by Mish Shedlock, Mish Talk: Total capitulation by Governor Bruce Rauner is in the works. The taxoholics wore him down.
In the emergency session, Rauner has agreed to hike the personal income tax rate to 4.95% from the current 3.75%. The corporate income tax rate will rise to 7% from the current 5.25% rate.
For what? Nothing. Reforms are nonexistent.
Another Deadline Come and Gone
Illinois failed to approve a budget today and thus heads into its third fiscal year without one.
A vote has been scheduled for Sunday.
I do not expect your opinion will matter, but in the slim chance I am wrong, Please Email Your Representative voicing displeasure of the tax hike.
The preceding link will find your rep based on your address.
Rule of Nothing
A zombified Rauer has capitulated in every way but the final signing.
Tax hikes have been agreed to with no reforms in return.
The Rule of Nothing is clearly in play.
Rule of Nothing
In any given political situation, the best outcome one can reasonably expect generally happens when politicians do nothing.
Implied corollary#1: When politicians attempt to fix any problem, they are highly likely to make matters worse.
Corollary #2: Politicians almost never do nothing. It’s why we have a messed up healthcare system, education system, public pension system, etc..
Taxoholics Win Again
Chicago schools will not get fixed. The hikes will not shore up pension plans.
Within one month of tax hikes, public unions will ask for more money. And people will leave the state. So will corporations.
Rauner pledged 44 reforms. He is 0-44 on his pledges.
The property tax freeze currently under debate has so many holes it is as useful as a bucket with no bottom.
Trading tax hikes for nothing is a horrible deal. Nonetheless, the taxohalics won again.
More business flight and human capital flight is the guaranteed outcome. Doing nothing at all would have been a far better outcome.