One Year After Historic Tax Increase, Illinois Still Falls Short

Dear Fellow Taxpayers,

This week marks a dubious occasion, the first anniversary of the “temporary” 67 percent tax increase pushed through the legislature at almost 2 a.m., just hours before the 97^th General Assembly was sworn into office. This tax hike vote was secured on a purely partisan roll call; not one Republican voted for the tax increase. Since then, not much has changed in Illinois.

Governor Quinn issued budget projections last week that Illinois will be $500 million behind at the end of this fiscal year, which does not include another $2 billion in deferred obligations.  Also last week, Illinois’ credit rating was downgraded once again by Moody’s with the rationale that Illinois has “chronic bill payment delays,” and has taken no steps to “implement lasting solutions to its severe pension under-funding.”  Last month, the legislature passed major incentive packages in order to keep high-profile companies from taking their businesses out of the state. Lastly, Illinois’ unemployment numbers have hit double-digit levels, and was 16 percent above the national average in November. 

Looking at these facts, it is easy to see that Illinois’ fiscal health is not any better after the largest tax increase in state history. In fact, it is probably worse and demonstrates that the policies led by Democrats in the last several years have not worked, and the time for a major change in direction is necessary.

Illinois cannot sustain its current pattern of spending. Additionally, the pension system is on a path to insolvency.  There are ways to improve the situation Illinois finds itself in – sensible reforms to the pension system, spending reductions, and program reforms will put the state on a better financial footing. Creating a business friendly environment so that our friends and neighbors looking for work and can find jobs. The question is whether or not leadership will be shown by the Governor and other legislators to make these difficult, but necessary, policy changes. 

On the anniversary of the tax increase that took approximately $1,000 a year from working families, it is important to evaluate its impact and how Illinois can no longer afford to move forward in the same direction. As your representative in Springfield, I will continue to push for sensible reforms to the systems that impact the fiscal solvency of our state. There is no other choice but to start now. 

Sincerely,

Ron Sandack
State Senator
21^st District