SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
No, we’re not the worst

Wednesday, Nov 16, 2011

* Good news and mediocre news in Site Selection Magazine’s latest rankings

* Look, 21st overall ain’t great, but it gives the lie to the “We’re all gonna die!” rhetoric from those who claim Illinois is the worst state ever. And 2nd in new plant openings is a plus, even though our high population means our per million rate is also around the middle of the pack. Tax competitiveness is still not horrible, even after the January tax hike.

* And we’ll never be able to compete with states like Texas because, for the most part, as survey responses clearly show, Illinois doesn’t roll this way

* “a pro-business, entrepreneurial, right-to-work state”
* “no state income tax, ease of pulling permits, available work force”
* “the government makes it easy to do business”
* “Texas is progressive, fewer regulations”
* “willingness to work with business”
* “the tax climate, regulatory environment, incentive programs and work-force development efforts”
* “the state fights OSHA, EPA and other negative, useless regulations; no state income tax”
* “work-force availability, existing facilities and good economics for labor and facilities”
* “cooperation and flexibility of state and local officials; proactive in growing the economy.”

We can make it much eaiser to do business here, no question. But busting unions, killing off the income tax and fighting OSHA and EPA ain’t gonna happen. If that’s the climate you really want, then China or Mexico would probably be your best bets anyway.

…Adding…
Via a commenter, note that 11 of the 20 states that are ahead of us in overall points have worse tax climate rankings.

…Adding More… The Tribune editorial board, which is so sure of itself on so many other issues, goes all wobbly and equivocates on meeting CME Group’s demands

We honor CME’s long history in Chicago, where it pioneered the financial futures that became its mainstay, and created the stock-options industry led by CBOE Holdings. We honor Sears, which also has deep ties to this region. We appreciate all our headquarters companies, and we hope they realize their prospects are good in Illinois, despite the frustrating political dysfunction all around them. Their petitions for economic development incentives should be evaluated individually. The state needs to drive a hard bargain on behalf of taxpayers.

But let’s face it: Illinois is in trouble. Unemployment is at 10 percent, significantly higher than the state’s neighbors. It needs to entice and to retain employers in order to grow its tax base and put its citizens to work. For lack of more taxpayers, the state isn’t paying its bills. It isn’t addressing its spiraling pension costs. But it creates a fundamental sense of unfairness if it tries to bankroll incentive packages for every employer who whispers about moving. Trying to satisfy Duffy and his peers and avoid that sense of unfairness, the General Assembly proposed a grab-bag of special deals, tax cuts and revenue enhancers.

Incentive packages for individual companies have to rise and fall based on their benefit to the state, and they shouldn’t be shoveled through as part of some tax-cut Christmas tree that winds up costing the state hundreds of millions of dollars.

Nobody says being broke is easy. Illinois is finding out just how hard it is.

It’s weird that they can’t just come out and say what they mean.

* Other stuff…

* Chicago Latinos pay more in taxes than they get from government, study finds: Chicago-area Latinos pay substantially more in local taxes than they collect in education and other government services, according to a study being released on Wednesday by the University of Notre Dame. The report by the university’s Institute for Latino Studies says Hispanics pay $4.3 billion in direct sales, property and other taxes, and contribute another $724 million to stores and other businesses they patronize.

* New study shows local Latinos provide vital boost to the economy

* FutureGen-Ameren relationship could be resolved soon

- Posted by Rich Miller        


24 Comments
  1. - wordslinger - Wednesday, Nov 16, 11 @ 11:08 am:

    The U-haul folks will never let facts get in the way of their naturally negative disposition.

    Texas is so right-to-work that they’ve always welcomed with open arms low-wage undocumented workers from south of the Rio Grande. That group has been the main driver in the state’s population growth the last 10 years.

    Bad week for the deport-them-all crowd. You have the Illinois studies cited above, plus the Wall Street Journal has been running a series all week on the blessings of both legal and illegal immigration from Mexico.


  2. - Louie - Wednesday, Nov 16, 11 @ 11:11 am:

    How many right to work states are in the top 20?


  3. - walkinfool - Wednesday, Nov 16, 11 @ 11:13 am:

    Please note: this is a chart of the top half of states in ranking. Wisconsin and Missouri are not even in the top 25. So much for Illinois being “the worst state for business”.

    Good point that if you can justify no workers’ safety or environmental regulation, assuming that the mythical perfect marketplace will fix everything, then China, India, or SE Asia are for you. On the other hand we can learn a lot from other states on making the regulatory processes easier and more timely.

    Illinois is doing surprisingly well in bringing manufacturing back from the brink and even back from overseas, despite public perceptions. But we do need much better entrepreneurial and small business support, and continued growth in exports.


  4. - Yellow Dog Democrat - Wednesday, Nov 16, 11 @ 11:17 am:

    Thanks for the post Rich.

    As I said yesterday, Perception dominates much of our business “climate”. As long as Illinois executives keep spreading the story to other Executives that Illinois is hostile to business in order to advance their own tax break bill or political agenda, our entire economy will continue to suffer.

    Thus the schism between our new plant openings and executive rankings.

    Another great link in this month’s edition of Site Selection Magazine is this article, on how government can better work with the business community.

    There’s sound advice in there for Quinn and DCEO.


  5. - walkinfool - Wednesday, Nov 16, 11 @ 11:23 am:

    Also note that most of those states ranked better than Illinois still have a worse tax climate ranking. Taxes, while important as one part of the cost of doing business, are simply not among the biggest drivers when companies choose to stay or move.


  6. - Irish - Wednesday, Nov 16, 11 @ 11:55 am:

    And right after you build and nice new shiny plant and you are standing there watching the next Katrina come ashore or you are standing on a hill watching your home being swallowed up in a wildfire you are thinking maybe Illinois wasn’t so bad after all.


  7. - ratbstard - Wednesday, Nov 16, 11 @ 12:31 pm:

    Regarding “Chicago-area Latinos pay substantially more in local taxes than they collect…” I’d like to ask why the study couldn’t/didn’t differentiate between taxes paid by Citizens of Latin descent and those paid by IAs of Latin descent? I’m pretty sure it would make a BIG difference.


  8. - Yellow Dog Democrat - Wednesday, Nov 16, 11 @ 12:33 pm:

    The Tribune Editorial would have been much clearer-headed if theyd just said that business tax breaks should be decided within the Budgeting for Results framework. Lets measure the return on investment for taxpayers of giving Duffy $100 million a year versus say, cutting the high school dropout rate in half and see which program comes out on top.

    That said, I give the Tribune credit for not simply regurgitating talking points from CME and Sears. The tide has turned when big business cant even depend on the Tribune for a favorable editorial.

    This tax package is done, IMHO.


  9. - Ahoy - Wednesday, Nov 16, 11 @ 12:59 pm:

    “Texas is progressive, fewer regulations”

    What?


  10. - Yellow Dog Democrat - Wednesday, Nov 16, 11 @ 1:01 pm:

    Also, lets not forget that the Texas budget relies heavily on oil fees which are effectively paid by consumers in Illinois and elsewhere, and the last time I checked they still hadnt figured out how to close a $27 BILLION structural budget deficit. They are on a two year budget, but thats still a pretty big number.


  11. - VanillaMan - Wednesday, Nov 16, 11 @ 1:36 pm:

    Yeah!
    We aren’t the worse!
    Illinois is not the worse place for business!
    Hip Hip! Hooray!

    We merely suck, that’s all!


  12. - wordslinger - Wednesday, Nov 16, 11 @ 1:40 pm:

    Vman, as always, thanks for adding your knowledge and insight to the discussion.


  13. - 47th Ward - Wednesday, Nov 16, 11 @ 1:42 pm:

    VMan, first, the word you’re looking for is “worst” not worse. Worse is used when comparing one thing to another. Worst is used as the least good thing among several things being compared.

    Second, just admit you’re wrong and be grateful that things are better than you’ve been saying for so long. It’s actually a good thing that Illinois isn’t the “worse” state in the country as you’ve been claiming.


  14. - Yellow Dog Democrat - Wednesday, Nov 16, 11 @ 2:17 pm:

    Jeez Vman, even a hardcore partisan ought to be able to admit that being in the top half of the country doesnt “suck.”. And being 2nd in the country in new plant openings is actually pretty darn good.

    You need to get that chip out of your head.


  15. - Robert - Wednesday, Nov 16, 11 @ 3:24 pm:

    23rd in tax climate and better in that ranking than some red states like Oklahoma and Alabama - not bad at all!


  16. - Anonymous - Wednesday, Nov 16, 11 @ 3:40 pm:

    Strange ranking system in that some of the metrics look at gross transactions, instead of on an average or a ratio. Thus all of the top 10 states (by population) make the list, even California that scored a 11th, 37th, 47th and 49th in the 4 categories that weren’t based on gross transactions.


  17. - Just Me - Wednesday, Nov 16, 11 @ 3:46 pm:

    Now, now, Mr. Miller. Just a couple months ago you went off on a tirade about how “lists” can be made to show whatever it is the author wants to show. I’m just sayin…


  18. - dupage dan - Wednesday, Nov 16, 11 @ 4:06 pm:

    =We can make it much eaiser to do business here, no question. But busting unions, killing off the income tax and fighting OSHA and EPA ain’t gonna happen. If that’s the climate you really want, then China or Mexico would probably be your best bets anyway=

    Hmmm, comparing Texas to China and Mexico as far as the business climate goes. Nice touch.


  19. - mokenavince - Wednesday, Nov 16, 11 @ 4:14 pm:

    We sholud at least be ahead of Ohio,I was surprised we are in the top 25. Take a close look and notice what Executive’s think 25th and probly sinking.


  20. - Left Out - Wednesday, Nov 16, 11 @ 4:33 pm:

    Regarding “Chicago-area Latinos pay substantially more in local taxes than they collect…” I’d suggest a deeper look at the data. Most cities generate most of their income from direct taxes from individuals. However, they also need transfers from the state, for example for schools, and direct taxes on corporations, for example property taxes on factories, to balance their budget. Most cities in Illinois would run up a debt every year if they only relied on taxes for individuals who live in that town. There is also the fact, as pointed out in the story, that Latinos have lower average income which effects the amount of sales tax and income taxes paid.


  21. - Robert - Wednesday, Nov 16, 11 @ 4:43 pm:

    ==Now, now, Mr. Miller. Just a couple months ago you went off on a tirade about how “lists” can be made to show whatever it is the author wants to show.==
    I think you need to consider the source. This isn’t a study by a thinktank linked to either political party; it is a study by Site Selection Magazine.


  22. - Joeverdeal - Wednesday, Nov 16, 11 @ 5:23 pm:

    Perhaps the best thought to take away from this article is that Illinois is a state with great potential to improve.

    It goes without saying that Illinois’ government has failed to do many of the right things. It is probably fair to say that Illinois is hostile to business interests, generally speaking. It is also true that the problems that we are suffering now have the potential to cause us to change and to improve this state.

    I would not be surprised to see a greatly improved situation in a few years.


  23. - Demoralized - Wednesday, Nov 16, 11 @ 10:04 pm:

    Yes, Texas is what I would strive for. I particularly like the comment about the lack of regulation and taxes. What business wouldn’t want that? Don’t mind us behind the curtain, spouting pollution, paying low wages, making ourselves rich and not contributing to society through taxes. Great corporate citizens one and all.


  24. - VanillaMan - Wednesday, Nov 16, 11 @ 10:43 pm:

    Since my last comment was deleted, I better make myself clearer.

    It might be OK for just any old US state to rank where we do, but with the history of Illinois? Please - we must do as well as we have had in the past.

    Illinois should always be at the top. Chicago has always been a city that made things happen in the global economy. The fact we rank as we do is obviously insufficient.

    We may not be the worst, but we are definately failing even in comparison of where we have been historically.

    We ain’t Indiana.


Sorry, comments for this post are now closed.


* Durbin's back to the future?
* Rauner bites back at union leaders
* Finally, some good Illinois news
* Question of the day
* Attorney General's office says plaintiffs can't back out of Duckworth settlement
* Can't win for losing
* Rauner claims he's meeting with Dem legislators today
* *** LIVE COVERAGE *** Rauner press conference
* *** UPDATED x1 - Gov. Rauner slams story *** Report that Mrs. Rauner wants no reelection is disputed
* Another judge rules that IDPH director violated due process rights
* "It’s not even close to being balanced"
* Kirk campaign admits contact with "whistleblowers" after Duckworth settlement
* Durbin attacks Rauner, says he'll decide about run after November
* SUBSCRIBERS ONLY - Supplement to today’s edition
* *** LIVE COVERAGE *** Democratic National Convention
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** UPDATED x1 - Emanuel responds *** Right under the bus he goes
* 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

  
* Hoping to revive slumping mobile division, LG launches the V20 in September
* Samsung Z2 may bring Tizen to South Africa
* Google Drive Add-Ons now on Android
* Galaxy A8 (2016) found on GFXBench as a 2015 flagship
* Redmi Pro OLED screens are from China, not Samsung
* iPhone 7 Lightning adapter for headphones seemingly found in Vietnam
* SurveyMonkey study finds social media apps ruled mobile in first half of 2016

* Fulmer atop White Sox prospects list
* Ventura keeps focus on field, off trade winds
* Anthony Ranaudo's debut dragged down by White Sox stuff
* White Sox Rumors: Interest in James Shields is increasing
* Ranaudo flirts with no-no before Sox falter late
* Ranaudo the first AL pitcher to homer in 2016
* Midseason update: White Sox Top 30 Prospects list

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


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

Archives
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
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


* House Republicans Tap Breen to Fill Vacancy on .....
* Editorial: A chance to boost democracy — and sa.....
* Observations on the 2016 conventions' money tra.....
* Durbin rips Rauner, says governor tries to divi.....
* Durbin rips Rauner, says governor tries to divi.....
* Durbin rips Rauner, says governor tries to divi.....


* Donations, volunteers aide painting of 'Donna the Tank'
* Springfield police introduce body cameras
* Jail guard charged with punching Cook County jail inmate
* Duckworth tells her story at Democratic convention
* Disturbance reported at Cook County Jail high-security unit
* Fire erupts at Gurnee propane plant
* Illinois AG: Duckworth lawsuit settlement final
* Illinois seeking new private manager for state's lottery
* Wounded officers struggle with news of Hinckley's release
* 'The House on Mango Street' novel turned into art exhibit

* Illinois seeking new private manager for state's lottery
* Duckworth lawsuit settlement final, attorney general says
* Attorney General: Duckworth lawsuit settlement final
* Health-care hiring keeps local unemployment at lowest in state
* Local unemployment again lowest in state for June
* Durbin rips Rauner, says governor tries to divide Illinois
* Illinois seeking new private manager for state's lotter
* Chicago-area man convicted of $4.7 million Medicaid fraud
* Blagojevich won't attend resentencing, to take part by video
* Chicago-area man convicted of bilking Medicaid for millions

* Huron to buy health care IT consultancy
* Fire erupts at Gurnee propane plant
* This artist is working to make children's hospital wards a little brighter
* Americans blow $27.8 billion a year by being lazy
* U.S. opposes Anthem push for a quick trial in Cigna merger case


* Sale starts for Sox, but Chapman finishes as Cubs split series
* Clinton strides into history: ‘So happy this day has come’
* Can Cubs reverse 1½ months of ‘bad baseball’ and get hot again?
* Sweet: It’s about time
* Person shot by CPD officer in South Shore
* Man shot by Chicago Police in Englewood
* Observations on the 2016 conventions’ money trail
* 2 shot dead in parking dispute; girl, 16, dies from asthma attack
* 19-year-old woman shot, critically wounded in Roseland
* Clinton’s acceptance speech: ‘Stronger Together’


* 1 dead after shot by police in South Shore
* Hillary Clinton accepts Democratic nomination: 'Clear-eyed,' but 'we are not afraid'
* First female presidential nominee's long climb, and the summit that remains
* 2 teens critically wounded in separate shootings
* Man shot by police following South Side robbery
* Cubs lead White Sox 2-1
* Live Blog: Rain clears for opening day of Lollapalooza
* Controversial high-ranking Chicago cop sues IPRA, alleges bias in probes
* Matteson D159 officials spent $96,500 on food, travel, 'gift' Coach purses
* Watch the father of soldier killed in Iraq give powerful address at the Democratic National Convention


* Illinois seeking new private manager for state's lottery
* Duckworth lawsuit settlement final, attorney general says
* Attorney General: Duckworth lawsuit settlement final
* Health-care hiring keeps local unemployment at lowest in state
* Local unemployment again lowest in state for June
* Durbin rips Rauner, says governor tries to divide Illinois
* Chicago-area man convicted of $4.7 million Medicaid fraud
* Blagojevich won't attend resentencing, to take part by video
* Bernard Schoenburg: Durbin leads a very early 2018 gubernatorial poll
* George Will: The path ahead for Clinton


* Tom Jones All Star Game
* UI hoops recruit glance: Tim Finke
* Colangelo, Coach K back at it
* Football countdown: Danville
* Bix weekend heats up Friday
* PODCAST: Sports Talk 07-28-16
* Police checking on connection among robberies
* Illinois seeking new private manager for state's lottery
* Giraffe born Monday at Peoria Zoo
* UPDATED: Man charged, bond set at $5 million over shots fired at deputies


* Official: Hostage situation at Cook County jail ends peacefully
* Legion baseball: Fox Lake wins again downstate
* Floyd misses first day of training camp
* Gurnee fire leader: Massive propane plant fire explosion averted
* The Latest: Clinton says no one person can fix everything

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Durbin rips Rauner, says governor tries to......
* Durbin rips Rauner, says governor tries to......

* Duckworth tells her story at Democratic co......
* Duckworth tells her story at Democratic co......
* Duckworth tells her story at Democratic co......
* Duckworth tells her story at Democratic co......
* Duckworth tells her story at Democratic co......

* Police Shootings and Race
* House Republicans Tap Breen to Fill Vacancy on Bipartisan Reform Working Group
* Rogue Tickets? Watch Your Car For 7-Day Tow Notices
* #TBT - November 2009: Maryville Site In Development Talks
* Graphic For 'Utilities Pay Up' Report
* IPS Graphic
* Cartoon of the Day - 7/28/16 Trump and Putin DNC emails
* Sign At Chicago 'Freedom Square' Encampment
* 'Freedom Square' Tent City
* Chicago Activists At 'Freedom Square' Encampment


* Governor Rauner and Illinois Lottery Seek New Management Partner
* Governor Takes Bill Action
* Governor Visits Quincy Veterans Home Following New Cases of Legionnaires’ Disease
* Zika Virus And The 2016 Summer Olympics - Travel guidance for those heading to Brazil for the Olympics
* Two Cases of Legionnaires’ Disease Identified in Adams County - New admissions to Quincy Veterans' Home halted




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller