There's no question that Illinois is in an economic basket case. It might be in the worst fiscal shape of any state in the union. So how does Illinois plan to dig itself out of the hole it's in? Taxes, taxes and more taxes:
Springfield sources are confirming that Democratic legislative leaders and Gov. Pat Quinn have struck a deal to almost double the state income tax, boosting the individual levy from 3% now to 5.25% and hiking the corporate rate to 8.4% -- the highest of any state in the union.
In addition, the cigarette tax would rise $1 a pack.
But wait! There's more:
Lawmakers in Illinois have voted for a 6.25% tax on online retail purchases. The levy, which still needs the governor's approval, would apply to goods bought through affiliates of online retailers that take in least $10,000 worth of annual sales in the state.
Oh and we're not done yet. The state is also looking at the largest property tax increase ever:
Mayor Daley pleaded with Gov. Quinn on Wednesday to veto a bill that, the mayor warned, would choke Chicago homeowners and businesses with a $550 million property tax increase in 2015 to solve the city’s pension crisis.
“They say the taxpayers of Chicago will pay for 100 percent of all pensions and, if you don’t pay for it, we’re gonna take it out of your state income tax [share]. …. What are you gonna do for the Board of Education? We can’t go tax crazy,” Daley said.
So yeah, good luck with that Illinois. Labor and capital are mobile. I don't anticipate that this will work out the way they intend -- just ask Oregon.