Illinois Democrats Tax Plan: Renewed Life, or Nail In The Coffin? By Fritz Pfister January 8, 2010

Headline in today’s SJR Business section: "Bernanke optimistic on unemployment." Whoever wrote the headlines needs to be charged with journalistic malfeasance. Quoting the first paragraph of the AP article; "Federal Reserve Chairman Ben Bernanke sketched a more optimistic view of the economy Friday but said the Fed’s $600 billion bond-buying program is needed because unemployment will likely stay elevated for up to five more years."

We need to print money out of thin air increasing the risk for a bond crisis that would result in hyperinflation and economic chaos while unemployment is going to stay high for another five years. You call that optimistic? I think not. Here’s a quiz for you. If the state raises corporate taxes 75% will businesses be more or less likely to hire? If the personal income tax is raised 75% will people be more or less likely to spend? Will cutting spending raise or lower the state’s deficit? Will a 75% increase in taxes raise or lower business and consumer confidence? All through the campaign Democratic Gubernatorial candidate Quinn ran on a plan to raise taxes 1% which equals a 33% increase in the income tax. Due to the State Constitutional requirements corporate taxes would have to be increased proportionately.

The Democrats won. Therefore it would be a reasonable expectation that the majority of Illinoisans gave permission for a 33% tax increase. What did Madigan and Cullerton propose? A 75% increase in personal income taxes from 3% to 5.25%, corporate taxes from 4.8% to 8.4%, to borrow $8.5 billion, to limit spending to 1% increases over the next several years, a no new programs pledge, and that the tax increases would be rolled back in four years.

After campaigning on a much lesser increase and then violating that campaign promise why would any reasonable person trust the Democratic Party that they would roll back the tax rate?

There is no question the state is in a complete financial mess, but who got us there? Who played Santa Claus with no way to pay for their goodies to buy votes? Who misled the people about the costs of programs? Why are we in such a predicament? Because the politicians running this state continued to spend more than they were taking in, even after the financial meltdown. Shear economic negligence and now they want to punish the people for their blatantly incompetent actions.

The most egregious part of the plan defies common sense and even decency. They fail to make any spending cuts guaranteeing we will be right back where we are today when the time comes to roll back the tax rate. This is not a Madoff, Enrontype scheme - it is worse; it is the grandest bait and switch con in Illinois history. Enriching the powerful, enslaving the people.

Dr. Lawrence Yun, chief economist for The National Association of Realtors, says in order to reduce deficits without harming the economy is to have $4 to $5 dollars in spending cuts for every dollar in tax increases. The Cullerton, Madigan, Democratic plan calls for economic harm on top of their economic mishandling of the peoples money and trust.

The easy way out is to simply tax and borrow. Every representative who votes for this plan is a coward...

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Copyright © 2011 by Fritz Pfister
(Above content posted, under fair use.)

The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.