The tax that keeps on taking
To the Editor:
In life there are many gifts that keep on giving. Magazine subscriptions, cooking classes and golf lessons are just a few. In Illinois, however, where the economy and jobs are on life support,
Governor Quinn and representative Jay Hoffman want to give struggling families something that will keep on taking - a 67 percent income tax increase.
To put this in perspective, the cost of the Quinn-Hoffman tax hike is the same as taking all tax revenues from 2008 from the sales tax ($7.2 billion), cigarette tax ($350 million), corporate franchise tax and fees ($298 million), liquor tax ($158 million), inheritance tax ($373 million) and insurance taxes and fees ($298 million).
The lesson Governor Quinn and representative Hoffman have failed to learn is their current model for revenue estimates are too high because they do not understand the economic effect of higher taxes. They should have realized higher tax rates will mean lower income and sales taxes moving forward.
Governor Quinn and Mr. Hoffman are not being honest with taxpayers. An income tax hike will truly be the tax that keeps on taking - from families, from individuals, and the state's general prosperity.
As a businessman who understands the problem with an income tax increase, I also understand over-spending is a problem that is not going away by itself.
In 2009, Governor Quinn and Jay Hoffman were proof of this. Illinois spent $4.3 billion more out of the general fund than it brought in from revenues. Without a law in place, most politicians will be inclined to spend every dime given to them by you. It is time to put state government on a sensible financial plan for the future.
How can this done? With a spending limit that would cap state spending to last year's budget multiplied by the previous year's percentage rate of inflation plus population growth.
The middle class is being squeezed to death every day by career politicians in Springfield.
Enough is enough. As a matter of principle, it is time to tell incumbents to get a job in the private sector.
Republican candidate for State Representative