Illinois state senators are considering a budget with massive tax hikes, but is short on critical pension reforms, which would save taxpayers billions.
Illinois spends more money on retirement costs than on university operations – and tuition keeps rising to prop up this overspending. Instead of hiking taxes to maintain current spending habits in higher education, politicians should shift priorities from propping up six-figure administrators to keeping tuition affordable for students.
The status quo isn’t working for Illinois; the state needs serious reforms to get its spending under control, pay down its debt, and rein in the taxes that are driving its people across state lines.
In addition to raising the state’s personal and corporate income taxes back near their all-time highs, senators are proposing taxing businesses on the “privilege” of doing business in Illinois, as well as taxing several services.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.