Blockbuster tax story!

counties to face massive cuts or income tax increases

Under current law, with a 2% tax cap on residential property and a 3% cap on rental and commercial property, Lake County municipalities will be $279M in the hole by 2010, according to legislative services.

Under my boy Mitch's plan, with a 1% residential cap, a 2% rental cap, and a 3% commercial cap, Lake County will be $366M in the hole.

These numbers are INSANE. According to legislative services, it will require a ~4% county income tax to make up for this revenue, in addition to the 3.4% state income tax. Also, the assumption is that the state kicks back 1% of sales tax to the counties.

Even under current law, my back of the envelope calculation is that Lake County would not only need a COIT, it would have to raise it from 1% to 3.6% to make up that revenue!

These are insane numbers. Did I mention the word inane?

Keep in mind that the rest of the state is nowhere near as f***ed up as Lake County. Some counties don't have to raise taxes are all to meet the new 1%/2%/3%cap. That's pretty impressive.

Because most other counties have little cutting to do, I'm 100% sure that this is going to pass. And in all honesty, there's not a lot of difference between a $279M hole (plus the $78M from the COIT that will soon be imposed by the Lake County Council) and $366M.