June 6, 2009

Taxpayer victories are rare these days, so let’s cheer the good news in Illinois, where earlier this week the state House in Springfield voted 74-42 against a plan to raise the income tax rate on individuals and businesses by 50%.

When Governor Pat Quinn succeeded Rod Blagojevich in January, he immediately proposed raising the personal income tax to 4.5% from 3%, the business tax rate to 7.2% from 4.8%, and expanding the sales tax to services ranging from dry cleaners to Internet hookup. The Democrat says the income tax hike is “based on a principle as old as the Bible. Taxes should be based on the ability to pay.” But voters can distinguish between rendering unto God and unto Quinn, and public dismay was so widespread that even 26 Democrats voted to kill this tax grab.

Just as surprising, not a single Republican voted for the tax increase. In recent times the ideological distinction between the GOP and Democrats has been as murky as the Chicago River. Former Governors “Big Jim” Thompson, Jim Edgar and George Ryan transformed Republicans into the tax-and-spend party.

Solidarity has given Republicans new leverage in the budget debates because majority Democrats are terrified to pass a tax hike on their own. Mr. Quinn may call for a new tax vote, but the GOP can now instead demand spending and ethics reforms in a state where political corruption is at New Jersey proportions. One reason Mr. Quinn’s tax plan failed is because there was little effort to slow down spending that has increased 45% (to $4,700 from $3,250 per person after inflation) in the past decade.

Following the defeat of California’s tax increase, the Illinois revolt is more evidence that voters are rejecting tax-and-spend politics. Beltway Democrats, take note.

Read at: http://online.wsj.com/article/SB124424597055790563.html

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