U.S. Doomsday Preview? Illinois Going Broke Now

Monday, 01 Mar 2010 02:42 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Laurence Msall, president of watchdog group the Civic Federation,
says "doomsday is here for the state of Illinois," referring to the state’s $12.8 billion deficit.

"Illinois' fiscal crisis has been many years in the making," Msall says.

"It was caused by more than 30 years of pension underfunding and many years of spending unfettered by the state’s shrinking revenue resources," Msall told the Sun-Times.

Msall’s group is calling for an increase in personal income tax, advocating an intervention that includes significant budget cuts and the largest tax increase package in Illinois history.

The group says it would support a state income tax increase from 3 percent to 5 percent, and recommends the state tax retirees’ pension and Social Security checks be taxed for the first time at the same rate as workers’ paychecks.

It also wants another $1 increase on a pack of cigarettes and the elimination of $181 million in corporate tax breaks, move the group says would alleviate the deficit by 2012.

If implemented, the Federation's recommendations could shave $8 billion off the state’s deficit. However, 
in order to implement those increases, the Civic Federation says unions should pay more toward their pensions and health care.

The unions aren't interested.

The state’s red ink has already caused a backlog of unpaid bills to public universities and schools, transit systems and social services.

The budget deficit in Illinois is almost as big as the one facing California, a financially beleaguered state that has triple Illinois' population, The Chicago Tribune reports, and the deficit is half as large as the core of the state budget.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Lawyers: Dallas Hospital Not at Serious Risk Over Ebola Death

Wednesday, 22 Oct 2014 23:27 PM

If they decided to seek more than an apology from Texas Health Presbyterian Hospital, the family of Thomas Eric Duncan,  . . .

Nancy Snyderman, NBC Crew Freed From Ebola Quarantine

Wednesday, 22 Oct 2014 19:47 PM

NBC News' chief medical editor, Dr. Nancy Snyderman, and the rest of her crew have been released from their 21-day Ebola . . .

Report: Secret Service Blasted Again for Improper Behavior

Wednesday, 22 Oct 2014 18:51 PM

The Secret Service is in trouble again, this time over a report that agents improperly became involved in a domestic has . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved