The New York Times reports that Illinois has joined the growing list of states that are trying to raise taxes to cover budget shortfalls:
Gov. Patrick J. Quinn on Wednesday proposed raising the state income tax rate, just one in a long list of painful measures aimed at closing a budget deficit that some now estimate at $13 billion.
“This is urgent,” Mr. Quinn, a Democrat, told lawmakers in Springfield, as he laid out an austere budget proposal for next year that includes spending cuts, leaving some bills unpaid and borrowing more money.
“We don’t have six months. We don’t have six weeks.”
But Mr. Quinn’s proposal to raise the state’s personal income tax to 4 percent from 3 percent — a move he portrayed as a “surcharge for education” — comes at a particularly risky political moment, one that numerous governors find themselves facing in a fiscally grim year: he is seeking election in November. And tax increases rarely make for popular campaign material.
Nationwide, experts say, states closed $117 billion in budget gaps in the last fiscal year, and have resolved — or are working to resolve — $174 billion more in gaps this fiscal year.
Surprisingly, Republicans don’t like it:
The Republican Party, which has expressed high hopes of retaking the governor’s mansion and a United States Senate seat from Illinois this year, issued a scathing assessment.
“Governor Quinn laid out one of the most irresponsible budgets the people of Illinois have ever seen, perpetuating the status quo of massive borrowing and spending that got us into the fiscal crisis we face today,” Pat Brady, the state party chairman, said, later adding, “Raising taxes 33 percent on Illinois families is not the answer to fixing this budget mess.”
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- Hawaii Kills Soda Tax Because it Doesn’t Go Far Enough
- Tuition Tax Update: Extortion in Pittsburgh
- Sales and Use Taxes: Internet Sales Cost States Billions
- Tax Scratch Fever
2 responses so far ↓
1 Sious // Mar 13, 2010 at 11:32 pm
If Republicans don’t like it, show us the way and tell us (I say us but I dont live in Illinois nor know anyone there) where to actually cut
Republicans want tax cuts but then aren’t able to make any actual spending cuts
Most of Conservatives I know wish the government would stay out of EVERYTHING yet would probably have a fit if something that the government does on a daily basis such as lights or signs or whatever
2 Peter // Mar 14, 2010 at 10:56 am
Sious,
I agree with you. Both parties are to blame. I think we should limit the role of government only because I think experience shows that the government makes things worse, not better.
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