Yikes: Look which STATE may be the first to file for BANKRUPTCY…

What do virtually all places –whether cities, states or nations — that have for decades been run by liberals have in common?  Answer? Sky high taxes, sky high costs of living, and a steady march toward insolvency.

When Detroit went belly up in 2012 it became the largest municipal bankruptcy in U.S. history. Everyone knows who’s run Detroit for decades.  In earning the title of largest municipal bankruptcy, Detroit vaulted past Stockton and San Bernardino, both cities run by liberal Democrats since forever.

Now it’s another liberal bastion’s turn at the trough.

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Illinois may become the first state in U.S. history to have to file for protection in bankruptcy court. How dire is the situation? CBS News reports:

“Illinois residents may feel some solidarity with the likes of Puerto Rico and Detroit.

A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt.

Ratings agency Moody’s Investor Service earlier this month downgraded Illinois’ general obligation bonds to its lowest investment grade rating, citing the state’s growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state.”

Of course Illinois has tried the most typical of liberal responses to fiscal crisis – taxing its way to prosperity.

In 2011 the Democrat-dominated state legislature voted to raise the state’s personal income tax by two thirds(!!) and to increase corporate its income tax rate by 30%. That change gave it the distinction of having the nation’s fourth highest corporate tax rate, making an already business-hostile state even more unwelcoming to employers.

The result was predictable. (To conservatives.)

In a 2015 follow up story The New American reported “The Trickle of Companies Leaving Illinois Turning Into a Flood” as wave after wave of employers -including some household names like General Mills, Kraft Heinz and Motorola- began fleeing the state.  In 2016  for the third consecutive year Illinois lost more residents than any other state in the U.S.A.

Of course the exodus of jobs and employers results in an ever-dwindling tax (revenue) base however, and due in part to etched-in-stone public employees union retirement and benefits packages, there has been no offsetting decrease in expenditures.

So bad are things that a report on Zero Hedge has revealed that; “Unable to Pay Bills, Illinois Sends “Dear Contractor” Letter Telling Firms To Halt Road Work On July 1“.

If you own a company that’s contracted with the state to fill pot holes, mow weeds in medians, etc., your client -the state of Illinois- cannot pay you and has ordered you to halt billable business practices effective July 1.  Meaning the people in your employ are out of a paycheck too.

Illinois’ largest city, Chicago, which routinely makes headlines for its out-of-control violence is microcosmic of the state.  In addition to being one of the most dangerous cities on Earth, Chicago is broke.  Thus in typical lib fashion Mayor Rahm Emmanuel is pushing through a budget that includes tax hikes of $1,700 per family.

Emmanuel’s tax-raising budget was approved on a 48-0 vote by Chicago’s city council. The council consists of 50 Aldermen, 49 are Democrats. Its true that a liberal has never seen a tax they didn’t like.  Not ONE of the city’s leadership stood up in favor of the ‘struggling families’ they campaign as “fighting for” in an attempt to vote down another tax hike.

The fiscal problems of America’s most liberal states are well known. California’s one-sided legislature just voted to add a(nother) 12 cent-per-gallon tax onto the state’s already highest-in-the-nation state’s gas taxes plus increase vehicle registration and other fees.  States with the highest income taxes in America? California, Hawaii, New Jersey, New York and Oregon. What do they all have in common? The same things Chicago and Illinois do – a pending and perhaps inevitable trip to bankruptcy court.

[Note: This article was written by Derrick Wilburn]

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