Town Hall –
If you get the feeling we’re surrounded by fools, you’re not alone.
Fools crowd about us everywhere. But nowhere do the fools congregate more than in Illinois, both off the lake, upstate in Chicago, and downstate in Springfield where governors go to get indicted.
For example, downstate, in Springfield, the Illinois Legislature in 2011 hiked corporate taxes 30% and income taxes 67% in attempt to stop government pensions from bankrupting the state.
“The corporate income tax will rise from 7.3% to 9.5%, a 30 percent increase, becoming the fourth-highest state corporate income tax in the United States,” said the Tax Foundation at the time, “and the fourth-highest combined national-local corporate income tax in the industrialized world.”
Not only has Illinois not stopped the pension crisis, which now tops $100 billion, but they have turfed the economy, especially the creation of new jobs. And it’s new jobs that really create new tax revenues.
The unemployment rate stands at 9.2% in Illinois versus 7.3% in the rest of the country.
People warned Illinois pols at the time that the precipitous rise in taxes would only hurt the economy and chase businesses to other more tax-friendly states.
“It’s like living next door to ‘The Simpsons’, you know the dysfunctional family down the block?” quipped Indiana Governor Mitch Daniels, the state just to the east (and south) of Illinois.
And indeed it is.
But business is still booming for the politicos.
Because there is only one thing better than a sock-it-to-the-corporation tax increase.
And that’s an EXEMPTION to the sock-it-to-the-corporation tax increase.
Who needs lobbyists when you have friends like these?
Businesses are lining up in Illinois to ask for special carve-outs and exemptions from the tax, because you know… taxes are bad for business (rimshot!).
Everyone knows that.