It’s getting closer. Illinois is planning to borrow money and raise taxes. In my case the result of that will be a possible loss of several thousand dollars to the state. I can switch my state of residency to Arizona by extending my time there a month. If Illinois goes from 3% to 5% as currently planned, it gets zip from me. Many snowbirds in Illinois can do the same.
Illinois is having problems selling bonds. Municipal bonds issued in Illinois are now junk bonds. The bottom feeders don’t think the Feds will let the state file bankruptcy. If the prices keep dropping, they will buy and hope.
Illinois is now in worse shape than California. They need cash now to pay creditors they have been stiffing for months. They need cash to keep the government running. The amount needed is between $9-15 billion.
The leaders in Illinois have said or done little about cost cutting costs. The governor cut a deal with the unions to get reelected that will increase their pensions. And, added 22,000 more on the old plan before the new kicked in at a lower rate.
Illinois is a microcosm of the country. The governor was elected by three counties, much like the US breakdown of red and blue states. The three counties are the neediest counties. The consume most of the public support in the state. They have the biggest percentage of union members. The have enough population and the strong Democratic voter base to keep the Democrats in power. The Democrats stay in power by handing out more than the government takes in. The balance is tipped in Illinois. The votes will be there to destroy the state.
The new taxes will make the corporate tax rate in Illinois, combined with the federal tax rate, the highest in the world. Can you say goodbye Illinois, hello Texas, from corporations in Illinois.
There is no incentive for the governor do other than let the state go broke. He will, unless the Feds step in and save the state. Should Texans who don’t spend more than they take in, bail out the irresponsible people of Illinois? Even if the President, the president’s new number one guy, Bill Daley, the man who got him elected, David Axelrod, the woman who keeps him headed far left, Valerie Jarrett, and his ex-chief of staff, Rhambo, all hail from Illinois and will push hard to save Illinois,kit might not be enough.
Watch carefully, as goes Illinois, may go California, and many of the other blue states. Or, down the road, the United States of America.
After all, Honest Abe is long gone from Illinois.
