Fritz Pfister

Headlines in today’s SJR Business section, Bernanke optimistic on unemployment. Whoever wrote the headlines needs to be charged with journalistic malfeasance. Quoting the first paragraph of the AP article; Federal Reserve Chairman Ben Bernanke sketched a more optimistic view of the economy Friday but said the Fed’s $600 billion bond-buying program is needed because unemployment will likely stay elevated for up to five more years. [end quote]

We need to print money out of thin air increasing the risk for a bond crisis that would result in hyperinflation and economic chaos while unemployment is going to stay high for another five years. You call that optimistic? I think not.

Here’s a quiz for you. If the state raises corporate taxes 75% will businesses be more or less likely to hire? If the personal income tax is raised 75% will people be more or less likely to spend? Will cutting spending raise or lower the state’s deficit? Will a 75% increase in taxes raise or lower business and consumer confidence?

All through the campaign Democratic Gubernatorial candidate Quinn ran on a plan to raise taxes 1% which equals a 33% increase in the income tax. Due to the State Constitutional requirements corporate taxes would have to be increased proportionately.

The Democrats won. Therefore it would be a reasonable expectation that the majority of Illinoisans gave permission for a 33% tax increase. What did Madigan and Cullerton propose? A 75% increase in personal income taxes from 3% to 5.25%, corporate taxes from 4.8% to 8.4%, to borrow $8.5 billion, to limit spending to 1% increases over the next several years, a no new programs pledge, and that the tax increases would be rolled back in four years.

After campaigning on a much lesser increase and then violating that campaign promise why would any reasonable person trust the Democratic Party that they would roll back the tax rate?

There is no question the state is in a complete financial mess, but who got us there? Who played Santa Claus with no way to pay for their goodies to buy votes? Who misled the people about the costs of programs? Why are we in such a predicament? Because the politicians running this state continued to spend more than they were taking in, even after the financial meltdown. Shear economic negligence and now they want to punish the people for their blatantly incompetent actions.

The most egregious part of the plan defies common sense and even decency. They fail to make any spending cuts guaranteeing we will be right back where we are today when the time comes to roll back the tax rate. This is not a Madoff, Enron type scheme it is worse, it is the grandest bait and switch con in Illinois history. Enriching the powerful, enslaving the people.

Dr. Lawrence Yun chief economist for The National Association of Realtors says in order to reduce deficits without harming the economy is to have $4 to $5 dollars in spending cuts for every dollar in tax increases. The Cullerton, Madigan, Democratic plan calls for economic harm on top of their economic mishandling of the peoples money and trust.

The easy way out is to simply tax and borrow. Every representative who votes for this plan is a coward. Do you call this government with the consent of the governed? What else do you call it when your representative says one thing during a campaign to win your confidence and then does something completely different? 

What do you call raising your taxes by 75%, raising business taxes 75% guaranteeing jobs will be lost, borrowing billions on your back, requiring you to sacrifice more of your time and more of your money to support the state, without your consent? I call it tyrannical because this is the act of politicians without the consent of their constituents.

I forgot some very important questions during my quiz; if your taxes go up 75% will you have more or less freedom? Will you have more or less time to spend with your family? Will you have more or less money to support your family? Will you have more or less enthusiasm about going to work?

Listening to Senate President Cullerton on the news stating all the good things that he can do with your money, like pay the bills which should have never been run up when we didn’t have the money to pay for them, and to reduce the deficit that politicians allowed with their votes, is simply astounding.

Madigan and Cullerton act as if they are doing the people a favor, as if your money is theirs, as if your time is theirs, and as if they are giving you renewed life by taxing you 75% more. This is not renewed life, this is a nail in the coffin of Illinois businesses, and families.

Revenue projections will come in below expectations just as happened in New York, New Jersey, Maryland, and California when they raised taxes only to lose business and people to other states. Wasteful spending remains in place. No serious effort is put forth to eliminate that waste. All this during a time the national economy is tenuous at best, the Democratic leadership wants to drive business out of the state, and kill any incentive for businesses to come to Illinois.

This is a nail in the coffin of the Illinois economy. Go ahead and take the cowards way out. Go ahead and disrespect the confidence the people granted you in the election. You see there will be another election and the people will remember how you stole their time, money, and freedom with your irresponsible governance. In a democracy the elected representatives are supposed to govern with the consent of the governed. If you pass this plan you do so without legitimate authority.

Will the politicians of this state vote to pass this destructive tax plan? If they do, will Govenor Quinn be a man of honor and veto this plan, or was he lying also during the campaign? I have not heard a word in the news regarding his position.

Besides watching Democratic Senate President Cullerton apply his trade on the news, I also watched the owner of a small business at work sharing their opinion of the Democratic leaderships proposal. The frightened, angry, and hurt look in their eyes was evident. This lady represents the people that make this state work, that employs people, that pays the taxes, that dedicates their lives to their business to improve their position and that of their community. The look in that ladies eyes said it all. There’s little doubt that was a scene played out in the eyes and hearts of thousands of small business owners across this state.

A message to Cullerton and Madigan, your plans will destroy lives and livelihoods. Scratch your plans and be men by making tough responsible decisions. Cast aside the easy cowardly way out, for as you sit in your ivory towers you imprison your constituents in debt and taxation.

No you are not offering renewed life for the Illinois economy, you are putting a nail in the coffin. This plan does infinitely more harm than good.

I urge everyone to call their representative, their senator, and the governor and tell them to not to pass this plan. The people of Illinois have suffered enough under corrupt governors, and from irresponsible representation. Time to take a stand for the people, not the powerful, and the special interests. Do what’s right.

The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.

It was another good news bad news week. The good news is that the local real estate market is as hot as it has been in almost two years. Closed home sales are nearly even with 2008 year to date, sales pending are running 21% ahead of last year on this date, prices remain affordable, [...]