Last month we told you about the largest tax hike in the history of the state of Illinois, a 67% increase in income taxes, and corporate taxes rising to 9.5%. This would raise $2 billion and balance the budget claimed Governor Pat Quinn (D.). The tax was so widely popular that companies like Sears, the Chicago Board of Trade and the Chicago Mercantile Exchange threatened to move out of Illinois if something wasn’t done.
You probably know by now how that worked out.
…Mr Quinn [as of May] had already doled out corporate welfare to at least 80 firms, costing the state nearly $500 million since 2009.
…last week the Democrats who run the state government ladled out $85 million in tax relief to the Chicago Board of Trade and the Chicago Mercantile Exchange, plus tax credits for Sears Holdings Corp. worth $15 million a year for the next 10 years.
Here is the kicker.
…the Illinois Policy Institute recently calculated that over 15 years the revenue loss from all the corporate tax giveaways will exceed the revenues raised from the corporate tax increase. [emphasis supplied]
Meanwhile, the taxes on individuals and small businesses in Illinois are among the highest in the country. Their taxes will no doubt be raised again to make up the “shortfall” caused by “freebies” to the rich and famous. And, as they are not big and powerful, they simply are left to pull harder.
Oh, by the way, the budget isn’t balanced either.