Thursday, January 19, 2012

What did you expect? Higher Taxes Doesn't Solve the Problem

Illinois raised personal and corporate taxes in order to solve their budget crisis. They used the time honored argument: if only the rich would pay their fair share everything would be ok. Who knew that it wouldn't work out as advertised?

Judy Topinka, the Illinois State Treasurer, says that this is "extremely disappointing" as a year ago Illinois increased income taxes by 67 percent and also corporate taxes.

“After the largest tax hike in our history, the state continues to be in this precarious fiscal position with persistent payment delays, and frankly, the situation is unlikely to significantly improve in the near term."

And here I thought that budget deficits were due to not enough revenue. I suppose Illinois will have to raise its income and corporate taxes a little more this year - this time it will solve the problem.


Post a Comment