Even at the state level, they’re caving. Robert Gehl reports that Illinois Republican Gov. Bruce Rauner has apparently given up.
He’s caving to the liberals and agreeing to raise the personal income tax rate – again – from 3.75 percent to 4.95 percent and the corporate tax rate 1.75 points to 7 percent.
What will Rauner and Illinois taxpayers get in return? Absolutely nothing.
There are no reforms of the bloated and corrupt state apparatus in play, no changes, no restructuring of a system that is threatening to toss the state into “junk” bond status.
ZeroHedge describes Rauner as having been “Zombified” and they’re not far off:
Chicago schools will not get fixed. The hikes will not shore up pension plans.
Within one month of tax hikes, public unions will ask for more money. And people will leave the state. So will corporations.
Rauner pledged 44 reforms. He is 0-44 on his pledges.
The property tax freeze currently under debate has so many holes it is as useful as a bucket with no bottom.
Trading tax hikes for nothing is a horrible deal. Nonetheless, the taxaholics won again.
More business flight and human capital flight is the guaranteed outcome. Doing nothing at all would have been a far better outcome.
State government has been operating without a budget for two full years, all state public universities are at risk of losing their accreditation, social service agencies are closing their doors and construction companies that contract with the state are about to start laying off employees. Illinois now has $15 billion in unpaid bills.
The House budget package that they managed to squeak by – the one that Rauner will likely sign – does nothing to address any of these problems. In fact, they admit that they’re going to have to borrow more money with their piss-poor ratings to patch holes in the dam that’s about to burst.
Some Republicans who are brave enough to think for themselves are distancing themselves with Rauner and are refusing to go along with the tax increases.
“For me right here today, right here, right now, this is the sword that I’m willing to die on,” Rep. Michael Unes, a Republican from East Peoria told the Chicago Tribune. “And if it costs me my seat, so be it.”
Rep. Terri Bryant, R-Murphysboro, said while she hated taxes, as a fiscal conservative she could not stand by while the state cannot pay billions of dollars in bills owed to small businesses.