Recently Illinois Comptroller, Dan Hynes, announced his candidacy for Illinois Governor. As part of his announcement he released a twenty page document entitled Leading Illinois Forward: The Hynes Plan for Tax Fairness & Fiscal Prosperity. This is an excellent read for policy wonks. It contains a number of great ideas to bring Illinois back to fiscal sanity. One idea that is NOT good, is his proposed progressive income tax for Illinois Taxpayers.
Currently, Illinoisans pay a flat 3.5% on their income. I believe this is too much. It should be lowered back down to 2% as it was before the Edgar administration raised it to its current level. Under Hynes' plan there would be a top rate of 7.5%. Luckily, the voters in Illinois would have to approve an amendment to put a progressive state income tax system in place. A progressive tax system would be another spike in Illinois already troublesome business and employment environment.
According to a CNBC report, Illinois ranked 25 out of 50 states in "America's Top States for Business 2009". In a state with Illinois' population, resources, talent, and amenities, that is shameful. Adding insult to injury Illinois ranks 43rd in Business friendliness and 38th in Cost of Business. Illinois does not need to continue its business and manufacturing decline by instituting a progressive income tax system. One does not need to be an Nobel Laureate in Economics to understand that capital (derived by income) is key to business development and growth.
To Hynes' credit, in his budget blueprint he offers a number of cuts that make incredible sense. How often do we here politicians bellow about cutting government spending, but do not hear a peep about what cuts they would make. Hynes' puts his ideas to paper. In addition he proposes a number of revenue enhancing ideas that are intriguing. Now, I like Dan Hynes. And in the interest of full disclosure, I did vote for him for Illinois Comptroller in 2006, wandering off the (R) reservation. It was a political chit I felt I owed to his family for their help in my Eagle Scout service project (a voter registration drive) three decades ago.
Dan Hynes is dreadfully wrong in his desire to bring Illinois a progressive Income Tax system. Such a system would only hurt Illinois's already feeble business and employment outlook. What is needed, is lower taxes on businesses and individuals. This would create a stronger environment for business retention as well as business creation and growth. Consequently, employment growth would follow beating down Illinois' already high 11% unemployment rate.
Please. NO Progressive Income Tax system for Illinois!!!!
Sunday, September 6, 2009
Tuesday, September 1, 2009
Illinois Gaming Law needs a Re-set
Recently, the DuPage County Board acted judiciously and correctly in outlawing (forbidding) video poker terminals within the unincorporated areas in DuPage county.
Under the new "Capital Bill" signed by Governor Quinn, the new Video Gaming Act allows for 5 video poker machines per liquor establishment, truck stop, and Veterans / Fraternal club. The Illinois Gaming Board (IBG) has yet to promulgate rules and regulations for this new gaming activity. The Governor was foolish for accepting this amendment to the Capital bill.
The door has just been opened for organized crime to strengthen its position in Illinois. It remains to be seen whether we will be seeing dead bodies in car trunks out at O'Hare as turf wars develop as a result of this new gambling. Oh, I'm sure the IBG will put together strict rules about who can be involved in the poker terminals, but lets face it unless their enforcement offices are funded properly, it won't be little mice jumping through the loopholes, it will be Illinois bison lumbering through any loopholes. The Illinois legislature should have the stones to dump this insidious legislation. Granted, any municipality or county can opt out of the law,but too many will be salivating over the projected revenues that video poker supposedly will bring in.
There is only so many gambling dollars available for people to spend on this entertainment. The legislature would be wise to strengthen its current gaming venues instead of creating additional ones to take dollars away from these. Currently Illinois has nine Riverboats with a tenth one to birth in the Des Plaines river in Des Plaines. Why not enhance the current law and regulations to allow them to expand a little. Increase the number of table games allowed, including the phenomenally popular Texas Hold 'Em. Additionally, allow the casinos to put in more slots. The casinos should also be allowed to put in separate (in every way, ventilation, etc.) smoking facilities. Such small improvements may very well enhance the states take of gambling revenues without resorting to video poker which will increase the cost of the IBG's enforcement budget.
Another area that current gaming law needs to be re-set is allowing some of the race tracks to have slots. In other states they are called racinos. Now that the tenth casino license has been granted, Illinois should amend the law to allow thirteen casinos, three additional ones should be granted to Arlington Park, Hawthorne and Fairmount Park race tracks. Though, they should be smaller in size than the riverboats it would help enormously in making Illinois a great thoroughbred racing state rivaling neighboring Kentucky. Such a law change would also render the ridiculous "Impact Fee" legislation currently tied up in the courts as moot.
There should be strong competition for the public gaming entertainment dollars among the current gaming venues. It is apparent that any increase in gaming will hurt current operations. It is imperative to build upon what Illinois has, not create more problems across a multitude of venues. The Illinois legislature needs to re-set the Illinois Gaming Law in its next legislative session.
Under the new "Capital Bill" signed by Governor Quinn, the new Video Gaming Act allows for 5 video poker machines per liquor establishment, truck stop, and Veterans / Fraternal club. The Illinois Gaming Board (IBG) has yet to promulgate rules and regulations for this new gaming activity. The Governor was foolish for accepting this amendment to the Capital bill.
The door has just been opened for organized crime to strengthen its position in Illinois. It remains to be seen whether we will be seeing dead bodies in car trunks out at O'Hare as turf wars develop as a result of this new gambling. Oh, I'm sure the IBG will put together strict rules about who can be involved in the poker terminals, but lets face it unless their enforcement offices are funded properly, it won't be little mice jumping through the loopholes, it will be Illinois bison lumbering through any loopholes. The Illinois legislature should have the stones to dump this insidious legislation. Granted, any municipality or county can opt out of the law,but too many will be salivating over the projected revenues that video poker supposedly will bring in.
There is only so many gambling dollars available for people to spend on this entertainment. The legislature would be wise to strengthen its current gaming venues instead of creating additional ones to take dollars away from these. Currently Illinois has nine Riverboats with a tenth one to birth in the Des Plaines river in Des Plaines. Why not enhance the current law and regulations to allow them to expand a little. Increase the number of table games allowed, including the phenomenally popular Texas Hold 'Em. Additionally, allow the casinos to put in more slots. The casinos should also be allowed to put in separate (in every way, ventilation, etc.) smoking facilities. Such small improvements may very well enhance the states take of gambling revenues without resorting to video poker which will increase the cost of the IBG's enforcement budget.
Another area that current gaming law needs to be re-set is allowing some of the race tracks to have slots. In other states they are called racinos. Now that the tenth casino license has been granted, Illinois should amend the law to allow thirteen casinos, three additional ones should be granted to Arlington Park, Hawthorne and Fairmount Park race tracks. Though, they should be smaller in size than the riverboats it would help enormously in making Illinois a great thoroughbred racing state rivaling neighboring Kentucky. Such a law change would also render the ridiculous "Impact Fee" legislation currently tied up in the courts as moot.
There should be strong competition for the public gaming entertainment dollars among the current gaming venues. It is apparent that any increase in gaming will hurt current operations. It is imperative to build upon what Illinois has, not create more problems across a multitude of venues. The Illinois legislature needs to re-set the Illinois Gaming Law in its next legislative session.
Subscribe to:
Posts (Atom)