Jim Dodge: Illinois taxes causing slow growth, outmigration
Jim Dodge frets lawmakers in Illinois have little understanding of one of the basic rules of business.
“There’s a saying that goes 'if people get value, they never question price,’” Dodge told the Prairie State Wire. “Here in Illinois, most people have little faith that the state will spend the money we send them well. The thinking goes most of it will be sucked up for pension payments and still-growing debt as opposed to being used for the programs they’re said to be earmarked for.”
Illinois Policy Institute (IPI) reports some of the spending programs and revenue generating proposals now being pushed for by Democratic gubernatorial candidate J.B. Pritzker could have taxpayers digging even deeper into their pockets.
Pritzker’s plans could require tax increases of as much as $18 billion, a measure of it coming from a proposal to increase the state income tax rate from 4.95 percent to 9.95 percent, IPI states. In addition, taxes on a household with an income of up to $79,000 could see an annual tax increase of up to $3,500 at a time when the state could be shedding as many as132,000 jobs.
“I think Democrats will discover how many people have had enough of their tax, tax, tax approach,” said Dodge, who is running as a Republican for state treasurer against Democratic incumbent Mike Frerichs. “The top issue on the minds of voters are the way all these taxes are causing everything from slow growth to mass outmigration. We’ve got to find a way to be more efficient.”
Part of Pritzker’s plan centers on enacting a progressive tax that he has offered few details about in terms of how much revenue it would generate or how tax brackets might be constructed.
“The bottom line is there’s something wrong when you have some of the highest taxes along with some of the most debt,” Dodge said.