Illinois Not So Hidden Corruption Tax

AP has a story on Illinois’ corruption tax that misses a valuable point:

“As taxpayers look down the barrel of a major income tax increase, another tax already is draining their wallets. But this one isn’t found anywhere in the tax code.

It’s the “corruption tax” — the extra money Illinois residents pay because of dishonest public officials.

People pay the tax when politicians give government jobs to unqualified cronies and contracts to expense-padding donors. They pay when public employees take bribes to overlook violations, when law enforcement spends millions prosecuting crooked politicians and when people are injured because of government misconduct.”

And what point are they missing?  That entire “major income tax increase” is a corruption tax.  For the last six years the state has been fiscally managed in a way to benefit certain groups and the Governor.  The alleged budget hole Illinois now has is a direct result of a kleptocracy.  The governor’s office was at the heart of a criminal enterprise. 

I’m sorry but poor public services, lazy bureaucrats and unqualified people who are there for political reasons are the hallmarks of government not just corrupt government.  Even the most clean agencies suffer from the inherent flaws in incentives that occur when you put others in charge of your interests. 

No, the corruption tax isn’t poorly run government.  Government is poorly run.  If you want an efficient government it’s called a dictatorship.  

The $4 billion 50% income tax hike being proposed by the governor is a corruption tax.  A corruption tax meant to bailout a corrupt, inept government who wasted our tax dollars and now would like to be rewarded with more. 

Americans are justifiably angry at the bailouts of AIG and General Motors.  Why?  Because taxpayers are forced — yes forced — to pay for the bad decisions of others who are now long gone from the enterprises they ran.   Gov. Quinn now wants the Illinois taxpayer to bailout state government.  A state government ran by a chief executive for six years who enriched himself — illegally I might add (with the electoral support of the Gov. Quinn), left the scene and now it is up to the taxpayer to fund the clean up.

Selling Snake Oil in the Budget

The Chicago Tribune editorial, An Extravagant Holiday, asks why  the state forgoing state revenues with a “fiscal deficit”:

One of the reasons Gov. Pat Quinn wants to boost the Illinois income tax is that the state is not bringing in enough money. His various recommendations would capture more than $4 billion in extra funds next year, helping to close a big fiscal deficit. Given the state’s alleged shortage of cash, it’s hard to understand why the governor would also cheerfully give up revenue it is already getting. But that’s exactly what Quinn wants to do. 

His idea is a back-to-school sales tax holiday every August—exempting clothing and shoes that cost less than $100 per item, as well as school supplies. It has been tried in several other states, including Texas and Massachusetts, and parents and retailers both like it. 

Quinn thinks forgoing sales taxes makes particular sense during the current recession, since it would not only “make life easier for struggling Illinois families,” it would “help spur the state’s economy.” (emphasis added)

On the other hand, the Governor’s proposed income tax increase raises revenue by $4 billion through a 50% income tax increase.  Will that make life easier on the struggling families and help spur the state’s economy?  Not according to the argument behind the sales tax holiday.

I used to accuse impeached and removed Gov. Blagojevich — along with everyone else — of offering up snake oil.  It seems his newly ensconced replacement  learned a few tricks while observing from the Lt. Governor’s perch.

If he really believes cutting taxes will spur the economy then if HE REALLY CARES about the plight of STRUGGLING FAMILIES then he should cut their taxes even more.

Open Meetings and Deal Cutting in Illinois

Well of course they do:

“Gov. Pat Quinn and the top legislative leaders strode down a stairwell and into a Capitol hearing room for a private meeting with the House and Senate lawmakers—all fellow Democrats—who together control state government.

With a doorman posted outside to ensure the meeting remained closed, Quinn delivered a budget preview nearly 24 hours before he told the public and the rest of the General Assembly on March 18.

In attendance were the House speaker, Senate president and enough legislators that Quinn could pass his plan with the votes in the room that day.

They discussed how to raise taxes and spend the public’s money, but the public was not invited. Yet the meeting was legal under the state’s Open Meetings Act because the legislature has exempted itself from some provisions of the law.”

Gov. George Ryan used to negotiate the budget with his budget staff and the four tops — and their budgeteers — over cigars and whiskey.  They would cut the deals.  At the end of the session a 1,000 plus page budget was presented to lawmakers who were expected to ratify the document.  That process was measured in minutes.  It was not a very open process. 

Few complain however because the four tops (the Speaker, Sen. President and two minority leaders) because the rank and file lawmaker got to claim credit for all the good stuff at the ribbon cutting ceremonies and requested favors for constituents while the leadership — wholly supported by rank and file lawmakers — took all the hits around the state for the bad items or failure to get something done.  

It’s the informal meetings where things get done.  Whether it be at lobbyist parties, local bars, dinners, the golf course… where ever people can gather.  Committee meetings and legislative votes are done deals before they begin.  After all, no one wants to call a bill for a vote until they know they either a) have the votes or b) don’t really want to win a vote.  

Forcing open some meetings could tamp down the desire for sausage making once people see how it is produced.  Advocates of limited government, who want a government that does very few things, would necessarily like the system to be more open and the unseemly made more public.  This would make it more difficult to get things done.  But, of course, should limited government policy makers ever be elected in Illinois, they’d face the same hurdles in undoing what’s been wrought by the current system.  So, we do have to be careful for what we wish for.

Of course, if these secret budget meetings and caucus meetings were forced open it would make the budget process in Illinois more unwieldy.  That might open the door to empowering more members of the General Assembly because five guys and some staff would face many more challenges during the budget process.  For those of us who’d like to see caucus leaders weakened, promoting initiatives to open up these leaders to more sunshine might help.

The Sinners Strike Back! Taxpayer Revolts Move Beyond Bailouts

It seems taxpayer protests are moving past bailout tea partys:

“NEW 10 a.m. LAWRENCEBURG, Ky. — Faced with huge budget holes, states from Connecticut to Arkansas are eyeing higher taxes on cigarettes and booze, infuriating consumers who say the goods are the last vices they’ve got to help cope with lost jobs, a deepening recession and overall economic misery.

In Pittsburgh, protesters dumped beer and liquor into a river after county officials approved a 10 percent tax on poured drinks. Patrons in Oregon bars downed brews while writing lawmakers to oppose a proposed beer tax increase. And in Kentucky, protesters poured bourbon on the Capitol’s front steps to demonstrate their opposition to a 6 percent sales tax on all booze.

“The way things are going right now with the economy, the first thing people want to do is go get a bottle or a beer, and soak their sorrows,” said Jack Weaver of Louisville, who gathered with other Teamsters in a union hall last month to rail against Kentucky lawmakers who voted to raise the taxes as of April 1.

Illinois Gov. Pat Quinn has also gotten into the sin tax game, proposing an increase of $1 in state taxes on cigarettes, spread out over two years.”

In Illinois we’ve seen anger and frustration of Illinois spill over three times since I’ve observed politics.  In 1982 (in 9th grade I was the class Alex Keaton) it was now Gov. Quinn’s cutback amendment to the Illinois State Constitution that shrunk the size of the General Assembly.  In 1986 disgust with the Democrats gave the nomination for Lt. Gov. and another statewide offices to LaRouchies.  And then, in 1994 the General Assembly was turned over to the Republicans.  

Blagojevich, bailouts, and fiscal mismanagement and resulting tax hikes could be a toxic brew aimed at who ever is in power.  2010 could be a very tumultuous year.

When is a Tax an Illegal Taking?

The Wall Street Journal today editorialized about Empress v. Giannoulias, today:

“The question of when a regulation or a tax becomes a “taking” has found different opinions among the lower courts, making the case ripe for the Supreme Court to accept for review. Had the transfer from the casino to the track involved any asset other than money, it would have automatically been considered a taking, requiring the government to compensate. Nor would the offense have been diluted by the action serving the public interest.

In a time of fiscal pressure, Illinois-type actions may be increasingly tempting for state and local governments to get money to prop up politically favored businesses. In the long run, it will only encourage corruption and deny business the kind of transparency they need to operate and expand. As with all takings, for railroads or schools or highways, if the state believes that the increased purses of the Illinois racetrack are in the public interest, the state must be willing to pay for it.”

It is gratifying to see someone in the national media pick up upon the potential importance of this case.  If allowed to stand, this precedent would open the door to even more corruption in Illinois. With the Obama Administration’s expansive view of government, we could witness an era of government expansion into our lives that outstrips FDR.  

In early March I posted a press release and the Alliance for Growth and Americans for Tax Reform’s Amicus Curiae.  You can read other briefs on the topic at inversecondemnation.com.

I heard today that the AG’s office has requested an extension before they file their responses to both the main players in the case as well as the amici.  So, it will be awhile before we get a response.

Desperate IL Democrats Seeking Republican Bailout on Tax Hike Votes

 Senate President Cullerton (D-Chicago) had message — well actually an ultimatum — for Illinois Republicans yesterday before the editorial board of the State Journal-Register:

“My number one priority has always been a capital bill, and it hasn’t changed. We have to do the budget and the capital bill together,” said Cullerton, a Chicago Democrat who took over as Senate president earlier this year.

“The two are linked, and by the way, the votes will be linked,” Cullerton told the editorial board of The State Journal-Register. “So for the Republicans who think that they’re going to let the Democrats … raise the taxes, and they’re going to just vote for the spending, I don’t think it’s going to work that way.”

I think the state will survive another year without a capital bill.

So, no.  It shouldn’t work that way.  And any Republican in the Illinois General Assembly would be a fool to cave in to such an ultimatum and would richly deserve the severe opprobrium of their constituents and their colleagues for giving in.

It’s clear that the Democrats are terrified at the thought of having to take responsibility for their six years of fiscal mismanagement.  And they are seeking a bailout from Republicans every bit as distasteful as the bailouts in Washington.  

Springfield needs to be held accountable for their bad decisions.  Supporting a tax hike with the only meager reductions in spending offered by the Gov. is a joke.  The argument that much of state spending is required by law is just as rich.  Change the law, you’re lawmakers.  

Plenty of groups have offered suggestions to improve the process and reform government.  We know the answers.  Springfield just doesn’t have the will to say no.  Forcing their hand to either raise taxes on their own with no bipartisan cover, or do something serious about how the state does business is the only way the taxpayer can get a fair shake.  

And that fair shake is having the ability to clearly hold those who got us into this mess accountable at the ballot box.

That’s Great, But Where Does Pulido Stand on SB600?

From Rich Miller at Capitol Fax:

“5th Congressional District Republican nominee Rosanna Pulido has admitted toNBC5 that she posts at Free Republic as “Chicago Lady.” A new blog is tracking her posts, including this one, which Pulido told NBC5 was an attempt at humor…

According to the African Americans in L.A. The Mexicans are the NEW KU KLUX KLAN with the TAN!! Sounds right to me!!

Here’s another Freeper post…

The TRUTH is, Obama will legalize 12-20 million ILLEGAL ALIENS, and THUS SELL THE BLACKS, His own Race BACK into slavery!

The Illegals coming over pretty much hate African Americans.

He is going to unleash REAL racism upon his own people as they fight for jobs with the illegal aliens.

It has already happened in LA, just ask Ted Hayes!!

Her thoughts on the Bible…

I AM a bible thunper who likes to tell everyone how to live their lives, STRAIGHT from the Owners manual!! The Bible!

* The state and national Republicans are steering clear of Pulido. But according to that NBC5 report, the Cook County GOP is helping Pulido with volunteers, signs and grassroots support…”

I’m sorry.  I don’t get the humor.

And David Duke is blushing. 

Using a pseudonym or hiding behind anonymous comments to share inflammatory, bigoted commentary is beyond the pale for someone seeking a seat in the US House of Representatives.  If this is true and this is what she believes, then why should she hide it?  It is a sign that she knows she is doing something wrong.  

Rosanna Pulido should abandon her quest for Congress lest she becomes the Illinois version of David Duke.  

I know others think there are other more important issues out there.  I believe the most important issue out there, currently, revolves around the economy.  I use SB600 in the title not because I’m pro or con but because in the realm of important issues swirling around us, party organization reform has to be pretty low on the list.  Yet, it recently has generated an overblown amount of heat.  It’s a litmus test among some to the point where it trumps all others.  Pulido’s rants of are that same ilk.

 Pulido presents us with an instance where we can all stop what we are doing and collectively yell, “NO!” and “STOP!” to this kind of politics.  Instead of generating heat we need leaders who can show us the light.  Pulido is clearly not one interested in showing us the light.

The Pigs Are Lining Up at the Trough

Two downstate representatives, John Bradley (D-Marion) and Brandon Phelps (D-Harrisburg) are holding public forums where “citizens” can get their say about the impending state budget that includes 50% personal income and corporate income tax increase and meaningless $1.3 billion in spending cuts to close a $11.6 billion budget hole.

But according to a report the “citizens” that showed up were one most likely to benefit from the tax increases:

“The forum was one of 15 planned statewide, Bradley said, aimed at focusing on and updating needs assessments as well as garnering support for a new capital plan.

Speakers at the forum included mayors, county board members, organized labor representatives, road commissioners and contractors as well as economic development officials.”

I have two observations about these confabs.  First, notice how county board members and mayors are calling on their state reps to make the hard choices.  Second, if the situation is so dire as these speakers say, then how can you justify NEW spending?  It seems to me that being for new spending on roads in front of a bunch of people who earn their living feeding from the trough really isn’t that tough of a decision.  

I think the hard choice would’ve been to tell these people, no.  And it seems that state legislators and the governor just cannot really bring themselves to do that.  So, instead, they are passing the buck to the taxpayer.

Sportsmen, Outdoorsmen to Pay More

It seems the Illinois Department of Natural Resources is seeking its ounce of flesh from nature lovers:

“The agency is also proposing fee increases and new fees.

New fees include a $5 per day parking fee at state parks. In-state residents can pay a $25 annual fee; out-of-state residents would pay a $35 annual fee.

“It’s not directly an admission fee,” IDNR director Marc Miller said. “You don’t have to pay per head. It’s a slightly different fee than an admission fee. Just to be clear, there are 42 other states that have admission fees.”

Other proposed fee increases include increasing the state’s migratory waterfowl stamp from $10 to $15; increasing the deer permit fee from $15 to $25; increasing fishing licenses from $12.50 to $19.50; increasing hunting licenses from $7 to $14; increasing combination licenses from $18.50 to $25.

Temporary licenses and out-of-state licenses would also be increased.

In addition, IDNR is proposing implementing a $2 user fee at Illinois Beach State Park; a $5 daily or $25 annual equestrian use fee on department-managed properties; a $500 environmental consultation fees for local units of government or private entities; a $3 launch fee per boat at Lake Shelbyville, Carlyle Lake and Rend Lake; and a $1.09 point-of-sale convenience charge for licenses.”

Should we even bother to ask whether or not we can expect more and better for our dollars or will we being paying more for the same or less in terms of services.

My guess:  It’s the latter.

Well…It Worked for Limbaugh

From the Bloomington Pantagraph:

“I hope this budget fails,” added state Sen. Bill Brady, a Bloomington Republican who is running for governor in 2010.”

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