Incentives are vital. This is Economics 101, a course that many – most – politicians would do well to take. Unfortunately, most politicians are economically illiterate, even some who supposedly have degrees in economics from places like, oh, Boston Universityjust to name one at random.
Illinois liberals could also utilize some training in economics — and incentives. They propose a “millionaires’ tax” and are launching a non-binding ballot initiative to advance the idea. While the ballot measure cannot impose such a tax, if approved, the Democratic-dominated Legislature will undoubtedly see it as a license to proceed.
An Illinois Republican, state representative Martin McLaughlin, stands on the tracks, one hand raised, screams “STOP!”
As some Illinois homeowners face continued property tax increases, a plan that enjoys public support from former Gov. Pat Quinn is being sold as a measure that could provide up to $4.5 billion in such relief.
State Rep. Martin McLaughlin, R-Barrington Hills, argues those numbers simply don’t add up.
“It will be another example of the vast majority not understanding what it takes for entrepreneurs to succeed in Illinois,” he told The Center Square. “My Democratic friends are creating all sorts of deserts through bad politics. If we introduce this policy, it will create a desert for small and medium-sized businesses. We need climate change; We need to change the business climate in Illinois.”
The nonbinding measure raises the question: “Should the Illinois Constitution be amended to impose an additional 3% tax on income over $1,000,000 to use the funds collected for property tax relief?” advocates say , it gives voters the first real chance to influence the kind of property tax change many supposedly crave.
Chicago, of course, is the major commercial center in Illinois, and a gigantic portion of the wealthy people who would be affected by such a tax most likely live in the Chicago area. And of course, a quick look at the map tells us that Indiana and Wisconsin are each just a stone’s throw from Chicago; You can get from Chicago to South Bend or Madison with just one electric vehicle charge. And that’s very likely where many of these millionaires will go – because incentives are vital. Mr. McLaughlin gets it, even if Chicago-area Democrats don’t.
McLaughlin sees this as a losing proposition for everyone involved.
“In the long term, it’s just going to end up driving future employers out of the state of Illinois, business owners and entrepreneurs who in many cases have taken the risk and built something,” he said. “Companies are hiring people. These are the guys they’re targeting. So it’s a success tax.”
Yes, there’s the catch.
See related: “No Tip Tax” bill introduced in Congress – by a Democrat
The next migraine-inducing clip of the 60 Minutes interview with Kamala Harris cuts miniature and the interviewer calls her out
I’ll give you another economic law: What you tax, you get less; What you subsidize, you get more. The Democratic Party’s entire economic program for about half a century has been “punish success, reward failure,” and if that is the end state of these policies you are looking for, then you need look no further than Newark, Detroit – or Chicago . And if this measure is approved by the legislature and then enforced, it will simply send millionaires in Chicago and Illinois looking for greener pastures.
But Illinois has made the business climate as unfriendly as possible for some time. I mean, who do they think they are – California?
As the saying goes, “You can lead a horse to water, but you know it’s going to make a mess.” Illinois Democrats’ economic knowledge appears to have emanated from the south end of a northbound horse, and this measure should appeal to voters If it arrives and the Legislature manages to pass it, it will wreak havoc on Illinois’ budget.
At least Martin McLaughlin will have the satisfaction of saying, “I told you so.”
