Cut Spending in Illinois? Nah, We Will Just Raise Your Taxes-But You Won’t Know It

Unfortunately, the people of Illinois voted for this crap.  Governor Pat Quinn is trying to get through an increase in state income taxes.  However, that’s too transparent.  So, now he is moving to confiscate 6.25% from each and every internet purchase you make. From the Internet Retailer:

“Illinois would levy taxes on Internet purchases under a plan that won final General Assembly approval today with an 88-29-0 vote in the state House. The law would make Illinois the latest state to try to squeeze revenue from online retail purchases, though other states have faced court challenges and the threat of lawsuits after trying to collect taxes from web sales. And some online retailers have simply cut off affiliates in states that have passed similar laws.”

No reporting on this in the Chicago Tribune or Chicago Sun Times. Like this isn’t news? Here is the Trib copy off their website. It’s not even the top story.

“Gov. Pat Quinn and top Democrats today are pressing forward on a major income-tax increase and a $1-a-pack hike in cigarette taxes, according to lawmakers briefed on the plan.

The personal income tax rate would rise from 3 percent to at least 5.25 percent, lawmakers said. Of the tax hike, 2 percentage points would be temporary, lawmakers said. The amount tracks with what the Tribune reported today.

The money would be spent on stabilizing the state budget, paying down bills, boosting school funding and providing property tax relief.

The proposal, details of which are in flux, is being discussed behind closed doors as lawmakers attempt to pass the legislation through both chambers before a lame-duck session ends next Wednesday.

Rep. Will Davis, D-Homewood, said the black caucus has reached a deal with Quinn and House Speaker Michael Madigan on the tax hikes. But other lawmakers are skeptical that all of the details are locked down.

Davis warned it’s unclear if this will be the plan called for a vote, saying additinoal meetings must take place, including running the proposal past the entire House Democratic caucus.

“For the Black Caucus, we have always maintained that any revenue enhancement propsoal has to set aside dedicated money for education and property tax relief, and now they are part of the plan,” Davis said.”

And from the Chicago Sun Times

SPRINGFIELD — Gov. Quinn and the Democratic legislative leaders have struck an agreement to raise the income tax on individuals from 3 percent to 5 ¼-percent and raise the state tax on cigarettes by $1 a pack, sources said.

The moves, if they pass the House and Senate before next Wednesday, could erase the state’s expected $15 billion deficit, generate a $700-million-plus windfall for schools and grant property tax relief, sources said.

The tax increase, which would represent the first time the income tax had been raised in roughly two decades, would be temporary and need to be renewed by lawmakers and the governor, though the duration for that temporary period remained fluid, sources said.

Quinn disclosed the deal with House Speaker Michael Madigan (D-Chicago) and Senate President John Cullerton (D-Chicago) during a closed-door session Thursday afternoon with members of the Illinois Legislative Black Caucus, its chairman told the Chicago Sun-Times.

“What the governor has laid on the table — we’ve talked to the Senate black caucus; we’ve talked to the House black caucus — and we are pretty much in consensus that our two main points are being fulfilled, education funding and property tax relief. We’re OK with the mechanisms to get there,” said Rep. Will Davis (D-Homewood).

Davis said Quinn described the tax plan as an “agreement” he had reached with Madigan and Cullerton.

The governor and leaders agreed that details of the plan would need to be presented to members of the House and Senate Democratic caucuses. The three top Democrats intended to meet again Thursday night to do any fine-tuning on the plan and settle on a schedule to begin moving it through the General Assembly.

Spokesmen for Quinn, Cullerton and Madigan declined comment on details about the plan.

Sounds like the same guy wrote the press release for each paper. No wonder they are both going broke. The lead story in the Trib was Bill Daley becoming Chief of Staff. In the Sun Times it was Mayor Daley’s son’s partner being indicted.

Somehow a quiet 6.25% tax hike on all internet goods seems more important than either of those stories.

For more on what crappy shape the state of Illinois is in, go to Illinois could raise taxes 100% and not pay for all it’s debt. But, we had an election and Quinn won. Bend over and take it. Or move. (Quinn barely won, and in my opinion it was the strident position that Brady took on pro-life issues-if he would have moderated slightly-he might have won)


From John Bambenek; Illinois will have the highest corporate income tax of any state in the country at 8.4%.  Yup, that sounds like Illinois is open for business.  Craig Pirrong, the Streetwise Professor opines, “It’s a tax death spiral.  All you have to do is look at the city of St. Louis or Detroit.”  He is correct.  People are mobile.  Jobs will leave.  People will follow. In Illinois, it’s all she wrote.

The Fat Lady is singing.


Here is the link to find your state representative. Even some Republicans plan to vote for the tax increase.  You can contact them and let you know how you feel about a tax increase, with an increase in spending.


The Wall Street Journal had started an article with one of the dumbest suppositions I have seen to a tax increase.  “Hey, the bond holders are happy.  We will have a bull market on Illinois bonds!”  In the very short run, they might be right.  Illinois bondholders are talking their book. If there is a rally, I’d sell into it and unload every bond I had.  Many bondholders are doing just that.

The State just elected to reduce its tax base.  Amazon and Overstock pulling out will cost the state 18M in tax revenue each year.  There was a gun to their head, and the Democrats in Springfield just pulled the trigger.

The article again focuses on accounting, rather than economics.  For example, it says state debt costs currently only make up 4% of spending. One of the reasons for that is legislators have simply not funded pension funds! There is an 14 Billion dollar hole in the budget this year.  Illinois pension liabilities are going to bankrupt the state.  The present value tables don’t lie.

Meanwhile, people will continue to flee the state for greener pastures.  Businesses will not form here.  The tax base will be reduced.  The state will be left with the extremely rich limousine liberal class, and the working poor.  The Limousine class are wealthy enough to be Democrats.  Taxes don’t alter their lifestyle.

As founder of economic incubator Hyde Park Angels, I am highly sensitive to the capricious actions of big government. We are funding companies and trying to create a thriving entrepreneurial environment in Chicago.  However, the Illinois legislature just put a big roadblock up to that goal.  In California, companies and intellectual talent are leaving Silicon Valley because of the state’s economic condition.  The beneficiaries so far have been Boulder, CO; Austin TX; and Seattle, WA.  In Chicago, we have seen an influx of some talented individuals too.  That flow will stop.

At Backyard Conservative, they posted the text of the Amazon announcement that they are pulling out of Illinois.

tip of the hat to Instapundit, welcome to his readers. Get ready to hear a lot of weird accents in Tennessee!

tip of the hat to Moe Lane, welcome to his readers.  Hope they don’t tax jelly here in Illinois!

tip of the hat to Da Techguy’s Blog

welcome to Memeorandum readers, have a look around.  Hope you like it here.

Hello to RedState readers.  Good to see you are willing to read about a Blue State!

tip of the hat to Rick Moran and American Thinker.  too bad we can’t get your bro Terry to see the light.

11 thoughts on “Cut Spending in Illinois? Nah, We Will Just Raise Your Taxes-But You Won’t Know It

  1. It would seem that tha Governor believes that the state is populated by drooling idiots. A TEMPORARY tax hike ? like the one on telephones to pay for the Spanish American War? Just how ‘temporay’ was that. CUT NEEDLESS SPENDING!

  2. Oh no……don’t cut spending.

    Heaven forbid. Ream smokers and lie about the revenue you expect to generate. Everything you lying Dim-O-craps do hurts low income. But,…keep telling fables and the media will suck it up as long as it marches alongside the Marxist Progressive agenda. Look at the other two hugely liberal states and just how great their financial position is using the same extortion schemes? These boobs keep throwing money at schools (supposedly) and yet, my property taxes keep going up, with a falling net equity! Guess what the biggest take on my property taxes is supposedly for?

    Yep. Schools.


    Sure there’s a very easy (fiscally) way to balance the budget. Chicago wouldn’t like it. Springfield wouldn’t like it. Teachers wouldn’t like it. Unions wouldn’t like it.

    Keep sinking the ship, idiots.

    Exit questions: Didn’t you dolts raise the tax on cigarettes less than two years ago? Where is that revenue?


    How come Illinois schools suck pond scum? How much have you thrown at them in the last two years?

    *a crescendo of crickets*

    You lyin’ P’sOS (plural) If not for Chicago, we could clean this state up and right this foundering fat tub of goo.

  3. I left Illinois fifteen years ago for greener pastures after realizing how dysfunctional the state was.

    Interesting to see that nothing’s changed.

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