The Illinois Senate budget proposal merely puts off the state’s day of reckoning through more of the same: tax hikes, borrowing and spending, without the necessary reforms to put the state on a path to fiscal and economic health.
The Illinois Senate’s proposed budget plan would raise the personal income tax rate to at least 4.95 percent with no real reforms to address the state’s skyrocketing debt and unsustainable spending. This proposal comes despite Illinois’ loss of $14 billion in annual income and hundreds of thousands of people in the wake of the 2011 income tax hike.
The newly re-elected House speaker is pushing a new tax on businesses, an increase to the minimum wage and more spending, while doing nothing to address salient problems such as workers’ compensation and pension debt.
The new budget plan coming out of the Illinois Senate does little to nothing to reform the state’s reckless spending and financial mismanagement, but does plenty to hurt state taxpayers.
Though spending on government-worker salaries and pensions has grown at a rapid rate, many service providers and grant recipients are still awaiting payment.
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.