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* The Chicago Tribune’s questionnaire for gubernatorial candidates poses just one question about job creation, and it’s way down the list. Odd, considering the state’s unemployment situation. Some candidates offer a few specifics, like Sen. Bill Brady…
I am proposing a $2,100 tax credit to businesses for every new job they create.
Others are more generic, like Sen. Kirk Dillard…
…Form the Illinois Jobs Creation Council to facilitate meaningful and ongoing dialog between business and labor in order to find ways to make Illinois more competitive with the frictional costs of doing business.
And Andy McKenna…
My first act as Governor will be to convene a summit of Illinois’ greatest job creators.
And Jim Ryan…
I will immediately put in place a Council of Economic Advisors composed of economists, university researchers, economic forecasters, business, and labor leaders to make policy recommendations that will make our state more productive and competitive.
Bob Schillestrom didn’t really even address the question.
* Yesterday, though, Democratic gubernatorial candidate Dan Hynes announced a new job plan…
Speaking in Rockford to launch a two-day tour to tout his “Clean Start for Illinois” plan, Hynes’ proposal calls for deferring taxes on qualified small businesses for three years, eliminating state taxes on new software and patent royalties to spur innovation and refocusing current business tax breaks and incentives to modernized job-producing industries.
You can see the plan in its entirety by clicking here. You should take a look. Some of it is quite good, but there are plenty of missing details.
As I told you yesterday, Hynes also slammed Gov. Quinn for dithering on the capital bill. Quinn responded…
“I’ve been working on job creation since I was elected state treasurer of Illinois,” Quinn said. “I worked night and day back in the early 90s on putting deposits in financial institutions, linked deposits, that created jobs all over our state, in agriculture, in small business, in housing. We helped women-owned business owners, we helped disabled people, minority business, I know a lot about creating jobs. I don’t think he knows much about it at all.”
“You know, so, people on the sidelines can complain all they want, all I know is I got the job done after 10 long years,” Quinn said of Hynes’ criticism.
The guv sure does get irritable with Hynes, doesn’t he?
But Hynes makes some good points about the delays in job creation. The governor is doing a fly-around today to cut ribbons on new projects around the state, including in Chicago, Urbana, Edwardsville and Murphysboro. That Murphysboro stop is the subject of a Pantagraph article…
When Gov. Pat Quinn arrives in Murphysboro Wednesday to break ground for a new building at Southern Illinois University, he’ll be just a short drive from three school districts still owed state money from seven years ago.
But, Quinn hasn’t made any plans to stop by and distribute any checks in Benton, Du Quoin or Johnston City.
Rather, the Chicago Democrat said Tuesday that money for the long-sought statewide construction program will only be trickling in for at least the next two months because of other pressures on the state budget. […]
And, though [Quinn] said some money will be raised for construction projects, the bulk of that cash won’t be rolling in until sometime next year.
…Adding… I forgot to post this story from ABC7 about a grossly under-reported aspect of the state deficit…
The ripple effect from the state’s budget crisis keeps growing. […]
For 22 years, Norman has worked for Asi, a 34-year-old not-for-profit agency that provides in-home services for the elderly. It depends on the state of Illinois for 95 percent of its funding and over three hundred employees here have missed their last three paychecks because the state has not reimbursed Asi since last summer. […]
Even though they haven’t been paid since mid-October, most of ASI’s office and field staff continues coming to work. Executive director Rebecca Cruz has written letters to the department of aging asking desperately for reimbursement and in return, was threatened by another state agency. […]
Meanwhile, Addie Norman is afraid to quit $10.40 an hour job because she’s afraid that in this economy she wouldn’t find anything else. And there’s another reason she hasn’t quit.
“All my clients seem to need me. So, I don’t want to leave them. That’s why I haven’t quit,” said Norman.
As I’ve said many times before, these social service agency workers are our angels. And we’re screwing them.
* Meanwhile, some folks in the south suburbs are worried that Gov. Quinn is focusing on the proposed Illiana Expressway to the detriment of the Peotone airport…
Airport advocates, among them U.S. Rep. Jesse Jackson Jr. (D-2nd), fear the governor is shifting his attention away from the airport project and onto the Illiana, an unfunded project that lags far behind the airport in terms of investment and development.
Additionally, a Quinn source leaked to Sun-Times columnist Michael Sneed recently that Quinn is eyeing the Illiana as his “legacy” project - a jobs creator that would forever be linked with his name. Within a few days of that report, U.S. Rep. Debbie Halvorson (D-11th), a longtime supporter of the Illiana project, announced she would seek $5 million in federal funds to pay for further Illiana studies.
Quinn spokeswoman Ashley Cross declined to address the “legacy” issue and said the governor isn’t favoring one project over another.
* Related…
* Hynes: Innovation key to increasing Illinois jobs: llinois Gov. Pat Quinn [yesterday] told reporters in Chicago that he thinks the state should “take a look” at a controversial proposal by the horse racing industry to have slot machines at the tracks as a means of helping pay for a huge new infrastructure program.
* Illinois video gambling: Municipal bans fail to hurt plan’s dollar estimates, state says
* Legalized video gambling still at least a year away, regulators say
* Racetrack owners make push for slot machines
* Tracks offer to ‘rescue’ failing video poker plan
* State needs decisions, not commissions
* Press Release: Governor Quinn Names Key Education Council
* One year after shutdown, outlook of historic sites, parks good
posted by Rich Miller
Wednesday, Dec 2, 09 @ 9:43 am
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“Bob Schillestrom didn’t really even address the question.”
He’s Bob Schillerstrom! He ain’t gotta disclose his taxes and he ain’t gotta tell you ’bout no jobs.
– MrJM
http://twitter.com/misterjayem
Comment by MrJM Wednesday, Dec 2, 09 @ 9:50 am
Here’s a novel plan…..How about “cut” taxes, layoff patronage and create an environment for private capital to invest in Illinois.
Comment by Area 2 Wednesday, Dec 2, 09 @ 9:51 am
Isn’t the point of having a flat tax (like Illinois has) that politicians aren’t supposed to ad a bunch of tax breaks?
If we’re gonna have the tax breaks (which mostly help people who make a good amount of money) shouldn’t we implement the graduated income tax too?
Comment by Carl Nyberg Wednesday, Dec 2, 09 @ 9:53 am
Area 2, this isn’t the federal government. If you cut taxes you can’t sell bonds or print money to cover the deficit. Get real.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 9:53 am
I give Brady points for putting up something of substance with his tax credit.
Dillard, Ryan and McKenna take a long time to say nothing at all. Summits? Council of Economic Advisors? Give me a break.
Good schools, superior infrastructure, safe streets, that’s what state goverments can do to create jobs.
Comment by wordslinger Wednesday, Dec 2, 09 @ 10:02 am
Huh? I don’t get your comment on Brady. Your pointing out the $2,100 tax credit seems to prove he’s the ONLY one offering anything specific. Jobs Creation Council and Council of Economic Advisers? Aren’t those just like all of Quinn’s Blue Ribbon Panels or Task Forces or whatever he’s calling them.
I went to the link for Brady, and he also has something in there about sales tax cuts, rolling back Blagojevich’s tax and fee hikes from the last several years, reforming workers compensation.
Not trying to be snarky at all… just wondering what more you expect? Looking at Hynes’ proposal, he pretty much lists a whole bunch of ways to spend money without addressing how to pay for it, unlike Brady’s tax incentive that is offset by the new jobs it helps create. The only specific in Hynes’ proposal is his somewhat vauge “Angel Tax Credit”. I say this about Hynes’ document, because the vast majority of it could be taken from just about any industry’s current analysis of their particular market in Illinois.
The problem isn’t that there aren’t opportunities. The problem is there is no money to do much of what he talks about. He talks a lot about “investing” in Illinois, which is a great idea, but I’m curious what exactly it is he’s going to invest. Debt?
I guess if you’re looking for lots of text, he wins.
Comment by Amuzing Myself Wednesday, Dec 2, 09 @ 10:03 am
So let me get this striaght….if we want to create jobs, we need to *raise* taxes?
Comment by Peter Arnett Wednesday, Dec 2, 09 @ 10:05 am
I support anything that encourages sustainable economic development in Will County. For far too long we have not enjoyed the development of our more prosperous county friends in the nothern and western Chicago area.
Airport or Illiana—just do it already!
Comment by Will County Woman Wednesday, Dec 2, 09 @ 10:05 am
AM, if you look at Brady’s budget plan, it’s complete smoke and mirrors.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 10:06 am
Arnett, if you don’t so something with this deficit, it’s gonna kill a whole lot of jobs.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 10:07 am
Might some of that “private capital” that will be eager to invest here if we don’t raise taxes, want to invest in service providers like Asi? There’s certainly a need for these services, and with baby boomers aging, demand will only grow.
I do believe service providers such as these should if possible take steps to lessen their dependence upon the state, if only to avoid finding themselves in a bind like this again. However, if they were to charge clients the actual cost of their services they would likely become unaffordable to those who need them most. So someone else needs to step up to the plate if more state money/raising taxes is out of the question. Anyone? Bueller? Bueller?
Comment by Secret Square Wednesday, Dec 2, 09 @ 10:10 am
First, I thought we were talking about jobs plans in this string, but OK.
How is giving $2,100 to employers to hire employees, which is supposed to generate $4,200 in revenue for the state, resulting in $2,100 in new spendable revenue for the state smoke and mirrors?
How is reforming Medicaid and the state pension system smoke and mirrors?
I don’t expect everyone to agree with Brady or any other candidate, but it seems the guy with the most specifics is the guy getting hit hardest for not providing specifics.
Only in Illinois politics…
Comment by Amuzing Myself Wednesday, Dec 2, 09 @ 10:14 am
First, the front-page post lauds Brady. It doesn’t “hit” him at all. Not in the least, in fact. You’re seeing something that isn’t there.
Second, his budget ideas barely dent the deficit. which he claims elsewhere is far smaller than it really is.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 10:16 am
===Might some of that “private capital” that will be eager to invest here if we don’t raise taxes, want to invest in service providers like Asi?===
Why would they? Asi gets 95 percent of its funding from the deadbeat state. Who would put money into a company like that right now?
Comment by Rich Miller Wednesday, Dec 2, 09 @ 10:17 am
Just remember, if they raise taxes, they’re just going to spend 110% of the *projected* revenue increase that will be about 20% higher than what really comes in.
Comment by John Bambenek Wednesday, Dec 2, 09 @ 10:17 am
John, when you come up with a deficit solution, please share.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 10:18 am
Rich, you’re completely right. I misread the line as “Brady offers few specifics” rather than “… a few specifics…” My bad! Can you blush on a blog?
Comment by Amuzing Myself Wednesday, Dec 2, 09 @ 10:21 am
AM, it’s smoke and mirrors if the “reforms” proposed don’t even come close to eliminating a $12 billion + and growing deficit, which they don’t.
The fact is, a deficit that huge CANNOT be eliminated through cuts alone unless you are talking about cuts so massive they would effectively destroy state government in order to save it.
The kind of reforms Brady et al are talking about are certainly worthy of consideration, but they aren’t enough to eliminate the deficit all by themselves.
Comment by Secret Square Wednesday, Dec 2, 09 @ 10:21 am
we have the worst employment picture in 10 years. Exactly where are these jobs quinn has created?
Comment by shore Wednesday, Dec 2, 09 @ 10:24 am
“Why would they? Asi gets 95 percent of its funding from the deadbeat state. Who would put money into a company like that right now?”
Which is exactly my point. What do the hard core anti-tax folks suggest we do with these people — throw them out on the street? If they really believe that private business or charity will do a better job (and I can see where it MIGHT be possible for them to do so) then let’s seem them prove it.
Comment by Secret Square Wednesday, Dec 2, 09 @ 10:25 am
The Trib doesn’t worry about jobs becuase they believe their dopey recall idea is Item #1….of course they are bankrupt and the target of two federal investigations
Comment by CircularFiringSquad Wednesday, Dec 2, 09 @ 10:26 am
Secret:
I don’t think anyone believes you’re going to come up with a way to eliminate the deficit in a year. And you can argue that we have to pass a balanced budget according to the constitution but we haven’t done that in how many years now?
The state’s economy is not going to turn around as long as we continue to encourage businesses through our tax policies to locate in neighboring states. In fact, we will lag even further behind any national recovery - if there is one- and that will be prolonged even further unless we change the way the state spends money.
As is continually outlined here, that will be painful, because most in government and close observers of it, don’t know how to say “no.” They’ve thrown money around for so long, they don’t know how to stop. First, they have to stop, and it will not be pretty. But it’s a reality that’s going to have to be faced or we will NEVER get out of this mess no matter how high taxes are raised.
This argument will be fundamental issue in the fall, and the people of Illinois will decide if they want to continue feeding the beast with their kids’ food or if they want something new - whoever that is. I don’t think that’s going to be a difficult choice for them. Can it really get any worse?! We’re virtually bankrupt already.
Comment by Amuzing Myself Wednesday, Dec 2, 09 @ 10:32 am
I will immediately put in place a Council of Economic Advisors composed of economists, university researchers, economic forecasters, business, and labor leaders to make policy recommendations that will make our state more productive and competitive.
Jim Ryan just outlined all the jobs he will create to study jobs.
Comment by Third Generation Chicago Native Wednesday, Dec 2, 09 @ 10:32 am
Rich-
Deficit solution - stop spending money we don’t have. Start doing budgets in public, through committees like every other legislature in the free world does it. Figure out exactly what our budget deficit really is, because the Comptroller, Treasurer, Governor and the four tops ALL have a different number.
The answer isn’t taking more money from the taxpayers and throwing it down a hole and hoping you can bridge a widening gap when no one knows how wide or deep it is.
Comment by John Bambenek Wednesday, Dec 2, 09 @ 10:35 am
===Deficit solution - stop spending money we don’t have.===
Great. Now, what do you cut to get to $11 billion?
Comment by Rich Miller Wednesday, Dec 2, 09 @ 10:44 am
Re: social service providers and the deficit…
uh-oh looks like Quinn may have a new “ankle-biter”: stroger.
Now stroger is calling for a reduction in the state tax. ha!
if stroger can throw together a creative non-contradictory populist message and tie-in the woes of illinois’ service providers between now and the primary, he may cause a bit of a headache for Quinn–along with McKenna and Hynes.
It seems to me that Quinn went horribly off message when he turned the cook county tax thing into tax relief (populism) for cook county residents. (instead he just should have stuck with the making the veto override threshold more fair and in line with all other legislative bodies argument).
Does Quinn still want to push for a 50 percent tax hike after feb 2nd?
stroger argued for his penny tax for the same reason(s) quinn argued for the 50 percent tax increase. what’s a penny? a modest sum. according to quinn his 50 percent tax increase is a modest sum. stroger argued that cook county penny tax helped the poor and needy. Quinn argued that a 50 percent tax increase is needed to help the poor and needy. without the county penny tax stroger claims that services in the county will have to be cut. according to quinn without the 50 percent tax increase social service providers budgets had to be cut. many have argued that there is bloat at the cook county, which if cut/reduced could avoid the need for a penny tax increase. many have argued that there is bloat in illinois government that if cut/reduced could spare illinoisans from a 50 percent tax increase.
in arguing tax relief for cook county residents, does quinn still have the ability to [properly] justify his proposed 50 percent tax increase for illinoisans? this week, in talking about the cook county tax, quinn sounded a lot like the old pat quinn on tax issues
hmmm…what’s up with this?
Comment by Will County Woman Wednesday, Dec 2, 09 @ 10:45 am
==all I know is I got the job done after 10 long years,==”
What job is that Governor?
Have the state insurance bills been paid so that state employees and retirees are no longer being sent to collection agencies?
Have you stemmed the rising tide of unemployment since you were made governor?
Have you paid the state’s portion of the pension payments since August?
Have you sent the state colleges and universities their appropriated payments since August?
Have you finally sold bonds for the pork bill that you constantly take credit for? How any jobs have you created with this mythical $30 billion?
Have you even started work on your budget address that you are supposed to deliver in a couple months? If so, how are you going to overcome a $13 billion dollar deficit with your puny $3 billion tax increase scheme. How many jobs will this create?
It is ok, I guess, in your view, here in the Land of Lincoln, to stand on the sidelines and get angry at others who at least try to come up with solutions. You can always just talk about all that great stuff you supposedly did back in the eighties when you were a habitual candidate for any office you could get signatures for. Talk about how you started CUB, how you chopped the legislature and made Madigan Speaker for Life, and maybe people will forget what a lousy job you have done for the last 11 months. Speak truth to power and fiddle away while Illinois burns. Anyone familiar with your record would expect no more from you.
Comment by Bill Wednesday, Dec 2, 09 @ 10:49 am
WCW: I guess you didn’t read this sentence in Rich’s original post: “Stroger has no credibility left”….I don’t think anyone will lose sleep when Todd Storger disses them….
As for Illiana, I can say that anything that would alleviate the traffic tie ups at the state lines is a go for me…building an airport in that region seems like a tall order in these economic times…O’Hare is finally expanding and that may have to do for now…
Comment by Loop Lady Wednesday, Dec 2, 09 @ 10:53 am
Rich-
The $11 Billion, or whatever it is (and no one really knows) is the smaller problem. The big problem is what went wrong. If you don’t solve that problem, we are here again in a few more years. Let’s get to the real problem.
You aren’t going to get anyone supporting a tax increase without being in the “never again” coalition.
And another facet of the problem, NO ONE knows what the true budget deficit is, we don’t know how many (much less what they do) programs the state runs, there is divergence in the number of funds we have between officials.
Let’s actually figure out what went wrong, what the real numbers are and then we can actually come up with a plan.
Comment by John Bambenek Wednesday, Dec 2, 09 @ 10:54 am
The solution to the deficit short term is likely to be another federal stimulus package.
In the runup to 2010, the WH and the Congressional Dems aren’t going to let Illinois go Republican if they can possibly help it.
Of course, that’s our money too. But at least Obama is giving lip service to the notion that
now is not the time to impose more taxes on the middle class. Unfortunately, Quinn and Illinois Dems are likely to be hoping for both a big middle class tax increase and a big federal stimulus boost this spring. A spring cash tsunami
as the trees begin to flower in Springfield.
Comment by cassandra Wednesday, Dec 2, 09 @ 10:58 am
What is illinois yearly budget?
What is the actual deficit? ( you hear it is 5-12 billion this is a huge range.)
Comment by question on the numbers? Wednesday, Dec 2, 09 @ 11:00 am
Dude, take a moment to do a Google search. This class started years ago. Try to catch up first.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 11:00 am
Rich, more BS from the usual suspects
Comment by steve schnorf Wednesday, Dec 2, 09 @ 11:02 am
The Asi situation points out how far behind the state really is on payment to vendors especially in the social service area. For too long the state has argued misrepresented the actual length of time it takes to pay. What really happens is that a vendor provides services in the month of December, but cannot even submit a bill to the state for those services until the following month. Then the bill they submit in January may be rejected for technical procedural reasons. The vendor then resubmits in February. If the bill is accepted in February it is scheduled for payment and sent to the comptroller’s office in March. Then the state admits that they are behind 6 months on payment of bills. but the 6 months is from the time the bill is accepted and processed; not from the time the service is rendered. Bottom line, the vendor provided the service in January, the bill maybe got paid in September, if they are lucky.
Comment by One of the 35 Wednesday, Dec 2, 09 @ 11:15 am
To question on the numbers. Since the experts didn’t enlighten you thought I would help. It is estimated that the deficit is 11.5 billion and annual budget was 50 billion in 09 and 52 billion in 10.
Comment by answer Wednesday, Dec 2, 09 @ 11:18 am
–we have the worst employment picture in 10 years.–
Try since 1983. And it’s nationwide. Oddly enough, the global financial meltdown doesn’t respect state borders.
–The $11 Billion, or whatever it is (and no one really knows) is the smaller problem.–
LOL. Well that’s good to know. What do you say, why don’t we solve that real, “small” problem before we lurch into the airy, abstract, big problems?
Comment by wordslinger Wednesday, Dec 2, 09 @ 11:19 am
Schnorf-
Care to elaborate what exactly is BS?
Comment by John Bambenek Wednesday, Dec 2, 09 @ 11:21 am
Note to Governor Quinn: The first step to helping “disabled” people is to not call them disabled, which is offensive to many. It’s “people with disabilities.”
Comment by Indy Wednesday, Dec 2, 09 @ 11:26 am
Still think a smart GOP candidate would FOIA the who is owed how much and for how long, break it down by location (county) and start using it for localized mailings pointing out how bad state government is screwed up….
Comment by OneMan Wednesday, Dec 2, 09 @ 11:36 am
I can’t wait to see Adam Andrzejewski’s responses. He’s got THE most impressive Jobs Growth platform: http://www.adamforillinois.com/Job-Growth/
Comment by Jerry Vachaparambil Wednesday, Dec 2, 09 @ 11:45 am
Jerry, I think the deadline has passed.
Comment by Rich Miller Wednesday, Dec 2, 09 @ 12:11 pm
=== How is giving $2,100 to employers to hire employees, which is supposed to generate $4,200 in revenue for the state, resulting in $2,100 in new spendable revenue for the state smoke and mirrors? ====
becuase it doesnt create 4,200 in Revnue. Under our current tax code if you create a low income job, that low income person not only pays nothing in taxes, they are eligible to recieve money from the governemnt under various programs and credits to help the poor.
So the business creates a minimium wage job. They right off the salary as an expense and then reduce their tax bill y another 2,100. The minimium wage employee pays us nothing in taxes, gets tax money credits returned to them, and consumes social programs for medical care and food becuase.
The state therefore loses money it was getting in taxes, and has to pay out more to help support the worker. its a net loss. Now if the credit was elgible for creating jobs which pay 25k a year or more I would be willng to reconsider. But creating poverty level employment is just another drain.
Another critical point. The money the State spends generally goes into the States economy. Lets say we could magically reduce state spending by 11 billion a year. That means the States economy will be reduced by the billions of dollars it spends here. Pulling billions out of our economy will send unemployement rates soaring while massively increasing the need for govt provided services (the ones we were trying to get out from under).
People kep talking about the govt spending money like the money dissapears in smoke. it doesnt, it goes back into our economy.
Comment by Ghost Wednesday, Dec 2, 09 @ 12:17 pm
The airport is a joke. Every informed person knows that the Illiana would be a far more powerful economic engine. Neither Jesse Jackson Jr. nor the SouthtownStar are informed on this issue.
Comment by nice kid Wednesday, Dec 2, 09 @ 12:18 pm
Adam Andrzejewski has the best job creation platform. I just visited the Tribune website and it seems like thea deadline has not passed.
I think voters would really like what he has to say and his record of job creation and transparency…
Comment by John Bak Wednesday, Dec 2, 09 @ 12:42 pm
The analysis of Brady’s plan is lacking. I don’t necessarily oppose it, but I’d be cautious for one main reason: millions of jobs are created and destroyed, but net out to a much smaller net gain or loss (ie, the change in nonfarm payrolls). If you’re going to subsdize every job created, you’ll be subsidizing far more jobs than the positive net number we hope to see from the monthly reports. This, combined with the reality that Brady’s sum will have a small effect on labor costs, suggests that the plan would have a very low (# of jobs created as a result of plan)/(# of subsidies paid.) Each job created may have a very high cost to the state. And if the job is not productive but for the subsidy (albeit not a huge point due to its small size), then one must also question the utility of the numerator.
Comment by Greg Wednesday, Dec 2, 09 @ 12:59 pm
I was just reading through Adam’s so called jobs platform, is he insinuating that he would try to re-regulate the power companies in Illinois? That seems a little against his principles. Or is he just slinging mud at the current legislators even though he would have went along with it himself?
Comment by Small Town Liberal Wednesday, Dec 2, 09 @ 1:16 pm
Ghost: I’m glad you automatically assume Brady is only talking about minimum-wage jobs. That’s the easiest way to poke holes in the plan.
The fact is, there are SCARCE incentives for businesses to locate here over our neighboring states. Our infrastructure systems, population, natural resources and other positives are offset by how much it costs to do business here, and, in the case of the health care industry, if you’re going to actually get paid for the work you’re forced by the government to take on.
Incentives like Brady’s are simply a carrot to get businesses to consider growing or locating here, and it has to be part of an overall larger jobs plan package.
I find it comical that we hear constant complaining about this candidate has no details; that candidate isn’t specific. And as soon as one gets specific, they’re blasted for their plan. Gee, I wonder why no one is eager to delve into the specifics.
I give Brady credit for actually putting some real proposals out there. That tax incentive, seriously rolling back “I won’t raise taxes” Blagojevich’s tax and fee hikes on businesses and taking on Medicaid and pensions would be a welcome change from the virtual inaction and continued blundering we’ve seen for the last several years that have led us to where we are.
Comment by Amuzing Myself Wednesday, Dec 2, 09 @ 1:47 pm
=== seriously rolling back “I won’t raise taxes” Blagojevich’s tax and fee hikes on businesses===
Could you list those, please?
Comment by Rich Miller Wednesday, Dec 2, 09 @ 1:56 pm
==== I’m glad you automatically assume Brady is only talking about minimum-wage jobs. ====
it is more of deductive reasoning then an assumption.
1. brady could easily have limited the credit to jobs which paid a salary of at least x. he did not, so it was inteded to sccop up these minimial salary jobs.
2. it would only appeal to a business that has been holding off on creating/adding positions, but would find the 2100 incetive sufficient to establish a new never existing position to gain this incentive. Logically thismeans positions that a business had little need or use for, these tend to be the minimium wage jobs from both mom and pop to large scale business. Since most jobs inabuisnessare conencted to revenue generation for the business, it would be illogical for a business to deprive itself of added positions that can generate money.
2. No buisness that has use for an employeee making 25k plus a year would defer filling that job over a 2100 tax credit. the cost of these higher pay jobsfar exceeds the incetive, so the position would have to contribute to revenue generation in the first place to justify the cost. If it did, it will already be filled.
lets not forget the loss from a buisness that is filling needed jobs it was going to hire anyway, but maneauvers them to call them new to take the tax credit.
The incetive is meaningless to the creation of a decent wage job, ergo all it does is generate minimium wage jobs that generate no revenue, and cost the State existing revenue.
All this does is create more deficit.
But answer this litle challange, name me some jobs paying 25k or more a year that would be created because of this incetive, and will not exist without it.
Comment by Ghost Wednesday, Dec 2, 09 @ 2:06 pm
Regarding Quinn’s statement “all I know is I got the job done after 10 long years” was taken out of context as it was directly tied to his work on the Capital Plan (something Blago held up). I think you are faulting Quinn for an awful lot of disasters. He has no magical wand to make Illinois debt free or eliminate unemployment… who does? There are many disadvantages to all the candidates proposals– and taxing isn’t ever favorable, but these are not easy times for Illinois or the rest of the country, we’re going to have to do what we can.
Comment by Deidre Wednesday, Dec 2, 09 @ 2:10 pm
Ghost-cutting a states budget takes money out of the economy? The state gets its money from taxpayers not its own pockets. The 11billion cutback in the states budget can either be used to balance the budget or keep the money in the taxpayers pockets. People and business are much more efficient with their money than the government plus the peopled earned that money not the government. That 11 billion dollars in peoples pockets is worth a lot more to the economy and those people than being used by inefficient government bureaucracies. Why not keep that 11 billion dollars in taxes in the taxpayers hands and let them choose how to spend their hard earned dollars. Lets not forget where the states money comes. The state can lower taxes if it decreases its budget. Lower taxes on business and families creates business investment and job growth and puts the money back into taxpayers hands who spend it more efficiently than the government.
Comment by Downstate Wednesday, Dec 2, 09 @ 2:14 pm
Downstate, have you a clue what you’re talking about?
Comment by Rich Miller Wednesday, Dec 2, 09 @ 2:16 pm
Downstate - How long did you hold on to the belief that Santa Claus was real?
Comment by Small Town Liberal Wednesday, Dec 2, 09 @ 2:19 pm
Please I am waiting to be enlighted
Comment by Downstate Wednesday, Dec 2, 09 @ 2:24 pm
enlightened*
Comment by Downstate Wednesday, Dec 2, 09 @ 2:25 pm
Downstate, you’d better grab a seat. I have a feeling you’ll be waiting quite a while…
Comment by 47th Ward Wednesday, Dec 2, 09 @ 2:26 pm
While everyone knows I support Brady at least he does give some specific answers, unlike the other candidates of those that took the time to respond to the questionnaire. Brady understands both how public policy works to help Business and to hurt it as a Senator and a Business person. You may not agree with all of his answers but Brady had better answers and is more prepared then the other candidates to be Governor and help businesses create jobs.
Comment by Dnstateanon Wednesday, Dec 2, 09 @ 2:52 pm
While that may be the case Diedre, the fact remains that Quinn held up the capital bill too. He held it up for a considerably shorter time than Blago did, but Quinn held it up nonetheless.
I agree that Quinn should get credit where he deserves it, but he should not be absolved of blame for what went on with this year’s budget as a result of his actions.
Comment by Okay Then... Wednesday, Dec 2, 09 @ 3:06 pm
“That 11 billion dollars in peoples pockets is worth a lot more to the economy and those people than being used by inefficient government bureaucracies.”
Well, who makes up those “inefficient government bureaucracies” and who takes advantage of the services they provide? Robots? Giant cardboard cutouts? Space aliens? No, PEOPLE. Living, breathing Illinois residents who have homes and families and spend money on stuff like food, clothing, shelter, entertainment, Christmas gifts, etc.
Take away their jobs and the services they benefit from and guess what — you have fewer people spending money…. which means LESS MONEY going into the state’s economy, which means businesses make less money, and the economy gets worse.
Now I am NOT arguing that state government jobs should never be cut, or that it’s a good thing to impose intolerable tax burdens on private business in order to keep buying votes with social programs. I’m saying there has to be a proper BALANCE between the government and private sector, that neither side can act in a vacuum, and you cannot make a clean, surgical distinction between “real people” and “bureaucrats.”
Comment by Secret Square Wednesday, Dec 2, 09 @ 3:32 pm
OK. How about any single corporation deciding to locate their headquarters here rather than Indiana, Iowa, Missouri, Kentucky, etc?
Maybe they have 200 employees - some executives, some mid-level management and a call center paying minimum wage or a little better. That’s $420,000. Sure, it’s a one time thing, but people who look at bottom lines couldn’t ignore it.
In addition to revenue from all of the non-minimum-wage jobs (just for arguments’ sake assuming your theory about minimum wage jobs is correct), ALL of those employees pay sales taxes that help other businesses create more jobs - some, of course, buying a lot more than others and consequently paying more taxes. And that’s just one business.
As I said before, as part of an overall package to entice businesses to come here, I think it’s a good idea, and it’s a helluvalot better than what they’re looking at now with the current bunch that’s been running the show the last several years.
Comment by Amuzing Myself Wednesday, Dec 2, 09 @ 3:42 pm
JB, I think you are pretty much right in your analysis that “what went wrong” is the bigger problem to be dealt with. The problem is the $11B is the immediate problem. Its keeping the state from paying vendors right now. It looks like its close to making some universities miss payrolls right now, its delaying school aid distributions right now, etc.
From that point of view it really doesn’t matter whether the number is 9, 10, 11, or 12 billion, what matters is that it is huge and we’ve reached the point we can no longer finance it thru payment cycles, etc. (BTW, I’ve told all parties involved that they should sit down together and agree on the number. It keeps people from using
the issue as a beard to avoid addressing the problem)
So you and others (me included) should indeed be looking at what happened and how can it be kept from happening again. But in the meantime its BS to use that issue as a shield to avoid dealing with the immediate, the right now. That’s the budget question Rich was asking you, and I’ll ask it again. What would you do in the next six to 24 months while all the esoteric reforms are put in place and begin to have positive effects on our economy and government spending and revenues?
Comment by steve schnorf Wednesday, Dec 2, 09 @ 3:53 pm
Downstate, please do a google search on voodoo or reganomics as putting you at the foot of the path to your enlightment.
Comment by Ghost Wednesday, Dec 2, 09 @ 4:03 pm
lower taxes, limited government spending? That is an interesting concept nothing at all like what I said.
Comment by Downstate Wednesday, Dec 2, 09 @ 4:30 pm
It is a shame that the state is unwilling albeit unable to pay their bills. The issue with Asi is just one of many. In one instance alone the state owes over 1 1/2 million to contractors working to provide in-home care to seniors. Many of these homecare aids are single mothers. Merry Christmas! What is even more troubling is that a lot of these not for profits are unable to even get lines of credit from banks because their accounts receivables are state based and the banks don’t see this as a reliable collateral. Will it take the closure of these vendors and the lack of service to seniors who will have to go to Nursing Homes or assisted living sources for the bureaucratic mess to come to a head? Seniors who have supported the system for many years are being jeopardized. Their independence is being threatened because our government won’t albeit can’t pay their bills. Enough lollygagging! Let’s flood the airwaves and executive branch of government with calls of ‘it’s time to lay it on the line’ and get er done! What happens when these not for profits have to shut down? Unemployement goes up too! It is all intertwined within the state’s bureaucratic mess.
Comment by Forever Young Wednesday, Dec 2, 09 @ 4:31 pm
The governor’s fly-around today to announce/cut ribbons/groundbreaking for higher ed projects will provide no new jobs because there are no funds available for those projects to move forward. Lincoln Hall at U of I is designed, but will not bid because there are no funds.
There have been multiple announcements for the Chicago Vets Home, and the selection process for the architect/engineer is finally started. There will be no action on that project until March or when funds are available.
Comment by In the Sticks Wednesday, Dec 2, 09 @ 6:32 pm
Now downstate comes the hard part read all the way through about how reganomics failed miserably.
Comment by Ghost Wednesday, Dec 2, 09 @ 9:48 pm
Everybody wants to hammer at Brady. Fact is, he is a businessman and he knows how to make tough choices in tough times. Quinn talked the talk until he decided to run for a full term. He suddenly forgot what cuts he was going to make. A million here, a million there, no one seems to blink. I’ll bet Rich Miller would like to have a million to toss around. Anyway, everyone who feeds at the public trough thinks we need a tax increase. Guys like Brady who are trying for reforms have been involved in the process long enough that there are pet projects that could be squashed and save money. History will show that if they pass a tax increase, they will spend more. They always seem to forget to take care of old business. Give Brady a chance. I’m going to.
Comment by Forcryingoutloud Thursday, Dec 3, 09 @ 9:36 am
Isn’t part of Brady’s plan to put businesses at the public trough with tax credits? That’s not exactly laissez-faire capitalism.
Comment by wordslinger Thursday, Dec 3, 09 @ 9:43 am
Actually the deadline has not passed. Here’s a link: http://elections.apps.chicagotribune.com/editorial/adam-andrzejewski/
I think it would be cool to get citizen feedback on this just like his opponents had an opportunity to have theirs scrutinized here.
Comment by Jerry Vachaparambil Saturday, Dec 5, 09 @ 9:21 pm