Interested in latest discloser on why all States like Illinois taxpayers may pay up to 22 percent higher costs for purchased services?
The Chicago Tribune Artistical titled, Illinois paid $275 million in late fees to lenders, reports private firms bought $5 billion in State liabilities from Illinois service providers.
Most people in Illinois probably are not aware that this means Illinois more in costs for services than other States.
The Purpose of This Post
To explain why and how Illinois taxpayers are fools to keep electing the same Legislators who manage Illinois finances, in my opinion.
We all have good intentions but in order to have financial success, we must discipline ourselves to live by a budget.
“Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endures to every generation? “Proverbs 27:23-24
Servant leadership is a great principle but choose who you are willing to serve—Don’t serve Visa or MasterCard!
“The rich ruled over the poor, and the borrower is servant to the lender. “Proverbs 22:7
Be not thou envious against evil men, neither desire to be with them. For their heart studied destruction, and their lips talk of mischief. Through wisdom is a house builder; and by understanding it is established: And by knowledge shall the chambers be filled with all precious and pleasant riches. A wise man is strong; yea, a man of knowledge increased strength.” Proverbs 24:1-5
What’s My Point?
There are consequences for borrowing in excess of your means to pay. When you elect leaders to rule over you in legislative “chambers” and trust them to make financial decisions in your community, in effect you decide “to desire to be with them.”
When your community borrows instead of budgets and spends wisely, you become a worker servant or slave to the lender to pay back the debt with interest that will continue to increase the original amounts borrowed.
To add to folly, is another penalty that is the subject of this post. The penalty is anyone who is known to be in debt must pay higher costs for services than someone who pays his bills on time.
For example, a service vendor to Illinois knows how long it will take to be paid from Illinois. He also knows his costs for business that he will incur in the meantime before being paid by Illinois.
So, he adjusts his price to compensate for the payment delay by choosing two methods explained in the article.
If he chooses to sell his invoice for services to a lender and receive only 90 percent of his invoice, he simply raises his price to Illinois when he quotes Illinois a cost.
If he chooses to wait for six months, he knows Illinois will pay him in time a percentage of interest of 12 percent.
In the meantime, if a lender buys the invoice, he pockets first 10 percent discount, then waits until paid and pockets 12 percent additional interest.
The effect is Illinois taxpayers pay up to 22 percent more for services because they trusted legislators to manage their communities.
In My Opinion
Illinois taxpayers are fools to continue to vote over and over again to trust them to manage their communities.
Do not faultthe lenders because they are wiser than you a voter. In the meantime, enjoy whattime you have left before you receive your next tax increase that willcertainly appear in time because someone has to pay the interest according tothe laws of Illinois which legislators decided must be paid in time.
According to Illinois law, the State of Illinois cannot declare bankruptcy and contracts guarantee pensions cannot be amended.
That means taxpayers will have to pay higher and higher taxes on their homes or lose their beds.
Are Illinois taxpayers’ wise or foolish for continuing to vote to trust the same legislators to manage their State over and over and over again.
Regards and good will blogging.
Proverbs for Managing Money