Illinois Taxoholics Wear Down Rauner: Massive Tax Hikes In The Works

Tyler Durden's picture

Authored by Mike Shedlock via MishTalk.com,

Total capitulation by Governor Bruce Rauner is in the works. The taxoholics wore him down.

In the emergency session, Rauner has agreed to hike the personal income tax rate to 4.95% from the current 3.75%. The corporate income tax rate will rise to 7% from the current 5.25% rate.

For what? Nothing. Reforms are non-existent.

Another Deadline Come and Gone

Illinois failed to approve a budget today and thus heads into its third fiscal year without one.

A vote has been scheduled for Sunday.

I do not expect your opinion will matter, but in the slim chance I am wrong, Please Email Your Representative voicing displeasure of the tax hike.

The preceding link will find your rep based on your address.

Rule of Nothing

A zombified Rauner has capitulated in every way but the final signing.

Tax hikes have been agreed to with no reforms in return.

The Rule of Nothing is clearly in play.

Rule of Nothing

 

In any given political situation, the best outcome one can reasonably expect generally happens when politicians do nothing.

 

Implied corollary#1: When politicians attempt to fix any problem, they are highly likely to make matters worse.

 

Corollary #2: Politicians almost never do nothing. It’s why we have a messed up healthcare system, education system, public pension system, etc..

Taxoholics Win Again

Chicago schools will not get fixed. The hikes will not shore up pension plans.

Within one month of tax hikes, public unions will ask for more money. And people will leave the state. So will corporations.

Rauner pledged 44 reforms. He is 0-44 on his pledges.

The property tax freeze currently under debate has so many holes it is as useful as a bucket with no bottom.

Trading tax hikes for nothing is a horrible deal. Nonetheless, the taxohalics won again.

More business flight and human capital flight is the guaranteed outcome. Doing nothing at all would have been a far better outcome.

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JLO's picture

Property tax increase for all.

johngaltfla's picture

I hate this. It  means more northern liberal Illinois assholes moving to my state.

Lumberjack's picture

Lol! They should solve the crisis by increasing admission fees at the Obama library and charging rent for illegals to stay there in the extra rooms.

WTFRLY's picture

It don't matter, Joo-cago is about to go international

Buckaroo Banzai's picture

Nothing was going to get cut-- it's Illinois. What is most pathetic is by how little they raised the taxes. If Rauner is going to fag out, he should just crash the pig and raise the personal and corporate income taxes to a flat 10% for everybody. That's a nice round number. Just drive all the taxpayers out of the state and start over.

SoDamnMad's picture

9:00 AM, July 3, 2017 everyone called into the conference room and told the comany is moving out of state. Assignments given for packing. Real estate agents called to come in and submit proposals for putting the company holdings up for listing. Search teams go home to pack for travel to possible sites for new company. Stategic plans made for who is to be offered transfers and who gets "redundant".

Now tell me what is the NEXT budget going to look like when 10% of the state has left taking a highr percentage of good paying jobs with it and no corporates to tax.  We need a Krugman solution to this.

nuubee's picture

So they're going to tax the law abiding people to make up for this *yawn*...

So how many of these hardworking people will want to stay in Chicago when taxes go up?

How are these hardworking people supposed to be assured these tax hikes will succeed?

If you think this years murder numbers in Chicago were bad, wait 2-3 years...

CH1's picture

In the end, the Republican ALWAYS caves.

We should all be clear on this point.

lester1's picture

NOT TRUE

 

Only the globaliat, never-Trump Republicans cave!

MalteseFalcon's picture

If I were a conservative with an "Alinsky" mindset i.e. no morals and a belief that the ends justify the means, and I was tired of a feckless political system, I 'd flood Chicago with guns and drugs.

Free guns and free drugs.

Guns that fire a lot of bullets quickly and drugs that really put a hook in people.

And I'd think of as many ways as possible to monkey wrench IL to hasten and ensure its inevitable collapse, and punish its political class as quickly and as harshly as possible.

But as a conservative, I have a moral compass and would find such things repugnant.

Besides IL's political class is getting the job done.

Creative_Destruct's picture

"Tax hikes have been agreed to with no reforms in return."

GREAT JOB gutless pussy Rauner !!! Keep piling up that debt with those unaffordable pensions!!!

Betcha $10 to a DIME the unions simply want MOAR now !!!

slwsnowman40's picture

They are probably getting line as this is read.  Happens all the time in California, new taxes passed, union the benefits the most from that tax increase gets pay raises.

Los Angeles DWP increased rates a few years ago, this year, their union signed a contract that will give them raises of 10% 4 out of the next 5 years and a 22% (I think) COLA.

DJZZ's picture

Absolutely correct!

MrBoompi's picture

Whoever has the majority caves.  

wombats's picture

Their murder rate will go to ZERO when there is nobody left to kill and nobody left to care.

montresor's picture

I was going to say something but then saw you had already written it down..

1033eruth's picture

wombat said, Their murder rate will go to ZERO when there is nobody left to kill and nobody left to care.

All the government employees will stay and so will the welfare leeches.    They aren't going anywhere as long as the checks and freebies keep flowing.  Government retirees will leave though IF they can sell their house.  That means HALF the population isn't going anywhere.  I read somewhere that 25% of the state is on medicaid.  

Scuba Steve's picture

Hey, works kind of like the federal Unemployment equations, huh?

Shinebama's picture

I don't. Assuming the deal goes through, I sold my condo yesterday. Getting the hell out of Shitcago while I can. Have a job lined up out of state, waiting for me. This fails to address the past due bills, which will be dealt with in a later session. Meaning this hike to 5% is only the tip of the iceberg. Rauner is a total pussy, the evil leprechaun stared him down and he blinked first.

I wake up every morning, hoping to see Madigan had a fatal coronary in the middle of the night. But he has no heart, so that will never happen.

MisterMousePotato's picture

You're a nice man, Shinebama. A better man than me, to be sure, because my hope is to see the likes of Madigan and his ilk die slowly and in pain from something like bleeding rectal cancer after being sent to federal prison for corruption.

it aint paranoia if they really are out too harm you's picture

Come to west Texas, or my state New mexico, where we have always had open carry. PS. Stay out of San(ta) Fe (Fransico) and the central coridor. East side of the state a lot like Texas culturally. 

 

We got land where the population concentraion is less than 1 per 100 square miles. Heaven.

Shinebama's picture

I'm moving to the northern burbs of Cincinnati. I'm picking the ones to consider based on Presidential election results. Blue cities are ruled out. Only considering ones that voted Republican in the last election.

Fuck Mike Madigan, and all the tools that keep voting for that little runt of the litter. We need height requirements, like at the county fair. If you're under 5 feet tall, you can't be speaker of the house.

Rancho Texican's picture

I recommend Mason, or if you'd like to run into cuckservative John Boehner on a golf course, West Chester.

Mikeyyy's picture

If you make decent money, income tax rates in Ohio aren't much lower than the new rate in Illinois.  

Bollixed's picture

66,874 Non-Profits in Illinois. What could go wrong hiking corporate taxes...

Bwana's picture

Illinois will never catch California as far as their taxes. California is 13%. Their latest ploy to bankrupt every citizen was single payer health insurance. They figured it will cost $10,000 per person per year or 400 billion dollars. To pay for it, all they have to do is triple the state tax to 39%. The legislature is so corrupt it actually passed in the house but got shot down in the senate.

Mikeyyy's picture

California's 13% rate is for incomes over $1 million.  I'm guessing you don't make that kind of money.

caconhma's picture

 Governor Bruce Rauner is not a pussy. He is just as corrupt as his friends form the State House. They are there to enrich themselves. They do not give a shit about people of Illinois.

Things take place as it was planned! Ther are no surprises!

Red Raspberry's picture

And the Senate Republicans elected failed Repbublican Bill Brady as their new leader too.

Secret Weapon's picture

R or D.  Same coin just two sides.  The D crime family shakes you down in the big cities.  The R crime family shakes you down in the burbs.  Just organized crime arguing over who get to fuck you and your family over.  Voting does not matter. 

Hal n back's picture

the budget was passed-its baced in 36 billion od tax revenues with the 5 billion of increase. Spending pupoirtedly goes from 39 billion to 36 billion--but the 39 billion was sans full funding for pensions, sans the truse spending for vendors and schoos, and a couple other things. So where wil another 3 billion come from? Its a BS budget.

Oh, BTW, it ignores the 400 billion a month extra for court ordered medicaaid payments, per month

 

What teh schmucks  did is raise taxes, they wil not cut soending th edeficit wil be bgger than ever but they bought another 12-24 months.

Moodys and S&P should review the budget and stil downgrade to junk--because i may buy Illinois bonds based on non junk rating given by moodys and S&P--if it ever gets an upgrade I sell for a profit or if it flops I start a class action suit vs Moodys and S&P for giving too good a rating. 

There is no intent on cutting spending, and in fact spending wil increase based on the court ordered almost 5 billlion to be spend .

Whoa Dammit's picture

Thread song: Ten years After  I'd Love to Change the World

"Everywhere is freaks and hairies

 Dykes and fairies, tell me where is sanity

Tax the rich, feed the poor

Till there are no rich no more" https://www.youtube.com/watch?v=ZyaFeDlJJAk


Son of Loki's picture

The FSA and gubmint employees are the Big Winners here. More free stuff (EBT, section 8, free health care, free cell phones, etc)  on the backs of hard working middle class people.

Socialism at its finest!

playit's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobproplan.com

Shinebama's picture

I have a way you can make 40 dollars for no  more than 5 minutes of your time, and I'll tip you an extra 10 if you swallow.

Winston Churchill's picture

Paying it forty times their current rate only encourages them.

eclectic syncretist's picture

Don't worry too much, because Illinois wouldn't ever tax illegal immigrants and ask them to contribute an equitable portion to the community. That would be racist and xenophobic according to their delusional politicians. 

They probably wouldn't be allowed to vote in your state either.

Yukon Cornholius's picture

Don't worry everyone. Trump's got the Feds heading to Chicago. All will be well.
Anybody see that sinkhole the other day? Crazy. Where did all the dirt go they asked?

Stuck on Zero's picture

Q. What is the definition of a Republican?

A. 99% of a Democrat

GUS100CORRINA's picture

If anyone thinks that a lot of people have left Illinois to date, you have not seen anything yet. All of the states surrounding Illinois like WI, IOWA, OH, etc. should benefit greatly from the mass exodus that is about to occur.

The governor of Illinois should have stood his ground because he just SIGNED THE DEATH WARRANT for ILLINOIS. 

stljoe's picture

I don't see how other states will benefit from an influx of the dumb ass progressives who ruined Illinois. Indiana should build a wall.

Loanman26's picture

Actually the dummies will stay and all the smart people will leave.

DocBerg's picture

A lot of us who will be leaving Illinois are not Progressives, and understand fully what has destroyed Illinois.  We don't carry the plague virus!

Red Raspberry's picture

The government union members will stay behind.

Silverfoot's picture

Don't forget Indiana... That is where I went in 2008....  hahahahaha