The Democrats’ economic and taxation policies at work in Illinois
Posted by Dana Pico on 2012/12/24
Remember how our friends on the left were so appalled that the Michigan state legislature passed a right-to-work law? How about in just-across-the-lake Illinois, that liberal bastion and home of President Barack Hussein Obama?
By Rick Pearson, Chicago Tribune | 1:26 p.m. CST, December 19, 2012
A coalition of public employee unions issued a report today blasting state legislation to address their vastly underfunded pension systems and offering instead to make increased worker contributions if lawmakers raised $2 billion by ending tax benefits to corporations and imposing new taxes.
Appearing at the James R. Thompson Center, members of the We Are One coalition said plans backed by Gov. Pat Quinn and another proposal supported by a bipartisan group of lawmakers would violate the state constitution by reducing pension benefits already guaranteed to workers. They predicted such a change would be overturned by the courts.
Moreover, the group said the plan Quinn was advocating would “cause deep harm to working and retired state employees and teachers, negatively impact the Illinois economy and yet still not solve the state’s primary pension problem — the failure to regularly fund its annual required contributions.”
The unions said their offer to require state workers and teachers to pay 2 percent more toward their retirement was conditional upon the state making an “ironclad guarantee” in state law that government fund its pension obligations.
To help fund those obligations, the unions proposed eliminating several corporate tax benefits as well as imposing new taxes on auto trade-ins, satellite TV service and downloaded digital entertainment. The new funds also could be used to help offset cuts in other public social services, the group said.
More at the link.
Illinois is an already-highly-taxed state, with significant companies considering leaving the state due to the already-passed increases in corporate taxes. Here’s another story:
Illinois has been struggling to keep big companies in the state since Illinois Governor Pat Quinn approved an income tax increase in January. Quinn has been widely criticized for the move, and a new survey ranking Illinois among the worst business climates in the U.S. will likely provide fodder to the naysayers.
According to a survey released Monday, California, New York and Illinois have the “least favorable business climates” to corporate executives in the U.S. Nearly 25 percent of the 322 corporate executives surveyed said Illinois was unfavorable due to high taxes and “anti-business climate/regulation.”
“With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey,” Development Counsellors International (DCI) President Andrew T. Levine said in a statement. “Whether accurate or misguided, perceptions about a location’s business climate often play a crucial role in site selection decisions and where companies invest money and create jobs.”
Texas, North Carolina and South Carolina had the most favorable business climates, according to the survey.
More at the link. But Illinois’ business climate is so bad that the family of an Illinois state senator is moving their business out-of-state!
Mike Frerichs is running to keep his seat in the 52nd District Senate seat from Champaign County. He clams he’s all about small businesses in Illinois. Yet, things have gotten so bad during histerm in office that his own family is moving their business out of Illinois and into Indiana.
On the main page of his Senate website, Frerichs is all proud of the “job-creation program” he had a hand in but the best “job-creation program” would be to make Illinois more business friendly and tax-hike-Mike has no desire to do that at all.
The business climate in Illinois under Frerichs and Democrat Governor Pat Quinn is so bad that even Frerichs’ own family is moving its business out of the state.
Recently The Champaign News-Gazette reported that Frerichs cousin moved his trucking business from Illinois over to Covington, Indiana.
Frerichs’ cousin admitted that it is all true and that Illinois’ horrid business climate drove him out of the state.
Readers will not be surprised to learn that Mike Frerichs is a Democrat.
Illinois is doing just what our friends on the left say government should be doing as far as taxes and the economy are concerned, and the result is a loss of businesses, a state government which cannot fund its pension system, and calls for even higher taxes. Simply put, the Democrats’ economic policies are being put into practice, and they are not working!
The section above the line was published on THE FIRST STREET JOURNAL on December 21st. Today, I found this on Patterico’s Pontifications:
Patterico @ 10:32 pm
Chevron Corp. will move as many as 800 jobs to Houston from its California headquarters to support its exploration and production operations, the company told employees Thursday.
The oil giant will maintain its corporate headquarters in San Ramon – just east of San Francisco – where 6,500 employees work.
In an email to its workers, Chevron said jobs moving to Houston include employees in support groups involved with technology, procurement and business development.
“Moves in these groups are expected to take place over the next two years to support our growing upstream business,” the company email said.
I wonder how many businesses are relocating employees from Texas to California. Somehow, I suspect not many.
An interesting move. Chevron is moving support jobs to Houston, which will improve efficiency and (presumably) lower costs. “Moves in these groups are expected to take place over the next two years to support our growing upstream business,” the company e-mail stated, and it makes sense that such jobs would be closer to the physical activity involved. The corporate leadership remains in California, so most of the top executives don’t have to move.
California and Illinois are both following the Democrats’ preferred model for government: unsupportably high government spending, and a high tax regime. Now the Pyrite State is losing another 800 good jobs. Those jobs might or might not have been moved anyway, even if California were governed better, but the anti-business attitude on the Left Coast couldn’t have helped swing the decision toward keeping the jobs in San Ramon.
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