Categories
tax policy

A Chill Hits Illinois

That big bump in the night? It was the sound of a massive new tax increase dropping on the backs of Illinois citizens and businesses.

Not long after midnight, Wednesday morning, mere hours before the newly elected legislature was to be sworn into office, the state’s lame-​duck legislature voted to increase the personal income tax by a whopping 67 percent and the business income tax by nearly 50 percent.

That’s lame, all right.

Governor Pat Quinn, who had campaigned in favor of a smaller increase, will sign the bigger tax hike. “Our fiscal house was burning,” he said in its defense.

Is the fire now out? 

Well, there sure is a lot of smoke, and where there’s smoke, there’s … a lot of people making a quick exit.

Remember, people can vote with their feet. “Leaving Illinois,” a study by the Illinois Policy Institute, points out that between 1991 and 2009 Illinois lost one resident every ten minutes.

That’s $16.9 billion in lost state and local tax revenue.

So Wisconsin Governor Scott Walker was quick to offer a safer haven. “In these challenging economic times while Illinois is raising taxes, we are lowering them.”

As William Brodsky, chief executive of CBOE Holdings Inc, argues, “Merely throwing tax dollars at a broken system, without overhauling the expense side of the ledger, compounds the problem…” Bemoaning Illinois’ lost tax advantage in attracting business, Brodsky remarked, “They don’t come here for the weather.”

This is Common Sense. I’m Paul Jacob.

Categories
local leaders tax policy

Hope for the Hopeless

Illinois is hopeless. When John Tillman hears people say that about government in the Land of Lincoln, he gets pretty peeved.

Tillman, head of the Illinois Policy Institute — a think tank offering what it calls “liberty-​based public policy initiatives” — doesn’t think battling big government is hopeless at all. For instance, the Institute helped generate support for transparency legislation that passed. 

And last week, as the state’s legislative session closed, Governor Pat Quinn’s proposed 50 percent income tax hike was soundly defeated … by the state’s very blue legislature.

How did that happen?

Well, the first step is always to believe enough in your fellow citizens to wage a fight for their “hearts and minds.” Hope helps.

Next step? Getting the facts out.

The argument for huge tax increases is always that government can’t survive without the additional money. In a series of media appearances and grassroots events, Tillman and the Institute kept talking about sensible ways to cut spending.

Governor Quinn talked about the painful consequences if government didn’t have more money. Tillman spoke about the painful consequences if working families, already paying high taxes, had to fork over still more dough.

Kristina Rasmussen, the Institute’s Executive Vice President, published a report entitled, “Would My Family Pay Higher Taxes Under Governor Quinn’s Plan?” The answer for the average Illinois family was: Yes — 17 percent more.

Hope wins again. Helped by hard work.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall term limits

Quinn Is In

Blagojevich is out! Quinn is in! There is gubernatorial hope for corruption-​riddled Illinois.

Now, admittedly, I don’t agree with Governor Pat Quinn on every issue. But few governors can boast Quinn’s long record as an anti-​establishmentarian reformer.

In April of last year, Pat Quinn, then Illinois’s lieutenant governor, was pushing hard for a ballot measure to give voters the power to recall elected officials. This was after the sitting governor, Blago, got in hot water for various corruption, but long before he was caught scheming to sell president-​elect Obama’s vacated Senate seat to the highest bidder.

Certainly, the first target of a new recall power would have been Blagojevich. The bill passed the Illinois house but unfortunately failed in the senate.

Of course, Quinn’s track record goes way beyond the political battles of 2008. In addition to being pro-​recall, he is also pro-​initiative rights and pro-​term limits. In 1994, Quinn did the heavy lifting to put a term limits measure on the ballot. It would have capped state legislative tenure at eight years had not the Illinois Supreme Court outrageously removed the ballot measure, blocking the vote.

Quinn is in. Illinois reformers should beat a path to his door and urge him to push for these necessary changes harder than ever.

This is Common Sense. I’m Paul Jacob.