Warnings from Illinois
Published November 23, 2017
by Brian Balfour, Civitas Institute, November 20, 2017.
Columnist George Will highlights just how dire the fiscal circumstances are for the state of Illinois, which underscores the importance of that state’s gubernatorial race this year.
Republican Gov. Bruce Rauner will seek re-election with a stark warning: The state is approaching a death spiral – departing people and businesses suppress growth; the legislature responds by raising taxes; the exodus accelerates.….
Unfunded state and local government retirement debt is more than $260 billion and rising. Unfunded pension liabilities for the nation’s highest-paid government workers (overtime starts at 37.5 hours) are $130 billion and are projected to increase for at least through the next decade. Nearly 25 percent of the state’s general funds go to retirees (many living in Texas and Florida). Vendors are owed $9.5 billion. Every five minutes the population – down 1.22 million in 16 years – declines as another person, and an average of $30,000 more in taxable income flees the nation’s highest combined state and local taxes.
North Carolina, while not in as deep a hole as Illinois, faces its own issues with unfunded pension and state retiree health benefit liabilities.
Illinois serves as the poster child for short-sighted legislators making grandiose promises with little regard for how to pay for those promises down the road. Hopefully, North Carolina legislators will responsibly rein in these liabilities rather than go down the self-destructive path Illinois has chosen for the last several decades.
November 23, 2017 at 11:13 am
Norm Kelly says:
Important information: is Illinois run by demoncrats? If so, then the death spiral makes sense. Demons have 2 schemes regardless of circumstances. Raise taxes. Promise more to those who vote for them. When taxes are crushing people, the natural response from demoncrats is to raise taxes to make up for the loss. Never, never, no not ever, would a tax reduction enter the head of a demoncrat. Any demoncrat who chooses to vote for a tax cut, or even talk about a tax cut is drummed out of the organization. Getting off the demoncrat reservation is worse than death!
When Roy ran his campaign totally on the idea of gay marriage, which media-ally pointed out that his schemes reflect virtually 100% the schemes implemented by demoncrats in Illinois? Which media-ally pointed out that Roy had no plans or ideas other than the same old, tired, used & abused, failing schemes of the demoncrat party nationwide? Which media-ally pointed out that Roy was obligated to follow the schemes of demoncrats in Washington in order to get support from the party, from unions, and from socialist donors (some of whom may be foreigners who are forbidden from making political donations)?
What about this story is new or newsworthy? Pointing out that a demoncrat stronghold is continuing to fail isn't new or news. Pointing out that demoncrats in NC should not follow the same path is pointless information. Demoncrats are required NOT to look at facts in order to get their schemes implemented. Demoncrats rely solely, totally, on emotion and expect their voters/supporters to ignore facts and rely on feelings also. Does it make you feel good to pay gov't employees more than the average taxpayer? If so, then ignore what it does to the local economy. Does it make you feel good to rape 'the wealthy' on their taxes? If so, then ignore that they can afford to leave the state and eliminate the golden goose.
What's praise-worthy of modern demoncrats? I find nothing! If you disagree, please point out the difference between their actual schemes and what you consider a good plan. Finding a 'plan' coming from ANY demoncrat in the nation would be welcome news. Impossible to find, but if you are willing to take the time, waste the effort, I'd love to know of just 1 idea, plan, that doesn't fall into the category of 'scheme' or 'feel-good scheme'. Either way, seems it's gonna be a scheme.
