by Mish

In the emergency session, Rauner has agreed to hike the personal income tax rate to 4.95% from the current 3.75%. The corporate income tax rate will rise to 7% from the current 5.25% rate.

For what? Nothing. Reforms are nonexistent.

Another Deadline Come and Gone

Illinois failed to approve a budget today and thus heads into its third fiscal year without one.

A vote has been scheduled for Sunday.

I do not expect your opinion will matter, but in the slim chance I am wrong, Please Email Your Representative voicing displeasure of the tax hike.

The preceding link will find your rep based on your address.

Rule of Nothing

A zombified Rauer has capitulated in every way but the final signing.

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Tax hikes have been agreed to with no reforms in return.

The Rule of Nothing is clearly in play.

Rule of Nothing
In any given political situation, the best outcome one can reasonably expect generally happens when politicians do nothing.
Implied corollary#1: When politicians attempt to fix any problem, they are highly likely to make matters worse.
Corollary #2: Politicians almost never do nothing. It’s why we have a messed up healthcare system, education system, public pension system, etc..

Taxoholics Win Again

Chicago schools will not get fixed. The hikes will not shore up pension plans.

Within one month of tax hikes, public unions will ask for more money. And people will leave the state. So will corporations.

Rauner pledged 44 reforms. He is0-44 on his pledges.

The property tax freeze currently under debate has so many holes it is as useful as a bucket with no bottom.

Trading tax hikes for nothing is a horrible deal. Nonetheless, the taxohalics won again.

More business flight and human capital flight is the guaranteed outcome. Doing nothing at all would have been a far better outcome.

Mike “Mish” Shedlock

Governor Rauner Screws Illinois

Illinois governor Bruce Rauner caved in on tax hikes and got absolutely nothing in return.

Too Much, Too Little, Too Late: Junk Status for Illinois Coming Up

The House voted to override Rauner’s veto of a budget today following a brief lockdown mode after white powder was thrown at Governor Bruce Rauner.

Illinois Loses Most Jobs in Nation Following Tax Hikes

Thanks to Illinois governor Pat Quinn and the Illinois legislature Illinois Loses Most Jobs in the Nation

Illinois Special Legislation Time Spent In Minutes: House vs Senate Graph with Costs

In Amazing Progress Illinois Style: Welcome to the Obama Expressway! I called attention the special session called by Governor Rauner at a cost of $50,000 per day to Illinois taxpayers.

Illinois Eyes 30 Cent Gas Tax Hike, Chicago Eyes Property Tax Hike

The Illinois legislature is in recess right now. Other than disbanding the body, that's the best place for them. When they return, they are going after your pocketbook in the form a gas tax hike. Not to be outdone, Chicago Mayor Rahm Emanuel is pondering property tax hikes.

Death Watch Illinois: Despite Massive Stock Market Rally, Illinois Pension Liabilities Go Up, and Up

Illinois’ unfunded liabilities have risen ten out of the last eleven years. The only exception was 2011. This was despite massive rallies in financial markets every year since 2009.

Rauner Vetoes 32% Tax Hike Bill But Wimpy Republicans Expected to Override Veto

A massive, permanent tax hike with Rauner 0-44 in proposed reforms is now in the cards.

Progressive Battle Cry: Tax the Rich! Tax the Rich! How's it Working Out?

New York's projected income tax is $2.3 billion short of estimates. Governor Cuomo cited a need for more taxes.

Amazing Progress Illinois Style: Welcome to the Obama Expressway!

Yesterday, in response to alleged “progress” on Obamacare I penned Mish’s Rule of Progress.