No

by Michael Golde

Created on: March 28, 2009

If one thing is for certain, politicians cannot be trusted to properly spend tax dollars. We now face the worst economic crisis in this country since the Great Depression and the prevailing response is to throw trillions of dollars at the problem without regard to the long-term effects on the U.S. economy or the value of our national currency. This seems to be the natural order of things for politicians who believe that every problem requires more government involvement as opposed to a reduction in government. Because I do not believe that the government will become more effective or efficient with additional tax revenues, I oppose Governor Quinn's proposal to increase the Illinois state income tax by 50%.

The economy is in a tailspin and we are experiencing the unprecedented effects of excessive credit and lack of risk management. Taxpayers are suffering from the triple whammy of declining home prices, loss on investment assets, including 401(k) accounts, and a reduction of available credit. In addition, the unemployment rate continues to rise and the uncertainly of further job erosion is prompting a massive contraction of consumer spending. This has necessarily led to a decline in income and sale tax revenues as well as a reduction of property tax collections directly link to real estate values. But instead of lessening the burden of such taxes on individual taxpayers by focusing on spending reductions, Governor Quinn has taken the exact opposite approach. He favors increasing tax rates at a time when individuals are cutting back on virtually all discretionary expenditures. Consequently, while the average consumer has been forced to reassess budget priorities, the government continues to act as if it is exempt from the same economic constraints.

If there was ever a time in the last 70 years for the government to reexamine its own budgetary priorities and to enforce fiscal discipline by reducing government expenditures and waste, now is the time to do so. Instead of seizing the opportunity to make a fundamental change in the way the State of Illinois conducts its fiscal affairs, the Governor proposes to perpetuate the status quo by raising taxes without first attempting to ameliorate or eliminate wasteful government spending. Not only is this irresponsible governmental policy, it does nothing to reverse the ever-increasing role of government into our daily lives. This type of policy over time will result in lower tax revenues as fewer citizens choose Illinois as a state of residence and fewer companies seek to commence or expand business operations here.

The State of Illinois should avoid the temptation to increase taxes and instead adopt business-friendly policies to encourage job creation. In the end, more taxes will be collected if more people are working as opposed to fewer people paying higher taxes. Moreover, now is the time for government to set the example of fiscal responsibility as opposed to the obverse.

In sum, before Governor Quinn seeks to impose increased tax burdens on the citizens of Illinois, every attempt should first be made to eliminate wasteful and unnecessary government spending and to defer non-essential governmental services. This will send the right message of fiscal responsibility to the taxpayers of Illinois and to prospective employers.

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