The Problem Is Debt

Those with power (in power) will do anything to maintain it. Even if anything includes shooting the economy in the foot in the process. The problem is excess debt and taxation within a framework of global competition. Raising taxes will not solve either problem.

Total Credit Market Debt As A% GDP:


Source: What Price Is High Enough

Headline: Bond Buyers' Eyes Are on Illinois

As Illinois lawmakers huddle behind closed doors this week trying to find ways to plug the state's $13 billion deficit, municipal-bond investors are sizing up how to wager amid the state's woes.

Investors who have been skeptical about the state's ability to right its finances got a ray of good news late Thursday, when the governor and key Democratic leaders reached an agreement that would raise the state's income-tax rate.

If approved, an income-tax increase would be the state's first in roughly two decades. The proposal would raise the rate to 5.25% from 3%, according to a person familiar with the matter. The person said the negotiations were "still fluid" and the deal was not final.

Source: finance.yahoo.com