The Illinois General Assembly passed a budget, including the largest permanent tax hike in state history, without structural spending reforms. Gov. Bruce Rauner vetoed the plan on Independence Day, and the Senate voted to override the governor’s veto. The package now heads to the House for an override vote.
Term limits were once a key component of GOP plans to dismantle Illinois’ corrupt political machine, but Republicans in Springfield have thrown in the towel on this reform.
Polling shows that Illinoisans are overwhelmingly opposed to an income tax hike, and Illinois’ poor economic growth combined with wealth out-migration mean billions in tax hikes will only inflict further damage on a struggling state.
A new poll shows Gov. Bruce Rauner’s political base opposes the tax hike budget proposal the governor has supported. And Illinoisans who favor the tax hike budget proposal do not support Rauner.
On June 28 the Illinois House of Representatives failed to pass Senate Bill 484, an illusory property tax freeze that did not offer real reform, left Chicago homeowners out in the cold, and would have left in place an opaque and expensive property tax system that benefits special interests over taxpayers.
Like the “grand bargain,” the Brady plan and the Illinois Senate Democrats’ budget before it, the Illinois House Democrats’ plan relies on more than $5 billion in new tax revenues because it includes no significant structural spending reforms.
Illinois’ fiscal collapse is the culmination of decades of budget gimmicks and taxes used to paper over the state’s structural spending problems and misplaced priorities that favor special interests over ordinary Illinoisans.
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.