Since the dawn of America, the necessary and proper clause has been an integral means to create monetary power to fuel capitalism. The clause has historically bound the federal government to the tax system. The federal government must enact an Illinois Budget is Necessary and Proper Bill to force budget approval now. According to the Tenth Amendment Center, “The necessary and proper clause does not add anything to the authority already delegated to Congress. It does not allow for the creation of new powers. The clause simply reaffirms that the federal government possesses the flexibility to exercise the enumerated powers already delegated.” A bill forcing the state to pass a budget does not expand or diminish powers already granted by the federal government’s tax system nor the State of Illinois’s sovereignty under federalism. Federal intervention can be protected by stating the lack of a budget diminishes federal taxes based on diminished federal income tax creating unstable small businesses intertwined with increased unemployment.
When we all do good, we all do good.
Illinois is in the second year of a budget stalemate that has led thousands of businesses, the tax base, to shutter their doors. According to the Illinois Policy Institute, the state already has a $7.1 billion deficit. Diminished businesses create diminished taxes for the future of Illinois and the country. This is how it works.
Illinois is the fourth largest federal income tax contributor to the federal government hovering around $36 million per year in revenue. If over 45% of federal income derives from federal income tax then Illinois’s diminishing tax base negatively affects the federal budget. The Illinois Budget is Necessary and Proper Bill could support the federal tax and income system which is designed to stabilize capitalism. If the state continues to lose income, America loses income. (National Priorities Project Pie chart https://www.nationalpriorities.org/budget-basics/federal-budget-101/revenues/)
Small But Powerful
Small businesses and entrepreneurs actually run the capitalism of our country. According to the SBA in Illinois, small businesses make up 99.6% of Illinois income through 1.2 million businesses that employ 46% of Illinois residents. A combination of Illinois Policy Institute’s research bears three main reasons SB’s are hurting: excessive property taxes that cannot be compromised while the state is in a budget impasse, a shrinking shopper base as Illinois loses residents and state refusal to pay vendors for almost two years. An increase in pressure on these businesses will force Illinois’s federal contributions to decrease, forcing economic instability for America. Why should the nation carry the burden for one state?
Unemployment Roller Coaster
During the recent Great Recession, unemployment was over 10% for our nation in true value form. In Illinois you can’t tell that the recession is over. Unemployment is a roller coaster as the seasons change yet statewide it is still over 6%. Some Illinois counties have unemployment as high as 30%. Nearly 34% of federal income is derived from payroll taxes. If unemployment remains high in Illinois, their contributions to the American budget decreases. As unemployment violently reacts to the twists and turns of a roller coaster, both the residents of Illinois and America are negatively affected. When the Founding Fathers created federalism it was to give states sovereignty yet responsibility to the entire country. Unemployment is as detrimental to Illinois residents and businesses as to our federal income.
Federal intervention in Illinois will save federal income, Illinois businesses and residents. It’s necessary and proper.