wealth redistribution
Saturday, September 29th, 2007Michael Frerichs, Illinois state senator from the 52nd district, has written a letter to the Daily Illini to garner support for a new $25-billion construction initiative, “Illinois Works”. The proposal will allocate over $180 million to new projects at the University of Illinois. The state plans to earmark 70% of the revenues from several new casinos, including proposed projects in Danville and Chicago, to fund the project.
Expanding casinos to pay for state construction projects is bad business. When the state doesn’t have money in its coffers, the responsible thing to do is either (a) raise taxes, or (b) not do the project. Our politicians are trying to avoid the politically unpopular consequences of such overt wealth redistribution by earmarking revenues from new casinos. Such behavior benefits nobody; who’s better off, when a new business is burdened with a 70% tax load from the beginning? No sensible entrepreneur would start a business with such a heavy tax burden, meaning that scarcely any jobs will be created, and the surrounding communities will no doubt have social problems.
I have no problem with Danville and Chicago opening casinos, but the final decision should rest with their respective municipal governments. If Danville and/or Chicago want casinos, they should be considered as independent projects, not as a source of revenue for Illinois Works.
Michael Madigan, speaker of the Illinois House, is holding hearings on the project’s source of funding. Hopefully, cooler heads will prevail.
The bill passed through the Senate after much compromise between both parties, said state Sen. Michael Frerichs, D-Gifford, but is now facing some resistance from House Speaker Michael Madigan, D-Chicago.
Among other statewide projects, the bill would provide funds for local infrastructure improvements, renovations to Lincoln Hall and the construction of two new campus buildings. Madigan plans to hold hearings in Springfield and Chicago to discuss with citizens the source of money for the spending: a statewide expansion of gambling.
“The speaker wants to hear from people around the state as to whether or not they think that’s a good idea, whether that’s what they want Illinois and Chicago known as, a gambling mecca, second only to Las Vegas,” Madigan spokesman Steve Brown said.
Frerichs said he believes the bill has a “very slim chance” of passing in the House.