Nine corporations get to keep the state income taxes paid by all of their employees. No money for children, the elderly, the disabled, our infrastructure?
Yes. Nine of the largest corporations in Illinois get to keep the state income taxes they collect from their employees. Elected officials approved this.
Illinois claims that it is too broke to pay for:
- mental health clinics
- Medicaid extensions for the poor and disabled
- public schools and career teachers
- special education services
- infrastructure repairs
- contracted earned compensation to retired employees (pensions)
- and more – many more – necessary services.
The state is also cutting the state income tax from 5% to 3.75%. Yes, cut state revenue because the state lacks sufficient revenue as the state declares that the state is broke.
While this self destructive activity is going on, the largest Illinois corporations will continue to keep the state income taxes that their employees pay.
Democratic Gov. Quinn began this theft and the Democratic super-majority House and Senate legalized this. Tea Party darling and billionaire Republican Gov. Bruce Rauner continued this revenue draining process after his recent election.
Best friends and reciprocal-political supporter Mayor Rahm Emanuel (D) made the historical and amazing invitation to Gov. Bruce Rauner (R) to address a Chicago City Council meeting to tell them that Chicago will NOT get the state money it has previously received. This isn’t reaching across the aisle to show bipartisan support; it is legalized theft by legislative thieves and liars. Collusion of shock and awe tactics. Read Naomi Klein’s The Shock Doctrine.
Why would Gov. Rauner (R) and 30 year Speaker of the House Mike Madigan (D) knowingly destroy the state’s financial standing while claiming they are saving the state?
Lower bond ratings make higher interest rates for investment firms and private equity money managers. These investors (Democrats, Republicans, multinationals and even non-Americans) get the money -our tax money. These investors paid (donated) to “support” their buddies (D&R) who in turn pay (incentivize) them. The lawmakers made laws to make this process (supposedly) legal.
(Note: The graph is from Crain’s calculations from the Illinois Department of Commerce and Economic Opportunity.)
The $197 million+ of one year of employee taxes that nine corporations get to keep – well, the money certainly could have been used as taxes to pay for what governments are supposed to collect taxes for.
Imagine working for Navistar International Corporation and working in Illinois as your music loving daughter receives no music in school, your mentally ill brother-in-law has no place to receive treatment, your teacher wife has her pension threatened, your disabled mother has even less medical care available, your son receives reduced special education services, your commute takes half an hour longer and your car alignment has been repaired twice due to road infrastructure damage, etc. Imagine that your corporation gets to add an additional $24 million per year by keeping your state income tax that will not be used for the necessary services you work so hard to fund. Imagine being invited to a corporate all-expenses paid party celebrating the corporation’s financial success.
By the way, this is merely one example in one state of one technique of intentional public crisis creation to further enrich the super-wealthy from middle class public tax funds. New Jersey, Florida, New York, Kansas, Connecticut, Wisconsin, Colorado etc. supply similar examples of legislative thieves and liars. This is actual redistribution of wealth – not the media hype that claims the opposite is occurring.
This is all very personal to me since my sole means of support is my teacher’s pension which was attacked by legislators who violated the state constitution by intentionally using the money elsewhere than what was supposed to, by law, be paid into the pension funds. They then claimed the state was broke because of greedy teachers and greedier retirees. Blame the victims. Yesterday, the Illinois Supreme Court upheld the state constitution and acknowledged that the state legislators themselves had caused this crisis.
We used to call this corruption and graft. Today, we need to begin recall movements to get these guys out of power and to demand criminal investigations on a federal level that jail these liars (D&R) and thieves (D&R).