Posted on 01/14/2011 5:19:17 PM PST by Kaslin
State Finances: As Illinois passes a draconian tax increase on people and businesses, surrounding states with GOP governors are moving in the opposite direction, ready to pick the Land of Lincoln's bones.
The Founding Fathers envisioned the states as laboratories where ideas could be tested and evaluated. Each state would be different and freedom of movement guaranteed that if a citizen of any given state was unhappy, he or she could move to one more hospitable.
Well, a great experiment is about to begin, and we may soon witness a migration to rival the exodus from East Germany. At least the governors of neighboring states hope so after Illinois voted to raise its personal income tax rates by 67% (to 5% from 3%) and the income-tax rate on businesses by 46% (to 7% from 4.8%).
Illinois, ignoring the axiom that when you tax something you get less of it, expects economic activity to be unaffected by these disincentives and expects the added revenues to close a $15 billion budget shortfall. Ignoring another axiom — that when you're in a hole, stop digging — the legislation that Gov. Pat Quinn signed allows a 2% increase in spending.
In addition to its budget shortfall, Illinois owes $6 billion to vendors and has unfunded pension liabilities estimated to be as high as $78 billion.
"It's like living next door to 'The Simpsons' — you know, the dysfunctional family down the block," Indiana Gov. Mitch Daniels, a possible 2012 GOP presidential candidate, said in an interview on Chicago's WLS-AM. Daniels notes that Illinois-based Caterpillar recently chose to make a major investment in Indiana with a plant to build locomotives in Muncie.
(Excerpt) Read more at investors.com ...
These people never learned the lessons of the Warren G Harding administration.
Last I heard, if they exceed the 2% spending cap, the tax increase is rescinded.
Chicago and East St. Louis has killed that state. Interesting how a small area can dictate to to the rest of the State.
This editorial is plugging Wisconsin.
East St. Louis, shit hole that it is, is a very small factor, with an estimated population of 30,573.
Chicago and its politicians is, (my estimate) 95% of all of Illinois' problems.
I am not union bashing. But look at where labor unions were powerful: East St Louis, South Chicago, etc. Almost all are abandoned or in severe decline. Manufacturing moves.
Add Detroit, Cleveland, Rochester, Syracuse, Buffalo, etc.
Unions destroy.
“East St. Louis, shit hole that it is, is a very small factor, with an estimated population of 30,573.”
My point being that they are corrupt, are last to submit votes in a close election and that make them an impact on all close elections. I was not referring to population per se’. Population wise, I agree with you.
I guess people couldn’t do a little homework and see what happened in Detroit when liberals ran that town into the ground... oh well, people won’t learn.
“Unions destroy.”
IMO, Union = Communism.
I’d hate to own a house in IL at the moment. I can imagine there will be a boatload of them on the market real soon. With everyone of substance leaving, who will be left to buy?
It is cold in Illinois, but it’s damn cold in Wisconsin, and the plants power bill increase would pay the taxes, and it is not as cold in Texas.
And whose figures will they be using to verify that they have (or have not) exceeded the spending cap?
Thought so.
Way back, it was common in Illinois to have an “ESCAPE TO WISCONSIN” bumper sticker cut up and modified to read “SIN TO ESCAPE” on the back of your car...
Now I think that Illinois residents should just ESCAPE.
Some of the most crooked and dishonest business people I have ever met came from St. Louis.
From what I’m hearing, the corporate tax situation in Wisconsin overall is no better than Illinois. That may change with the new Republican governor. Indiana is a different story....much better on taxes. Individuals are stuck-—try selling a house in Illinois right now.
see what happened in Detroit when liberals ran that town into the ground...
Photos exist from 75 years ago that capture the degradation and decay that liberalism condemns any hapless victim-city that allows it to breed.
San Fran and LA have ruined it for the rest of THIS state, too..
That's right, the increase in taxes is balanced by increase spending; so, there will be no economic improvements. In fact, all the evidence points to a loss of economic strength and income as money and people move to neighboring states. Didn't the Illinois politicians listen to what happened in New Jersey when they raised taxes?
Oh, yes that's right, it couldn't possibly happen to them because they are in Illinois.
“Chicago and its politicians is, (my estimate) 95% of all of Illinois’ problems. “
Too bad. In my younger days I enjoyed cruising down Michigan Avenue and watching women’s skirts get blown up high by the wind of the Windy City.
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