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.


* Reader comments closed for the weekend
* SUBSCRIBERS ONLY - Next week's pressers
* Today's long story
* Rauner approval rating: 40-36
* AP and Chicago Tribune - Study: Exelon subsidy would cost $1.6B over 5 years
* Question of the day
* Illinois Credit Unions – A Smarter Choice
* Advertisers behaving badly
* Your daily "right to work" roundup
* *** UPDATED x1 *** It's just a bill...
* Ford plant reaches 100,000 cop car milestone
* House approves marijuana tickets
* *** LIVE *** Session coverage
* More cuts announced
* 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

          
        * T-Mobile’s Galaxy Note 4 gets technical acceptance for Lollipop, update slated for next week
        * Cricket bolsters monthly plans with unlimited talk and text to Canada
        * Chrome Beta 43 for Android released with significant performance improvements
        * Say goodbye to the Nexus 7 as Google pulls listing from store page
        * [Deal] Pick up a discounted Pioneer Android Auto stereo through Amazon
        * Google apologizes for crude Apple image in Google Maps
        * Yahoo to reportedly launch search and digital assistant this year

        * Lenovo’s New K80 4G LTE-Enabled Android 5.0 Smartphone With 4GB RAM
        * Starbucks Network Snafu Results In Free Coffee For Everyone
        * Lumia 830’s Discontinuation Hints At Lumia 840’s Impending Arrival
        * Call Of Duty: Black Ops 3 Release Date Leaked, Set For 6th November
        * WhatsApp Calling Makes Its Way Onto BlackBerry 10 In Latest Update
        * Switzerland To Test Drone Mail Delivery System This Summer
        * Apple Watch Found To Be More Water-Resistant Than Advertised

        * Abreu stays in game after rundown scare
        * White Sox's Sale went to KC clubhouse; trouble averted
        * White Sox avoid turning brawl with Royals into war of words after
        * Sox fall in extras after Sale, Ventura among 5 ejected in tussle
        * Sox fall in extras after Sale, Ventura among 5 ejected in tussle
        * Could melee with rival be galvanizing force for Sox?
        * Tensions boil over in Royals-White Sox fracas

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


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

        Archives
        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


        * Medicaid hit with $106 million cut from budget .....
        * Why isn't Mike Madigan voting on bills?..
        * OUR VIEW: No political handouts prior to electi.....
        * Lack of staffing at Jubilee College State Park .....
        * Mayor Emanuel Taps CTA Boss As His Next Chief O.....
        * State budget fix includes $106M in Medicaid cuts..
        * Girl Battling Cancer Has Block Named in Her Honor..
        * Bill would allow Illinois students to opt out o.....
        * Tea Party to talk Article V legislation..
        * Keeping Residents in IL Still A Major Issue..


        * Bill would allow Illinois students to opt out of state tests
        * Medicaid hit with $106 million cut from Illinois budget deal
        * Chicago Armenians mark centennial of genocide of 1.5M
        * Authorities: Ottawa man killed, cremated in burn pile
        * Sheriff describes security lapse that led to Kankakee escape
        * Illinois House OKs time limit on storing license plate data
        * Judge grants delay in Illinois fatal bank robbery trial
        * Judge rules Chicago man can stand trial for SIU threats
        * Oprah's household items going to highest bidder
        * Chicago mayor taps CTA director to be chief of staff

        * State budget fix includes $106M in Medicaid cuts
        * House passes bill to create high-speed rail oversight panel
        * Bill would allow students to opt out of state tests
        * Illinois House OKs time limit on storing license plate data
        * House passes bill to create high speed rail oversight panel
        * House passes bill treating marijuana possession like speeding ticket
        * Bill banning indoor e-cigarettes won't be called for vote
        * Services for homeless, rape victims among cuts disclosed by Rauner
        * Rauner releases detailed list of budget cuts
        * State lawmakers fast-track bill on Obama library, Lucas museum

        * Chicago mental health provider to close doors
        * United CEO's pay soars to $12.7 million
        * Formento's offers a modern take on old school
        * The go-to dance bands for nonprofit galas
        * 8 questions for Sprout Social's Justyn Howard


          * Starbucks reports register outage in stores in US, Canada
          * Man killed, boy seriously wounded, 2 other teens shot in city attacks
          * Couple finds body in Dyer pond
          * Jury in Wisconsin suitcase slaying can't hear about other death, judge rules
          * Elgin man pleads guilty to sexually assaulting child in 2010
          * Documents: Argument over boyfriend before Wisconsin teen killed parents
          * Drew Peterson police pension hearing begins in Bolingbrook
          * Man killed in Aurora crash Friday
          * Feds seek College of DuPage surveillance videos
          * Chicago to return residents to ComEd


          * Illinois prisons chief says union contracts causing problems
          * Sheriff Dart to investigate unlicensed rehab centers
          * Rauner's first 100 days: The fight between unions and Rauner
          * Large provider of Chicago mental health services, C4, is closing
          * After detective’s acquittal in fatal shooting, prosecutors face criticism
          * Mayor Emanuel taps CTA director to be chief of staff
          * Portage Park church mourns 'favorite son' Cardinal George
          * Lawmakers fast-track bill on Obama library, Lucas museum
          * Emanuel announces more FAA meetings on O'Hare noise
          * Cook County prosecutor to try new approach to drug crimes


          * Deckle McLean: Independent voters the new political wild card
          * Charles Krauthammer: Obama's Nixon doctrine: Anointing Iran
          * State budget fix includes $106M in Medicaid cuts
          * House passes bill to create high-speed rail oversight panel
          * Bill would allow students to opt out of state tests
          * Illinois House OKs time limit on storing license plate data
          * House passes bill treating marijuana possession like speeding ticket
          * Bill banning indoor e-cigarettes won't be called for vote
          * Zach Mottl: Illinois companies need the Export-Import Bank
          * E.J. Dionne: The Gingrich-Adams lesson


          * ‘Continue our struggle’: Armenians ring church bell to honor genocide victims
          * Lottery results
          * Other 2015 Eddy Awards
          * Award salutes 31 years of bike repairs, generosity
          * Q-C Starbucks stores affected by computer glitch
          * Art on the Square poster highlights ‘awesomeness’ of fountain
          * Art on the Square poster highlights fountain
          * West Central, Wade sweep Routt
          * 5K event to benefit Duncan Mansion
          * (No heading)


          * Images: Cubs over Reds, 7-3 in 11 innings
          * George's fortitude helps Jacobs drop Huntley
          * UEC River softball, baseball races tighten up
          * ‘I am a woman': More from the Bruce Jenner interview
          * In the end, Stevenson reigns

          * Dold to replace Schock on Ways and Means C...
          * Dold gets prized seat on House Ways and Me...
          * Riopell: Aaron Schock's loss is Bob Dold's...
          * Obama Literally Edits Out the Genocide, Ma...
          * IVCC's Mr. Phillips goes to Washington
          * Dold gets Schock's coveted Ways and Means ...
          * Chicago-Area Mom Pushes for Legalization o...
          * Money race begins for Congress next year
          * Republicans back bill letting illegal immi...
          * Armenians Commemorate Centennial Of Genoci...

          * Tom Cotton prepares for Patriot Act battle...
          * Local family joins rally marking centennia......
          * Republicans Who Voted For Loretta Lynch Vo......

          * Senators announce "Aaron Swartz Should Hav......
          * The delay confirming Loretta Lynch was wro......
          * Lynch confirmed: DOJ lawlessness to continue...

          * Liberland
          * Illinois homeless veterans to get $675K in additional housing and support services
          * Illinois home prices move closer to pre-recession levels
          * Haven’t renewed? Keep calm and turn to IAR for managing broker license assistance
          * As sewer video bill dies, your call against property lien bill is needed, too!
          * March Illinois housing data reports available in Spanish
          * IAR supports SB 1612 and HB 3693
          * $75,000 in REALTOR® funds in place to help tornado victims
          * Illinois REALTORS® two for two on targeted legislation; SB1380 dies
          * Winthrop Harbor cuts development fees in effort to spur growth


          * IDPH Moves to Eliminate Meningococcal Meningitis - New Vaccination Requirements for Adolescents
          * YOUR ACTIONS MATTER! kicks off statewide as preparations begin for new server training law
          * Emergency Management Officials Launch Weather Alert Radio Contest - ‘Weather Alert Radios Save Lives’ contest promotes awareness; 100 radios to be awarded
          * IDOT Launches Statewide Listening Tour to Discuss Illinois Infrastructure Needs, Priorities
          * Illinois Student Assistance Commission Encourages Families To Learn About Personal Finance During Money Smart Week Event





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