Illinois Tax Implosion
May 14th, 2007 by Brendan SteinhauserThe Wall Street Journal has a good piece on socialist health care in Illinois.
“Universal” government health care has once again returned as a political cause, with many Democrats believing it’s the key to White House victory in 2008. They might want to study last week’s news from Illinois, where Democratic Governor Rod Blagojevich’s tax increase to finance health care became the political rout of the year.
The Democratic House in Springfield killed the proposal, 107-0, after Mr. Blagojevich came out against his own idea when it became clear he was going to be humiliated. Only a month earlier he had said he was prepared to wage “the fight of the century” in defense of his plan to impose a $7.6 billion “gross receipts tax” on Illinois businesses…
One lesson here is that it is far easier to talk about “progressive” political causes than to pay for them without doing larger economic harm. In today’s global economy, the margin for policy mistakes is smaller, even for individual states. Mr. Daley may appreciate this better than Mr. Blagojevich because he knows the consequences of bad policy will harm Chicago long after the Governor retires to private equity, or some other “fat cat” job.
As for national Democrats, Presidential candidate John Edwards has already proposed a huge tax increase to pay for national health care. At least he’s honest about what such promises require, but we doubt it will help his Presidential prospects. Illinois Senator Barack Obama has been silent on his Governor’s tax implosion, but someone should get him on the record. And Hillary Clinton, well, we can’t wait to see how “universal” her promises will be.
