Raising income tax the right thing to do

The upcoming debate on the Illinois budget will be framed in the tone of the free-spending Dems, the lazy unions, the bloated pensions, the welfare state and the job-destroying income tax all conspiring to cause this crazy deficit. We should be more like Texas — that state with no unions, rock-ribbed Republicans, a pro-growth economy, a regulation-cutting governor and no state income tax. They surely must be doing well.

Well, wait a second. Texas is looking at a $25 billion deficit on a $95 billion biannual budget. Some are looking at cutting Medicaid altogether to help balance the budget. Let the sick and poor fend for themselves.

But the press tells us that deficits are caused by free-spending, tax-happy Democrats. Tell that to Republican right-to-work strongholds like Utah, Mississippi, Arizona and Wyoming. They, too, face large deficits. Maybe it is the U.S. state structure. However, I remember conservatives hailing Ireland as the “Celtic Tiger.” It was a low-tax, pro-growth, pro-business, low-spending regime that was to be the model for all Europe. Then it too blew up.

Sadly, over the past few years governments have not generated the income they have in the past. The demands from citizens for services has increased. In the U.S., Medicare and Medicaid have skyrocketed, energy costs have jumped and state government has taxed at the same rate or in many cases have reduced the tax rates. (Remember the Illinois Inheritance Tax?)

Guess what: decreasing tax rates or eliminating taxes does not increase revenue. Tell that to Texas and Ireland. I am not happy about it, but the responsible decision is to raise the Illinois state income tax, resurrect the Inheritance Tax and pay down our debt.

Patrick Cleary

Wheaton