ITEF Comment Vol. XIV Issue 3

Total State Revenues Climb For Sixth Year In A Row

CHICAGO- For the sixth year in a row, since ITEF began tracking state revenue, total Illinois state revenue is significantly up from the previous year, according to data from the Illinois Comptroller’s website. Total tax revenue for the first 10 months of FY 2008 has increased $1.9 billion over the same period in FY 2007.

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Also, for the sixth year in a row, the politicians in Springfield are complaining about a phony tax revenue “crisis” to justify an income tax hike. State senate’s Democrats are planning a 67% increase in the state personal income tax with Senate Bill 2288. Personal income tax revenue so far in FY2008 is up $770.4 million, or 9.2%, from the first ten months of FY2007—all without a rate increase. All state income taxes together sucked $899.3million more from taxpayers’ wallets, with corporate income taxes increasing $128.9 million, into state revenue than they did in the first 10 months of FY2007. FY2008 saw further increases in state sales tax revenue (up $276.2 million or 3.0%) and state public utility tax revenue (up $100.9 million or 6.6%). Oppressive state taxes caused Cigarette Taxes to decline 1.1%, down $5.5 million, and the high price of gasoline caused Motor Fuel Taxes to decline 2.4%, down $29.9 million.

Springfield’s spending spree is continuing in FY2008. The state is budgeting $2.1 billion in FY2008 to cover state unfunded pension liabilities, $1.04 billion to the Teachers’ Retirement System alone. The best way to reduce the unfunded pension liability is to cap annual pension benefits at $50,000 and start new hires on private 401(k)s. There are 2,535 state employees and government school employees that receive at least $100,000 per year in pension benefits, which is more than $2 million in lifetime benefits. These pension millionaires want to raise state income tax 67% and the corporate tax rate by 44%. Forcing taxpayers to pay billions for pension millionaires is immoral.

To review: so far in FY2008, total state revenue has jumped $1.9 billion, or 3.76% over the same time period in FY 2007. The Midwest Consumer Price Index was 3.7% and the Midwest Core Consumer Price Index was 2.0%. State revenues were nearly double core inflation rates and slightly higher than the overall Midwest CPI. Nearly all of the major state tax revenue categories were up significantly. Any claim that Illinois has a “revenue crisis”, or that we have to increase taxes and spending is ridiculous.

Click here for the ITEF Comment.

Click here for the Revenue Analysis.

1 Response

  1. Sergei Kochkin says:

    Dear Mr. Tobin,

    Just got my property tax bill for $14,400 and want to start a property tax reform website in Illinois, perhaps like a proposition 13 type initiative in California. Previously my letter on this issue which was published in the Herald in the suburbs. I will send it to you if you like.

    I just completed my first lobbying website and we are doing very well. It permits people to enter their name, address and zipcode and sends a letter direct to their respective Senators and Representative with option for customization. Please view my lobbying website at http://www.hearingaidtaxcredit.org.

    The cost is $12,500 for the website, but may be slightly less since it would be confined to Illinois Congressmen. I am willing to put up the first money. Maybe we can get 100 people to each put up $125 or 50 people at $250 each.

    Let me know what you think. Also I think it would be a great help if you had a form letter or direct email function to Springfield on your site. You can add this feature by contacting Mark at mark@thesoftedge.com.

    Also I am involved with the CAP group in Grey’s Lake responsible for getting the property tax transparency act to the Senate floor.

    Regards,

    Sergei Kochkin, Ph.D.
    989 Saunders Road
    Riverwoods IL 60015
    847-3743540 (home)
    847-4414385 (work)

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