An increase of $7 billion is not enough to cover spending. To no one's surprise.
Illinois Statehouse News takes a closer look at what the state's huge income tax increase is doing to extricate Illinois from its pathetic economic condition. Apparently, not enough. The article considers the possibility of making the tax increase permanent when it is supposed to expire in fiscal 2015.
The publication, in a second part of the series on Illinois' tax increase, examines the possibility that the tax increase has not hurt Illinois' business climate, as Republicans assert.
A different view comes from the Heartland Institute:
Steve Stanek, research fellow there, said,
One year after these outlandish tax increases, Illinois has seen its credit rating dropped to the lowest in the nation by Moody’s Investor Service. Just a few days ago the state’s budget director, David Vaught, told The Associated Press: ‘Our revenue growth is not enough to keep up with pensions and Medicaid. It creates a squeeze for everything else.’
So $7 billion of tax increases later, Illinois state government has gained virtually nothing. I wonder if this state’s governors and lawmakers will ever realize that no amount of revenue will ever be enough to overcome reckless, corrupt, and pandering spending.
John Nothdurft, Heartland's Director of Government Relations said:
A year later and as many predicted, each of the tax hikes passed in Illinois in last year’s lame-duck session did little to fix the state’s woeful financial position. During that time the unemployment rate has jumped to 10 percent, the pension system has not been fixed, and the state’s budget is more than $8 billion in the red.
Even so, spending in the state continues to go up while more and more people become unemployed due to the damaged economic climate in the state. The state’s budget morass will only get worse as a result of destructive tax policy. Instead of handing out corporate welfare to companies like CME and Sears the state should roll back the tax increase to help everyone in the state.