caseyresearch.com / By Justin Spittler, editor, Casey Daily Dispatch / Jul 10, 2017
It’s about to become the first U.S. state with a “junk” credit rating.
It’s broke…and running out of time. It doesn’t have enough money to fix its roads. It can’t feed its prisoners. It can’t even pay its lottery winners.
I’m talking about Illinois.
Two weeks ago, I told you how the state was on the edge of a major debt crisis. Since then, state politicians have scrambled to keep the situation from spiraling out of control.
In fact, they just passed their first budget in over two years. It raised personal income taxes by 32% and the corporate tax rate by 33%.
Those are huge tax increases. Surely this fixes the problem, right?
The budget will raise just $5 billion. That will barely put a dent in the state’s $15 billion deficit.
In short, it won’t fix anything. At best, it buys Illinois some time.
Bruce Rauner, the governor of Illinois, agrees:
This is a two-by-four smacked across the foreheads of the people of Illinois… This tax hike will solve none of our problems and in fact, long run, it’ll just make our problems worse.