By David Stanczak
July 6, 2017
Apart from the celebrations and the historical significance, what make July 4 different from any other day? That’s the day taxpayers watch their tax dollars literally go up in smoke. And on that day, they actually like it.
But here in the People’s Republic of Madiganistan (f/k/a Illinois), our money goes up in smoke all 365 days of the year. Remember the lottery that was pitched to us as being for education? In case you don’t remember how that worked out, the proceeds did go into the education fund. But then the money that had previously been appropriated for education was transferred out and spent elsewhere.
Remember that last “temporary” tax increase that was passed so that the state could get rid of the backlog of unpaid bills? The increase happened, the elimination of the backlog didn’t. The other thing that happened was that the state started bleeding taxpayers; it had a net outflow of people to every other jurisdiction in the U.S.
The exodus abated somewhat after the tax was allowed to expire. But yesterday, while we were watching the fireworks and getting fat on goodies, the Illinois Senate was fattening the state’s coffers with an override of Gov. Rauner’s veto of a huge tax increase.
Rauner was holding out for some structural reforms that would make the state a little less unattractive to business compared to our surrounding states to which we are losing tax base. The Democrats promised to take that up later, but if you believe that will happen, then you also believe (fill in your own analogy).
The biggest of the reforms is pensions. They are and will continue eating up an increasingly large share of the state’s revenue. But rather than address that problem, the General Assembly just imposes more taxes like they did yesterday and will have to do again, thereby postponing the day of reckoning when they can’t tax enough to cover them because the tax base is eroding due to tax increases and a lousy business climate. Illinois has gone from a state to a punch line in a joke.
On Tuesday, I was talking with friends at a holiday get-together. They are fairly typical retirees, and they were talking about the timing of their permanent departure from Madiganistan; it’s getting closer, and Tuesday’s action accelerated it.
It’s fun watching our tax dollars go up in smoke in July 4 fireworks; not so much otherwise.
David Stanczak, a Forum commentator since 1995, came to Bloomington in 1971. He served as the City of Bloomington’s first full-time legal counsel for over 18 years, before entering private practice. He is currently employed by the Snyder Companies and continues to reside in Bloomington with his family.
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