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.
Communities across Illinois are being forced to cut local services and raise taxes to afford their pension payments, putting residents who rely on local government services at risk because of the inherent failures of defined-benefit plans.
Gov. Bruce Rauner’s amendments to Senate Bill 1 would bring nearly $25 million more to the 10 Illinois school districts with the highest black student enrollment outside of Chicago.
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.
While major headlines broke over news that Chicago was the only one of America’s largest 20 cities to shrink from July 2015 to July 2016, most of Illinois’ other cities with 50,000 people or more also lost population.
By fixing cost drivers, decreasing the cost of doing business in Illinois, and easing the tax burden, Illinois can encourage jobs growth and stand a better chance at attracting and retaining younger people.
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.