28 Comments - Team Sleep - Tuesday, Nov 15, 16 @ 9:50 am: This may be wishful thinking but it would be awesome if this was the horse that gets traded for something Rauner wants (like worker’s comp reform). This is a good bargaining chip. - anon - Tuesday, Nov 15, 16 @ 9:51 am: Everyone wants a balanced budget, but no one wants to pay the additional taxes required to achieve it. - sulla - Tuesday, Nov 15, 16 @ 9:58 am: Economic development is already on life-support in this state. This set of proposed eliminations would pull the plug. - cdog - Tuesday, Nov 15, 16 @ 9:58 am: That should sufficiently upset several special interest groups and lobbyists. /s - Deft Wing - Tuesday, Nov 15, 16 @ 10:01 am: This is typical Davis legislation– DOA. - JS Mill - Tuesday, Nov 15, 16 @ 10:03 am: =Economic development is already on life-support in this state.= Been to Chicago lately? - Honeybear - Tuesday, Nov 15, 16 @ 10:04 am: This is an unachievable list. It’s merely a warning shot across Rauners bow. Many of these would be a titanic to end. It’s a warning shot to say these programs will get a lot of public attention as fraud and waste and corporate welfare. The berserkers are merely biting their shields. It’s a haka at the Raunerites. - en absentia - Tuesday, Nov 15, 16 @ 10:06 am: Broadening the tax base, coupled with workman’s comp might be a way… - Honeybear - Tuesday, Nov 15, 16 @ 10:07 am: Yes economic development has been on life support because Rauner intentionally put it there. DCEO is a ghost town of unfilled positions and neglected programs that were helping the businesses of our state. - Honeybear - Tuesday, Nov 15, 16 @ 10:09 am: This is the target list of hostages that Rainer can expect to be destroyed if he goes after labor. - Ghost - Tuesday, Nov 15, 16 @ 10:17 am: i would add in a tax credit based on the percentage of jobs an employer provides that pay 40k a year or more and offer health insurance - Big Muddy - Tuesday, Nov 15, 16 @ 10:18 am: =This is the target list of hostages that Rainer can expect to be destroyed if he goes after labor.= Brilliant idea. Let’s just kick all job producers, both union and nonunion, out of the state. Deep thinking right there folks. - Anon - Tuesday, Nov 15, 16 @ 10:20 am: ===$2.5 BILLION=== $5.5 billion to go folks! We’re almost there for FY 2017! ===Eliminate E-10 incentive=== Fun fact: At the pump incentives on ethanol while also having a blending mandate (thanks to the fed and EPA) actually wind up supporting the price of fossil fuels, which is one of the reasons why the feds nixed their tax credit and stuck with the mandate. A tax expenditure is supposed to have some sort of net social benefit. The net social benefit of an ethanol tax credit isn’t supposed to be supporting the price of fossil fuels at the pump — even though the actual cost of this tax expenditure isn’t that expensive, that’s sort of all the more reason to get rid of it. It doesn’t do anything positive, and if it did, it’s not at a meaningful amount. This is a tax that the consumer pays at the pump and there is no reason to let the retailer keep part of it. ===Eliminating the Single Sales Factor=== We should probably keep it single sales, though. That’s kinda the standard. ===Repeal the Estate Tax exemption increase=== Married couples with over $11 million might have to pay estate taxes? Sure. ===Extend sales tax to Internet downloads=== Already applies to some downloads. These folks must not play video games. ===End the for profit hospital tax break=== Good! If they want to make money and exist to make money, let them pay the taxes the for it the same as the rest of America’s businesses. If they can’t exist in the market and pay their taxes, let them consider becoming a non-profit and provide some kind of public good that’s not profit driven. - Earnest - Tuesday, Nov 15, 16 @ 10:20 am: >Late today, Rep. Will Davis (D-Crestwood) filed… Agree or disagree, I celebrate his filing a bill with specifics in it that will most certainly be unpopular with many. It’s a rare bird in Illinois politics the past several years, from anyone at all. - City Zen - Tuesday, Nov 15, 16 @ 10:26 am: Isn’t Will Davis in Hazel Crest, not Crestwood? - Anonymous - Tuesday, Nov 15, 16 @ 10:40 am: The IMA analysis is inaccurate. The bill does not include a coal severance tax, an alternate minimum corporate income tax or a sales tax on internet downloads. - A guy - Tuesday, Nov 15, 16 @ 10:44 am: That list is going to need some editing to go anywhere. I’m not sure there are 10 people in the chamber who could vote for this without serious flak. - sulla - Tuesday, Nov 15, 16 @ 11:05 am: Honeybear, At no point in its 13-year existence has DCEO been a successful state-level economic development organization. DCCA used to be a respectable state-level ED organization, staffed with actual professionals who knew how to do economic development. A lot of the processes and programs created by DCCA back in the 80’s went on to be benchmark programs around the country….for a time. In 2003, Blago gutted DCCA, cut the budget and replaced experienced professionals with a bunch of loyal political appointees. The trend continued under Quinn. Our once class-leading programs have failed to evolve and keep pace in an increasingly competitive arena. What is left of those old DCCA programs has been systematically gutted by the legislature such that only Enterprise Zone and an increasingly-useless EDGE program are all that remains. And now we’re entertaining proposals at the legislature to kill off even these paltry programs with nothing in the pipe to replace them. - Honeybear - Tuesday, Nov 15, 16 @ 11:29 am: Sulla- from what I understand you are totally correct. I don’t think this will go anywhere. I am just pointing to the hypocrisy of a venture capitalist governor not really having any interest in economic development as evidenced by his intensional starving of DCEO. He doesn’t want to fund agencies or propose a budget. He just wants Intersect Illinois to cut non- foia deals and destroy all labor so that his investment profits can grow as evidenced by his tax returns. If he cared about the state he would have funded and expanded DCEO. All he has done is create a non legal P3 and DoIT in order to cut jobs through automation - sulla - Tuesday, Nov 15, 16 @ 11:32 am: JS Mill: Chicago is doing alright with bringing in office HQ operations that employ 100-200 highly-paid executives. They’re also doing okay with low-staffed data centers too. At the same time, the city is hemorrhaging its manufacturing base to Northern Indiana and Wisconsin. So if you’re willing to trade a few hundred good paying white-collar jobs for thousands of middle-class manufacturing jobs, then I suppose you can say that Chicago is doing well. But keep in mind that Illinois is a lot bigger than Chicago and there are a ton of people in downstate communities that are not benefiting from Chicago’s executive office boom. At all. - wordslinger - Tuesday, Nov 15, 16 @ 2:52 pm: – At the same time, the city is hemorrhaging its manufacturing base to Northern Indiana and Wisconsin.– Show me. - Blue dog dem - Tuesday, Nov 15, 16 @ 2:57 pm: Word. Might i remind you we lost my Oreos to Mexico…boo hoo. - sulla - Tuesday, Nov 15, 16 @ 3:49 pm: Wordslinger: BLS data from the QCEW series shows Illinois losing manufacturing employees steadily since 2010 while Indiana and Wisconsin gain. The tables won’t paste here for some reason, but it will only take you about 10 seconds to pull up the charts. Start here: http://www.bls.gov/cew/. Manufacturing is listed under NAICS code 31-33. Or you could read this article: http://madisonrecord.com/stories/510649514-strong-illinois-jobs-report-in-october-but-losses-continue-in-manufacturing Or this one: http://www.chicagotribune.com/suburbs/daily-southtown/opinion/ct-sta-berg-manufacturing-st-0410-20160407-story.html or this one: http://www.mystateline.com/news/illinois-losing-thousands-of-manufacturing-jobs Or you could talk to any of the corporate site selectors in the Chicago area who will confirm. Or you could listen to what the IMA is saying and has been saying for years. Or you could talk to any of the local economic development practitioners in this state. They’ll all tell you what you steadfastly refuse to acknowledge: Manufacturing is leaving Illinois for our neighbors. - Whatever - Tuesday, Nov 15, 16 @ 3:52 pm: ==The IMA analysis is inaccurate. The bill does not include a coal severance tax, an alternate minimum corporate income tax or a sales tax on internet downloads. == It also does NOT repeal the EDGE credit. - wordslinger - Tuesday, Nov 15, 16 @ 4:03 pm: Sulla, why choose 2010 as the baseline? Because that’s when the federal auto bailout kicked in high gear and GM and Chrysler started calling back tens of thousands of workers they had laid off in neighboring states. If you want to pretend there are magic state bullets to the long-term global trends in manufacturing, you can get a job with the Rauner Administration, for sure. –Or you could talk to any of the corporate site selectors in the Chicago area who will confirm.– Or you could read Site Selection magazine, which routinely has Illinois among the top states in new projects. Last year, Illinois was third (as it was in 2014), behind Texas and Ohio, with 413 new projects. Indiana was tenth, with 166. The cheeseheads didn’t make the list. http://siteselection.com/issues/2016/mar/cover.cfm - Anonymous - Tuesday, Nov 15, 16 @ 4:27 pm: The Effingham Daily News can just rewrite the IMA press release and viola an editorial! - wordslinger - Tuesday, Nov 15, 16 @ 5:26 pm: What’s the corporate tax rate that manufacturers pay on income derived from goods sold outside the state? Hint: It starts with a “Z” and ends in an “ero.” That’s why IMA plotzed when Cullerton wanted to publish the tax bills of big Illinois manufacturers. Read their annual reports and you’ll see why. - 4 percent - Tuesday, Nov 15, 16 @ 5:37 pm: You’ll note that the IMA analysis clearly says “as described by the proponents” in their fact sheet that they provided to legislators and staff. Sorry, comments for this post are now closed.