Sorry, New York: When it comes to corrupt, irrespons ible, money-grabbing big- government lawmakers, Illinois has got you beat.
Your state leaders have never seriously considered a 75 percent income-tax hike plus a 49 percent increase in the corporate tax, as Illinois’ General Assembly did this week.
When the news broke, citizens inundated the governor and Legislature with phone calls, catcalls and e-mails in opposition. But yesterday — on the last day of the lame-duck session, moments before new lawmakers would have made the move all but impossible — Democrats approved a 67 percent increase in the income tax and a 46 percent hike in the corporate tax.
This is responsive government in Illinois. (And no, our Republicans haven’t been much better, though none voted for the latest outrage.)
Of course, these tax hikes almost always fail to generate the expected revenue, because people do what they can to avoid them — including move to other states. (Such “shortfalls” recently hit both Oregon and New York after each adopted a “millionaires tax.”)
Illinois had 21 congressional districts in 1990; we’re about to go to 18 because of the hundreds of thousands of residents who have left. The state needs 600,000 more jobs just to get back to where it was 10 years ago, according to University of Illinois researchers.
Even if by some near-miracle Illinois sees the promised take from the tax hikes, it hasn’t fixed the core problems — reckless spending, runaway Medicaid costs, soaring employee pension and health-insurance costs, etc. If tax hikes worked, there’d be no budget crisis because Illinois has repeatedly raised taxes, fines and fees over the years.
The facts:
1) The lame-duck session featured Democratic Gov. Pat Quinn proposing to raise the personal-income tax to 5.25 percent and the corporate tax to 10.9 percent. The final deal set the income tax at 5 percent and the corporate tax at 9.5 percent (which includes a 2.5 percent “property replacement” tax — don’t ask).
2) After years of criminal and incompetent leadership, Illinois has the nation’s worst unfunded pension liability, conservatively estimated at more than $80 billion — plus the worst credit rating among the 50 states, as well as the worst budget deficit as a percentage of total spending, conservatively estimated at $15 billion.
3) Quinn became governor to fill the unexpired term of Democratic Gov. Rod “It’s F—ing Golden!” Blagojevich, who was arrested and then impeached for allegedly trying to sell the Senate seat Barack Obama vacated on becoming president. Last August, a federal jury convicted Blago of lying to investigators, and he’s awaiting retrial on 23 other counts.
Four of the last eight Illinois governors have been convicted of federal crimes. Blago’s immediate predecessor, a Republican, sits in federal prison as you read this. Land of Lincoln? Land of Larceny.
4) Quinn won just four of Illinois’ 102 counties in being elected to a full term last November. But he won big in his home, the city that Al Capone made famous and that two Daleys — Mayors Richard J. and Richard M. — have run for a combined 42 years. It’s the hometown of President Obama’s new chief of staff, Bill Daley, the brother of the current Mayor Daley and son of the late Mayor Daley. Obama’s former chief of staff, Rahm Emanuel, also hails from there, as does the president himself — which helps explain why the federal government’s been spend-crazy these last two years.
Illinois lawmakers say the income-tax hike will be temporary, dropping to 3.75 percent after four years. But our previous income tax was the result of a “temporary” tax hike that became permanent.
Illinois ranks 48th among states in net population growth, 48th in job growth, and 48 in economic performance, according to the American Legislative Exchange Council.
Of course, New York ranks 50th, 31st and 37 — congratulations.
But we’re clearly “catching up.” New York’s Gov. Cuomo has proposed spending cuts including Medicaid reform, consolidation of state boards and agencies, school-funding reform, and wage freezes for government workers. There’s no talk of such things among Illinois’ political leaders.
Look for Illinois to soon replace New York at No. 50 for net population growth. Look for us to soon place last in job growth and economic performance, too.
Steve Stanek is a research fel low for budget and tax policy at The Heartland Institute in Chi cago and a lifelong resident of Il linois. sstanek@heartland.org