From Chicago, land of great ideas, comes a great idea!
SPRINGFIELD, Ill. (CBS) – Gov. Pat Quinn and the leaders of both houses of the Illinois General Assembly have agreed on raising the state income tax.
If the bill passes, the plan would raise the personal income tax rate from the current 3 percent to 5.25 percent. That’s a 75 percent increase. In real dollars, that would mean if you currently owe $1,000 in taxes, next year you would owe $1,750
Here is the whole story
Democrats say they have no choice but to raise taxes as one part of a solution to Illinois’ massive budget crisis. The state deficit could reach $15 billion in the coming year. The government is borrowing money to cover some obligations, letting bills go unpaid for months and cutting corners everywhere from state prisons to state parks.
The obvious problem is that Illinois loses anybody who can move to a state with a lower income tax – especially anyone with any $$ or a business. Then your left with, what?
Another chunk would go to property tax relief in the form of annual $325 checks, he said. The checks would replace the property tax exemption that homeowners can now claim on their income taxes.
Doesn’t this mean that you go from no property tax to a porperty tax with a discretionary rebate? And when does this “temporary” nightmare end. Look at the comments where a reader notes that a “temporary” tax in Massachusetts is still there 20 years later.
So, since California has approximately twice the debt Illinois has, shouldn’t our legislatur raise taxes by 150%.
Or maybe we should just cut the actual size of government? California will soon face a similar test. We may have to start cutting whole agencies from that handy list I posted early this week. Just like we may have to downsize whole fedral agencies. Taxing the golden goose to death is no long term solution.