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Chicago — The border adjustment tax proposed by Pres. Donald Trump is just another name for a tariff, one of the most destructive types of taxation, said the president of Taxpayers United of America (TUA).
“American consumers always take it on the chin when tariffs are passed,” said Jim Tobin, President of TUA and an economist.
“The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs on over 20,000 imported goods, and more than any other factor, caused the country’s recession to become the Great Depression. Tariffs, which are passed to protect farmers or classes of manufacturers, always cause more damage than the benefits they purport to produce.”
“Phil Gramm, an economist and former Congressman and Senator from Texas, pointed out in yesterday’s Wall Street Journal that a 25% rise in the value of the U.S. dollar brought about by the proposed tariff would cause a one-time reduction of 3% in the value of Americans’ net foreign assets. This would result in a horrendous destruction of household wealth of $2.7 trillion.”
“It is ironic that President Trump referred to Pres. Abraham Lincoln’s protectionism as a good thing.”
“Abraham Lincoln was the biggest state tax raiser in Illinois during the 19th century. As legislative leader in Springfield, he promoted pork barrel spending that raised state property taxes and almost bankrupted Illinois. None of his tax-subsidized projects were completed, but his political allies lined their pockets with tax dollars and helped make Lincoln a well-paid politician.”
“Lincoln said, ‘Give us a protective tariff and we will have the greatest nation on earth.’ Pursuing the War Between the States, which caused, by the latest estimates, as many as 850,000 American deaths, Lincoln strongly opposed free trade and implemented a 44-percent tariff during the Civil War—in part to pay for railroad subsidies and for the war effort, and to protect favored industries.”
“Tariffs are never good for American consumers. They raise their cost of living, leaving less money in their pockets. Free trade IS fair trade—fair to American consumers trying to make ends meet.”
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Chicago, IL – Gov. Bruce Rauner (R) delivered his third budget address to the Illinois General Assembly today, calling on legislators to embrace structural change to the state government and pass a balanced budget.
But taxpayers should prepare for a long fight over the state’s finances, said Jared Labell, executive director of Taxpayers United of America.
“Once again, politicians in Springfield have told taxpayers that they will strike a balance between tax increases and structural reforms to the state government to pass a balanced budget,” said Labell. “But if history is a guide, then taxpayers can bet that in Springfield, the word ‘compromise’ is synonymous with tax hikes.”
Rauner praised Senate President Cullerton (D) and Leader Radogno (R) for working together on the so-called “grand bargain,” which includes a multibillion state income tax increase.
“Senate President Cullerton, Leader Radogno and Senate lawmakers have shown tremendous leadership in bringing all parties together to find common ground on a combination of spending cuts, revenue, and changes that will create jobs and ensure long-term balanced budgets,” said Rauner. “Standing here three weeks ago, I encouraged them to keep working, to never give up. And they have done just that.”
The Senate’s current budget proposal calls for a permanent state income tax hike but only temporary property tax relief. Rauner said he could accept an increase in the state’s income tax rate if a permanent property tax freeze was adopted.
He also said he was open to “expand the state’s sales tax to cover everyday services and raise taxes on food and drugs” to mirror neighboring states, but Rauner cautioned that doing so, or creating a new state income tax on retirement income, would hurt lower-income families and seniors on a fixed income.
“Illinois is losing residents to states without income taxes, without mountains of government debt, and with more prosperous economies,” said Labell. “During the last income tax hike, Illinois lost a quarter of a million people from 2011 through 2014. Those who can afford to move will do so, while the taxpayers who remain in Illinois face steeper challenges.”
“The Civic Federation’s proposed $51 billion tax hike over the next six years is as laughable as Rauner’s comment to the Illinois General Assembly about not pointing fingers or assigning blame,” said Labell. “The legislators laughed, but they are to blame. Both parties. Decades of overspending, lavish government pensions, mounting debt, and burdensome taxes have crippled Illinois. If taxpayers want economic growth to return to the state, the first step is keeping our tax dollars out of the government coffers and in the private sector,” said Labell.
“Rauner was right to argue that change must come to Springfield and the operations of the state government, but compromising on a multibillion-dollar state income tax hike is economic suicide, not a strategy.”
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Chicago, IL – Members of the Illinois Senate return to Springfield for three days this week to vote on the 12 bills forming the so-called “grand bargain” budget plan. Taxpayers United of America (TUA) urges Illinoisans to demand state senators VOTE NO and kill this legislation now.
“The backbone of this legislation is a multibillion dollar state income tax hike orchestrated by Senate President John Cullerton (D) and Senate Republican Leader Christine Radogno which far outweighs any minor benefits to taxpayers found in the remainder of the legislation. We urge state senators to vote against the entire package,” said Jared Labell, executive director of TUA.
“Taxpayers are outraged, and understandably so. For decades, compromise in Illinois has meant a growing tax burden for Illinois residents, while politicians across the state and in Springfield conduct business as usual,” said Labell. “The Cullerton-Radogno multibillion dollar state income tax increase is out of the question for taxpayers, who are rightfully disgusted with Springfield.”
“TUA warned against the ‘grand bargain’ budget plan a couple days before Gov. Rauner’s (R) State of the State address. Legislators clearly heard our message on behalf of our members and taxpayers, temporarily halting the Cullerton-Radogno state income tax hike,” said Labell.
But now some Republican Senators are surrendering to government pensioners, government unions, and current government employees to support the disastrous Cullerton-Radogno multibillion dollar state income tax hike.
State Senator Dave Syverson of Rockford defended the Cullerton-Radogno state income tax hike after Gov. Rauner’s annual State of the State address. “While I do not like raising any taxes this latest proposal would keep the new tax at or below where it was before the last tax expired,” Syverson wrote.
Republican state Sens. Chris Nybo of Lombard and Karen McConnaughay of West Dundee joined Democratic state Sens. Kwame Raoul and Heather Steans of Chicago to support the state income tax hike on Chicago Tonight February 1.
And of course, Senate Republican Leader Christine Radogno has spearheaded this unnecessary income tax increase, telling taxpayers, “Unfortunately, our fiscal situation is so dire that it is unrealistic to think we can ‘cut’ our way out of it.”
Unlike those legislators, Republican State Senator Kyle McCarter of Lebanon received the highest rating of any of his senate colleagues on TUA’s last biennial tax survey of the Illinois General Assembly, and he continues to fight for taxpayers in Springfield and oppose this legislation.
Tax hikes are not inevitable if systemic changes are made to the operations of Illinois’ state government, yet this budget plan accomplishes nothing but guarantee the Cullerton-Radogno multibillion state income tax increase will further cripple Illinois’ economy and the finances of taxpayers.
State Sen. Dave Syverson of Rockford
(217) 782-5413 and (815) 987-7555
State Sen. Chris Nybo of Lombard
(217) 782-6578 and (630) 519-3652
State Sen. Karen McConnaughay of West Dundee
(217) 782-1977 and (847) 214-8245
Senate Republican Leader Christine Radogno of Lemont:
(217) 782-9407 and (630) 243-0800
Find your legislators here and contact them today!
