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It’s Never Enough.

If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat.
If you get too cold I’ll tax the heat,
If you take a walk, I’ll tax your feet.
Taxman, The Beatles<.

The State of Illinois is in the midst of a budgetary crisis with a 2016 budget deficit of over $5.3 billion. That number doesn’t include the $11 billion in bills for goods and services that the State has not paid for over 60 days which obviously causes issues for vendors, credit ratings, etc.

For the last two years the Democratically controlled legislature and Republican Governor Bruce Rauner have failed to pass a budget aggravating the problem even more as the State can’t make long term investments and instead must pass spending resolutions to plug holes.

The Democrats have said the only way out of the crisis is to tax. Rauner is open to some new taxes but also wants cuts in spending – something the Democrats are not willing to do as they would have to cut the pensions contributions for public workers. They say that would “harm middle class families and the working class.”

Actually, all it does is protect the unions voting for Democrats. A tax increase is still going to be passed down to the people no matter what.

For example, this year Chicago raised their taxes:

[In 2017] alone, property tax hikes for the city and Chicago Public Schools will cost the owner of an average $250,000 home some $350 more.

Where does it all go? Pensions for police officers, firefighters and teachers.

Meantime, water and sewer bills will go up about $53. That goes to pension funds for municipal workers.

And those are just the latest tax increases. Once all the tax hikes passed since the mayor took office take full affect — including a 9-1-1 phone tax, cable TV tax a garbage pickup fee — the average homeowner will be paying almost $1,700 more a year. (emphasis ours)

As we said, that is just for the City of Chicago. At the State level, Democrats have proposed tax increases on just about everything:

On Tuesday, State Sen. Toi Hutchinson, D-Chicago Heights, filed new language to Senate Bill 9, aka the Senate’s revenue omnibus bill.

SB 9 is part of a package of 13 bills making its way through the Illinois General Assembly, according to a report by the Illinois Chamber of Commerce.

The proposal calls for the removal of Illinois’ controversial soda tax proposal to be replaced by the Business Opportunity Tax Act. The tax would be imposed on businesses based on staffing numbers. Beginning July 1, 2017, a tax would be imposed on qualified businesses for the “privilege of doing business in the state.” The bigger the business, of course, the steeper the tax – from $225 to $15,000.

The bill also would raise the corporate income tax rate to 7 percent and personal income tax rate to 4.99 percent. It establishes “service taxes” on storage businesses, amusements, repair and maintenance, landscaping, and laundry and dry-cleaning services.

And, just what business and consumers have been clamoring for, a tax on cable television services and direct broadcast satellite services. (emphasis ours)

Apparently the Illinois Democrats (Vote early! Vote often!) thinks that taxing services won’t affect the working class and middle class families. A hike in income tax won’t affect workers and families either.

A tax for the “privilege” of doing business is just plain stupid.

(In the legal sense, “privilege” is something the state can regulate as opposed to a “right,” which generally cannot be regulated without cause.)

Think about it for a moment. The State is actually saying that a business has to pay for the ability to pay employees, (who pay taxes), make goods (which when sold include taxes) and a business revenue tax.

Some “privilege,” eh?

But just remember, according to Democrats, these tax increases won’t impact the average person. Those average people will just go out to the money tree in their backyard and pull off $100 dollar bills.

However, something else shocked us somewhat. Chicago passed a tax on cable and the State is looking to do so. We would have thought that service would have been taxed as it is in so many places.

We were right. There are taxes on cable now. A lot of them.

    Federal Excise Tax (Federal)
    State Sales Tax
    State P.U.C. Tax
    State Infrastructure Fee
    County and City Sales Tax
    City Rental Tax
    Universal Service Charge
    Federal Line Charge (Federal)
    Local Number Portability
    Port Charge
    Franchise Fee
    Amusement Tax (City of Chicago)
    Regulatory Fee
    Municipal Construction Surcharge

It is not that there aren’t taxes on cable services, it is that those taxes aren’t enough.

It is never going to be enough.

Never ever.

Yet that won’t stop legislatures from raising taxes because, after all, it is their money, not yours. Oh sure, you worked for it while they sat on their butts figuring out ways to take it from you, but that doesn’t mean you should be rewarded with keeping what you earned. Don’t you know there are perks for elected officials and votes that have to be bought?

Illinois has a budgetary crisis brought on by the mismanagement of past budgets by elected officials. Instead of taking accountability for their failure, those elected officials are now looking to penalize every business and every person living in the state.

Someone has to tell us how that is right.

Now my advice for those who die
Declare the pennies on your eyes
‘Cause I’m the taxman, yeah, I’m the taxman
And you’re working for no one but me.
Taxman, The Beatles.




3 Responses to “It’s Never Enough.”

  1. Hometown says:

    From a purely economic perspective sometimes it makes sense to have a budget deficit, which is probably how this whole idea of governing with deficits started. Unfortunately elected officials continue to make poor choices and run the economy into the ground. In my opinion the only way to get back on sound footing is to insist on a balanced budget (i.e., you can only spend the money that comes in). Only then can the voters decide how much taxation they are willing to take and clearly understand how their taxes are being spent. Anything short of that allows politicians to continue this bad behavior.

    • AAfterwit says:

      Hometown,

      California is a state that has a balanced budget requirement yet is going further and further into debt because the balanced budget of a particular year does not include obligations for past and future spending such as public pensions.

      The idea of “spending only what comes in” is great and I agree with you on that, but it really doesn’t address the core issue of “we want to spend more than is coming in. No problem, let’s raise taxes and fees!”

      I read somewhere that Americans will pay more in taxes then they will on housing, clothing and food combined this year. That is terrifying.

      A. Afterwit.

  2. Hometown says:

    I agree with your comment. I believe most folks understand the concept of balancing a budget, however our elected officials just can’t seem to grasp this simple concept. CA is a perfect example of politicians using the term “balanced budget” when in fact they don’t really have one. If governments (local, state, and federal) were truly forced to operate with a real balanced budget then taxpayers could understand how our money is being spent and elect officials who spend their money wisely. Until that happens politicians will continue to loosely throw around terms like “balanced budget” and “pay as you go” hoping to confuse the masses and continue their unabated spending and deficit increases.

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