Press Release: llinois’ Financial Situation No Better on 1st Tax Anniversary

On the one year anniversary of the Democrats’ tax increase on families and employers, State Rep. Tom Cross (R-Oswego) said Illinois’ financial situation has not improved, and in fact, is in worse shape than before the tax hike was approved. Cross held a press conference today in Chicago reiterating the need for more fiscal discipline, and much-needed pension and Medicaid reforms to get costs under control.

“In the waning hours and under the cover of night in a lame duck session, Democrats last January imposed the largest tax increase on families and employers in state history,” said Cross. “As a result, in 2011, an average Illinois family of three paid nearly one-thousand dollars more in taxes – that’s a lot of diapers, milk and cans of chicken soup families could have bought instead.”

Cross said promises that the tax increase would reduce the backlog of bills and prevent layoffs were not fulfilled. According to the Governor’s Office of Management and Budget (GOMB), Illinois’ backlog of bills remains at around $7 billion and unemployment rose from 9.1% in November 2010 to 10.0% in November 2011 (latest figures available from Illinois Department of Employment Security).

“Obviously, the tax increase was not the solution to our financial crisis. As we warned time and time again, without controlled spending, and the enactment of meaningful structural reforms to our budget, we are simply pouring more money into a bottomless pit,” said Cross.

Cross recently introduced legislation to roll-back the corporate tax to spur jobs and over the past couple of years House Republicans initiated several Medicaid Reform laws that would save taxpayers billions of dollars – unfortunately, Democrats have been slow to implement the reforms. “It’s frustrating for the taxpayers who are being forced to live with less,” said Cross.

The ‘temporary’ tax increase passed by Democrats in January is set to expire in 2015. However, just last week, Governor Quinn speculated in his “Budgeting for Results” report that this tax increase will most likely be permanent based on his revenue and spending estimates in the next three years.