SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Some encouraging economic news, but yet another corporate tax incentive is questioned

Tuesday, Jun 21, 2011

* Some good news

The economic recovery may have stalled in parts of the South and West hit hard by the housing bubble, but Rust Belt states, buoyed by a manufacturing comeback, have seen a steady decline in their jobless rates over the last year.

Of the 10 states where unemployment rates dipped the most from May 2010 to May 2011, Rust Belt states — Michigan, Indiana, Ohio, Pennsylvania and Illinois — account for half, according to Labor Department figures.

Locally, metropolitan areas in the five Rust Belt states accounted for 30 of the top 34 declines in regional unemployment rates since last year, as well.

* More good news

Chicago hoteliers are having their best year since 2008, as both occupancy and room rates are climbing thanks to increasing business and leisure travel.

The average daily room rate at Chicago-area hotels through May was $107.44, up 5.7% from $101.61 through the same period last year. The occupancy rate, meanwhile, stood at 56.8% compared with 54.3% through May last year, according to Smith Travel Research.

Seeing room rate and occupancies increase during the winter months is a strong indicator that the upcoming peak summer season won’t disappoint, says Brian Flanagan, president of Property Valuation Advisors Inc., a Chicago-based hotel appraisal and consulting firm.

* Even more

Last year, Illinois generated $29.3 billion in revenue from the tourism industry, an increase of more than $2.2 billion from 2009, according to tourism data from Quinn’s office. Illinois visitor numbers increased by 5 percent, to 84.7 million, according to the data.

* Some mixed news

Fewer leisure travelers came to Chicago last year, marking a low point for the city’s tourism in the past six years. But business travel perked back up.

A total of 38.1 million people came to Chicago in 2010, according to figures released Monday by Gov. Pat Quinn’s office. That was down 3.5% from 39.5 million visitors in 2009 and a 16.6% drop from 45.7 million in 2008. (Travel to Chicago peaked in the past decade in 2007, when 46.3 million people visited the city.)

Don Welsh, president and CEO of the Chicago Convention and Tourism Bureau, pins the drop on people reluctant to make day trips into the city.

“We’ve had a couple of spikes in gasoline prices, so in many cases, people will stay closer to home,” Mr. Welsh said.

But he says he is encouraged by the data showing the number of overnight visitors to Chicago rose 7.4% in 2010.

* But here’s yet another troubling report about a corporate tax incentive

A $64.7-million state deal last September to keep Navistar International Corp. in Illinois lacks a guarantee that the truck and engine maker won’t cut jobs here. […]

In its application for state tax credits, Navistar said it employed 3,100 workers in four Chicago-area locations but planned to pare that number to 2,200, while hiring 400 more “over the next several years.”

Because of efficiencies and “normal attrition,” it added, “it is anticipated that the current work number will be reduced by 15-20%.”

Don Sharp, Navistar’s chief information officer and the company executive who negotiated the deal, said local employment should rebound to “that 3,100 number or above” by the end of next year, spurred by the closing of a truck plant in Ft. Wayne, Ind., and other consolidation.

Asked yesterday about a similar incentive for Motorola, which allowed it to reduce its state workforce by 800 people and still retain its $100 million tax package, Quinn said the proposal was a good one and added “They’re not going to be cutting back.”

Quinn also talked about reports that Sears is shopping around for a new headquarters. Listen…

- Posted by Rich Miller        


16 Comments
  1. - Yellow Dog Democrat - Tuesday, Jun 21, 11 @ 8:16 am:

    Two words: “Clawback provisions.”


  2. - Dan Johnson-Weinberger - Tuesday, Jun 21, 11 @ 8:23 am:

    A drop in day trip leisure travel because if high gas prices? Another reason for taxpayer investment in high speed rail. When we buy affordable mobility for the people, they will travel.


  3. - Plutocrat03 - Tuesday, Jun 21, 11 @ 8:31 am:

    Another example of why the government should not be in the business of picking and choosing the winners in business.

    They simply do not have the skill set to make sensible choices and protect the public. They would likely be putting together a plan to save the buggy-whip and whale oil industries of those industries were still around today.


  4. - Cincinnatus - Tuesday, Jun 21, 11 @ 8:51 am:

    “Last year, Illinois generated $29.3 billion in revenue from the tourism industry, an increase of more than $2.2 billion from 2009…”

    All those D lawmakers that bailed from their own duties?


  5. - Cincinnatus - Tuesday, Jun 21, 11 @ 8:52 am:

    “Another reason for taxpayer investment in high speed rail. When we buy affordable mobility for the people, they will travel.”

    Out of deference and respect for Rich, I’ll let this opportunity pass.


  6. - VanillaMan - Tuesday, Jun 21, 11 @ 9:28 am:

    Re: High Speed Rail
    Newsflash!
    People who can not afford $5 gas can not afford high speed train tickets, parking costs or the taxes required to build a white elephant. Someone somewhere is going to have to earn back some money in the real world.


  7. - Angry Chicagoan - Tuesday, Jun 21, 11 @ 10:36 am:

    If we focused upon quality improvements to existing services — for example, changes to Metra that would speed up trains and increase frequency and lower operating costs — that would be a huge incentive for people to take more trips into the city. While I’m all in favor of high-speed rail, this isn’t an HSR issue; it’s an urban mobility issue, and both politicians and Metra leaders, not to mention CTA, have for years been startlingly unambitious about our local rail system or any kind of marketing, land-use planning etc. to boost its use. When Salt Lake City has more frequent off-peak commuter rail than we do and more new miles of line (transit and commuter) under construction than we’ve done in the last three decades, it puts Chicago’s recent efforts in sorry perspective. Settling for hourly off-peak service on high-capacity, purpose-built, grade-separated passenger routes like Metra Electric and UP-N is especially embarrassing.

    And, by the way, HSR won’t work viably unless it has fast and frequent urban transit networks to connect to. They understand that not just in Europe but in places like California, whereas we’re in the embarrassing situation of having by far the largest intercity rail station in North America without a direct subway connection.


  8. - wordslinger - Tuesday, Jun 21, 11 @ 11:20 am:

    What’s with the Tea Partiers and the Pavlonian foaming at the mouth about trains, anyway?

    Geez, someone says “trains” and they go nuts. Did Roger Ailes have a bad experience on the NYC to Washington Acela one time?


  9. - Cincinnatus - Tuesday, Jun 21, 11 @ 11:26 am:

    If the Acela wasn’t the only profitable AMTRAK line in the US, then there would be something else to talk about. It would appear that the only way intercity rail makes sense is if you have high-density urban areas, like the NE corridor, Japan and Europe. There is absolutely no economic justification for government subsidies of high speed rail other than the feel-good instincts of some people. High speed rail saddles taxpayers with endless costs.


  10. - Yellow Dog Democrat - Tuesday, Jun 21, 11 @ 11:54 am:

    === Another example of why the government should not be in the business of picking and choosing the winners in business. ===

    Tell that to the “capitalists” feeding at the government trough. It’s a long list.

    They scream “free market” until you take away their taxpayer subsidies, then they scream even louder about “job losses” and “the common good.”


  11. - Cincinnatus - Tuesday, Jun 21, 11 @ 12:28 pm:

    They ain’t ALL conservatives, YDD. Look only to the recent vote, bipartisan at that, to eliminate the ethanol subsidy.

    Pull the subsidies and tax breaks for all corporations and other entities (yes, mortgage deductions included) and let the chips fall where they may.

    What many people, including conservatives, have seem to forgotten is that failure is part of the capitalistic process. We are propping up to many failed systems. This stifles innovation and growth, and without growth, we will have stagnant employment.


  12. - wordslinger - Tuesday, Jun 21, 11 @ 12:38 pm:

    –Pull the subsidies and tax breaks for all corporations and other entities (yes, mortgage deductions included) and let the chips fall where they may.–

    Why? To what end? What does ideological purity get you?


  13. - Cincinnatus - Tuesday, Jun 21, 11 @ 12:41 pm:

    Economic growth.


  14. - wordslinger - Tuesday, Jun 21, 11 @ 12:47 pm:

    Says you. Eliminating mortgage deductions is the path to economic growth? By what obtuse, untried but seductively simple theory?


  15. - wordslinger - Tuesday, Jun 21, 11 @ 12:55 pm:

    –Pull the subsidies and tax breaks for all corporations and other entities (yes, mortgage deductions included) and let the chips fall where they may.–

    Cincy, just so I’m clear on your Universal Theory, raising taxes on EVERYONE is the key to economic growth?


  16. - Cincinnatus - Tuesday, Jun 21, 11 @ 1:23 pm:

    You assume the tax rate would remain the same under my proposals. I do not.


Sorry, comments for this post are now closed.


* Good morning!
* Final thoughts before calling it a night
* *** UPDATED x3 - Script *** Quinn airs radio ad of Rauner joking about being "scared" of four African-Americans
* Karen Lewis endorses Chuy Garcia for mayor
* Friday night TV ad rating
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Nexus 6 sells out in minutes, DROID Turbo goes ballistic, Microsoft Band sneaks out early | Pocketnow Weekly 120
        * Roku adds Google Play Movies & TV to its feature list
        * Minuum iOS update picks up new languages, advanced settings (Giveaway)
        * A final word from Taylor Martin
        * Battleheart Legacy signals Mika Mobile’s return to Android
        * AT&T and Verizon Boost Monthly Wireless Data in Ongoing Competition
        * Smash Champs lets you become a legendary trainer

        * Android 5.0 Lollipop Update for Samsung Galaxy S5 Progressing Nicely (Video)
        * HTC Maintains Profitability For the Third Quarter
        * T-Mobile To Launch Samsung Gear S on November 9th for $14.58 A Month
        * LG G3 Dual-LTE To Launch in Russia in November
        * Xiaomi Expected to Launch a 9.2-inch Tablet
        * Trent Reznor working with Apple on secret music project
        * Samsung Galaxy A5 and A3 phones try to capture young people's attention

        * Fall Stars Game filled to brim with talent
        * Fall Stars Game filled to brim with talent
        * White Sox opt to decline Paulino's '15 option
        * White Sox have flexibility to pursue multiple upgrades
        * White Sox offseason plan roundup: Third base
        * Minnie Miñoso belongs in the Hall of Fame
        * Development of young core in '15 can define Chicago's future


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Inmate freed in landmark Illinois case..
        * Documentarian Recalls the 1986 World Series Cha.....
        * Tokyo Thrills the Global Stock Markets..
        * Ill. 14th District: Hultgren, Anderson emphasiz.....
        * Judgment Day: Incumbents are in trouble..
        * Slew of ballot issues crowd alongside nationall.....


        * Lake Michigan waves slam Chicago lakeshore
        * Creator of Operation couldn't afford own operation
        * Union backs county commissioner for Chicago mayor
        * Judge won't close hearing in Islamic State case
        * Lake Michigan waves slam Chicago lakeshore
        * Wallenda ready for windy Chicago tightrope walks
        * Woman charged with defrauding Illinois couple
        * Quinn, Rauner talk jobs, early voting Friday
        * Judge won't close hearing in Islamic State case
        * Cook County Jail guard faces theft charge

        * State contribution to TRS to increase by $300 million next year
        * Former Gov. Edgar to campaign with Rauner
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Inmate freed from Jacksonville prison in landmark Illinois case
        * Cross opposes income tax hike extension
        * Gay marriage, abortion issues take back seat in governor’s race
        * Madigan’s office seeks clarifications from former Topinka nonprofit
        * Cross says no to income tax hike extension, sales tax on services
        * Gay marriage, abortion issues take backseat in governor’s race
        * Illinois inmate freed in landmark capital punishment case

        * SEC examines Caterpillar's accounting for Bucyrus
        * Cubs hire Maddon as manager, fire Renteria
        * Karen Lewis endorses Jesus Garcia for Chicago mayor
        * A stormy Lake Michigan swamps Lake Shore Drive – and sinks Chicago's mood
        * A stormy Lake Michigan swamps Lake Shore Drive — and sinks Chicago's mood


        * Garcia: I'm a serious mayoral candidate, not just a protest vote
        * Boy, 3, hit by car while trick-or-treating in Winnetka
        * On O’Hare noise, aldermen demand action, but get no satisfaction
        * A higher standard of criminal justice
        * Ex-Northwestern doctor to pay $475K to settle fraud claims
        * Sad day  when  Catholic  schools  close
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Durbin, Oberweis square off for final time
        * State’s attorney investigating alderman’s prize offer to voters


        * 3 injured, 1 fatally, in shootings
        * Karen Lewis endorses Garcia for mayor in new video
        * Boy, 3, struck by car while trick-or-treating in Winnetka
        * Missing Garfield Ridge man located
        * Trial to begin for Darien man charged in 2012 killing
        * Alleged victims of ex-Wilmette teacher share memories online
        * New rules make Illinois voting easier
        * Federal judge refuses government request to close terrorism hearing
        * Emanuel's top attorney: Watchdog had no right to sue
        * Cops release photos in robbery and attack of police sergeant


        * Scary Story: St. Michael And Mr. Pyles By H.W. Devlin
        * Dodging DUIs: Secretary of State Candidates Faceoff
        * Cook County posting indigent burials in 'virtual cemetery'
        * Whom do you trust when it comes to nutrition advice?
        * Zombie barge sinking in storm at Navy Pier
        * The digital afterlife
        * Making Buildings Healthier From The Inside Out
        * Scary Story: Planes By Ted Morrissey
        * Listen to State Week - October 31, 2014
        * "Monster Mash" Celebrates Halloween With Classical Music


        * E.J. Dionne: Moderate thunder out of Kansas
        * Charles Krauthammer: A referendum on competence
        * Quote of the Day: Nov. 1
        * State contribution to TRS to increase by $300 million next year
        * Former Gov. Edgar to campaign with Rauner
        * Esther Cepeda: Elizabeth Pena: Trailblazer on the big screen
        * Andy Shaw: Voter turnout instrumental to reform
        * Ty Fahner: What if the Court rejects pension reform?
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Quote of the Day: Friday, Oct. 31


        * 'Horrific' crash kills 4 in Vandalia
        * Women's event gifts spark GOP protest
        * Spartans get past Pawnee
        * Abandoned boy to stay with foster family
        * Police reports
        * Experience, integrity at heart of Pike race
        * Beardstown schools hope for levy increase
        * Hybrid Court restores 9 more lives
        * Davidsmeyer, Evans seek 100th District seat
        * Looking Back (Nov. 1, 2014)


        * Naperville Central rallies for victory
        * (No heading)
        * Timothy Christian advances to championship game
        * Stevenson recovers against Ross, Lyons
        * Wheaton Warrenville South produces another miracle

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...
        * Senate Candidates On Climate Change...

        * Tale of the tape: Obama's campaigning a fa......
        * Sen. Mark Kirk questioned by Triton students...

        * Op-Ed: The Ups & Downs of Election Laws, Are Voters Being Tricked at the Door?
        * Andrew Klavan: Is Obamacare Working, Or Are We All Going to Die? [video]
        * Di Leo: The Ebola Epidemic and the American Election
        * The Federal Reserve’s Track Record on Macro Stabilization [video]
        * Where's Weyermuller? Oberweis vs Durbin Debate
        * Muslim Researcher: Women Driving Increases Fornication, Divorce [video]
        * Durbin and Oberweis close campaign on WTTW's Chicago Tonight
        * Opportunity in America: What It Means and How It Grows [video]
        * Last Weekend For Early Voting
        * RNC says "Get Rid of Obamacare - Vote Republican" [video]


        * Editorial: Governors, raining taxpayer $ on Illinois
        * Governor Quinn and Mayor Emanuel Thank New Safe Passage Workers - Nearly 700 Additional Workers Hired This Year to Serve 133 Schools, 69,000 Students Across the City
        * Editorial: Rauner best choice as governor to begin to reverse Illinois’ fortunes
        * Quinn to celebrate Rauner’s UI Labs accomplishment
        * Another Democrat Runs Away From Pat Quinn




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller