Let's say goodbye to tax hike, hello spending cuts


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Posted Online: March 09, 2014, 12:00 am
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By Scott Reeder
SPRINGFIELD -- Back in 2011, the state of Illinois began snatching away an extra week's worth of our pay.

At the time, we were assured of two things: The tax hike was necessary, and it would be temporary.

But like so much that politicians tell us, both statements are questionable.

First of all, we were told that the increase was necessary to help put the state's fiscal house in order and to pay down the backlog of unpaid bills.

But even after jacking up our taxes the state's fiscal condition is pathetic.

Springfield is paying its bills many months late, the state pensions are the worst funded of any state and Illinois' credit rating is in the toilet.

Instead of using the extra tax dollars to pay down bills, Springfield politicians used it to increase spending.

That shouldn't come as a surprise.

Most politicians are far more comfortable spending than saving.

After all, it's what they do best.

And, for the record, there are plenty of myths surrounding this tax hike.

The most persistent -- and most annoying -- is that the politicians only raised our income taxes by 2 percent.

Even as abysmal as I was in high school math, I can tell you that raising the income tax rate from 3 percent to 5 percent is a tax hike of 67 percent -- not 2 percent.

The fact that so many politicians persist in claiming it was only 2 percent makes one wonder if:

A. They aren't real bright.

B. They aren't particularly honest.

C. That's what their leaders have told them to say.

D. All of the above.

It being Springfield, any of these answers may be correct.

Some would have you believe this tax hike is picayune -- hardly noticeable for the average household.

Nonsense.

The tax hike alone is the equivalent of one week's pay for every worker in Illinois.

And what have workers gotten in return?

Not much.

The state is still broke. Spending is on the upswing. Bills are still going unpaid.

Now they are talking about taking the "temporary" out of the income tax increase.

Some lawmakers and pundits are saying it's time for Illinois to make the tax hike permanent while others are saying perhaps we ought to move back the law's January 2015 sunset date.

To both proposed laws I can only say, baloney.

The state hasn't used the extra money wisely this year or in 2013, 2012 or 2011…

What makes our leaders think they will start using it wisely if it becomes permanent?

State revenues are at their highest level in Illinois' 198-year history.

Springfield has a problem with spending -- not revenue.

It's time for our lawmakers to say "goodbye" to the tax hike and embrace difficult spending decisions.
Scott Reeder is a veteran statehouse reporter who works for the Illinois Policy Institute; sreeder@illinoispolicy.org.














 




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  Today is Tuesday, Sept 2, the 245th day of 2014. There are 120 days left in the year.

1864 — 150 years ago: It is estimated that 300,000 people attended the recent Democratic convention in Chicago when Gen. George B. McClellan of New Jersey was nominated as a candidate for president of the United States.
1889 — 125 years ago: Alderman Frank Ill, Winslow Howard and Captain J.M. Montgomery returned from Milwaukee, where they attended the national Grand Army of the Republic encampment.
1914 — 100 years ago: Three members of the Rock Island YMCA accepted positions as physical directors of other associations. Albert Cook went to Kewanee, C.D. Curtis to Canton and Willis Woods to Leavenworth, Kan.
1939 — 75 years ago: Former President Herbert Hoover appealed for national support of President F.D. Roosevelt and Congress in every effort to keep the United States out of war.
1964 — 50 years ago: The Rock Island Junior chamber pf Commerce has received answers to about 65 % of the 600 questionnaires mailed out recently in a "Community Attitude Survey" to analyze sentiments of citizens towards their city's various recreational, educational, and civic service programs.
1989 — 25 years ago: The two thunderstorms passing through the Quad Cities last night and early today left some area residents reaching for their flashlights.






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