Three Democratic states – Illinois, Connecticut, and New Jersey – are experiencing the blue state blues as they are starting to run out of other people’s money.
The Wall Street Journal reported:
In Illinois, Democrats spent the long weekend coaxing Republican legislators to join their suicide pact to raise taxes to plug a $6 billion deficit and pay down a $15 billion backlog of bills. And don’t forget the $130 billion unfunded pension liability—none of which will be solved by the $5 billion tax hike. GOP Governor Bruce Rauner vetoed the bill on Tuesday but may be overridden.
After credit-rating agencies threatened to downgrade the state debt to junk, Mr. Rauner proposed raising the state’s income tax to 4.95% from 3.75% and the corporate income rate to 9.5% from 7.75% for four years. In return he asked for a property tax freeze and modest reforms to workers compensation. Yet Mr. Rauner already signed off on a huge property tax hike in Chicago—homeowner bills have increased by a quarter in two years—to pay for teacher pensions.
The state legislature is controlled by public unions that refuse to compromise. But the budget crisis became more urgent after a federal judge on Friday ordered the state to make long overdue Medicaid payments, which had been subordinated to pensions and worker pay. While states can’t go bankrupt, Illinois is showing they can default—and that they will prioritize public workers over other creditors.
Read the full report here.
This should be a lesson to the rest of the country and especially to young voters who think that socialism is so attractive.
People in Illinois should look at Venezuela because that is exactly where that state is headed!
Blue states are running out of other people’s money.https://t.co/b4612VdhOm
— PragerU (@prageru) July 5, 2017