Illinois still behind the curve
Illinois' continues to shoot itself in the foot with job-killing public policies.
Three recent but unrelated news stories — each with a common thread — highlight a serious problem in Illinois, one to which our public officials pay lip service but little else.
First, Caterpillar announced it plans to add 100 additional jobs to a new plant it is building in Victoria, Tex., increasing the total expected number of employees there to 600.
Second, Attorney General Lisa Madigan said it is a "gross overstatement" to say recent changes to the state's workers compensation law actually fix the problem the system poses.
Finally, Gov. Quinn's most recent corporate tax break to powerful corporations that have threatened to leave Illinois provides Motorola Mobility $110 million in financial incentives while at the same time allowing Motorola to reduce its work force from 3,290 to 2,500 employees.
What's the problem? Illinois' excessively expensive business climate that encourages businesses to move, expand elsewhere or demand kickbacks from state government to stay.
What's the cost? Thousands of jobs not created that deny Illinois citizens the opportunity to earn a good living and government at all levels the tax money it needs to maintain public services.
The president of Caterpillar made big news a couple of months ago when he sent a letter to Gov. Quinn in which he complained of the state's high business costs and offered to work with Quinn to make Illinois more welcoming to business. In his letter, he said he didn't want to move Caterpillar's corporate headquarters from Peoria, but suggested that may someday be necessary.
The reality, however, is that Caterpillar already is moving. Illinois has lost thousands of Caterpillar jobs to other states and countries over the past 30 years.
Here's just one example. Last summer, Caterpillar chose Victoria, Tex., over Illinois as a site for a new $130 million, 850,000-square-foot hydraulic excavator plant that it said would provide 500 jobs. Less than a week ago, Caterpillar announced it would invest an additional $70 million in the Texas plant because the demand for its excavation machinery is so high.
In her comments about the defects in the new workers' compensation law, which takes effect on Sept. 1, Madigan said that the new law's failure to address causation issues makes it "very difficult ... if not impossible" for an employer to defend a claim. The law holds the employer responsible for an employee's nonwork-related injury if the employee's condition is aggravated on the job.
Needless to say, that strict liability costs employers a fortune and represents a giant financial incentive not to do business in Illinois, factors that get the attention of employers like Caterpillar.
The General Assembly made a bad situation worse last January when it dramatically increased personal and corporate income taxes. Since then, Quinn has had to go hat in hand to numerous companies to offer them financial incentives to remain in Illinois. His deal with Motorola is just one of many. But Quinn couldn't even get Motorola to pledge to keep all its Illinois jobs in Illinois in exchange for $110 million in tax incentives.
Instead of having lower taxes for all businesses, Illinois has high taxes for all but those with enough clout to demand special treatment. Of course, the others can, and often do, leave, taking their jobs with them.
Taxes, employee costs, employment, tax revenues are closely related. If costs are too high, businesses will fail or move, meaning employment and tax revenue will decline. That makes life tough for average people, particularly the poor.
That's what happening in Illinois, even if those in power continue to pretend it's not.
The corporations are always shopping around for a tax deal. In the mean time;states are bankrupting themselves in paying off for the corporations to stay, or relocate in their states. It has become a bidding war with the corporations making big profits. They are here today, and gone the next. If there were no incentives, the corporations would still make money. We are paying them to stay so their workers can pay more taxes. We are just subsidizing the rich.
This has nothing to do with subsidizing the rich. It is about bad Illinois government that is all about protecting their own jobs at taxpayer expense. Corporations are acting in their own best interest in a pay to play state. Corporations would not and could not bid tax rates unless the elected officials allowed it. When these elected officials wake up and admit that corporations provide jobs and will be attacted to Illinois only when the business climate is more positive, then perhaps these elected officials will be laws that are pro business thus pro jobs. It isn't happening. Nothing will change until these elected officials are booted out of office and forced to give up their pro-union, retire at age 50 pensions and life time health insurance far in excess of what the taxpayers who elected them have..
I agree that corporations are looking after their bottom line. As long as good jobs come with them I am willing to pact with the devil.
As to government in the hands of professional politicians, I agree with citizen on that. That is the crux of the problem. These politicians are corrupt. They also are looking after themselves only. Once in office, they forget about their positions on term limits, for example. The longer they stay elected, the more corrupt they become. The lobbyists are simply another part of the professional politician. When they leave public office, they go to work for the lobby that used to give them big campaign contributions. Most of their time goes to raising campaign money. Nowadays we don't even really know who is bank rolling which candidates.
Corporations are going to take advantage of every legal (and perhaps even illegal) avenue to make money.
Both political parties are the same. Equally corrupt. Equally dishonest. Equally not fit to lead.
They fool us by playing the lesser of two evils game. "Vote for us, we are not as bad as the other party."
That is the lie that must be challenged. There is a 2 party plutocracy, not a democracy. Just watch them attack if a viable third party ever challenges them. I've lost hope on a third party, new, fresh and without the ingrained corruption of the 2 we have now. If the choice is between dumb and dumber, I'd rather protest by not participating.
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