Investor's Business Daily has an interesting report
out today suggesting congressional Democrats may attempt to simultaneously crack
down on major financial institutions and protect school
districts budgets nationwide.
According to the piece, lawmakers are working to include two Wall Street tax changes in their push for financial
reform: the bank tax President Obama proposed in January and an end to the "carried interest" loophole
that hedge fund and private equity managers have enjoyed for far too long. Much of the new revenue would reportedly be directed at state governments in the form of education
assistance, thus preventing schools districts from falling off a
revenue cliff in 2011.
If this ultimately happens, it would be great news for all the Illinois teachers and administrators currently facing layoffs and program cuts -- not to mention the students. At the same time, it could negate Gov. Quinn's narrow strategy of tying a one-percentage-point income tax increase to education funding. Too bad he didn't choose to put his weight behind a more comprehensive proposal.