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I want to get to the state of Illinois that state already passed an increase in taxes on corporations and individuals income taxes corporate taxes all of them going straight up.
That would that was bad battle cry made it to beat out the deficit in the state of Illinois.
It's not well okay.
Now Illinois considering almost doubling of the cigarette tax.
From the Illinois policy institute is in Springfield Illinois.
-- -- that they the state tax on cigarettes is going to go to a dollar and 98 up pack in that states.
He's not gonna -- is that we need to bring you any money form.
Well no it's not gonna work but let's give a little bit of background that you mentioned a moment ago -- Illinois had a record increase in its income taxes despite that fact we -- our credit rating downgraded in January.
But since January lawmakers in Illinois -- known that they've had to cut -- seventeen billion dollar Medicaid program.
By two point seven billion dollars.
Legislation passed yesterday came a billion dollar short of that goal only cut about one point six now lawmakers looking to make up the difference with cigarette taxes.
That tax on hospitals and they haven't said what other taxes -- gonna need -- future years to close that gap.
OK so I would say that Illinois is in the second to worst financial shape in the nation Africa the state of Rhode Island.
The state of Illinois has tried to raise taxes on income and for individuals and for corporations now is raising taxes on cigarettes.
Has it walked so fall.
Has because that what we're looking for how Illinois wolf will help cope with this problem and how other states -- want to follow its example go the opposite way.
Well it hasn't worked in -- -- we have record revenues right now more money than the state of Illinois ever had because of a record income tax increase.
And yet it still can't pay its bills it's because the problem in Illinois is spending in an unwillingness to cut spending and unfortunately that's a bipartisan problem and so you've got to borrow the deficit if you deficit is a ten billion -- whatever whatever many billions and if you've got to borrow that easy getting more expensive to borrow.
Of course is getting more expensive to borrow as I mentioned early earlier back in January we had our bond rating.
Downgraded that means it's more expensive for Illinois to borrow and but the only way out is either to borrow.
To raise taxes or to cut spending and right now lawmakers are unwilling to cut spending enough to avoid borrowing and higher taxes how much longer can -- go on like this.
-- for not very long story we know people are leaving -- leaving in droves we lost over quarter million people to our border states Indiana to Wisconsin mostly.
Over the last decade and they're continuing -- -- -- unemployment rate.
Is one of the highest in the country you know we're simply not putting people back to work.
Tax increases aren't gonna cut that you know that.
The only thing we can do is reduce our spending levels and right now that's just not happening it quick and operate network that's the way it is -- -- Illinois policy institute Springfield Illinois thanks for joining us appreciate.
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