Two decades of fiscal mismanagement have left state finances ill-prepared for the COVID-19 pandemic. Congress should condition any additional aid for troubled states on taxpayer protections that ensure pensions are solvent, accounting is realistic and budgets are balanced.
As Illinois teeters on the edge of a junk credit rating, one key policymaker is floating bankruptcy as a solution.
Despite a massive national economic contraction, Pritzker is resisting calls to pull a large tax hike from the November ballot.
The Federal Reserve announced unprecedented plans to directly purchase up to $500 billion in state and local government bonds. States with poorly managed finances, such as Illinois, stand to benefit most, but long-term threats loom without structural reforms.
By granting broad new taxing authority to Springfield, the progressive income tax amendment makes a retirement income tax much more likely – a fact some supporters have acknowledged publicly.
The severe economic downturn brought on by the coronavirus outbreak and measures taken to contain it could cause state personal income tax revenues to fall by 14.7% to 33.8% this year.
Illinois residents pay more of their income toward state and local taxes than any other state’s residents. A progressive income tax proposal on the ballot in November would raise the state’s total tax burden by $3.7 billion.
"They need to focus inward as a state and not look for more taxes to solve their apparent spending problem. Balance the budget, reform pensions."
Illinois’ financial outlook was changed from ‘stable’ to ‘negative’ by two major ratings firms, raising the risk the state’s credit rating will formally fall to non-investment grade status.
Delaying property tax payments would give much-needed relief for those struggling without a paycheck during the COVID-19 pandemic.
State lawmakers in 2019 passed a progressive income tax amendment at the behest of Gov. J.B. Pritzker. Now that coronavirus has ravaged the state’s small business community, they should withdraw the amendment.
“This is supposed to be the American Dream for me and my family … I’m holding on to everything I can, but I’m losing because of this house. It’s a nightmare."
“There’s a silence among politicians. An apathy, when it comes to property taxes. And a history of mismanagement."
Struggling businesses, individuals and families need relief while the economy is shut down. Despite Illinois’ financial woes, leaders can help the recovery by lifting government-imposed financial burdens.