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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.














 




Local events heading








  Today is Saturday, Aug. 30, the 242nd day of 2014. There are 123 days left in the year.

1864 — 150 years ago: A large pair of elk, captured in Iowa, were exhibited in Market Square today.
1889 — 125 years ago: The Rock Island Arsenal dam was being constructed under the supervision of Charles Frances, of Lowell, Mass.
1914 — 100 years ago: Mrs. Frank Mixer, of Rock Island, was the winner of the final preliminary for the women's handicap golf cup at Rock Island arsenal links.
1939 — 75 years ago: Sixteen hundred persons — many from war-fearful Europe — arrived in New York aboard the German liner Bremen. For two days on the trip, passengers were cut off from the world with both incoming and outgoing radio messages banned.
1964 — 50 years ago: Police reported five youths have been involved in the theft of about seven cars in recent weeks. Three of the youths were arrested Saturday afternoon, one was in custody as the result of a previous arrest, and the fifth is expected to be arrested today.
1989 — 25 years ago: The Rock Island/Milan School Board is asking the city to tear down Franklin School and allow the school district to pay back the estimated $100,00 cost during 10 years.






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