The personal income tax in Illinois went up from 3% to 5% this year, the corporate tax went up from 4.8% to 7%. Tough pill to swallow but I guess everyone needs to chip in to keep the state solvent... or so I thought. This one line was just depressing. "Illinois' financial condition continues to worsen, though arguably not as quickly as before." The state is still facing an over $8 billion deficit this year.
http://www.chicagobusiness.com/article/20110926/NEWS02/110929908/illinois-going-deeper-into-debt-despite-tax-hike-civic-federation-says-greg-hinz
But in the grand scheme of things an $8 billion hole in a $117 billion budget isn't too bad. That is of course until you consider all the underfunded pensions and other off the book liabilities. Greece appeared to be in pretty good shape when they had Goldman Sachs cooking their books...
But what really scares me is the city's deficit, $650 million deficit from a $3.2 billion budget - a 20% hole. Can you imagine the city cutting 20% of spending on everything?
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