Illinois "Watchdog" Group Proposes Massive Tax Increase

The Civic Federation, a self-styled watchdog group whose includes business and professional leaders from a wide range of Chicago-area companies and institutions, recently proposed increasing the state income tax by 60%, among other tax-raising proposals.

"The group says it would support a state income tax increase from 3 percent to 5 percent. It also recommends the state tax retirees’ pension and Social Security checks be taxed for the first time at the same rate as workers’ paychecks. They want another $1 increase on a pack of cigarettes and to eliminate $181 million in corporate tax breaks."

One has to wonder how many of the individuals and companies that are expected to pay more tax under this plan will actually stick around, rather than moving to a state that's less hostile to their interests.

Incredibly, the group attributes Illinois' fiscal woes to the states' historic under-spending on public employee pensions!

"“Illinois’ fiscal crisis has been many years in the making. It was caused by more than 30 years of pension underfunding and many years of spending unfettered by the state’s shrinking revenue resources,” said Msall."

I think the good folks at the Civic Federation know what the real solution is to Illinois massive budget deficit. The solution is for politicians simply to stop overspending the allowance given to them by taxpayers. Get spending back in line with the money given to them by taxpayers, and the problem goes away.