Saturday, April 20, 2019

King Solomon, Groaning Sounds from Illinois Fair Tax or….?


 “Illinoisans suffer from the second-highest property tax rates in the nation.”
“Their state is the third most corrupt in the nation.”

The Chicago Tribune article titled, Illinois should tax its residents fairly,reported “It’s no secret that Illinois faces challenges that threaten the future of our State.”
The Purpose of This Post
Is to question one reason not being reported as to the reasons why Illinois suffers from the second-highest property tax rates in the nation.”
King Solomon
When the righteous thrive, the people rejoice; when the wicked rule, the people groan. (Proverb 29:2)
What’s My Point?
Imagine in private industry that you have been given a task to become CEO of a company subsidiary that is losing money, or failing. Your task is to figure out the reasons why.
One of the first things you would do is to check the statistics of similar companies in the industry to see if you can readily identify some the causes for expenses that contribute to the fact that the company is failing,
For example, if you check Industry Standards for a widget company, you would find typical percentages of similar widget companies purchasing expenses. If your purchasing department percentages of costs is 45 percent of the cost vs. another widget company 30 percent of the cost of a product, you would immediately be led to examinee the reasons why.
Perhaps you have an inept  Purchasing Agent, or perhaps you have too many people working in Purchasing which might indicate not only is the Purchasing Agent is an inept buyer, he or she is also a bad executive who has too many employees, or is paying them too much,  which is driving up costs of your widgets.
If you compare the number of local government units of Illinois to a similar standard, you will read the following statement.
“And driving this expensive and corrupt reality on the local level is the fact that Illinois has more units of local government than any other state in the nation. With 6,963 units of local government, Illinois beats its nearest competitor by more than 1,800.”
My point is our new elected Governor should do the same exercise as private industry CEO executive would do instead of raising the price of his widgets (taxes) which everyone knows will decrease sales (residents) over time.
In My Opinion’
Raising taxes without reducing costs and debt interest payments will bear the same results for State governments as it will for private industries, bankruptcy. While the State of Illinois has a Constitution that state that Illinois cannot declare bankruptcy, it can still happen as explained in a previous post about the National Debt.
If Interested,
Read the Source Link and the Previous Post in the Source Links below.
You Decide
Wise or Foolish Advice for our new elected Governor?
Would reducing government expenditures add more groan sounds or applause by Illinois taxpayers?
Fair or corrupt taxes?
Regards and good will blogging.
Source Links
Illinois Has 7000 Local Government Units
Previous Post
Chicago Tribune

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