I want to see the results of this Democratic effort to cure the economic ills of Illinois - without addressing the toxin of public sector unions that plague the state. As could easily be forecast, the new Democratic plan - a massive tax increase on individual incomes and businesses:
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. . . .
The increase is for four years. After that, the personal income tax would go down to 3.75 percent.
The Democratic leaders in the Illinois General Assembly believe this income tax increase, a corporate tax hike, and a $1-per-pack tax increase on cigarettes would erase the state’s $15 billion budget deficit. . . .
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.
Anyone want to forecast that, even as the rest of the country starts to come out of the current economic mess, Illinois will be on life support as all those with sufficient wealth and options will move from the state? In any event, I doubt whether they will be $1 closer to closing their gap in four years.