Truth Before Dishonor

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Posts Tagged ‘business’

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?

Unions blast state on plans for underfunded pensions

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 Among Nation’s Worst State Business Climates, According To CEO Survey

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!
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The section above the line was published on THE FIRST STREET JOURNAL on December 21st. Today, I found this on Patterico’s Pontifications:

Chevron Moves Hundreds of Employees to Texas from California

Patterico @ 10:32 pm

Interesting:

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.

Posted in economics, Oil | Tagged: , , , | 1 Comment »

I WILL NEVER, EVER, EVER! BUY ANYTHING FROM PEP BOYS, EVER AGAIN!!!

Posted by Dana Pico on 2012/05/26

I noted, in this footnote, that I would be taking my truck to Pep Boys for two new steering tires and a front-end alignment. I called then around 0845 and set an appointment for 1100; I had to work this morning, and didn’t think I could get there much earlier than that. Setting an appointment is something that Pep Boys offers, and you can do so online, so this was not something some low-level clown did over the phone for which he had no authority.

I arrived at the Pep Boys at 1901 MacArthur Road in Whitehall, Pennsylvania at about 1040, well before my appointment; I was not late. I went to the service desk and checked in, noting that I had an appointment for 1100.

1100 arrived, and they hadn’t put my truck into the service bay. While I am not a patient person, I was certainly willing to cut them a break on fifteen minutes or so.

At 1130, they had not pulled my truck into the service bay, and there was no empty bay. By this time, I was starting to get annoyed.

At noon, they had still not pulled my truck into the service bay. Now, I was getting seriously annoyed. At 1215, I got up and walked/stalked over to the service desk and the gentleman guy who had checked me in said, “They’re pulling in into the bay now.”

I walked outside. No, they were not pulling my truck into the service bay, and all of the bays were still full, though it did look like they were finishing up on a couple of vehicles. At 1225, 85 minutes after my appointment was scheduled, they pulled a car out and came for my truck.

Now, when I had set the appointment, I specifically asked how long it would take, and was told about 1½ hours. I went back to the waiting area, with its uncomfortable chairs and dearth of reading material about anything other than cars. At some point over an hour later, I went outside and looked, and there was my truck, outside. I thought it was done. WRONG! They had to pull it into another service bay to do the wheel alignment . . . and that bay was still occupied.

In the end, my 1½ hour service appointment, set for 1100, finished at 1430. And I will tell you, right now, that I will never go back to Pep Boys, I will not buy so much as a valve stem cap from them ever again, and I urge everyone who reads this to never, ever, ever! give Pep Boys any of your business, ever again.
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Cross posted on THE FIRST STREET JOURNAL.

Posted in Personal Responsibility | Tagged: | 2 Comments »

Shocker: Second Quarter GDP Revised Downward

Posted by John Hitchcock on 2011/08/26

Okay, that’s not a shocker to anyone who’s actually paying attention. It wasn’t even a shocker to the supposedly expert economists upon which America’s Leftists depend — this time. But, while those “experts” expected a downward revision to 1.1 percent growth, the downward revision came in at an even more anemic 1.0 percent growth. And that after the Q1 GDP was revised downward to a flat-line 0.4 percent growth.

Ed Morrissey notes:

The change mainly came from inventories, which the previous estimate overshot. Real final sales of domestic goods — GDP less inventory adjustments — remained at 1.2%, making it a rare quarter in the last two years where this measure outstripped the topline GDP growth rate. Most of the GDP reports have been amped up by inventory expansions. Another bright spot is a revision in consumer spending, which increased 0.4% rather than the initial 0.1% estimate. However, exports got downgraded to a 3.1% increase from an initial estimate of 6.0%. [emphasis mine]

Common Sense Political Thought‘s radical Leftist commenter, Perry (who runs the laughably named Bridging the Gap blogsite), has made numerous claims that businesses aren’t producing or expanding because they want Barack Obama to lose his re-election bid. In Perry’s mind, businesses hate Obama more than they like their own bottom lines. But let’s continue to examine Perry’s delusion, shall we? According to Perry, Conservatives hate Obama because he’s black and we’re raaaaacists. So we want Obama to fail because we’re raaaaacists. And businesses are refusing to expand and hire because they hate Obama. So, that means all these businesses are raaaaacists. Which of course means the radical Leftist Perry doesn’t even have to engage his brain to think. (Barack Obama is 50 percent Caucasian and less than 50 percent black. My grandson is 50 percent black and less than 50 percent Caucasian.)

Let’s look at the facts, shall we? “Most of the GDP reports have been amped up by inventory expansions.” That means businesses have been producing more product in the US than they have been able to sell for most of the quarters since the recession began. Businesses have laid off large numbers of people but still have been outproducing demand. Despite all the layoffs and closures, businesses cannot sell everything they produce as it is. It would be foolish for businesses to expand in that environment. If a business cannot sell what it produces, the business needs to reduce its production, not expand it.

An overproduction (despite a spate of layoffs) can be acceptable and harmless in the short-run. Once purchases return to levels greater than production, the amassed inventory can be dwindled down to normal size again without the need for overtime or a too-quickly expanded work-force. But the longer a business overproduces demand, the more harm comes to the business. Doubly so in some states, which still levy an inventory tax on all the goods the business has warehoused.

Since most quarterly GDP numbers have been inflated by businesses outpacing demand and building up inventory, and some states levy an inventory tax, it would behoove businesses in those states to go on another spate of layoffs to reduce their tax burden and remain profitable, or at least lose less money. And since most quarterly GDP numbers have been inflated by businesses outpacing demand and building up inventory, the radical Leftist Perry’s claims that businesses are refusing to expand because they hate Obama is a verifiably false conspiracy theory.

Oh, by the way, third quarter GDP prospects appear no better than the first 6 months. It seems over-taxing and over-regulating and budget-busting spending does exactly what Conservatives said it does, and exactly the opposite of what radical Leftists like Perry (and the useless Paul Krugman) claim.

Posted in economics, Liberal, media, Obama, Over-regulation, Philosophy, politically correct, politics, society, Tax | Tagged: , , , , , , | 1 Comment »

 
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