SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 *** Budget office: Tax hike not causing layoffs

Tuesday, Aug 23, 2011

* After falling for 16 straight months, Illinois’ unemployment rate has risen each of the last three months. Could January’s income tax hike have caused this? Nope, says the governor’s budget office

Kelly Kraft, a spokeswoman for Quinn’s budget office, said there is “no connection” between the tax increases and the unemployment increase.

Others aren’t so sure

Shattuck said the tax increase, and Illinois’ overall business climate, are part of the uncertainty employers hate.

“That’s why there are so many businesses hoarding cash; they want to be able to pay the bills,” Shattuck added.

We actually gained 1,100 manufacturing jobs in July, according to the state. Mining, information and financial activities jobs all rose as well.

One reason the unemployment rate kept rising is that 5,500 government jobs disappeared in July. “Trade, Transportation, & Utilities” jobs dropped by 7,900 and “Leisure and Hospitality” jobs fell by 6,700. We also lost 4,300 construction jobs and 4,100 jobs in “other services.”

* But the reality is, the people who run most businesses are not exactly flaming liberals, and they ain’t happy

A company based in the south suburbs is expected to announce Tuesday that it is relocating, taking 250 Illinois jobs to Indiana.

After 96 years in Blue Island, the Modern Drop Forge Co. is reportedly moving 30 miles east to Merrillville, Ind.

“The taxes are very high and Illinois is not friendly to business anymore,” said one employee with the company.

Sources say Indiana Gov. Mitch Daniels will announce Modern Drop Forge Co., which makes precision tools and metal components, including for Harley Davidson motorcycles, is the latest Illinois company to be lured away by lower taxes and business costs.

* Indiana has been particularly aggressive at recruiting our companies

The Hoosier State’s Economic Development Corp. launched its “Illinnoyed” campaign, putting 15 billboards up along the state line. It also had an online advertising campaign through Crain’s Chicago Business; EDC spokeswoman Katelyn Hancock said she was told it was the third-most successful online campaign in Crain’s history.

Thirteen businesses representing about 1,000 jobs have committed to moving from Illinois to Indiana this year as a result of the marketing campaign, she said, and she expects more to come.

“Our efforts are still being reaped,” she said. “It takes a long time to relocate.”

Indiana’s unemployment rate also clicked up a bit in July, but its rate is 8.5 percent, a full point below ours.

…Adding… With a hat tip to a commenter

Over the year, 24 states experienced statistically significant changes in employment, 23 of which were increases. The largest increase occurred in Texas (+269,500), followed by California (+189,600), New York (+106,600), and Ohio (+74,100). The only state with an over-the-year statistically significant decrease was Indiana (-28,300). [Emphasis added.]

Illinois gained 51,100 jobs in the same period.

* Meanwhile

Archer Daniels Midland Co. is closing a soybean processing facility in Galesburg immediately.

Decatur-based ADM issued a statement late Monday confirming the facility would close, according to WGIL Radio. The closure will cost Galesburg 31 jobs.

ADM says it expects a number of those jobs to be transferred to a different facility.

Oy.

It’s been one hit after another for that town.

* Back to taxes

Shattuck said this summer’s legislative hearings into Illinois’ business climate may provide enough stability to convince employers in Illinois to start hiring.

“We’re trying to come up with ways to advance the business climate without costing the state any money,” Shattuck said. “But if we’re going to lower the tax increase that means other incentives have to go away. But which ones?”

*** UPDATE *** From a press release…

Mayor Rahm Emanuel announced today that EMC Corporation will open a new office and add 200 new jobs in Chicago over the next two years, as the city’s technology sector gets an added boost from a leading provider of information infrastructure and cloud computing technology.

“I am pleased to announce that EMC has decided to open a new office here in Chicago, and to create 200 important jobs for Chicagoans,” said Mayor Emanuel. “EMC is a global leader in information technology, and will drive forward Chicago’s technology economy and presence in this space.”

The new office in Chicago is expected to be open by the end of the first-quarter 2012, and will support EMC’s numerous Chicago-based customers.

* Related…

* Olin Brass says law helps their business

* The Murky Future Of The Workers’ Comp Reform Law

* Food prices could rise as corn harvests suffer

* Survey: Small raises for salaried workers in 2012: After increasing salaries by 2.6 percent this year and last year, companies are planning a 2.8 percent bump in 2012, benefits and human resources consultancy Towers Watson reported Monday.

* Union agrees to pay cut in Lyric Opera contract

* Google takeover pays off for Motorola employees, too

* Ford, Toyota to work together on hybrid trucks

* Quinn names interim superintendent of Lottery

* LaHood: Rail plan going to be ‘right’ for Springfield

* Plan to reuse prescription drugs stuck on final hurdles - Legislation stalled by concerns about safety, liability

* Landmarks Illinois leader stepping aside Nov. 1

* Fitch Downgrades N.J. Bond Rating: New Jersey has skipped or greatly reduced its payments into the pension fund, contributing to the unfunded liability. The new law requires the state to make its payments, which currently total more than $3 billion a year, but is phasing the requirement in over seven years. This year’s pension payment, one-seventh of the total, was about $500 million.

* S&P replaces president after U.S. downgrade

- Posted by Rich Miller        


20 Comments
  1. - Anonymous - Tuesday, Aug 23, 11 @ 10:37 am:

    Any time a south suburban business leaves for Indiana, you can’t overlook the issue of race. The business owner is probably white. The south suburbs have become increasingly black. It’s just white flight, but in the business context.


  2. - Retired Non-Union Guy - Tuesday, Aug 23, 11 @ 10:38 am:

    RE New Jersey pension payment ramp up … sounds like one of the failed Illinois plans. Guess we’ll have to check back in 7 years from now to see how well that works out for them.


  3. - Cincinnatus - Tuesday, Aug 23, 11 @ 10:44 am:

    “Shattuck said this summer’s legislative hearings into Illinois’ business climate may provide enough stability to convince employers in Illinois to start hiring.”

    Yes, some hearings to provide a plan to create a framework for the possibility of forming a commission to provide non-binding recommendations will surely cause a major spike in hiring.

    What is this guy smoking?


  4. - Retired Non-Union Guy - Tuesday, Aug 23, 11 @ 10:48 am:

    Don’t have empirical data I can point to but I’ve seen suggestions that business owners at the national level are just going to sit on their hands and wait it out until after the next national election. As Rich points out, businessmen are mostly conservative and they seem to want to see a change in administration. So business has no reason to make things better now …

    And a change at the national level won’t necessarily help Illinois; any pickup in economic activity would most likely be offset by the loss of federal pork barrel / subsidies, leaving us in pretty much the same mess we have now, spending more than we take in.


  5. - Shore - Tuesday, Aug 23, 11 @ 11:00 am:

    Illinoyed-that’s all they’ve got?


  6. - Fed up - Tuesday, Aug 23, 11 @ 11:09 am:

    Let’s see today’s business story include. Lime energy moving headquarters to North Carolina, ADM closing an Illinois soybean plant, and Illinois 3rd from bottom in country for new building permits. Yeah Soyboy is doing an excellent job.


  7. - Ahoy - Tuesday, Aug 23, 11 @ 11:19 am:

    “businessmen are mostly conservative and they seem to want to see a change in administration.”

    Mainly true, but business owners are not that political. If they can make money, they’re going to invest regardless of administration. Right now they are fearful because of uncertainty. Some of the uncertainty is due to the market and other issues outside of government control. However, some of the uncertainty is due to federal issues such as the new rules on healthcare that are coming down the pipe over the next few years as well as proposed rules being floated by the EPA and other federal agencies.

    Then in our State we have no plan to fix the budget mess (more uncertainty), a Governor who appears to be completely clueless and unable to handle things in a rational manner. We also have a business climate that is generally regarded as unfriendly to business. This climate includes taxes (local & state) workers comp costs, unemployment insurance and a legal system that appears benefits trial lawyers.

    You can debate the merits of each issue and weather they actually exist or not, but that is the belief of a lot of business owners, aka the people who employ people. As long as they believe their investments are not safe at this time, we are going to have a hard time with job growth.


  8. - wordslinger - Tuesday, Aug 23, 11 @ 11:28 am:

    Indiana wishes it had Illinois’ economy. Talk about an ankle-biter. Daniels was a grownup in the Reagan Administration, now he’s just another Fox News sycophant.

    Google “Mitch Daniels phony jo numbers” and here’s the top hit. http://www.wthr.com/story/12066021/reality-check-indiana-job-numbers-dont-add-up

    It’s hard to have a capitalist economy when there’s no capital. You would think that the Masters of the Universe could find some middle ground between no lending at all and lending the same subprime mortgage buck at a 50-1 ratio. Especially when they’re borrowing money from the Fed for nothing.


  9. - bored now - Tuesday, Aug 23, 11 @ 11:43 am:

    ahoy: i’m not sure who you’ve been talking to, but you make it sound like most business owners invest their own money. which hasn’t been my experience. the lack of private investment in the economy is pretty clearly due to the inability of businesses to borrow. this is a national problem, has nothing to do with state taxes (don’t businesses in indiana pay more taxes?) and this is especially true for small businesses…


  10. - Bigtwich - Tuesday, Aug 23, 11 @ 11:58 am:

    Well, if I read this right,
    http://www.bls.gov/news.release/laus.nr0.htm

    from July 2010 to July 2011, Illinois gained 51,100 jobs and Indiana lost 28,300. I guess that proves Indiana needs to raise taxes.


  11. - Niles Township - Tuesday, Aug 23, 11 @ 12:10 pm:

    The company leaving to Indiana is slicing jobs as part of the move. They are hurting financially, and doing all they can to cut expenses, including laying off many employees. They will be much smaller when they reopen across the border. Still a loss, but one needs to know the facts, not the hyperbole.


  12. - 47th Ward - Tuesday, Aug 23, 11 @ 12:58 pm:

    Regarding the EMC corporate office, one of the things they said attracted them to Chicago was a young and well trained workforce. They didn’t mention taxes or regulation, and even said they weren’t getting any financial incentives to move in here. They did the announcement at DePaul, which shows that businesses weigh a lot of factors when moving, and a steady supply of smart employees is as big a factor as anything else.


  13. - wordslinger - Tuesday, Aug 23, 11 @ 1:07 pm:

    Warren Buffett, CST, August 15

    –Buffett said he knows many of the mega-rich well, and most wouldn’t mind paying more in taxes, especially when so many fellow citizens are suffering. He also said he has yet to see anyone shy away from investments because of tax rates on potential gains, even when rates were much higher in the mid-1970s, 1980s and 1990s.

    “People invest to make money, and potential taxes have never scared them off,” he said.–


  14. - Louis G. Atsaves - Tuesday, Aug 23, 11 @ 1:20 pm:

    Did I get this straight? The newly appointed “interim director” of the Illinois State Lottery voted in favor of the private company which will run it, and had a job lined up with them to boot?

    Did I get this straight? I thought this stuff was outlawed through a series of legislative changes and ethics laws?


  15. - CircularFiringSquad - Tuesday, Aug 23, 11 @ 1:42 pm:

    Could someone tell Capt fax this tax hike cause job loss is a IL Policy Institute fable and we don’t report their nonsense anymore?


  16. - JustMe - Tuesday, Aug 23, 11 @ 2:37 pm:

    According to the underlyng chart linked in the BLS report, 27,000 of the 28,300 net jobs lost by Indiana were government jobs.


  17. - Ahoy - Tuesday, Aug 23, 11 @ 4:58 pm:

    Bored Now,

    First off, there are still businesses that invest their own money. Secondly, it is harder to get a loan, it is not impossible.


  18. - TwoFeetThick - Tuesday, Aug 23, 11 @ 5:45 pm:

    =27,000 of the 28,300 net jobs lost by Indiana were government jobs=

    So, in other words, they don’t count? I bet they counted pretty big time to those who lost them.


  19. - JustMe - Tuesday, Aug 23, 11 @ 7:33 pm:

    I was responding to the implication that people seem to be drawing that the Indiana economy is being runs significantly worse than other states’ economies. The Indiana private sector apparently held its own despite the anti-stimulus activity of cutting back the public sector.


  20. - TwoFeetThick - Wednesday, Aug 24, 11 @ 9:16 am:

    Got it. Thanks for clarifying.


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* *** UPDATED *** THIS JUST IN... Judge orders permanent stay on pension law
* Today's number: 10 percent
* Unclear on the concept
* Could be a big day
* Question of the day
* Illinois leaders react to Obama's immigration order
* TrackBill – An Introduction
* Caption contest!
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

          
        * Which app payment system is right?
        * Our 5 favorite new Windows Phone apps of the week
        * Jolla’s Open Source iPad Alternative Raises More Than $1M In Two Days’ Crowdfunding
        * Apple Watch price, Lollipop updates, MS Office mobile comments & more – Pocketnow Daily Recap
        * Google’s Nexus 6 Might Be Too Big For Right Now, But Right-Sized For The Future
        * You Should Play: Monster Strike is a delightful mashup of monster battles and pinball
        * HTC Desire Eye Review: Welcome to the (selfie) machine

        * Make a Crispy Pie Crust With a Hot Baking Sheet
        * Capital Gains: Bigcommerce Gets Bigger, Kik Messenger’s New Round and More
        * Top tips for new app developers: Here’s what you need to know
        * Find Your Drinks in a Dark Cooler with Glow Sticks
        * Set AirDrop to “Contacts Only” to Protect Your Privacy (and Your Eyes)
        * How I use iOS apps to manage my calendar and daily tasks
        * Here are the Best Black Friday Deals We Know About So Far

        * Terrerobytes: Waiting for Adam LaRoche
        * With LaRoche on board, Abreu will benefit
        * Sources: White Sox land LaRoche with two-year deal
        * Sources: White Sox land LaRoche with two-year deal
        * Sources: White Sox land LaRoche with two-year deal
        * Abreu will benefit from LaRoche's presence
        * White Sox sign Adam LaRoche to two-year, $25 million deal

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


        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


        * Rauner tackles full transition agenda..
        * Rahm Emanuel's silent partner in mayoral campai.....
        * Allison Keyes..


        * Some 30 horses die in stable fire outside Chicago
        * Illinoisan among winners of Rhodes scholarships
        * Woman accused of attack using nail-studded board
        * Vatican prosecutor didn't report abusive priest
        * Judge denies bid to halt Illinois fracking rules
        * Church members each get $500 to do good for world
        * Man dies after being shot during Missouri hunt
        * Illinois' Rauner tackles full transition agenda
        * Immigrants urged to take advantage of Obama action
        * Door County fish business subject of federal probe

        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court next
        * State to refund $60 million in retiree health care money
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court likely
        * Illinois pension case likely headed to high court
        * Judge: Pension ruling to come Friday
        * Rauner mum on fixes for ‘dire’ state finances, wants Quinn to freeze hiring
        * Rauner mum on fixes for ‘dire’ state finances
        * Judge to hear pension law arguments today

        * AndroGel giving AbbVie performance anxiety
        * Turning the kitchen into a tech hot spot
        * What does Michael Madigan do next?
        * Are Chicago's manufacturing districts vulnerable?
        * United's Smisek back in analysts' good graces


        * Our ancestors, all immigrants, are watching us now
        * Is there a way for GOP to defuse immigration issue?
        * Coalition pushing advisory vote for elected CPS board
        * Obama dismisses GOP criticism on immigration
        * Gov. Quinn could collect healthy pension on way out the door
        * 'SNL,' 'Schoolhouse Rock,' a bill and an executive order
        * Faces of minimum wage: Business owners paint post-layoff path
        * Obama says Americans want 'new car smell' in 2016
        * Former D.C. Mayor Marion Barry dies at 78
        * University of Chicago’s Dr. Donald F. Steiner, pioneer in diabetes research, dead at 84


        * Man shot multiple times on Far South Side
        * Chicago-bound Amtrak train strikes pedestrian
        * Rhodes Scholars include 6 from Great Lakes area
        * Magnificent Mile Lights Festival: 'Nice to start the holiday season'
        * McHenry County blaze kills 32 horses: 'I don't know what to do'
        * Man dies after falling from Near North Side hotel
        * Man critically hurt in Little Village shooting
        * Police warn of robberies in Lake View neighborhood
        * 5 injured in shootings, including 2 teens, on South, West side


        * Listen to State Week - November 21, 2014
        * State To Refund Retiree Health Care Money
        * Labor unions celebrate judge's ruling against Illinois pension law
        * Judge Finds Reductions In Pension Benefits Unconstitutional
        * Pension Ruling Imminent
        * Hoosiers divided over Obama’s executive action on immigration
        * Illinois Symphony Orchestra Joins The Circus For Holiday Pops
        * School Funding Testimony Taken At Capitol
        * Incoming U of I President Speaks To Springfield Audience
        * To Restore Executive Mansion, Rauner Plans Private Funds


        * Our Opinion: Illiana project too risky for tapped-out Illinois
        * Bernard Schoenburg: Sen. Manar backs aide Watson over Cahnman, Proctor in Ward 5
        * Karen Cox: Shop for a cause
        * Andy Shaw: Protect Illinois’ FOIA law from unnecessary tinkering
        * Quote of the Day: Sunday, Nov. 23, 2014
        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * Deckle McLean: Plagiarism comes with a price
        * Charles Krauthammer: The climate pact swindle
        * Quote of the Day: Nov. 22, 2014


        * LIVE! Southern
        * Rural Long Grove man killed in accident
        * Davenport police ID shooting victim
        * Meeting set to discuss Bloomington street changes
        * Saluki men 20 minutes from second win of season
        * Saluki men beat Illinois-Chicago 67-60 for second win
        * Fritz 55th
        * Allen 60th
        * Eckhoff 50th
        * Paper, ministry partner to help families in need


        * Churches, organizations offer free Thanksgiving meals to people in need
        * More than 30 horses reported dead in Crystal Lake-area barn fire
        * Ferguson prepares for grand jury decision
        * Constable: Bears make teen's wish come true
        * Churches, organziations offer free Thanksgiving meals to people in need

        * The path to winning back the House in 2016
        * Randy Hultgren tops Dennis Anderson for 2n...
        * Rep. Lipinski Accepting Service Academy Ap...
        * Another run? Enyart says he hasn't decided...
        * Politics as Usual: Illinois lawmakers on i...
        * Republican Rodney Davis wins race in 13th ...
        * Three-peat: Schneider eyes another race ag...
        * Shimkus continues push for DOTCOM Act - Th...
        * Hennepin mill sold, future use uncertain -...
        * Kirk the Jerk is scared of Tammy Duckworth...

        * Durbin, Corker Introduce Water for The Wor......

        * Algonquin chief recommended to be next U.S......

        * Somos todos Ayotzinapa. Chicago.
        * The Better Government Association continues to spread the lie about public employee pensions.
        * Marion Barry has passed away
        * Sherman’s Maps
        * An Encounter Along Sherman’s March
        * Rethinking Sherman’s March
        * The Civil War’s Environmental Impact
        * Who Burned Atlanta?
        * The Burning of Atlanta
        * How Lincoln Won the Soldier Vote


        * Illinois Residents Asked to Put the Tobacco Down - Support the Great American Smokeout – November 20
        * Governor Quinn Statement on President Obama’s Executive Action
        * Governor Quinn Statement on Selection of New University of Illinois President
        * Governor Quinn Statement on Senate Committee Passage of Minimum Wage Legislation
        * Governor Quinn Statement on the Installation of Archbishop Blase Cupich




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