One year anniversary of Illinois income tax hike has Sen. Johnson looking for more long-term solutions
January 13, 2012
One year ago, the Democrats in the Illinois Legislature pushed through a 67 percent, $7 billion tax hike that will cost every working Illinois family a week’s pay every year.
“Unfortunately, we have little to show for the largest tax hike in Illinois’ history,” said State Senator Christine Johnson (R-Shabbona).
“A year later, our unemployment has gone up and as of November was 16 percent above the national average, business has gone down, and billions of dollars in unpaid bills remain. To sum it up, the tax increase did not work and it is time to repeal it.”
With state finances crumbling, Democrat leaders pushed the 2011 three-year tax hike as a way to pay off old bills and resolve the state’s financial problems. However, Johnson said the legislature continued to spend like the increase was permanent leaving Illinois little room to improve our financial situation.”
Last week Gov. Quinn released budget projections showing that instead of generating a surplus, the Fiscal Year 2012 budget still spends more than state takes in. In fact, according to the Governor, Illinois will still see a $500 million shortfall at the end of this fiscal year—not including $2 billion in deferred obligations according to Sen. Johnson.
Read more →
January 9, 2012 – SPRINGFIELD – This week, budget projections released by the Quinn Administration offer a grim preview of the state’s fiscal situation, though State Sen. Christine Johnson (R-Shabbona) said Senate Republicans have a plan to jump start the state into a financial comeback.
While Governor Quinn isn’t scheduled to deliver his formal budget address until February 22, on Jan. 3, the Governor’s Office of Management and Budget released preliminary revenue and spending projections for the next three fiscal years.
The dismal results highlight the need to make agreeing on some long-term solutions to finance state government operations a top priority, according to Sen. Johnson.
Read more →
SPRINGFIELD, Ill. – State Senator Christine J. Johnson (R-Shabbona) stood with the Senate Republican Caucus on Thursday to introduce more than $5 billion in spending reductions and cuts to the state’s budget, saying such an act of tough discipline was crucial to keeping Illinois from falling into a fiscal black hole.
“Illinoisans know that several things cannot continue: the 67-percent income tax increase, the out-of-control spending, the growing deficit year-to-year and Springfield’s resistance to tightening its budget belt and reducing spending,” Sen. Johnson said. “This plan today puts an end to all of those bad habits and can set us on the path to financial recovery to grow business and pay our bills on time.”
Sen. Johnson pointed to the future $22.6 billion deficit Illinois faces in just five years, which could create a financial environment to make the current “temporary” income tax permanent – a scenario the state should avoid in order to grow the economy and attract businesses to create jobs.
Read more →
State Senator Christine J. Johnson (R-Shabbona) joined her Senate Republican colleagues on Thursday to warn about the state’s worsening fiscal condition that could make the “temporary” income tax hike permanent.
Pointing to the governor’s own budget plan at a Statehouse news conference, Sen. Johnson and the Senate GOP caucus said that in five years Illinois would be left with a $22.6 billion cumulative deficit.
“We have a situation where every year this 67-percent tax hike is in effect, the state will keep running a deficit in the billions of dollars each year,” Sen. Johnson said. “And despite the taxpayers feeling the pinch every year, we still won’t have a balanced budget. Frankly, we’re headed for a disaster and it’s time to take action.”
Sen. Johnson said the problem comes from the built-in “spending caps” of the tax-increase language, which allows the state to increase spending each year – spending that Illinois cannot continue to afford.
Read more →