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Health & Fitness

Who Really Pays?

By now, we all know that the bill authorizing the retention of the 5 percent income tax in our fair state has been defeated. Income tax rates will fall. We all know that paying less tax is a good thing, and we should all celebrate this development.

Hold on, hold the fireworks. Before we go too far in our elation, we need to consider a couple of developments. The lower tax bill quite likely will result in budget cuts for agencies providing social services and for education.

Illinois ranks nearly last (if not dead last) in support for social services, and about the same for education. Doesn't that make you proud? After these cuts go into effect, we may be dead last in both categories.

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Social services are directed at citizens and their families with developmental disabilities, mental health issues and other infirmities that require them to need services. Education is the foundation of our workforce and a predictor of future success.

 At a time when we are closing state run facilities for those with disabilities, we are crippling the ability of private agencies to continue to provide valuable services. Most private agencies will not be able to survive this cut and thousands of those in need will have no options.

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The problems caused by further cuts in education funding are obvious - evidently not to all.

Long term, the implications of this "good news" are lots and lots of bad news. Let's not celebrate too hard, we may be paying back the savings several times over in coming years.

 Alan Nadolna is a consultant to financial service organizations and is a financial advisor to corporations and individuals. He is a member of a panel of financial experts preparing This Way to Wealth. Your questions are invited by writing to Nadolna at Associates in Financial Planning, 633 Skokie Blvd., Suite 480, Northbrook, IL 60062 or call 800/428-9786 or 847/509-5090.





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