Government

Moody’s Warns: New Taxes Could Bankrupt This State

It was an ominous warning that financial company Moody’s gave to new Gov.J.B. Pritzker prior to his first budget address to the state of Illinois. 

The company predictably called for new revenue to stabilize the state, but it also listed outmigration as one of the leading credit concerns. This is significant for many reasons, starting with the fact that Pritzker has indicated that he plans to “fix” Illinois with tax hikes, a move that will only serve to encourage outmigration doing even more damage to the Illinois tax base.

It’s also noteworthy that Moody’s is generally in favor of tax hikes. The evaluations it gives are meant to benefit and be in the interest of bondholders, not taxpayers. But if tax hikes push workers out of state, leveling the tax base of the state, it will be bad for everyone.

This is just one part of a growing storm for Gov. Pritzker. He’ll need to find a way to keep jobs, and by extension residents, in the state. 

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