01.14.2011
Job Killer? Illinois Record Tax Increase
original article written by Net Advisor™
President Obama’s home state of Illinois just signed the largest personal and corporate tax increase in the state’s history. The Democratic controlled legislator approved the new tax increases and on January 13, 2011, Governor Pat Quinn (D) signed it into law (Source: Reuters).
Illinois has a $17 Billion 2012 deficit representing over 50% of the state’s payments just covering their debt. Not a single Republican voted for the tax increase. Illinois ranks as the second largest state deficit in terms of dollars after California’s $17.2 Billion 2012 deficit representing just over 20% of the state budget (Source: Wall Street Journal).
Job Killer?
Raising taxes during a recession won’t create jobs. In fact the Illinois government has now given citizens and corporations incentive to flee the state to places with lower taxes. There are seven states with no state income tax, and they are: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming (Source: Wikipedia.org). Also note companies based in Illinois who have their headquarters include AON Corporation (Insurance), Bally Total Fitness, Boeing, Kraft, Motorola, McDonald’s, Trans Union, United Airlines, a host of financial market exchanges and others. If companies are going to be taxed more, expect more layoffs to off-set the tax increase or plant relocation.
Record Foreclosures
In 2010, Illinois also has the 9th highest foreclosure rate in the country and this is expected to get worse according to RealtyTrac (PDF Article). In Chicago alone 138,913 homes received foreclosure notices in 2010. The state itself had a 15.4% increase in foreclosure rate or 1 in every 35 homes in Obama’s home state according to chicagolandrealestateforum.com
However as of 01-14-2011, Chicago graduated to rank #2 in the USA as RealtyTrac’s “Top Foreclosure Cities” List (PDF). Las Vegas (NV), Phoenix (AZ), Miami (FL), and Los Angeles (CA) all ranked in the top 5 foreclosure cities as of post date. For current ranking since post date, please visit RealtyTrac.com for additional information.
The new tax law is only supposed to last 4 years, then drop to slightly higher than 2010’s tax rates, however when if ever can you recall government ever permanently lowering taxes after raising them?
The solution of course is to cut government spending. But that might mean making tough decisions that may not be politically popular. So instead, Illinois just wants its citizens to pay more for the state legislator’s financial mismanagement.
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