The state of Illinois has operated under the Obama plan. Spend as much as you can. Raise pay and pensions for public employees. Raise taxes.
The result is a pending fiscal default. Big employers like Sears and CME, the Chicago Board of Trade are threatening to leave. Many jobs have already moved to Indiana. Now the state is faced with giving certain companies tax forgiveness to keep them in the state.
They have just found they have understated the pension liability for 2012 by half. Even now as they can’t pay outstanding bills to those who provide goods and services to the state. Jobs are going away and the doubling of the state income tax is only part of the reason. Unemployment is up. Revenues are down. Liabilities are growing faster than the state can raise taxes.
Illinois is like Greece. And, soon America will be like Illinois.
Business is mobile. It doesn’t have to stay in a hostile location. To keep business and jobs in Illinois, the state must pay a ransom. This compels other businesses to threaten to leave, creating new ransoms.
The big idea in Springfield is to expand gambling. Put more cronies in the casino business in the state.
What should we expect, Obama came from Illinois.