« | »

IL Still Deep In Debt, After 66% Tax Hike

From a seemingly surprised Reuters:

Illinois on "verge of financial disaster": treasurer

CHICAGO | Mon May 23, 2011

(Reuters) – Illinois is "on the verge of a financial disaster" as payments on the state’s debt have skyrocketed, Treasurer Dan Rutherford said on Monday.

Illinois faces an estimated $45 billion in principal and interest payments on its outstanding debt over the next 25 years, up nearly four-fold from the $12 billion owed in 2002, according to a position paper from the Republican treasurer, who took office in January.

How helpful of Reuters to give us the political affiliation of the Illinois state treasurer, so that we can reject his report as politically motivated. Why don’t they do that all the time?

Adding to the state’s debt burden is $140 billion in unfunded pension and retiree health-care liabilities and $8 billion of currently unpaid bills, the paper said.

"Every household in Illinois is responsible for the repayment of $10,000 to reimburse our bondholders in the coming years," Rutherford said in a statement, adding that unpaid bills and pension and health-care liabilities would boost that total to $42,000 per household.

Illinois’ widening structural deficit, huge unfunded pension liability, inability to pay the state’s bills on time, cascading bond ratings and its propensity to borrow its way out of financial problems have made the state a major worry in the $2.9 trillion U.S. municipal bond market.

We don’t quite see what the problem is here. Can’t the federal government just force banks to lend Illinois whatever money it needs – even if they know they can’t pay it back? After all, it worked works for home mortgages.

"We need to cut our spending and break our unsustainable borrowing cycle before we realize a further financial disaster," Rutherford said.

What kind of crazy talk is that?

Even with a big income tax rate hike passed in January, Illinois is still spending about $5 billion more a year than it receives in revenue, according to the position paper, which also said the state’s low bond ratings have resulted in higher borrowing costs compared with other states

The aforementioned "tax rate hike" was a staggering 66% increase rushed through by the Democrats in a lame duck session back in January. And even that huge tax increase wasn’t nearly enough to put a dent in Illinois’ massive debt.

Meanwhile, Mr. Obama and the rest of the Democrats in Washington and their news media assure us that minor tax increases on ‘the rich’ will solve all of our debt problems on a national level.

Whom to believe?

This article was posted by Steve on Tuesday, May 24th, 2011. Comments are currently closed.

8 Responses to “IL Still Deep In Debt, After 66% Tax Hike”

  1. Warren says:

    Did you REALLY expect anything different from the land of Daily?

  2. Mithrandir says:

    AS USUAL Democrats run away from their mess, hide in another state, or go to Ireland in the hopes that liberal cheering will drown-out the sounds of the tornadoes and flooding going on in the U.S.

    You can be sure that irresponsible Democrat governments won’t be held accountable. Eventually, the gov’t will BAIL OUT the states (they do for everyone else) and the entire country will absorb the cost. So fiscally responsible people in North Dakota, will pay for those boneheads in San Francisco, Detroit, Chicago, and New York.

    …….search your feelings, you KNOW it to be true!

  3. oldpuppydixie says:

    Since when has a Democrat controlled government been worried about repaying BONDHOLDERS???? Chrysler’s were raped with no loss of sleep for the Regime. Why not those foolish enough to invest in Illinois? Or could it be they are mostly connected Democrats, unions or other important leftists??!!

    • Mithrandir says:

      That’s true. With that bunch, perhaps we are seeing the beginning stages of the ‘Detroitification’ of Chicago and Illinois.

  4. Liberals Demise says:

    What’s next……..releasing criminals from jail on the unsuspecting public?

  5. NoNeoCommies says:

    “Every household in Illinois is responsible for the repayment of $10,000 to reimburse our bondholders in the coming years,”
    Like oldpuppydixie said: Democrats don’t care about bond holders.

    Pull a GM on them suckers and broker a deal that makes the bondholders the losers for trusting such a corrupt government.
    Maybe the folks will learn something from it.

  6. Right of the People says:

    Every household in Illinois is responsible for the repayment of $10,000 to reimburse our bondholders in the coming years,” Rutherford said in a statement, adding that unpaid bills and pension and health-care liabilities would boost that total to $42,000 per household.

    I’m willing to bet only union households have seen anywhere near 42K in benefits but then they don’t care, it’s OWED to them.

  7. Tater Salad says:

    Instead of everyone taking a “hair-cut” when times are tight and in the red, what does Illinois, California and New York do…….they raise taxes! This just “kick the can down the road” and then they have to start all over again sometime down the line. Morons! what do you expect from a bunch of left wing loons in Illinois. Their progressive, entitlement mentality will NOT allow them to face reality. Their next plan………blame those nasty Republicans for all of this. Same as Barack Obama is doing to this day.


« Front Page | To Top
« | »