Illinois is about to enact a massive tax increase. The Republican governor wanted property tax reform coupled with pension reform to tame the state’s out-of-control debt. But the Democrats who control the legislature only know one tool — tax increases — and it was the only one they were willing to use. Even this massive increase in taxes will only put a small dent in the state’s debts; and that’s if the Democrats don’t use it for more spending, which they will. It’s so bad in Illinois that Megamillions and Powerball are going to suspend lottery ticket sales.
Meanwhile, the states of Florida and Texas, which have no income tax, are not only attracting new residents and new business, but are also fiscally solvent.
How can that be if the Democrat formula of high taxes and lavish Government spending is the optimal formula for success? Democrats claim that people want high taxes to pay for the pensions and fine work of Government bureaucrats. Democrats claim that “investments” (spending) on their pet projects pays off with higher wage earners contributing to a robust economy. But it seems like, given a choice, people prefer to live where taxes and levels of “public services” are lower.