Tuesday, March 2, 2010

U.S. Doomsday Preview? Illinois Going Broke Now

Laurence Msall, president of watchdog group the Civic Federation,
says "doomsday is here for the state of Illinois," referring to the state’s $12.8 billion deficit.

"Illinois' fiscal crisis has been many years in the making," Msall says.

"It was caused by more than 30 years of pension underfunding and many years of spending unfettered by the state’s shrinking revenue resources," Msall told the Sun-Times.

Msall’s group is calling for an increase in personal income tax, advocating an intervention that includes significant budget cuts and the largest tax increase package in Illinois history.

The group says it would support a state income tax increase from 3 percent to 5 percent, and recommends the state tax retirees’ pension and Social Security checks be taxed for the first time at the same rate as workers’ paychecks. (more)

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