Budget Facts vs. Myths

Illinois Policy Institute dissects the Springfield debate. Here's one:

Myth: A tax hike will solve today's budget crunch without long-term repercussions.
Fact: The personal income tax hike would limit Illinois's future economic growth.

Tax policy economist Scott Moody calculates Gov. Quinn's personal income tax hike would cost the Illinois economy $8.6 billion in lost output over the long term. To put this massive sum into perspective, the hidden cost of the personal income tax hike is the economic equivalent of taking all the 2008 tax revenue from the sales tax, cigarette tax, liquor tax, inheritance tax, corporate franchise tax and fees, and insurance taxes and fees and dumping that money into Lake Michigan.