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

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.

Comments

Buckaroo Banzai WTFRLY Sun, 07/02/2017 - 11:15 Permalink

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.

In reply to by WTFRLY

SoDamnMad Buckaroo Banzai Sun, 07/02/2017 - 11:22 Permalink

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.

In reply to by Buckaroo Banzai

nuubee SoDamnMad Sun, 07/02/2017 - 11:25 Permalink

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...

In reply to by SoDamnMad

MalteseFalcon lester1 Sun, 07/02/2017 - 21:13 Permalink

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.

In reply to by lester1

1033eruth wombats Sun, 07/02/2017 - 18:26 Permalink

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.  

In reply to by wombats

Shinebama nuubee Sun, 07/02/2017 - 12:28 Permalink

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.

In reply to by nuubee

Shinebama it aint parano… Sun, 07/02/2017 - 15:57 Permalink

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.

In reply to by it aint parano…

Bwana Buckaroo Banzai Sun, 07/02/2017 - 13:35 Permalink

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.

In reply to by Buckaroo Banzai

Hal n back Buckaroo Banzai Sun, 07/02/2017 - 21:30 Permalink

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 .

In reply to by Buckaroo Banzai

eclectic syncretist nmewn Sun, 07/02/2017 - 11:04 Permalink

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.

In reply to by nmewn

GUS100CORRINA mofreedom Sun, 07/02/2017 - 11:00 Permalink

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. 

In reply to by mofreedom