“Taxpayers are tapped out. Illinois families and employers, already at a disadvantage in a weakened economy, cannot afford to pay more,” said McCarter. “Adding insult to injury is the Legislature’s insistence on continuing the mismanagement that brought about our fiscal crisis.”
Sen. McCarter has filed legislation with the Illinois Senate to repeal Senate Bill 9, the legislation that increased the state income tax rate to 4.95% for individuals and 7% for corporations.
“During the four years after the last mega-income tax rate hike in 2011, more than 200,000 people fled Illinois,” said McCarter. “A report by WalletHub
– an Internet-based consumer and financial website – earlier this year pegged Illinois with the highest overall tax burden of any state in the nation. Only time will tell who gives up on Illinois this time and who decides to stick it out. If history is any indication, many will leave – if they can – for less punishing government in other states.”
McCarter said the budget adopted by the Legislature after overriding Gov. Rauner’s vetoes should also be tossed.
“It is not an honest plan for the citizens of Illinois,” said McCarter (R-Lebanon). “It was sold as a balanced budget, but it is certainly not. This budget plan spends $37.6 billion while the state is only expected to take in $36.3 billion. That is a $1.3 billion structural deficit. The budget hole grows to $2.6 billion when you include $1.3 billion in unpaid bills from Fiscal Year 2017.
The 54th District Senator said the tax and spend budget deal won’t put Illinois back on track for fiscal solvency because it lacks a basic rule of fiscal responsibility: You can’t spend more money than you receive.
“Since fiscal year 2004 (FY04), the first Gov. Blagojevich budget, Illinois has spent more money than it received in eight of 14 budget years,” said McCarter. “From FY 05 to FY17, the state spent (expenditures) a total of $16.9 billion more than it received (revenues).”
*FY 16 and FY 17 figures are estimates, based on available information.
McCarter said the budget also does nothing to turn around Illinois’ economic prospects or preserve liberty for its’ 12 million-plus citizens. Additionally, it fails to reduce property taxes and lacks any of the economic and government reforms needed to create jobs and rein in an ever-bigger government.
“During the last two years, families, employers, public institutions and social service agencies were held captive to a budget process that – in the end – leaves Illinois suffering from the same self-inflicted wounds of bad public policy that gave us the fiscal crisis,” said McCarter. “It’s an out-of-balanced, booby-trapped, bankrupt budget that lacks the changes necessary for real economic growth, and reforms limiting the burden of government.”
McCarter said it’s discouraging that a majority of Senate and House legislators decided to repeat the mistakes of the past by making the largest, permanent income tax rate hike in Illinois history part of a bloated budget plan.
“The entire deal is a stick in the eyes of taxpayers today and it does nothing to avoid the huge liability on the next generation,” said McCarter.
Sen. McCarter’s income tax repeal measure is Senate Bill 2224. It mirrors a similar bill filed in the House by Representative David McSweeney. The Senator is detailing the impact of the income tax hike and the entire budget deal, and how to repair the damage, during regular online video broadcasts at www.facebook.com/KyleMcCarterIL
In order to avoid future damage to the state’s economy and the economic viability of Illinois families, the largest-ever, permanent increase in the state income tax rate should be repealed, according to State Sen. Kyle McCarter.
Please note that my e-mail address is changing. My new e-mail address will be my name as it appears now @sgop.ilga.gov