Senate Democrats killed a chance this week to rein in government spending, instead siding with government unions that prioritize their own power over the fiscal health of the state. Illinois taxpayers pay nearly $15,000 per state worker in health care costs alone under the most recent contract with the American Federation of State, County and Municipal Employees.
Cities and villages across the state are raising taxes or implementing new ones for a variety of functions, from attracting a fast-food restaurant to catching up on rising pension costs.
Illinois’ jobs growth over the past year was 40 percent slower than the national average, and lagged even further behind the average of neighboring states.
The latest report from the Commission on Government Forecasting and Accountability shows Illinois experienced falling tax collections, indicating trouble in the state economy. Spending reforms – not tax hikes – are what Illinois needs to right its fiscal ship and boost economic growth.
A new report from the Commission on Government Forecasting and Accountability shows Illinois has experienced falling tax collections, which may indicate trouble in the state economy; spending reforms – not tax hikes – are what Illinois needs to right its fiscal ship and boost economic growth.
As pressure mounts on state senators and representatives to vote in favor of multibillion-dollar tax hikes, lawmakers should remember the promises they’ve made to taxpayers.
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.
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.