Helping Increase the State’s Financial Problems

Starting today, clothing and school supply shoppers can do their part to put state government into deeper in debt.

The headline of Chicago Sun-Times columnist Mark Brown piece today sums it up:

Sales tax break
no net loss or
gain to state

But it gives pols something
upbeat to brag about to voters

Actually, if you interpret the word “state” to mean “state government,” instead of “the state’s economy,” it’s misleading.

Here’s the summary of economists’ opinions of the idea:

“Economists are pretty much agreed that when it comes to economic stimulation, such sales tax holidays are a bunch of nonsense that only cause consumers to change the timing of their spending, not increase it.”

Who says economists can’t make common sense?

Locally, all Republicans voted against this tax break. Big spender Jack Franks, our lone Democrat, voted for it.

The sales tax holiday will put pressure on state legislators to raise taxes, perhaps even to the level that Governor Pat Quinn’s budget officer told New York City a credit rating agency.

While denying that he wants to raise the state income tax 67%, the tax hike his budget guy advocated, Quinn has supported this high an increase since he ascended to the governor’s office. (You can get details on the legislation that Quinn supported here.)


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