The civic committee of the Commercial Club of Chicago has released an all encompassing report on what Governor Pritzker and the legislators must do to get us out of this financial mess. “Restore Illinois” has been proposed by the business leaders of Chicagoland. Their plan is not as radical as it will be if their advice isn’t taken now. We know every year we hold off biting the bullet, the harder it will be to fix it.
We must all be involved in fixing the problem by having to pay more in taxes. We have benefited from having lower income tax rates than most other states. In addition to the low rates, we get many exemptions other states don’t allow. The exemptions come from lobbying our legislators, filling campaign chests, and the hope of currying favor of their constituents. The commission thinks this will add $6 billion in taxes.
Their tax rate proposal is to increase the flat rate by 1% to 5.95% and corporate rate by 1% to 8%. They also propose taxing retirement income and some consumer services. Most people don’t know Illinois does not tax retirement benefits. They recommend raising the exemption on the benefits from $1,000 to $15,000 on those retirees 65 and over.
I did not find my proposal which would be to withhold the tax when the pension check is issued. Mine would tax those who have left the state to avoid paying taxes where they earned their money.
In addition to raising taxes, the commission proposes the state employees pay more money into their health insurance plans and saving over a billion each year. They propose state employees should pay as much as employers in the private sector. This would include all people getting a state paycheck. It would include our elected and appointed officials.
We didn’t suddenly get into this mess. We have been electing people of both parties for decades that have been a part of creating the problems. “Chicago Tonight” on the February 12th episode had an interview with David Harris, Illinois Revenue Director, and Dan Hynes, Deputy Governor. Their projections were a $3.2 billion budget deficit, $15 billion in unpaid bills, $2 billion in additional bond interest, and $1.25 billion in late payment penalties on unpaid bills.
Governor Pritzker said he was going to solve the state’s financial crisis but his plan nibbles on a deficit that is getting bigger. It is time for union members, bankers, and voters to get off their butts and call the officials this paper periodically lists and DEMAND ACTION!
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