Illinois Governor Bruce Rauner has made a deal with Democrats to raise taxes in return for nothing!
Economic blogger Mike Shedlock is disgusted with Illinois Governor Bruce Rauner because he gave up fighting for the things that he promised when he was running for office. Illinois’ fiscal crisis is not the governor’s fault, but he promised to fix it. He hasn’t. Instead he has caved to Democrat demands. Mish even says the he and his wife will soon leave.
Mish points to a Wall Street Journal editorial, “The Illinois Capitulation”.
On Tuesday evening the Governor with the worst job in America explained why he and his fellow Republicans have offered to raise taxes for the sake of ending a multiyear budget impasse with Democrats. He said he’ll accept a four-year increase in the flat state income tax to 4.95% from the current 3.75%, expand the sales tax and implement a cable and satellite TV tax.
This is a political defeat by any definition since Mr. Rauner campaigned on lowering the income tax to 3%, not on restoring the rate close to what it was under the last Democratic Governor. The “temporary” 5% rate partially sunset in December 2014. Democrats who run the legislature refused to negotiate over a budget unless Mr. Rauner agreed to a tax increase, and now they’re refusing to make notable spending or economic reforms in return.
The political tragedy is that Mr. Rauner didn’t make this mess; he was elected to clean it up. Former Governors Rod Blagojevich and Pat Quinn, a crook and a schnook, borrowed some $17 billion through pension obligation bonds.