Proposed gas tax hike (Chicago, Clinton: sales, 2009, loans)

[oakparkdude]

Gas-tax hike 'on the table,' Senate leader John Cullerton says -- chicagotribune.com

Gas-tax hike 'on the table,' Senate leader John Cullerton says

House Speaker Michael Madigan backs boost from 19 to 27 cents per gallon
By Rick Pearson and Ashley Rueff | Tribune reporters
February 4, 2009

The top two leaders of the Illinois House and Senate began paving the way Tuesday for increasing the state's gasoline tax to fund billions of dollars in highway and mass-transit projects.

House Speaker Michael Madigan will support a proposal to raise the existing 19-cent-per-gallon motor fuel tax to 27 cents—a boost that could raise $500 million a year to fund bond payments on a $5.9 billion transportation repair plan, a Madigan spokesman said.

Let the bitching commence.

Actually, I think its high time to invest in our dilapidated highway and transit systems. The state gas tax hasn't been raised since 1990, and its not indexed to inflation.

[ccjarider]

Why not first document why state spending cannot be reduced?
Every business and family in US is looking at ways to reduce spending.

Why can't state of IL?

[SJaye]

The gas tax should be enough to cover all highway construction and repair costs, no less, no more, this way all drivers are paying the true costs of their habit.

Other spending in the state should be cut in half, especially in cook county

Madigan simply loves taxes.

[linicx]

Money from the gas tax might be enough if it isn't put in a general fund and raided before repairs can begin. And speaking of gas, surely the utility companies did not make ehough profit this winter - even though thay got the unnecessary rate increase they lobbied for.

[meatpuff]

Originally Posted by ccjarider

Why not first document why state spending cannot be reduced?
Every business and family in US is looking at ways to reduce spending.

Why can't state of IL?

It's tough. Tax revenues are falling across the board: income taxes, sales taxes, excise taxes as people consume less. In the current environment, the state has to cut drastically from last year just to keep the budget balanced. It's not that they've gone on a spending spree.

I'm fine with it personally. If we made it through with a 19 cent tax on $1.10/gal gas in 1990, I can live with 27 cents on $1.80 gas. It's kind of a regressive tax, but not much else seems to politically possible. So what else can you on the revenue side?

If you look at the spending side, former Gov. Blago tried to cut state spending by closing certain state parks and historic sites and was castigated, especially downstate. It was enough that one of the first promises Gov. Quinn made was to reverse these cuts. Where were all these small-government conservatives then? So people will complain either way.

Most state governments have been running pretty lean ever since the bad economy in 2000. There's not much left to cut, and anything else they cut will be felt. They'd either be cutting "essential" government services, reducing state University funding down to scraps, or else doing some bare-knuckled union busting.

[ccjarider]

Meatpuff,
Sorry I cannot accept that State Gov't (any state for that matter) is running lean.

Usually what happens is that bureuacrats, in attempts to keep increasing their little kingdoms, claim old people won't be fed, children will be homeless and people will be dieing in street if state is forced to reduce expenditures.

One never sees offers of voluntary staff reduction via buyout, layoffs, firings or depts/offices being closed in state gov't.

Private industry and families are doing this. Gov't should do even more. Gov't does not create value. Gov't only redistributes value after siphoning off a huge amount due to inneficiency, cronyism and blatant politics.

[whatever you want]

Originally Posted by ccjarider

Meatpuff,
Sorry I cannot accept that State Gov't (any state for that matter) is running lean.

Usually what happens is that bureuacrats, in attempts to keep increasing their little kingdoms, claim old people won't be fed, children will be homeless and people will be dieing in street if state is forced to reduce expenditures.

One never sees offers of voluntary staff reduction via buyout, layoffs, firings or depts/offices being closed in state gov't.

Private industry and families are doing this. Gov't should do even more. Gov't does not create value. Gov't only redistributes value after siphoning off a huge amount due to inneficiency, cronyism and blatant politics.

[meatpuff]

Originally Posted by ccjarider

Meatpuff,
...
One never sees offers of voluntary staff reduction via buyout, layoffs, firings or depts/offices being closed in state gov't.

Nonsense. The city of Chicago, state of Illinois, Cook County have all announced coming layoffs in the last few months. And the U of I is contemplating them.

City of Chicago reduces size of layoffs - Chicago Tribune
Pantagraph.com | News | State employees work final day as layoffs, park closures loom
Cook County Board President Todd Stroger warns of layoffs without bonds - Chicago Tribune
The News-Gazette.com: Crowd at town hall meeting clamors for UI budget answers

Originally Posted by ccjarider

Private industry and families are doing this. Gov't should do even more. Gov't does not create value. Gov't only redistributes value after siphoning off a huge amount due to inneficiency, cronyism and blatant politics.

Poppycock. Government creates value when it builds needed roads and bridges. It creates a lot of value through public education; the vast majority of education from kindergarten through graduate school has the government involved. It creates value when it funds the right research programs; the Internet was largely built on intellectual property generated by U.S. government funding of research labs, academics and start-ups. Now I'm no socialist, this is about enough, of course government shouldn't be dabbling in steel mills or anything like that (or automobile assembly plants).

State governments must cut back their budgets at this time because generally they legally must balance their budgets. So this is what Illinois, and county and local governments all across the state are reluctantly doing.

If you think the federal government too should be tightening their budget at this time, it places you on the far right fringe of economic thinking. Economists across the political spectrum generally agree that an expansionary fiscal policy is what is needed right now. Hence the economic stimulus proposals being floated, under both Presidents Bush and Obama. History is not on the side of those who would tighten the federal government's belt at this time. For example, many believe the Great Depression was lengthened by the U.S. not having the chutzpah to stick with expansionary fiscal policy.

Don't forget that the recession was caused in the first place by private industry and individuals cutting back on their spending. If we are to be sure to avoid this causing a dangerous downward spiral, government deficit spending will have to be used to fill the gap.




As an aside, I came across this great article that talks about the biggest thing causing these state and local budgets to balloon: health and retirement benefits for government employees. PUBLIC PENSION WAR :: CHICAGO SUN-TIMES :: Personal Finance

[ccjarider]

Originally Posted by meatpuff

Don't forget that the recession was caused in the first place by private industry and individuals cutting back on their spending. If we are to be sure to avoid this causing a dangerous downward spiral, government deficit spending will have to be used to fill the gap.




As an aside, I came across this great article that talks about the biggest thing causing these state and local budgets to balloon: health and retirement benefits for government employees. PUBLIC PENSION WAR :: CHICAGO SUN-TIMES :: Personal Finance

The recession was caused by gov't interference in the housing market. Starting with Carter and reemphasized by Clinton; govt policy pursued a program that a large percentage of home ownership is good for society. Gov't first pressured companies to loan $ to people with income levels that never should have qualified and second gov't became the backer of loans, thus removing risk from banks.

It was a house of cards destined to fall down and it was initiated decades ago by gov't. Now we look to the same fools to solve a problem they created.

[ccjarider]

Meetpuff responds:
Nonsense. The city of Chicago, state of Illinois, Cook County have all announced coming layoffs in the last few months. And the U of I is contemplating them.
City of Chicago reduces size of layoffs - Chicago Tribune
Pantagraph.com | News | State employees work final day as layoffs, park closures loom
Cook County Board President Todd Stroger warns of layoffs without bonds - Chicago Tribune
The News-Gazette.com: Crowd at town hall meeting clamors for UI budget answers



Actually if one reads these articles, for the most part they reinforce my position that gov't cannot reduce itself.