How's Illinois' Massive Tax Hike Working Out?
"Elections do have consequences," the Washington Examiner wrote back in January.They paper was explaining how Democratic Gov. Pat Quinn, who replaced the the disgraced Rod Blagojevich in 2009, then won a narrow victory to serve a full term in the 2010 election, was about to "sign into law a whopping 67 percent personal income tax increase, and a 46 percent business tax hike." The increases were passed just hours before a new legislature, that would have defeated the scheme, was seated.
Democrats argued that, facing a $15 billion deficit, and lagging $6.8 billion behind in paying its bills, raising taxes was the only option.
So how is that working out? Well, let's see. Today's news includes a story about Quinn having to sign a deal with Motorola Mobile for a $100 million tax break just to keep the company from moving to San Diego. How messed up does your state have to be to make moving to California seem like a savvy business decision?
And now Sears -- the company that's been in the state since 1893 -- is threatening to leave. To keep them there, Quinn will have to get his fiscally crippled state to dole out more incentives.
I don't know, something tells me that when your policies are encouraging some of your most iconic companies to threaten to flee, you're doing something wrong.
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Dec '10
Re: How's Illinois' Massive Tax Hike Working Out?
This in my estimation is why the political class loves taxation. It has nothing to do with revenues and everything to do with power. The ability to carve out of the tax structure liability sanctuaries for influential business entities will never be relinquished by pols of either party; and yet it may be the most corrosive element to market competition that free markets face. This kind of blatant cronyism has me all but fully convinced our society has crossed the proverbial Rubicon toward a Romanesque decline.
Apr '11
Re: How's Illinois' Massive Tax Hike Working Out?
I've been wondering about this myself. Minnesota's new governor says we need to make the rich "pay their fair share" and Illinois has massive tax increases. Meanwhile Wisconsin wants to cut business taxes, last I heard. Wisconsin might find a fair number of businesses from Minnesota, Illinois, and maybe Michigan looking for a new home.
Re: How's Illinois' Massive Tax Hike Working Out?
Perhaps the most telling piece of news about Illinois is that the population of Chicago has fallen below its level in 1920. People in Illinois should keep in mind that Detroit was once the fourth largest city in the United States and the wealthiest city per-capita in the country.
Apr '11
Re: How's Illinois' Massive Tax Hike Working Out?
Just another piece to add to the mountain of empirical evidence that Liberalism 101 policies do not produce the results they always claim. And yet this mountain may as well be invisible since at every occasion when such policies are discussed we act as though none of this data exists, as if in no place has it been tried, as though it hasn't failed time and time again.
Mr. Rahe: Enjoyed your time on the Podcast this week!
May '10
Re: How's Illinois' Massive Tax Hike Working Out?
I am terrified of what the next decade will do to Illinois. The tax rate increase was not couple with any spending cuts. In fact, spending increased as part of the deal to ensure far-left Democratic legislators voted for the tax increase. The spending limits imposed by the tax increase are a joke and can be waived off at any time. The state owes millions to corporate taxpayers who haven't received tax refunds for years now. Credits and incentives are being stripped left and right to increase budget revenues.
The productive people of this state and its corporate citizens will not tolerate these games much longer. Corporations have long since fled downtown Chicago to the suburban office parks to avoid the onerous city intrusions. It is only a matter of time before they flee the state entirely. I am really afraid my beloved city is going to collapse like Detroit and Cleveland.
Mar '11
Re: How's Illinois' Massive Tax Hike Working Out?
As a lifelong resident of the Peoples Republic of Illinois, I can only tell you that things will get much, much worse before they get better.
Illinois has the highest number of governing bodies in the union, and Cook County is the the place where the "no-show" job lives and thrives.
Mayor Daley has privatized (and not in a good way), or sold off every valuable asset the city owned, and with nothing left to stave off the coming crash, he's vacated his throne to Rahm Emmanuel.
You'll see just about every employer that has enough clout (i.e. Motorola, Sears, McDonald's, etc.) work out deals with the state, and the rest will either pass on the cost to their customers or wise up and move out of state.
I live about 20 miles south of the Wisconsin border, and if I could sell my house and move there, I would.
Like a headless chicken, Illinois is still moving, but there's no pulse to be found.
Edited on May 10, 2011 at 3:11pmFeb '11
Re: How's Illinois' Massive Tax Hike Working Out?
Ahh, yes. I was just at the Sears in the loop today. Truly sad, but let us not forget Champaign's Jimmy Johns and Peoria's Caterpillar Inc., both of whom have threatened to leave over Illinois taxes.
I have been looking at St. Louis with new eyes for the past coulple years or so.
My place of work is a downtown Chicago cultural institution- our endowment has taken quite a hit so if the "rich" leave, and are less inclined to give, well....
Sep '10
Re: How's Illinois' Massive Tax Hike Working Out?
Mollie Hemingway, Ed.
How messed up does your state have to be to make moving to California seem like a savvy business decision?
The linked article from Chief Executive contains their annual rankings of best and worst states in which to do business.
Wisconsin made the largest year to year improvement, jumping from 41st in 2010 all the way up to 24th in the current 2011 rankings.
What do they say about Illinois?
"By contrast, Illinois has dropped 40 places in five years and is now in a death spiral. Its bond ranking is 49th, ahead of only California. The state may play host to fugitive state senators from nearby Wisconsin and Indiana who avoid voting in their home legislatures, but businesses are heading for the exits."
Apr '11
Re: How's Illinois' Massive Tax Hike Working Out?
Well, at least Illinois has the best weather in the Union to keep some of those businesses from moving away . . .
Considering the Illinois death spiral and Indiana's rise, wouldn't an Obama/Daniels race be a perfect opportunity for the GOP to show a compelling vision of economic growth through deregulation and cutting taxes?