On the one hand, the argument is that the State needs the income to do the People’s Business. On the other hand, taxes are a burden and a head wind for economic growth.
Who wins out?
Patrick J. Quinn, the governor of Illinois and a Democrat, praised the decision of state lawmakers — in the wee hours of the morning on Wednesday — to raise the individual income tax rate by about 66 percent…
Just hours before the outgoing legislators were to adjourn for the session, they passed this tax hike on the folks and businesses of Illinois.
And, in response, you wanna know what neighboring States are doing?
Meanwhile, in places like neighboring Wisconsin, Scott Walker, the new governor and a Republican, promptly issued a call to businesses in Illinois, which will face a business tax rate increase of 46 percent. Quoting an old tourism slogan from that state — “Escape to Wisconsin” — Mr. Walker urged businesses to consider moving to his state, where, he said, they would be quite welcome.
CHAMPAIGN – The founder of Jimmy John’s said he has applied for Florida residency and may recommend that his corporate headquarters move out-of-state as a result of the Illinois tax increases enacted last week.
And why is he moving?
Jimmy John Liautaud told The News-Gazette on Tuesday that he is angry about the moves, which boosted the individual income tax from 3 percent to 5 percent and the corporate income tax from 7.3 percent to 9.5 percent.
Okay, lesson 1:
If a man makes $1000 and you tax him 3% you take in $30 bucks. But, say you want more money and so you raise the tax to 5%, a 66% increase. Revenues will now be $50 bucks. Awesome.
But soon the man is gonna “Go Galt” and leave to Florida. Your take now?
I am going on the record saying that Illinois will fall significantly short of it’s anticipated $6.8 billion.