A massive, permanent tax hike with Rauner 0-44 in proposed reforms is now in the cards.
Rauner proposed a temporary tax hike and called a special session to work out a bipartisan plan.
Instead, the Illinois legislature passed a massive and permanent tax hike. The Senate Has already overridden Rauner’s veto and 15 House Republicans are expected to go along.
Politico reports Rauner Vetoes Budget in Illinois Showdown [but Republican fools will override the vote].
Attempting to avoid becoming the first state ever to see its bond rating downgraded to “junk” status, the Illinois legislature on Tuesday sent Republican Gov. Bruce Rauner a $36 billion spending plan in a dramatic showdown that culminated in an extraordinary Fourth of July vote.
Rauner, who called the legislature into a special session to pass a budget, quickly vetoed the measure, citing its permanent income tax increase; the governor, who is attempting to salvage his precarious 2018 reelection prospects, has sought a temporary tax hike and a property tax freeze.
Legislators – including 15 Republicans in the House who broke from the governor – say they want to end a crisis that turned Illinois into a national disgrace, drew the intervention of a federal judge, sent university enrollments plummeting, threatened to close K-12 schools in the fall and resulted in a staggering eight bond rating downgrades.
“Illinois families don’t deserve to have more of their hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs,” Rauner said in a Facebook address.
Rauner had vowed to “shake up Illinois” but now must run for reelection without having advanced his legislative agenda and unable to stop a 32 percent income tax increase – a tax hike for which many in his own party had voted.
Several Republican House members broke into tears as they voted in favor of a tax increase they said they opposed on principle but said they couldn’t continue to watch the state burn to the ground. That included lawmakers who represented areas with universities that have been ravaged by the impasse.
Rauner vetoed the bill.
Well la-dee-friggin-da. Rauner should never have called a special session unless he got guarantees from House Speaker Mike Madigan in advance.
And who are these alleged Republicans who will vote to override the veto in return for nothing?
They just sold the state down the river.
Illinois will be back in trouble in less than two years, if not immediately.
Mike “Mish” Shedlock
They will be chomping at the bit to raise taxes again in two years or less. With such a tame electorate and a republicrat legislature, Illinois munis might not be such a bad deal after all.
The rubber-stamp, corrupt Dumbocrat infested Illinois Supreme Court has ruled the unpayable pensions must be paid before bondholders. Prof. Peter Morici opined Monday the Illinois Supreme Court had murdered all US State and Muni bond markets with this decision. You’ve been warned.
As long as the natives remain docile, no worries, taxes will increase every few years to cover coupons and pensions. The time to worry will be when the pitchforks appear.
remember the Illinois Judges are part of the pension system.
This doesn’t get Illinois out of trouble, it is just more gasoline on the fire, with a probable $8 billion deficit…More taxpayers will be leaving Illinois, but don’t worry, more welfare recipients will move in….
” Illegal Immigrants Cost Illinois $3.85 Billion A Year ”
https://www.nationaleconomicseditorial.com/2017/07/04/illegal-immigration-cost-illinois/
HAHAHAHAHA . What a joke about to be shoved up the a$$ of the hard-working-tax-paying Illinois people….
Before it’s too late….G T F O …..!!!
I’m in hopes that there is a mass exodus of families that depart that fucdup state !
That won’t happen.
The people who can up and leave are retirees and soon-to-be college graduates who will take out-of-state jobs. Families are rooted in their jobs and will stay as long as their jobs stay.
It’ll be a slow decay which gives the sitting legislators an excuse of “no one could see this coming” – the same excuse they’ve been using for over 20 years.
“Alleged Republicans” indeed. There is no better proof of the non-difference between repubs and dems than in Illinois.
DemPublicans.
Repo-crats.
Lib talk. There’s a huge difference, it’s across the border in Wisconsin. The 15 Repubs are traitors, but all the Repubs that stood strong should be lauded. Is it you conjecture that if Rauner had a supermajority Repub legislature, we’d have the same outcome?
The Republican establishment is RINO to the core. The only possible bright spot is that RINO headquarters is DuPage County, conveniently next to Cook County. We need some kind of referendum to split the other 100 counties off into a separate state. Without Chicago, Illinois would be the reddest of red states. We ought to meet up someplace like the Blackberry Inn on 47 and discuss a revolution. Any thoughts on that Mish?
Obama’s home state. Crazy, out of control spending? That figures. Remember “shared prosperity.” Well, there you go hard working, middle class families. I still can’t believe he got reelected. SMH always…
This is the essential difference between Democrats and Republicans- for whatever reason, you choose, Republicans always swerve in games of chicken. The Republicans that have voted to override should be ashamed of themselves- in the end, they were unwilling to do what was necessary to get the needed reforms, and now that they have chickened out, they will lose their seats in the next election.
“unwilling to do what was necessary to get the needed reforms, and now that they have chickened out, they will lose their seats in the next election.”
Override-voting GOP politicos are shutting down the possibility of future budget negotiations via unilateral surrender. They should be tar and feathered and driven into exile. This is what a Democratic victory looks like. Will be the same in DC if Slimy Schumer gets his way, with a doubling down on Obamacare taxes (originally promised by Hillary). Rauner’s mistake, like Trump’s with Obamacare, is thinking Democrats will compromise (not in their Leninist DNA). Perhaps legislators are at risk of losing nonrefundable vacation arrangements because of Rauner’s unexpectedly calling a special session, and are getting their revenge by sinking him. Though they will likely argue financial rectitude in avoiding higher junk bond interest rates. The real junk that needs hauling is in the legislature.
That, joelg5 is why nationally, we overthrew the Bush RINO wimp establishment and elected Trump. Those voters are not really Republicans or perhaps are like what they used to be or aspired to be. Those R voting, not really R’s anymore folks will be cleaning house in the primaries with vengeance and blood lust in their eyes.
Unless you want to accompany them on that ride down the river… leave Illinois now.
Perhaps Illinois is best studied as a microcosm of the future for all levels of USA government, a case study of a slow financial death spiral. A feudal-style socialist economy with politicians at the top as de facto kings and nobles extracting maximum resources from their taxpayer fiefdoms. Between local, state and federal taxes and fees, before long even minimum wage will be losing 60% of their income to various government levies. Too bad the sanctuary cities concept does not also protect taxpayers from the money-grabbing state.
Medical and welfare payments rationed out by government will by necessity have to go down. By necessity, like in Venezuela, the underground economy will become vital for survival. States think they can make federal taxpayers foot the bills via Medicaid and other programs, but shifting from one bankrupt entity to another is not a viable strategy. But that is what victory looks like for the Democratic party, whether in IL versus Rauner or DC versus Trump. A USA of Enron-style political entities looking for a bailout event.
If you read history, you will find that this is the inevitable end of all republics/democracies. That is the one flaw with that form of government; it always ends the same way, and that way is exactly as you have described it. The US has lasted longer than most, and we can be grateful for that, but our end is no different than, say, the Roman Empire.
Just as the final end of the Roman Empire came when they ran out of gold, the US can continue to exist in its current form for so long as the world is willing to accept USD. Once the world has enough of those, and they insist that our debt be denominated in some other form, then thing will have to change, but we will be unable to change.
Too scared to go after pension reform. It’s the pensions that are killing these states
Surely citizens can pay more. Would a 10% income tax rate be too much to ask?
10%? That sounds fair, for now, anyway. I’d suggest doubling property taxes as well, and maybe a 50% hike in sales taxes. That should cut the deficit enough that they could wait a year or two before raising them again. It might even be enough that they could raise the welfare benefits. Obviously they need high benefits to attract enough new people to offset those leaving.
You are either being sarcastic or don’t have the whole story. Illinois has sales, property and income tax. The property tax is the highest or virtually the highest in the US. Sales tax exceeds 10% in some jurisdictions. I think it was just raised to 8% in my county. Your prescription would result in a sales tax of between 12% and 16%. The property tax on my house which I paid $68,000 for a million years ago would be $7,000. The exact same house in Cook County would be over $20,000. Higher still in McHenry County. Add in the fact the average Illinoisan makes less than he did in 1999. This place is going to hell in a handbag and taxation obviously has not been nor will it be the answer. Moody’s Analytics came out today and said all the increases will not change the credit rating or likely bad outcomes.
I was being sarcastic. I’m sorry if that wasn’t obvious.
The government is simply trying to survive. The people exist for the government. Not the other way around.
“they opposed on principle but said they couldn’t continue to watch the state burn to the ground.”
And therein lays the problem. Indoctrinated to be scared of hobgoblins. Despite, as every child above 7 ought too know, hobgoblins are all imaginary.
Noone will stick a torch to anything in Illinois, if the government defaults. Heck, spared from paying usury to firemen who may have put out some fires back when T Rex walked the earth, Illinoisans could even afford MORE firemen to put out any burning in the making, today and in the future.
The scumbags in charge will ALWAYS pull this trick, for as long as it keeps working: Tanks in the Streets, Starving in the Streets, Financial collapse, Burn to the Ground, The System Will Collapse……. blah blah. All of it, either completely imaginary, or in fact a straight up good thing.
The sooner Americans grow the heck up and grow a pair, and resolve to be no more pliable and compromising than the Somalis who ousted Barre was, the quicker they can put the undifferentiated embarrassment of an experiment that is progressivism behind them, and get back to creating an, at least somewhat, free country again.
They don’t want to watch Illinois burn to the ground but they were happy to pour gasoline on the existing fire.
Not unlike the firemen in Fahrenheit 451.
“Rauner Vetoes 32% Tax Hike Bill But Wimpy Republicans Expected to Override Veto”
Wimpy Illinois tax payers expected to…
“Legislators – including 15 Republicans in the House who broke from the governor – say they want to end a crisis that turned Illinois into a national disgrace…”
So why did 15 republicans vote to extend the crisis?
What happens when the stock market crashes? It sharply rebounds. For each action, there is an equal and opposite reaction. The 15 republicans don’t want an end to the crisis. They want it to drag on and on.
Let it burn.
Why would anymore who except those who have absolutely no choice continue to live in this hell hole state.
Hopefully hasten the end of Chicago as we know it. First rate eflluvium.
I’ve said it a thousands times. It’s NOT the Republicans and the Democrats. It’s the Republicrats.
Rarely do you ever see Democrats vote against themselves. But the Republicans do it routinely in both state and Federal government.
Republicans are the true FAKE politicians.
Yet you still live there Mish. I thought you had an escape plan.
I have posted it many times, with a timeline and reasons for being here