Oppose Gov. Quinn's Tax-Hiking Budget!

The budget deficit in Illinois has most recently been pegged at $11.5 billion, a result of rampant overspending throughout recent history. Rather than addressing that problem head-on by cutting expenditures, Gov. Quinn seems to believe he can tax his way out of it. Unfortunately, Illinoisans have been leaving the state in droves over the past decade, and new taxes on income earners, smokers, and drivers will only exacerbate the exodus. The state almost surely faces future deficits and a dying economy as a result.

A 50 percent increase in the personal income tax would lift the actual tax rate to 4.5 percent. In the midst of a devastating recession, the Governor wants to confiscate a larger portion of your paycheck to feed the state's perennial addiction to tax dollars.

A dollar-per-pack increase in the cigarette levy would boost the state-imposed burden to $1.98 per pack, heavier than any of Illinois' neighbors. This would encourage smokers to cross state lines to purchase their cigarettes, having a harsh effect on the state's retail industry. It also would contribute to a likely shortfall in the Governor's projected revenue, as has happened often with similar tax hikes in other states.

The vehicle registration fee would increase more than 25 percent, to $99 under the budget plan. The driver's license fee would double to $20. The vehicle transfer fee would jump over 60 percent, and the cost to transfer registration would double. Of course, these "fees" really represent tax hikes on anyone who drives a car.

Many have wondered what the post-Blago era would look like in Illinois. One thing is now clear -- it will be laden with tax hikes unless you take action. Contact your lawmakers and urge them to say NO to Gov. Quinn's tax hiking scheme!

Sample Letter for Campaign

Subject: No tax hikes in the budget!

Dear [ Decision Maker ] ,

As an Illinois voter and taxpayer, I urge you to oppose the tax hikes in Gov. Quinn's recent budget plan.

In these tough economic times, the last thing I can afford is to give more of my hard-earned money to politicians in Springfield. I find it hard to believe that while Illinois' families are tightening their belts, the government continues to grow. Our deficit is a symptom of decades of overspending. It should be solved by budget cuts, not tax hikes or federal bailouts.

Please stop this madness and start making responsible choices. We will remember those who stand up for taxpayers, and those who don't.

Sincerely,

Campaign Launched:
April 03, 2009

Background Information

There's a spending problem in Springfield. Government outlays have exploded since 1998, increasing roughly 45 percent while population has grown only 4 percent during that same period. Unfortunately, Gov. Quinn apparently prefers to ignore this obvious imbalance and instead claim that the problem is too little revenue. His recent budget proposal calls for hikes in taxes on income, cigarettes, and automobiles.

Income taxes are slated to rise 50 percent if the budget passes. According to the Illinois Policy Institute, Gov. Quinn's plan would increase taxes on individuals making $14,000 and on couples making $28,000. A family of three with a household income of $42,000 would be subjected to higher taxes as well. In the middle of a painful recession, families with low income levels would be forced to surrender more of their hard-earned money to the government.

Illinois' economy isn't exactly setting the world on fire as it is. Personal income growth per capita was 47.1 percent between 1997 and 2007, according to the American Legislative Exchange Council. That seems like a respectable number, but it's actually 12th-lowest in the country. The growth of non-farm employment over the same period was third-lowest in the country. And between 1998 and 2007, Illinois lost over 735,000 citizens to domestic migration, the third-highest in the nation. Gov. Quinn's drastic bump in the personal income tax burden will only exacerbate these problems.

What's more, he wants to hike the regressive excise tax on cigarettes by 102 percent, to $1.98 per pack. Illinois would have the highest cigarette tax of any of its neighbors, eliminating a comparative tax advantage over Iowa, Wisconsin, and Indiana and sending consumers over state lines to purchase smokes elsewhere. This would worsen the slump in the state's retail industry. Evidence also shows that it will likely lead to further tax hikes down the road, as cigarette tax revenue is notoriously difficult to predict. Receipts often fall short of projections, sending government scrambling for new revenue to plug deficits. In essence, Gov. Quinn is virtually guaranteeing further tax increases in the future.

Finally, automobile "fees" -- tax hikes by another name -- skyrocket under the budget scheme. The vehicle registration fee would increase over 25 percent to $99 under the budget plan. The driver's license fee would double to $20. The vehicle transfer fee would jump over 60 percent, and the cost to transfer registration would double. The bottom line: more middle class tax hikes to fatten an insatiably hungry state.

We would never call this budget acceptable, as government's perpetual expansion has spelled disaster for Illinois at every turn. But in the current climate, it is especially ruinous. Contact your legislators and the Governor and tell them that you will not tolerate any more tax-and-spend policies in Springfield!