Illinois Financial Crisis To Worsen Due To Poor Leadership

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss the Illinois Financial Crisis to worsen due to poor leadership and incompetence by JB Pritzker and state lawmakers. Illinois’ Financial Crisis is expected to worsen when the state will be in a worst financial situation than ever before. Illinois ranks as the highest taxed state in the nation. Illinois ranks as one of the worst financially managed states in the U.S. `The state is being run like a Ponzi Scheme.

Fix Illinois Financial Crisis Worsen: Ranks One of the HIghest Taxed States In The Nation

No matter how much taxes are being increased, the state is being run into the ground with bigger deficits every year. The state was always mismanaged. However, with the election of political newcomer JB Pritzker, Illinois’s economy was in a downward spiral like never before. The 5’5″ 500-pound obese JB Pritzker did not waste any time increasing taxes on over 20 existing taxes. The heavyset overweight first-term governor pissed off both Democrats and Republicans by doubling the state’s gas tax.

Increasing And Creating New Taxes To Fix Illinois Financial Crisis

From day one, Pritzker was proposing changing the state’s flat tax to a progressive tax system. What is he thinking? Pritzker said he will use his business expertise in fixing Illinois financial crisis. He said someone needs to be the bad guy. He said he will take the blame and be the bad guy and fix Illinois’ financial crisis that has been plaguing the state for decades. Many Illinoisans voted for Pritzker due to his billionaire status and being the heir to the Hyatt Hotel Fortune.

JB Pritzker Turned Out To Be Bad Businessman

JB Pritzker is worth an estimated $4 billion dollars, Many Illinoisans thought Illinois got lucky and got a Donald Trump of their own: A savvy billionaire businessman who was going to make Illinois GREAT AGAIN!!!. Boy did JB Pritzker fool everyone. JB Pritzker is no Donald J. Trump. Just the opposite!!! Pritzker’s leadership skills are next to nonexistent. JB Pritzker ranked as one of the least popular governors in the nation

Cause Of Illinois Financial Crisis Worsen

The Illinois Financial Crisis did not start overnight. Illinois has a long time history of mismanaging money and budget deficits. Illinois ranks as the most corrupt state in the nation. Six Illinois governors got indicted and charged with public corruption. Four of the six indicted governors were convicted and served time in federal prison.

Pritzker Tax Fraud Scheme

JB Pritzker and MK Pritzker got caught in a tax fraud scheme just four months into Pritzker’s first term as governor. Pritzker’s tax fraud investigation is still ongoing and has spread to the Cook County Assessor’s Office. Longtime Chicago Alderman Edward M. Burke was indicted for public corruption.

Michael Madigan Under Criminal Investigation

House Speaker Michael Madigan is currently under federal criminal investigation for bribery and corruption with his role with Commonwealth Edison. Madigan has not been charged yet. Public corruption is costing Illinoisans more than $550 million every year. Illinois is led by Democrats. Chicago has had a Democrat machine from the first Mayor Richard Daley days. Patronage hiring is still commonplace in Chicago and Springfield. Many patronages hire make over six figures, have a great lifelong job working for the city, county, state, and can retire with a lifetime pension. Tens of thousands were hired through patronage hiring. In Chicago, it is not how qualified you are but who you know. The good ole boy’s network existed for decades. Not years but decades.

Broken Pension System And The Need For Pension Reform

One of the main reasons for Illinois’ financial crisis is due a broken pension system. Pensions are killing taxpayers. The pension system is broken. The governor can fix the pension system. To change the pension system and get pension reform, it requires changes to the Illinois state constitution. However, the governor and state Democrats are afraid to do so. Why are the governor and state Democrats afraid of pension reform? The reason is the governor and Democrats need the votes.

Spending More Money Than Tax Revenues

Democrats are heavily reliant on unions and public employees for their votes. In the meantime, the state is being run by an incompetent freshman governor and a rookie Chicago mayor who are absolutely clueless, lost, and are running Illinois into the ground at an alarming rate. JB Pritzker is hands down the worst governor in the history of Illinois. Never in history has the state been on a major economic downturn like it has been today. Illinoisans had enough. We are seeing more and more Illinoisans flee to other lower-taxed states.

Pritzker’s Priorities On Social Versus Economic Reform 

It is ridiculous how JB Pritzker and Lori Lightfoot are more concerned about the rights of BLM, climate change, pro-abortion, and defunding the police than they are about the economy and well-being of Illinois. JB Pritzker is politicizing the coronavirus pandemic for his own personal gain. Pritzker is set out to brand his name on a national level because he wants to be on the Democrat presidential ticket for 2024. Pritzker is trying to brand himself as America’s Governor.

Pritzker Health Czar?

Pritzker wants to be known as the nation’s Health Czar. Health Czar? Wait a minute. JB Pritzker is the fattest governor in the nation and no other governor comes close to his obesity. The 5’5″ 500 pounder JB Pritzker being the Nation’s Health Czar is a joke. Illinois’ pension system is being run like a Ponzi Scheme. Every year, the state needs to rob Peter to pay Paul. The only solution Pritzker and gang have just keep on increasing taxes and creating new taxes. They are not cutting spending. They keep on spending out of control. Pritzker gave state lawmakers raises. Pritzker acted on Mike Madigan’s recommendation and has approved $225 million pay raises to high-ranking state workers when the state is on the brink of bankruptcy. JB Pritzker does not seem to realize it is not how much you make, but rather how much you spend. Basic economics 101 for dummies.

The Governor And Politicians Need A Change Of Mentality In Order To Fix Illinois Financial Crisis

Governor Pritzker and state lawmakers need a change of mentality before anything to fix the Illinois financial crisis. Illinois ranks as the highest taxed state in the nation. Chicago has the highest taxes than any other metropolitan U.S. city in the nation. But yet, Illinois and Chicago have the biggest financial crisis than any other state or major U.S. city. How can this be? Are the governor and mayor stealing? Are Pritzker and Lightfoot embezzling funds?. Wait a minute. You are collecting billions of revenues from taxpayers and you are more broke than the lowest taxed state and/or city? If they are not stealing, then they are above and beyond incompetent.

Illinois Financial Crisis Worsen Due To Financial Irresponsibility

Financial irresponsibility. Nearby Indiana is a Republican-led state. Indiana has a fraction of Illinois’ taxes but is collecting billions of revenues and have billions in reserves. How can this be? Why can’t JB Pritzker follow the business model politicians in Indiana have. Why can’t Lori Lightfoot follow the business model Indianapolis has? No way in the world would the obese fat Illinois governor and the Chicago mayor ever turn to neighbor successful Indiana for help. Why? Because these two incompetent so-called leaders have egos and think they are great leaders. It is not just Indiana, but dozens of other states that have lower taxes and lower cost of living that is raking in billions in reserves

Mike Gracz of Capital Lending Network, Inc. said the following:

Some creative leadership is needed to ensure people and businesses stop their retreat from Illinois. With the tax-and-spend mentality of the state’s public officials, I’m not sure the political will is there to change the downward trajectory.

Changing the mentality of the governor and Illinois politicians need to fix first. Without a solid foundation, nothing can be done. The mentality of spending, increasing taxes, and not cutting spending needs to be changed. It needs to be, IT IS NOT WHAT YOU MAKE BUT WHAT YOU SPEND. LIVING WITHIN YOUR MEANS. Pritzker and gang think tax increases is the solution for everything. They do not have the mentality of governors and lawmakers of profitable blue states.

What Moron Increases Taxes During A Global Health Pandemic

When asked whether or not he was going to still go ahead with his FAIR TAX proposal during this economic crisis Illinois is facing due to the coronavirus pandemic, JB Pritzker responded there is no better time to do a tax increase than now. WOW!!! Pritzker’s FAIR TAX is changing the state’s flat tax to a progressive tax system. A progressive tax is when higher waged earners are taxed at a higher rate. What the FAIR TAX does is increase state income taxes for middle-income and higher-income wage earners. Pritzker did an idiotic thing that surprised many. JB Pritzker has included the proposed $3.8 billion in revenues the FAIR TAX will bring in his state budget. This is how sure Pritzker was in voters passing the FAIR TAX AMENDMENT on November 3rd, 2020’s election. However, Illinois voters did not approve the FAIR TAX. This angered JB Pritzker and said that he will have no other choice but to increase income taxes and other taxes for all Illinoisans. Many Illinoisans gave up on Illinois leadership.

Illinois Financial Crisis Worsen Due To Politicizing Coronavirus Outbreak

JB Pritzker’s power hunger and his politicizing the coronavirus is deteriorating the state like never before. Illinois was the first state to close and the last state to reopen from the coronavirus outbreak. However, Illinois never reopened. Pritzker has put a 25% capacity restriction on reopening indoor businesses. However, due to surging coronavirus numbers, JB Pritzker issued another executive shutdown order and ordered all indoor businesses to close for at least 30 days. This news devastated thousands of small businesses. Small businesses employ two-thirds of Illinoisans. Many experts and economists think JB Pritzker is trying to destroy Illinois’ economy on purpose so he can get a federal bailout. If Pritzker does get a federal bailout, he is hoping to take credit for the governor who saved Illinois.

JB Pritzker Borrowers Billions From The Feds For The Second Time This Year To Fix Illinois Financial Crisis

While other Republican-led states are recovering from the economic impact of the coronavirus, Illinois needs to find ways to get revenue so it can pay its bills. J.B. Pritzker is borrowing $2 billion from the Federal Reserve Board as a short-term note so the state can pay its bills. J.B. Pritzker is not just balancing the state’s budget but is also accelerating the debt load of Illinois. Not good. The state collects way more than it is needed through its tax revenues.

Dale Elenteny of Gustan Cho Associates said the following:

The “fair” tax proposal was rejected by wise Illinois voters earlier this month, but win or lose some citizens and businesses were making plans to scoot out of state. The exodus continues as the tax climate in the Land of Lincoln deteriorates. And Democratic legislators, led by Chicago boss Michael Madigan, still don’t care. With a full plate of work to be done in the midst of the worsening coronavirus crisis, the legislature’s annual veto session was canceled by the longtime speaker and Democratic leader. Perhaps one reason Lake County Republicans got all but skunked in the Nov. 3 election is that GOP-leaning voters are busy lining up the moving vans, and emigrating to nearby and more tax-friendly states which has led to the nation’s worst population-loss which could grow when the next U.S. Census figures are determined. Jobs certainly are relocating. Even in Chicago, where Mayor Lori Lightfoot has offered another property tax increase to help shore up the city’s dire financial situation, residents are fleeing. An acquaintance recently announced she is leaving her snug Logan Square residence which she’s called home for a decade and moving to Indiana after Lightfoot’s tax pronouncement. It’s not an idle threat for those who continue to pay more and receive less. It mirrors the fears of others who can afford to leave Illinois to escape higher taxation while they can still get equity out of their homes. The state holds the nation’s lowest credit rating, with a $261 billion public pension debt and a $7.4 billion budget deficit for the current fiscal year. Small business owners are being selectively decimated by COVID-19 with exceptions for our vices.

While profitable and well-run states are trying to attract new taxpayers and businesses, Illinois is doing the opposite. It seems Pritzker has no concerns with the mass exodus of Illinois families and businesses. All he knows is to keep on increasing taxes and creating new taxes. He keeps on increasing business income tax rates where tens of thousands of small business owners are calling it quits and moving to nearby states like Indiana, Wisconsin, Iowa, Missouri, Kentucky, Tennessee. Illinoisans better be ready for another round of tax increases.  JB Pritzker already warned that individual taxpayers and businesses can see a state income tax hike of up to 20%. The coronavirus outbreak made many employers change their work models to remote positions. With more and more workers becoming remote wage earners, people are not stuck living in high-taxed states like Illinois. This holds true for mortgage companies. More and more mortgage companies are now hiring more remote loan officers, mortgage processors, mortgage underwriters, and support/operations staff.