Federal Employees Bailed Out By “Stimulus”

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By Val W. Zimnicki

 Chicago—The $1.9 trillion stimulus package is really a government and state employee gift package. Many billions of dollars will go to Democrat-run states with huge pension deficits. Instead of reforms, these states will continue to freely mismanage their funds because there is no accountability. Taxpayers in states without huge, self-inflicted financial burdens will be paying for them. 

The stimulus package contains $350 billion in taxpayer funded bailouts for state and local governments for debts incurred not related to the pandemic. These states like Illinois have mismanaged pension funds and the fix is in. So, this is not an anti-virus spending bill; it is an extension of governmental-powers bill. Illinois will receive more than $13 billion in state and local funding to “avoid dramatic budget cuts at every level of government,” according to Sen. Durbin. To socialist oriented legislators like him, governments can only grow not shrink. Indeed, the ideal would be if every employee was a subject of the federal or state workforce, and those pesky private employees didn’t exist. 

The national stimulus bail-out creates a special $570 million payout to federal employees who aren’t working because they are caring for a family member who has coronavirus. If, for example, the family children (no matter what age) are not physically in school, then the parent/teacher will be paid for up to 600 hours in paid leave, receiving up to $35 per hour or $1,400 a week. The family is still eligible for this royal hand-out even if their schools are fully open or practicing remote teaching from those still closed. Of course, this program, like many others, excludes those working in the private sector. Federal royalty comes first. 

Logically, public employees do not need unions as they are already protected by their employer, the government. Special treatment is given them because during contract negotiations, public unions sit across from people they helped elect through multi-million-dollar campaign contributions. Those elected pay them back and as surreptitious and immoral as this is, it is legal. 
Of course, governments create problems via unnecessary lockdowns, which gives them an excuse to solve them by spending even more money without accountability. 

The federal bailout includes $1.8 billion to Chicago; $7.5 billion to the state of Illinois; $5.7 billion to local governments (Illinois has about 7000). The stimulus bill is unwarranted because is creates dependence on big government. 


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A new report by the nonpartisan, Washington-based Tax Foundation on combined federal and state corporate taxes for 2021 shows that Illinois has one of the highest federal/state corporate tax rates in the country.

On a scale of 1-50, with the higher numbers being worst, Illinois is fifth-highest in the country with a combined federal/state corporate tax rate of 28.5 percent.

According to the foundation, “The state with the highest combined corporate income tax rate is New Jersey, with a combined rate of 30.1 percent. Corporations in Alaska, California, Illinois, Iowa, Maine, Minnesota, and Pennsylvania face combined corporate income tax rates at or above 28 percent. Six states—Ohio, Nevada, South Dakota, Texas, Washington, and Wyoming—face no state corporate income tax and only pay the federal tax rate of 21 percent.”

“The State of Illinois is at a huge economic disadvantage,” said Jim Tobin, economist and president of Taxpayers United of America (TUA). “Companies, big and small are fleeing to states with lower taxes.”

“Illinois Governor Jay Robert ‘J. B.’ Pritzker and his like-minded miscreants in the Democrat-controlled general assembly are trying every trick in the book to raise Illinois taxes even further. Fortunately, our organization, working with local taxpayer organizations, has helped hold the line,but they will keep trying to raise taxes.”

“It’s time for Illinois taxpayers to wake up and throw out the tax-and-spend politicians. Illinois has its own swamp, and it’s located in Springfield.” Source:https://taxfoundation.org/state-corporate-taxes-corporate-profits-2021/?utm_source=Tax+Foundation+Newsletters&utm_campaign=897ea710b1-EMAIL_CAMPAIGN_2019_10_17_07_28_COPY_02&utm_medium=email&utm_term=0_8387957ec9-897ea710b1-427663433&mc_cid=897ea710b1&mc_eid=5739982070


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Chicago—Taxpayers United of America (TUA) today sent a letter to all 100 U.S. Senators urging them to vote against the proposed $350 billion giveaway to state governments, as it would be wasted on frivolous line items and perpetuating failed policies.

“If you vote to bail out states like Illinois, you will be rewarding the destructive policies of its politicians,” TUA president Jim Tobin told them.

“If the United States government bails out irresponsible state and local government spending, it would be a grave error that furthers the redistribution of wealth. People are forced out of their homes because they can’t afford the property taxes that largely support government union demands.”

“An example is Illinois, which has been poorly managed for decades. There has never been a revenue problem in Illinois, but there is an ongoing spending problem. Tax dollars are like crack to the Illinois government bureaucrats.”

“Illinois has been mismanaging taxpayer money for decades. This indebtedness did not accrue in the single year of the Covid-19 pandemic. Rather, it’s been growing for decades. To bail out Illinois politicians and strip them of their accountability for their policies would be a grave mistake.”

“On behalf of the many thousands of taxpayers we represent, we ask that the U.S. Senate do its job and decline to bailout irresponsible state and local governments, and to decline to enable these tax revenue junkies to inject any additional funds right into their arms. Sadly, they must be allowed to fail in order for their behavior to change.”