Comcast.net distorts Illinois tax increas from 3 to 5% as "66% tax hike."

[muntrv]

Neighboring states gleeful over Ill. tax increase


SPRINGFIELD, Ill. — While many states consider boosting their economies with tax cuts, Illinois officials are betting on the opposite tactic: dramatically raising taxes to resolve a budget crisis that threatened to cripple state government.

Neighboring states gleefully plotted Wednesday to take advantage of what they consider a major economic blunder and lure business away from Illinois.

"It's like living next door to `The Simpsons' — you know, the dysfunctional family down the block," Indiana Gov. Mitch Daniels said in an interview on Chicago's WLS-AM.

But economic experts scoffed at images of highways packed with moving vans as businesses leave Illinois. Income taxes are just one piece of the puzzle when businesses decide where to locate or expand, they said, and states should be cooperating instead trying to poach jobs from one another.

"The idea of competing on state tax rates is . . . hopelessly out of date," said Ed Morrison, economic policy advisor at the Purdue Center for Regional Development. "It demonstrates that political leadership is really out of step with what the global competitive realities are."

By going where no other state dares to tread, Illinois could prove itself to be a policy pacesetter or the opposite — a place so dysfunctional that officials created a jaw-dropping budget crisis and then tried to fix it by knee-capping the economy.

Illinois faced a budget deficit of $15 billion in the coming year, equivalent to more than half the state's general fund. Officials warned that state government might not be able to pay its employees. It certainly would fall further behind in paying the businesses, charities and schools that provide services on the state's behalf.

To avoid that, the Democrat-controlled General Assembly voted to temporarily raise personal income taxes 66 percent, from 3 percent to 5 percent. Corporate rates will rise, too — from 4.8 percent to 7 percent — when Democratic Gov. Pat Quinn signs the measure.








http://www.comcast.net/articles/news-national/20110112/US.Broken.Budgets.Battling.for.Business/

[Abq_Sarah]

1. Um..

It is a 66% tax hike.

[FLPanhandle]

4. Thanks.

I was wondering how it was a distortion myself. I looked at it and said "It is a 66% increase"

[Recovered Repug]

8. You're wrong. It's a complete distortion of the facts.

It's actually closer to 67% than 66%.

[Abq_Sarah]

9. My apologies

66.666666....%.

[Recovered Repug]

10. You're forgiven. This time.

:toast:

[Drale]

2. Yahoo was doing the same thing

as was all the "news" programs here in Chicago all week.

[tularetom]

3. Reluctant as I am to defend comcast

there is nothing incorrect about that statement. If your income is $100,000 you paid 3% or $3,000 tax last year. Next year you will pay 5% or $5,000. The $2,000 increase is 66% of the $3,000 you paid last year.

And for what it's worth good for Illinois. If you want the services you should be prepared to pay for them.

[tritsofme]

5. (5-3)/3=66%

[ET Awful]

6. First, it is a 66% hike, and second, the AP wrote the headline, Comcast just ran the AP article n/t

[dems_rightnow]

7. Other than those minor items....

.... what else have you got?

[badtoworse]

11. In 1990, Jim Florio did that in NJ and was damn near tarred and feathered

Florio was not reelected and since then, tax increases in NJ have been a very touchy issue (kind of like defusing a bomb). It will be interesting to see the reaction

[WillowTree]

12. How is that a distortion?