggest population decline in the next census.
Good luck Illinois.
Michigan did this, raised income taxes, raised sales taxes and raised business taxes.
Then ran out and gifted tax abatements on the mere promise of jobs from their corporate cronies (handlers, whatever).
Result? We are still in the hole, still digging. Thankfully the federal taxpaying suckers, 'er working class, gifted Michigan (and all the states) billions to keep the inevitable from happening. Yeah!
Meanwhile, Walmart opened a new store where EBT (food stamps) shoppers line every register aisle, and Walmart pays ZERO property taxes. Thanks to Walmart, another dozen or so small businesses shuttered their taxed doors.
Shockingly, the budget problems remain. I just don't see how that is so when the true taxpayers continue to be run out of business. Higher taxes NEVER cost jobs, never result in a reduction of wealth among the not politically connected.
Same thing will (continue to) happen in Illinois. But please dear Illini, don't be upset, many of us are right behind you.
I'm sure this will work out ok.
It's all fer da children.
We still have no idea who was managing the public sector pensions, what their losses were on Subprime Mortgages and who has been fired for their wreckless risk taking with our tax dollars (probably nobody).
Instead, we get a massive tax increase that will drive people and businesses out of the state and will not solve the $130 billion debt problem. Just another can kicked down the road in Madiganistan.
You know, it's fer da children.
To top it off, they have the nerve to call this bill "The Taxpayer Accountability and Budget Stabilization Act."
Unbelievable.
This income tax increase is just a bailout for State employee pension fund managers who mismanaged public employee retirement funds during the housing boom. I would like to see a report from these pensions on how much was invested in Mortgage Backed Securities during the housing boom and what the total amount of their losses were on these investments before we blindly throw more money to these geniuses.
State tax payers in Illinois who are already on the hook for trillions in bailout debt at the federal level should not have to pay for the same mistake twice just because State employee pension managers didn't do their job and analyze the risk of their Mortgage Backed Security and CDO investments.
Demand to know who was managing the state employee pension programs.
Demand to know what these pension funds exposure was to Mortgage Backed Securities during the housing boom.
Demand an end to bailouts for the losers who DONT KNOW HOW TO MANAGE RISK!
WE SHOULD NOT HAVE TO PAY FOR THE SAME MISTAKE TWICE!
If they were honest and called it "Gone with the Wind" there would be trademark issues.
You named the right guy CC: Madigan. That piece of shit has almost single handedly ruined this state. He runs the state gubmint like it was his own fkg pet project that couldn't possibly fail, and ALL his friends (read: unions) get whatever they want. Madiganstan, indeed.
I wonder if he spoke with " Fast Eddie " V...... Lol'
Illinois is going the New Jersy, New York and California route,... and I'm going to Iowa. And Iowa has even better gun laws. I can conceal and carry if I live in Iowa. That's where the hockey rink is anyway, so now I'll be closer to the rink. Easy choice. Fuck Illinois, they're done for a number of years. Money will flow out and the poor will be trapped all of which will do wonders for Illinois. Shit for brains in the politicians who are running Illinois. Truly unbelievable, and they know better but go ahead and do it anyway because I will guarantee you that they don't believe any of this shit either. They know they're kicking the can down the road and don't care as long as the sheople don't care either. Truly unbelievable.
This is going to help someone's budget but it definitely won't be that of Illinois.
AUSTERITY has come to America and it only makes sense that it starts in the Land of the CRONIES. Well I guess we know what we have to look forward to in the future seeing how all of the economic team is from Illinois! Forget about making cuts in your Keynesian State??? Just chase the people and businesses away and have your land of taxes and entitlements. California is the next shoe to drop and soon will be the land of the illegals.
Trust me, if this came with some austerity (deep state spending cuts) I'd be first in line to support it. Unfortunately, this is nothing more than the continued raping of the taxpayer base to support the waste, mismanagement and corruption of the state government and their union brethren.
+ 5 % witholding
Ha, you Illinois suckers will have to move to California where the rate is only 9.3%...uh wait a minute...10.3% over a million...never mind
BTW, calling an increase in tax rates "austerity" is a stretch. Austerity would be the government reducing spending instead of milking the sheeple for more cash.
That's a good point. Austerity generally means other people having to pay a higher share. Austerity never seems to mean downsizing a spend-happy bureaucracy.
It's always someone else who should have to pay. Why don't the lawmakers who got them into this huge mess take some austerity measure, themselves?
I tried to move out of the this criminal union run state state last year... I'll be trying again later this spring, if I can sell my house (hahaha). This tax move won't even close the budget gap, the voters of Chicago elected this guy, who promises more and more government cheese to enable them "the slackers" to sit on their A@#$@#s and collect $$$s and fleece from those who produce. Plus, I am sure the highest business tax in nation and maybe the world will be a real draw... at least CA has great weather this place sux, even in the summer you have to drive to WI or MI to see some nice vacation locations.
This should be good news for Rahm.......no doubt union workers will get an exemption.
From NJ... the land of union patronage!!!
I think for now the unions just get to keep their pension-hopes alive... until the great do-over, at least.
Only 1 way out http://www.youtube.com/watch?v=eEh5Y55axSE
VAT or bust! /sarcasm off
This state snake is just about to eat its own head.
On a side note, I am thinking about moving to Doug Casey's La Estancia de Cafayete planned community in Argentina. Wine and Golf post US collapse sounds nice. After all, the rich have different "bug out" plans than the proles and includes many more amenities. Polo anyone?
Rahm-Tard, Next Mayor of Shit-cago Is For It...
"Tax the hell out of those bleep-ed-e bleep bleeps..."
Guys:
How does this square with Meredith Whitney's gloom and kaboom prediction about muni-debt in 2011? If it is this easy to raise the income tax 66% in supposedly the sickest of all the patients, is this what is to come in all states and muni's? As a New York resident maybe I should hang on to my wallet already??
Plus - the state and muni time bomb was one of the platforms supporting the idea of the crash. Did we all over-estimate the impact of this??
Exactly...Cover the Muni bonds with more money from the sheep. This way the sheep lose and the elite get their butts covered once again.
Chicago is going to end up like Detroit and St Louis. The same with NYC,Boston,Miami etc. A new crimewave is coming.
Some of your readers are in Illinois, and not in Chicago. There are actually millions of people that live in Illinois, but don't live in Chicago. Of course none of us have much representation in state government so maybe we don't matter. Nevermind.
Chicago already has a higher murder rate than NYC! Its so pathetic. As an illinois resident you just have to laugh. No mention of substantial changes to spending other than CTA will now charge Seniors to ride public transportation.....they might save more money getting rid of the death penalty and paying lawyers to review, re-review and re-re-re-re-review murder cases before a decision is made
The USA is a dysfunctional bankrupt corrupt society. Move to New Zealand.
They won't let us. They say Singapore is nice, though.
Wheatman......actually the State of Illinois can Never be bankrupt because its written into the constitution. They have creative accounting so really according to the state law they are not really broke. Unfunded liabilities are accounted for some other way. I hope this helps clear that up and give you some insight into the complete and utter insanity that is the State Legislature and scare anyone else off any intelligent conversation about it. The only thing happening with any consistency down there is people managing to suck money out of the system, flat out. So far, I have to say their strategy has been awesome. No matter how bad it gets....checks get written. There's no progress, no reform, no accountability...just unsupervised children making sure that they and select constituents get paid. Its so widespread and well know its stupid even discussing it...........its the way it is. Its the public version of GM where the Unions are in charge.
This is the definition of throwing good money after bad, The State should just close down.
And a tip of the hat to Pres. Obama cause as State Senator before being promoted to US Sen and then Pres, he did accomplish nothing to help fix the problem.
Hi net worth people have been moving out of IL for years--mainly to Florida-Stay there for the requisite days per year and spend summers in Chicago gold coast. Most of their spending takes place in Florida-avoiding the 11% tax , property and gas taxes etc.
Now the next tier of Hi net worth will move out--leaving the middle class and lower--as noted by others in this thread.
The IL legislator has doen nothing to reduce costs--that woudl be too hard and require work--but they to have an inherent conflict of interest in that after short duty they qualify for health and retirement benefits.
If a performance standard was placed on these folks none would be working and they would be terminated for case giving up benefits (kind of like Rod B).
Here is how Illinois (and other states) can ge tout from under hte pension liabilities. I am no lawyer but I understand the concept of fraud in contracts. The pension was contracturally guaranteeed and also by th eIllinois Constitution. Those proponents of the high pensions, the spiking (including Gov Thompson years ago) had the inherent conflict of interest knew down the road checks would be returned NSF. The union leaders probably know the State and local munis could not fufill the agreements, but they received their comp too.
Start putting 2 and 2 together.
Good thing Rahm had been accepted as a resident. He can help pay taxes.
Why should the people of IL pay higher taxes if The Bernank will just bailout the state? Let it ride until the Fed comes to the rescue...
Bueller? Bueller?
http://www.youtube.com/watch?v=f4zyjLyBp64
oh...one more thing...a teacher retires in Illinois and DOES NOT PAY TAXES on that amount. A few of them walk away with 200-300k.