Not the Worst - Yet
Illinois taxpayers long have paid higher than average sales and property taxes while the state's gasoline tax consistently has ranked among the nation's most expensive.
But they always could count on the country's lowest individual income tax (of those states that have one) to help balance out the other taxes.
At least that was the case until early Wednesday, when the Illinois Legislature's decision to raise the income tax 67 percent, from the current 3 percent to 5 percent, promised to pack on pounds to the overall tax burden carried by taxpayers from Chicago to Cairo.
Just how much that overall burden will grow — and where Illinois ultimately will rank against other states as a result — will take a few years to sort out, tax experts agree.
What they predict, however, is that Illinois will climb the charts, though not enough to join the country's most prolific taxing states such as New York and California.
It could be a whole lot better, too.
Labels: state politics
posted by SCC at 12:01 AM
23 Comments:
New York, Los Angeles and Chicago. What do they have in common?
Keep giving the handouts to the leeches.
This country needs an enema.
been to new york and hate california, dont like either, oh yeah starting to hate illinois, dam maybe its my fault...If i see things going bad are because of me ill leave...Im pushing for 01 may but probably will show everyone how much i care and leave 01 mar.
JW
Our bonds almost got downgraded to junk status... We were literally a quarterly report away. Most people don't even begin to comprehend the implications of what this would mean, but it would've been catastrophic to our liquidity profiles.
As the Chinese proverb goes- the best time to plant a tree is 20 years ago... The second best time is now. If you're going to raise taxes to pay for the orgy of deficit spending that you've been enjoying over the past three decades, fine, but austerity and fiscal discipline must accompany this, which we're not seeing.
We will see 'more of the same'. Instead of using this infusion of cash to return our state to fiscal soundness and eventually lower taxes back down, they will use the revenue to keep 'things as usual' running 'as usual'.
Fucking disgrace, but predictable. Anything we ever wanted for the past 30 years fell from the sky like magic, without anyone ever paying for it... Well, here's the consequence for that...
Here's a glimpse into the future- think this state level tax increase is bad? Imagine this, multiplied many, many fold and executed on the Federal level when our national debt starts to approach unserviceable levels.
Economics is boring and no one cares, until the taxes get ratcheted up.
The only way it could be worse would be if J-Fled showed up tommorow in Cutlers uniform ready to play. He's done this type of thing before.
I am sorry to say.. Chapter9 Bankruptcy is the end game for ALL states and municipalities..The illegals and loafers will BK Illinois like they have Ca.. Political correctness has been the achilles heel of this Country... Shoving bullshit down our throats and preventing MEANINGFUL debates about the aforementioned issues..The majority of this country has been bullied and bamboozled by the minority..I really wonder what Dr. King would have to say about the African American current culture in Chicago and throughout the U.S. The record violence that is flourishing in their communities was not his dream.. As a man who demonstrated peacefully.. I think MLK would be very sad and disappointed and probably embarrassed of the African American violence and lack of progress that he fought for..
With the Aldermanic election a few weeks away they have been particularly quiet about how they plan to fill the $650 Million hole that the Mayor moved to the 2012 budget. There is no money in the “rainy day fund” now what? Oh yea HIGHER TAXES in Chicago.
Not one incumbent should be reelected to the city council.
Just like California and New York, Illinoisans who can will vote with their feet and move to more tax friendly states. There is no doubt that businesses that can will move rather than face a 40% corporate tax increase. When they leave, they will take their jobs with them leaving more unemployed individuals in their wake. It is a downward spiral leading to less taxes instead of more because the tax base will shrink and will also create a larger group of individuals clamoring for state handouts. The democrooks running the state took the easy way out by trying to soak the producers of jobs and revenue. Increasing taxes without making the hard decisions to cut expensive but frequently non functioning popular programs, was exactly the wrong thing to do at this time. Illinois is rapidly becoming a state that will be irrelevant on the national scene as its population shrinks losing representation in Congress (Illinois lost 2 seats in Congress this census), its employers move elsewhere and its citizens become more dependent on the dole.
God Bless the CPD.
Sure, us Illinois residents pay the
highest property, sales, and gasoline taxes in the country but
the politicians constantly claim
that the state is broke and behind
in meeting it's financial obligations, but they always find
money to pay themselves raises and
to take care of their friends and
relatives. Example: The story in
yesterday's paper about The new
governor rewarding an ex lawmaker
with an $ 89,000.00 a year job
because she voted for his income tax increase as her term was about
to end. Once these bozos are sworn
then it's gimme, gimme, gimme, and
gimme some more til it hurts.
The only way it could be worse would be if J-Fled showed up tommorow in Cutlers uniform ready to play. He's done this type of thing before.
1/16/2011 01:37:00 AM
what would he use for a helmet, a fossilized pumpkin?
Its not the land of lincoln,its the land of extortion.
Both New York and California have big population draws that make it worth suffering high taxes.
Illinois is not a world money center nor does it enjoy a wounderful climate.
This state is the plain middle sister trying to get away with the behavior of her perfect siblings.
The taxes need to be high to pay the patronage armies of the city, state & county politicians.
Then you have their minions, lackeys, and suck-asses. Add the slugs, parasites and Democratic party's TRUE voteing base, bloated budgets ....well, you get the picture. You can't expect the politicians to pay outta' their ill gains, do ya' ?
By the by, shortshanks & quinn say, thanks for the votes...C-H-U-M-P-S
Someone got voted a raise right after this passed.
Right now there are 30 states that owe the Federal government $41 billion dollars for money that they borrowed to pay for basic unemployment insurance benefits during the recession.
Illinois is number 6 on this list with $2.46 billion borrowed.
Guess what?
The first interest payments for these loans come due in Sept 2011.
Overall the interest payment in Sept. will amount to $1.3 billion dollars in interest.
That's INTEREST only and doesn't touch the principal of the loan.
What happened to all the money that Illinois employers paid into the unemployment fund eh?
It's like the pension funds no?
The politicians either gave the companies that were suppose to pay the unemployment tax, tax breaks or the money was used for something else and stolen to fund pet projects right?
The states doing this borrowing thought that the recession would be short lived and we would have a recovery before the interest payments were due.
Sure looks like the states were wrong.
Sure hope that the Illinois state tax increase is going to fund this otherwise it's either more taxes or more borrowing and spending beyond our needs.
Property Tax Dispute
Can't we save the City money by stop patronizing places like the Millennium Park Grill for example?
I understand that the city provides them with hundreds of thousands of dollars for things like garbage collection and water and sewage while they pay no property taxes!
Just stop going so they don't have to use any water and don't generate any garbage that's all.
Of course look at the link above and all the clout and the election campaign contributions that may be affected too..heh...
yeah..makes you sick doesn't it?
WRT: "I am sorry to say.. Chapter9 Bankruptcy is the end game for ALL states and municipalities..The illegals and loafers will BK Illinois like they have Ca.. Political correctness has been the achilles heel of this Country... .."
=============
Washington Park Illinois just tried to file a Chapter 9 bankruptcy and the judge shoved it back down their throats.
Google it!
Now what's that little town of 5,000 people, 94% of them black, with a median income of about $22K/year going to do?
If you raise taxes these people will apply for an increase in food stamps right? How much can you squeeze from people already in poverty?
That's below poverty scale wages!
The town is $1 million dollars in debt and has only $50,000 in assets.
Someone shot and killed the mayor a few months back in an alleged failed robbery attempt if you can believe that.
I fear that it's a trend of trickle up poverty. This is the first of the states domino's to fall. Washington Park will be like a zone of impunity for crime if the local government just shuts down to pay the bills. There won't be a town...
WRT: "New York, Los Angeles and Chicago. What do they have in common?
Keep giving the handouts to the leeches"
============
By the leeches you mean the corporate welfare CEO's and the politician recipients that are mis-appropriating funds designated for pension payments and unemployment insurance benefits, etc...money mis-directed for personal gain -- used to win campaign contributions for pet projects right?
I agree. Let's start their at the top where the big money is and work our way down.
You don't start at the bottom with the man on the street in poverty. Start at the top and work down.
HEADLINE: Man charged with punching meter maid in River North.
What part of the body is that????
Anonymous said...
The only way it could be worse would be if J-Fled showed up tommorow in Cutlers uniform ready to play. He's done this type of thing before.
1/16/2011 01:37:00 AM
No, Rex Grossman would be worse.
States can't declare Chapter 9 only municipalities can. States can either raise taxes or cut spending, or both.
Camden, NJ braces for deep police, fire cuts
By Geoff Mulvihill, Associated Press – Sun Jan 16, 4:21 pm ET
"CAMDEN, N.J. – Yet another crisis is upon this burdened city, among the most impoverished and crime-ridden in the country.
"Deep layoffs of city workers go into effect on Tuesday — cutting up to 383 jobs, or one-fourth of the city's employees.
"The exact number depends on whether public workers' unions make last-minute concessions. In any case, the cuts are likely to be deep — and could be a blow to the quality of life in a city where more than half the 80,000 residents, mostly black and Hispanic, live in poverty.
"Worst case, the layoffs could slash half the police force and one-third of the fire department for this city just across the Delaware River from Philadelphia. Practically every other job in the city is likely to be affected..."
http://news.yahoo.com/s/ap/
20110116/ap_on_bi_ge/us
_broken_budgets_camden_
layoffs
Quinn signed the tax hike in secret, he signs all other bills with cameras and a marching band, and now he's hiding somewhere, what a jerk he is.
It didn't take long for the corporations to begin snatching up that 2% FICA tax break and pass on the corporations 2.4% state tax increase now did it?
AT&T raising rates for land lines by up to 60%
Shortshanks brothers old company JP Morgan lowering employee wages by 2.4%.
Amazing isn't it? Just slightly more than the FICA tax break benefit for JP.
I guess JP figures that the churls wont whine too much because their social security money is being stolen and they won't realize it because their take home pay won't change that much.
Hey if you never see the tax break in your take home pay you won't miss it right? Follow in the foot steps of the downstate political thieves -- grab it as soon as you can!
Anyone else notice any increases in fees to get their hands on our tax break. I mean besides the Illinois state tax.
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