Saturday, March 26, 2011

Memo to Local Elected Officials: Tax Raises have Consequences

Caterpillar tells Illinois (paraphrasing) "you raised our income taxes, so we may leave!"

In a nut shell, the CEO of Caterpillar is unhappy that the State of Illinois raised income taxes 66%. Many governors from nearby States, and as far as Texas, wrote to the CEO and said "hey, come here! we have lower taxes!"

Good stuff.

So, in Ohio many local entities raised taxes and lied about the reasons they need to do it (read Willoughby Hills, Willoughby Eastlake Schools, Lakeland Community College, Concord and other Townships). Cities like Willoughby rushed to negotiate contracts and give their bargaining units raises.

Fast forward January 2011: John Kaisich and Shannon Jones roll into town (CBUS). Public sector unions attacked. Local government fund slashed.

Right on, right on.

At least the county commissioners cut the budget, maybe it was only about 6%.  It is actually shocking.  No immediate discussion of raising the sales tax.  County departments told to live with it.  Shocking.

We do see clearly now the lying that went on over the past year: Willoughby Hills' elected officials and Lakeland Officials and Willoughby-East Lake Board Members and Taxn' Trustee Galloaw (with other trustees), out of breath.

The picture is clear: these people lied about the need for tax increases.  Take Willoughby Hills.  There was $100's of carry over, not the approximately $30, 000 people were told.  These people lied.

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