Repeal Of Illinois ‘Temporary’ Income Tax Hikes Questioned

Short of some other revenue-generating scheme replacing it, the “temporary” 67 percent personal income tax hike and 46 perent corporate tax hike pushed through by Illinois Democrats and signed off by Governor Pat Quinn (D-Chicago) in January 2011 are starting to look permanent.

Big shock there.

Back at the beginning of 2011, the State of Illinois was on the hook for an estimated $8 billion in unpaid bills. “Temporary” increases in personal and corporate income taxes were passed- as I understood it- to help pay down the massive amount owed.

But as I blogged less than two weeks ago on November 25:

This morning, I read that the backlog is now approaching $9 billion.

Big fail there.

No wonder there’s increased chatter then about Illinois Democrats- who’ve controlled state government since 2003- making those “temporary” tax hikes permanent. Ray Long reported on the Chicago Tribune website Saturday:

The harshest Republican critics of a new law to wipe out the state’s $100 billion government worker pension debt argued that the plan should have saved more money or Illinois’ temporary income-tax increase that’s set to expire will never go away.

A look at the state’s finances, however, shows it’s a good bet the tax hike will stick around whether or not lawmakers approved last week’s major overhaul of the retirement systems. If lawmakers allow the tax increase to expire as scheduled at the end of 2014, the state will lose about $5 billion a year. That’s one-seventh of the state’s $35 billion operating budget.

(Editor’s note: Italics added for emphasis)

This wouldn’t be the first time supposedly temporary taxes would be made permanent by Illinois lawmakers. As I noted back on January 13, 2011:

The last time income tax rates in the “Land of Lincoln” went up in 1989, politicians also claimed it was as a temporary increase to combat a financial “rough patch.” But the rates never came down and by 1993 were designated permanent. Until now, that is.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Long, Ray. “State income tax hike doesn’t look so temporary now.” Chicago Tribune. 7 Dec. 2013. (http://www.chicagotribune.com/news/local/ct-illinois-pensions-met-1208-20131207,0,7554970.story). 8 Dec. 2013.

Tags: , , , , , , , , ,

No comments yet.

Leave a comment

Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

This Project Dedicated to St. Jude
Patron Saint of Desperate Situations



Please Rate this Blog HERE

happyToSurvive

Advertising Disclosure here. "Code Needed"=Promo Code Found On Advertiser Website. Ad Captions Last Updated 6/2/16.
ANY CHARACTER HERE
Blade HQ Knives Blade HQ Review Coming Soon
ANY CHARACTER HERE
Buy Gold And Silver Coins Gold/Silver Sale, inc. Chinese Gold Pandas, 90% Silver Franklin Half Dollars (Singles/Rolls/Bags), 1 Oz. Silver Mexico Libertads (Singles/Rolls), Silver Bullion Bars (1 Oz., 100 Oz., Monster Boxes). BGASC Reviewed HERE.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service & Part-Owned By World Gold Council. BullionVault.com Reviewed HERE.
ANY CHARACTER HERE
Buy 3-Month Emergency Food Supply, Get FREE Ultimate Breakfast Kit ($99 Value) Thru 6/10. MyPatriotSupply.com Reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% Memorial Day Sale Continues! Save 40% Off Orders Over $40 (Code Needed). Paladin Press Reviewed HERE.
ANY CHARACTER HERE
World's First Bulletproof Baseball Cap Only $129; Bulletproof Ceramic Plate (NIJ Level III Stand-Alone) Only $169; Bulletproof Backpack/Messenger Bag Panel Only $99. BulletSafe Reviewed HERE.
 

Categories

Archives

Prepper Website

RSS Chris Hill’s Other Blog: Offshore Safe Deposit Boxes

  • Related Reading: Martin Armstrong Post On Problems With Bank Safe Deposit Boxes
    Earlier this month I brought up a blog post by Martin Armstrong, economist at Armstrong Economics and the subject of the 2014 documentary The Forecaster, in which he warned: Governments are targeting safe-deposit boxes to look for cash that is hiding from taxation… Anything of value that is stored in a safe-deposit box is now […]
  • Related Reading: Coin Update Interview Of Sharps Pixley CEO Ross Norman
    Last week I mentioned a WealthBriefing.com article that featured the new Sharps Pixley showroom/safe deposit box service in London, England. The other day I came across another piece about the operation on the Coin Update website (“Daily Coin Collecting News”). Michael Alexander recently interviewed Sharps Pixley CEO Ross Norman “to learn about the business’s new […]
  • Latest Offshore Safe Deposit Box Promotions
    Here are the latest limited-time specials from offshore safe deposit box facilities listed on this blog’s sister site (link included to web page where each promo is displayed): Africa Nigeria Bulwark Vault & Safes Deposits Ltd. (Lagos)- “Join the Bulwark Membership Club. 25% Off Rent & Renewal- Premium Platinum. 15% Off Rent & Renewal- Platinum. […]
  • Related Reading: In-Depth Look At Dublin’s Merrion Vaults
    It’s been a while since I last blogged about the Dublin, Ireland-based private vault Merrion Vaults (although I have talked about co-founder/director Séamus Fahy more recently as it related to their sister safe deposit box facility, Glasgow Vaults). Anyway, I recently spotted an article on Irish website Fora (“Business news and insights for Ireland’s startup […]
  • Latest Additions To List Of Offshore Private Vaults
    Here are new entries to that list of offshore private vaults on my website of the same name: • City Bunker (San Pedro Garza García, Mexico- translated) • Hausler (Córdoba, Argentina- translated) • Punta Carretas Cofres Fort (Montevideo, Uruguay- translated) • Service & Meetingpoint Saxenwald (SMS) (Reinbek in Hamburg metro area, Germany) • Telesforo Gestión […]