Obama claims to be able to restore fiscal responsibility to our government; yet, his nearly $1 trillion in new proposed spending tells a different story. He claims that increases in taxes on Businesses and wealthy Americans will bring fiscal health back to our government; yet he cannot explain how government revenues have actually grown by 20% over the past 7 years despite what he refers to as "irresponsible tax cuts". The problem with Senator Obama is simple, he has a limited record to work off of and no one in the MSM is willing to question that limited record.
As a resident of Illinois, I have seen first hand what the effects of Obama's "change" have been. In 2002, following the term of a corrupt "Republican Governor" who abandoned his own parties fiscal principles by raising taxes and overspending, Democrats gained full control of Illinois government. Running on a platform of 'change' nearly identical to that of Obama, these Chicago politicians promised massive social spending and programming, along with the ability to balance a budget plagued by deficits caused by the 01'-02'recession. Since a majority of Senator Obama's experience comes a state legislator, perhaps its time to look at his record.
Prior to 1999, Republicans controlled both the Illinois Senate and Executive Branch. Under the control of a popular governor, Illinois enjoyed a budgetary surplus that had led to the creation of a 'rainy day fund'. After Governor Edgar retired in 1998, George Ryan came to power running on a platform that promised the same fiscal constraint practiced by Edgar. However, just two years after taking office, Ryan embarked on an orgy of Pork-Barrel spending and massive spending programs leading to split between Illinois Republicans and his administration. Ryan, with the help of Illinois Democrats increased taxes and licensing fees on Illinois business. When recession hit following 9/11, State revenues collapsed, followed by multiple allegations of corruption by the governor. As a result, Chicago's political machine, ran by Rod Blagojevich and Obama's mentor, Emil Jones, took power.
During his career in the Illinois Senate, Barack Obama never saw a tax increase that he didn't like. CBS News Jan 17, 2007 - 'Obama occasionally supported higher taxes, joining other Democrats in pushing to raise more than 300 taxes and fees on businesses in 2004 to help solve a budget deficit. The increases passed the Senate 30-28.' Fox News Feb. 27, 2008 - 'A new report says he supported more than 300 tax hikes during his eight years in the Illinois State Senate'.
Yet, these reports do not even begin to demonstrate the fiscal irresponsibility practiced by Obama. Facing a budget deficit in 2003, the newly anointed Illinois Governor, with the full support of Senator Obama who voted for his budget, increased the annual budget by more than $2 billion, as opposed to seeking spending limits or cuts. On April 9th, 2003, Blagojevich introduced his budget by stating, "WE WILL NOT BALANCE THE BUDGET BY SACRIFICING OUR VALUES. INSTEAD, WE WILL BALANCE THE BUDGET BY ENDING BUSINESS AS USUAL." Sound Familiar?
Over the course of the next two years Senator Obama would vote after tax increase after tax increase.
Obama voted for an income-tax hike on natural gas. SB1733 was a $42 million income-tax hike on Illinois businesses that choose to purchase cheaper out-of-state natural gas. (2003)[I'm sure that those businesses never even thought about passing on the increased costs to the consumer.]
In 2003, Obama voted to raise the state corporate income tax by $59 million for industries that use heavy machinery. The tax hit consumers of oil, coal, other natural resources in addition to businesses from contractors to graphic arts companies.
Voted for a property tax hike to increase patronage employees' pay. The bill, costing taxpayers $31 million per year, was vetoed only to be overridden by the senate and house.
In 2004, Obama voted for yet another state income-tax increase that hit Illinois businesses for an additional $29 million per year. In addition, Obama also voted for increased real estate sales taxes and a computer software sales tax hike that cost Illinois consumers and home buyers a combined $95 Million. Obama also supported a 33% increase in licensing fees on Illinois Residents.
In a single massive bill in 2004, Obama voted to increase over 300 TAXES AND FEES Assessed on professionals and businesses operating under state licenses. The bill increased fees on every profession regulated under the state, from hair dressers to insurance agents, contractors to doctors. Fee increases were phenomenal in many cases as insurance agents and investment brokers for instance saw their licensing fees increase by as much as 400%.
But professional fees were minute compared to the massive fees imposed on business licensed entities. Automobile Dealers saw their licensing fees increase by a whopping 2,000% (not a typo). A Massive 36% Increase in Interstate Trucking Licensing fees caused a massive decline in interstate trucking as companies moved out of state and avoided interstate transportation through Illinois like the plague. Nearly every business, both small and large were affected by a massive increase in Worker's compensation fees paid by Illinois Businesses. In November 2004, An Illinois Circuit Judge ruled the Worker's Comp fees unconstitutional as the funds were being re-diverted to the general fund.
Obama voted to increase Regulatory Securities Fees On Banks & Investment Companies (ironically the state actually decreased regulatory staffing and employment)While raising regulatory fees, the state cut the Banking Office & Financial Institutions Budget by over 1.1 Million in first year.
But tax and fee increases were only the beginning for Obama and his Chicago cronies. Obama, in an attempt to increase government revenues to pay for billions in new spending, began robbing Peter to pay Paul. Obama supported a plan by Governor Blagojevich to mortgage the Thomspson Center in Chicago to raise $200 Million. The plan was quashed by the Democratic Attorney General, Lisa Madigan, who challenged the mortgage as procedurally unconstitutional.
Obama supported and voted for a plan that would generate revenue for the State by issuing $10 Billion in bonds tied to the State's Teachers Retirement System. The plan, which would put the state on the hook for the annual interest and a repayment of the $10 billion debt, would put at risk the long term viability of the Teachers Retirement System. Five years later no plan has been proposed to offer insight as to how to repay the long-term debt. In 2004, Obama would add insult to injury as he voted for a bill to short the State's contribution to the State Employees Retirement System and Re-vamp the Teachers Retirement System. The bill would actually limit pay raises made available to teachers in the years prior to their retirement.
Obama also failed miserably to support any spending cuts proposed by the few remaining fiscal conservatives left in Illinois. In 2003, Obama voted for SB1239 that included $750 Million in pork spending. The Governor would actually veto more than $556 Million from the bill only to his veto overturned by Obama and the rest of the heavily Democratic Illinois Legislature.
In 2007, suffering yet another year of Budget deficits, Illinois' Governor would propose a Gross Receipts Tax that would impose a tax on Gross Revenue of business and services rather than Gross Income. The bill was opposed by nearly every business group, consumer group and legislature in Illinois. The tax would have been the largest tax increase put forth by any state in history and many experts testified that the tax would have destroyed Illinois' economy. To give you an idea of how the tax would have worked, take for instance an individual real estate agent. If this agent had sold $1 million in real estate during the year, they would have expected pre-tax commissions of $35,000 - $70,000. The GRT would have imposed a 1% tax on the gross sales, or around $10,000. Although the tax was 1% of Gross Receipts, the tax to the agent would have been as high as 30%. For business dealing with high volume, low profit margin items such as real estate, automobiles or furniture, the tax would have destroyed their profits and operating incomes. When it became apparent the bill would fail, the Governor advised his supporters to vote against the bill to save their re-election bids. Senator Obama, although questioned repeatedly, refused to acknowledge whether or not he supported the GRT.
Dan Cronin - Illinois State Senator - "I think you just have to kind of look and take a step back and see what is happening here in Illinois. Look at the business climate. Look at the fiscal climate. This is not a place that is very friendly to business. It's a high-tax, high-regulatory state. We lag in the nation. "
How have these tax increases helped one of the nations largest states?
According to the 2008 Economic Scorecard by The U.S. Chamber, Illinois ranks...
Business Costs: (C-) 39th
Economic Growth: (D+) 36th
Economic Prosperity: (C+) 16th
Education: (B) 16th
Regulatory Environment: (D-) 49th
Workforce Preparedness: (B-) 16th
Since 2002, Illinois has consistently lagged in job growth and has seen a drastic reduction in the number of of health care workers employed within the state. Since 2002, Illinois has raised more taxes and fees than any other state in the nation, while failing to balance their budget even once. Since 2002, Illinois has expanded social services, such as children's health insurance, without taking a single step to protect services already in existence. As of October of 2008, the state is over 18 months behind in Medicaid payments to health care providers.
Illinois is a picture of Obama's economic philosophy and what this nation has to look forward too, it is a picture of corruption, out-of-control spending and a government that will tax small and large businesses into non-existence.
J Brown
October 13th, 2008
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1 comments:
Hello? McCain campaign? See this? Do something with it!
Just like when Capt. Kirk went up against the Gorn in episode 18, the raw materials needed to easily defeat your very vulnerable opponent are plentiful.
"He knows, Dr. -- He has reasoned it out."
We can only hope.
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