State Chamber Leader Said Illinois Residents Likely "Stuck" w/Income Tax Hike

Illinois Chamber of Commerce President and CEO Todd Maisch says Illinoisans are "likely stuck" with the income tax increase approved by the General Assembly.

Maisch spoke at the Effingham County Chamber of Commerce First Friday Luncheon.

(TODD MAISCH)

Maisch said the most disappointing aspect of the tax hike is that the agreement does not include any incentives for business, and no reforms that could improve the business climate. He also noted the tax hike did not result in a balanced budget, and said the State's backlog of bills is not likely to be reduced significantly.

Maisch said a lack of concessions "is not the recipe for avoiding another hike within 3 or 4 years". He said if spending exceeds growth in the economy, things are not going to improve. He said, "We have to hold them accountable."

Regarding the lack of agreement on an educational funding reform measure, Maisch said, "Both sides (in the legislature) believes something needs to get done, but maybe not the Speaker (Michael Madigan)." He can see the issue extending through September, maybe into October when some school districts run out of cash before a resolution is reached.

As positives, Maisch said avoiding implementation of service taxes helps. Ironically, the service taxes were supported by Governor Bruce Rauner but opposed by Madigan and Maisch said Madigan helped on that issue.

Entrepreneur Jack Schultz asked Maisch about the likelihood of Illinois becoming a Right to Work State like many neighborhood states. Maisch said it would be "incredibly hard" to get that accomplished due to the union presence in the state, but said local efforts to create Right to Work zones in their areas might bear fruit if the local entities could defeat any court challenges that might arise.

Here's Greg Sapp's conversation with Todd Maisch following Friday's luncheon...