Governor Quinn got his wish. In a lame duck session, after a resounding message in November from voters to trim back government, with a 30-29 vote including zero Republicans, Illinois has now increased personal and corporate taxes dramatically.
Our governor and the outgoing legislature are pathological liars. Under no circumstances will they actually cut spending over the next few years. In no manner will they get this state back on solid financial ground. Frothing at the mouth to get more money, Democrats have sealed the fate of Illinois. We are going broke–fast.
Sometime within the decade, Illinois and several other states will face a crisis unlike any seen in the history of our country. Tim Geithner has already said that the Fed will not bail out states. Of course, he also said that about big business. No matter. Whether the Fed bails us out or we declare bankruptcy, Illinois is finished. A bailout will simply mean all 50 states can enjoy hyperinflation together. Somehow I doubt that drowning is any more enjoyable in crowds.
Many of us will start looking for states (or countries) that do not have a death wish. You can bet that businesses have the atlas out right now, too. If you cannot or for some reason do not want to leave this fair state, make sure you have sound financial plans that do not rely upon the state. If your pension and health care is tied to Illinois, get good advice on building investments that will see you through the coming storm. Start a side business to supplement your income and trust nothing from Springfield. Good luck–you’re going to need it.