Despite asking for more out of state taxpayers, Illinois hasn’t
passed a truly balanced budget in 17 years.
That’s because even as the state collects more revenue, it’s spending at an even
faster rate – much faster than taxpayers can keep up with. And in certain areas
of the state, taxpayers are falling especially far behind.
State spending per capita outpaced per capita personal income growth by 70
percent in Rock Island County from 2005-2015.
Personal income per capita in Rock Island County grew by less
than 2.3 percent per year, on average. But state government spending per capita
grew by an average of 3.9 percent per year, far outpacing residents’ ability to
pay.
This unrestrained growth in state spending causes uncertainty for Rock Island
County residents and Illinoisans across the state. As the state spends
recklessly, it’s left with two options: raise taxes or borrow money, both of
which place burdens on struggling taxpayers.
In 2017, even as lawmakers passed the largest permanent income tax hike in state
history, the General Assembly could still not produce a balanced budget. That
budget still resulted in a deficit of over $1 billion.
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Given their track record, lawmakers should have
seen how fruitless a new income tax hike would be. The 2011
temporary income tax, though raising $31 billion in revenue, cost
the state $24.8 billion in gross output and decreased employment by
9,300 jobs between 2012 and 2016.
Rock Island County taxpayers, seeing meager income
growth as the state spends beyond its means, can’t afford tax hikes
as a solution to Illinois’ budgetary woes. Many in Rock Island
County have already said as much with their feet: From 2010-2016,
the county’s population shrank by nearly 2,800 people due to
outmigration.
Instead of new tax hikes, lawmakers should pass a spending cap to
get state spending under control with what taxpayers can afford. A
spending cap would tie growth in government spending to growth in
Illinois’ economy, meaning Rock Island taxpayers – who are seeing
their incomes grow far slower than the state spends – could then
rest assured they’re getting a state government they can afford.
It’s not fair for politicians to ask for more out of taxpayers while
they won’t rein in their own spending. Adopting a spending cap
instead of new tax hikes can provide certainty Rock Island taxpayers
need, and lead to better budgetary decisions that could eventually
help incomes grow.
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