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* Gov. Pat Quinn was chased down by reporters in Urbana today and eventually agreed to do a media availability. Our new friend Michael Kiser from WDWS Radio provided us with some raw audio. Listen…
* Quinn was asked about the decision by Jimmy John’s founder to leave Illinois because of the income tax hike. He said he hoped that wouldn’t happen and then went on and on about why the tax hike was necessary and temporary. He also talked about the new companies coming to Illinois and said, “We’re the capital of the Midwest, let’s not sell ourselves short… I’m not ever gonna bum rap our state. We have the best of the best and we always will.”
…Adding… Treasurer Dan Rutherford was on WLS AM just now talking about Jimmy John’s [The company’s founder contributed $100,000 to Rutherford’s campaign in the last election cycle]. Rutherford said he talked to the founder just before the show, and predicted that the “dramatic” tax hike would effect other companies. Rutherford said the owner was also upset about the state’s minimum wage increase.
* The governor was also asked about this story…
The acting Director of the Illinois State Police is out of a job.
Jonathon Monken was appointed to the post by Governor Pat Quinn in March 2009 but never received Senate confirmation.
According to Eric Madiar, attorney for Senate President John Cullerton, the governor’s office did not turn in paperwork that would have allowed Monken’s directorship to roll over into the new general assembly.
Thirty-seven others are in the same position, including Gladyse Taylor, who is over the Department of Corrections.
“I think this is much ado about nothing, frankly… [The Senate seems] to think they have to be reappointed, temporarily reappointed.” He said he would likely make those temporary appointments. Quinn said he wished that the Senate had acted on those appointees earlier. He defended Acting Director Monken as a “good man,” a “real leader,” and an “all-American hero.” But he wouldn’t say whether Monken would be reappointed.
* It’s not on the tape, but Gov. Quinn also said he wants input from the public before he decides what to do about the death penalty repeal bill sitting on his desk…
Gov. Pat Quinn says he’d like to hear from the citizens of Illinois before he decides whether to sign legislation that would abolish the death penalty in the state.
Quinn said he’s already weighing input from prosecutors, clergy and others on the bill passed this month by the General Assembly. The governor wouldn’t say when he’ll make a decision. He says he’s going through a period of what he called “reflection and review.”
* Related…
* Quinn: Senate should have acted on appointees
* Quinn stresses that tax increases are temporary
* Comptroller’s lawyers review Monken case
* ADM pledges $10 million to UI
* Despite the tax increase, Illinois remains the go-to state for employment - by Pat Quinn
* To the Land of Lincoln: Wisconsin is ‘Open for Business’ - by Scott Walker
* Social services back Senate bill on bonds sales
* Illinois Poverty News Weekly Update
posted by Rich Miller
Thursday, Jan 20, 11 @ 8:00 am
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“reflection and review”
He’s just stalling, he doesn’t want to sign this bill and he’s waiting for the best opportunity when the public will be otherwise occupied. Like, right before the start of the NFC championship?
Comment by Wensicia Wednesday, Jan 19, 11 @ 3:48 pm
===Rutherford said the owner was also upset about the state’s minimum wage increase.===
Ding! I think we have a winner in the Why is Jimmy John Moving Sweepstakes!
Comment by 47th Ward Wednesday, Jan 19, 11 @ 3:49 pm
The SJR has a link to Madiar’s letter, and he misspells JBT’s name. She’s hardly a political newcomer.
Comment by Anonymous Wednesday, Jan 19, 11 @ 3:57 pm
I’d like to see someone stack up how much cash Jimmy John gave to Republican candidates last year, so we can evaluate his claim that he can’t afford the tax increase.
Comment by Yellow Dog Democrat Wednesday, Jan 19, 11 @ 4:03 pm
“We’re the capital of the Midwest, let’s not sell ourselves short… I’m not ever gonna bum rap our state. We have the best of the best and we always will.”
Why does his statement bring images of Sadaam’s PR guy…?
Comment by GetOverIt Wednesday, Jan 19, 11 @ 4:05 pm
Quinn should ask Brady and Rutherford to give Jimmy John a refund so he can afford to stay in Illinois.
Comment by Yellow Dog Democrat Wednesday, Jan 19, 11 @ 4:06 pm
“Quinn should ask Brady and Rutherford to give Jimmy John a refund so he can afford to stay in Illinois.”
Why?
Comment by Anonymous Wednesday, Jan 19, 11 @ 4:08 pm
===I’d like to see someone stack up how much cash Jimmy John gave to Republican candidates last year===
All you gotta do is search the Board of Elections’ website. Liautaud gave $295K during the cycle (including 2009) to Republican candidates, including $110K to Bill Brady, $60K to Andy McKenna, $25K to Tom Cross, $100K to Rutherford.
The company gave an additional $10K to Rutherford.
Comment by Rich Miller Wednesday, Jan 19, 11 @ 4:08 pm
== He defended Acting Director Monken as a “good man,” a “real leader,” and an “all-American hero.” ==
All of which may be true, none of which are necessarily the qualifications to be director of the state police.
Comment by OneMan Wednesday, Jan 19, 11 @ 4:12 pm
Gee, you mean the guy is a Republican who is opposed to higher taxes? Why who ever heard of such a thing?
Comment by Jaded Wednesday, Jan 19, 11 @ 4:15 pm
And Monken is currently being trained in Hawaii so if there’s ever an outbreak of 80-degree sunshine in January in Illinois, he’ll be prepared to handle it.
Comment by piling on Wednesday, Jan 19, 11 @ 4:15 pm
–“We’re the capital of the Midwest, let’s not sell ourselves short… I’m not ever gonna bum rap our state. We have the best of the best and we always will.”
Why does his statement bring images of Sadaam’s PR guy…?–
We certainly are capital of the Midwest. That’s just a historic truth.
What do you want the governor of Illinois to say? Claim the state is going bankrupt the day before it’s set to market bonds, a la Christie in NJ? Brilliant business sense there.
They had to pull the issue, and those remarks will show up in every agency rating report for years and cost their taxpayers real money in the market.
Comment by wordslinger Wednesday, Jan 19, 11 @ 4:21 pm
So is Jimmy John also going to pull all of his very profitable sub shops out of Illinois because of the minimum wage increase?
Comment by Bluefish Wednesday, Jan 19, 11 @ 4:26 pm
YDD - you can do it yourself pretty easily, but the total is $195,000 in 2010, and another $100,000 in 2009. Those are just the contributions in Illinois. Not sure if there have been contributions in other states. Another $84,600 was given in 2010 to federal candidates.
Comment by dave Wednesday, Jan 19, 11 @ 4:26 pm
Yup, great economic development plan.
First, pass largest tax increase in Illinois history.
Second, mock businesses saying tax increase will have no effect on their business.
Last, insult and excoriate those CEOs who opt to relocate.
Yup… I see nothing but sunshine ahead.
Comment by John Bambenek Wednesday, Jan 19, 11 @ 4:43 pm
Quite honestly, I think Subways and Quiznos are far better sandwich places anyway–and more affordable. And obviously another disgruntled, wealthy IL GOP candidate backer who should be happy he at least helped Rutherford get in. In any event, the President of China (a place with oh, only over 1.2 BILLION residents–yeah, that IS about 4 of them for every 1 of us, is making his one and only “special” stopover in the States in little ‘ol Chicago, ILLINOIS tomorrow–expect THAT friendly visit might end up generating a few more jobs for Illinoisans than Mr. Jimmy Johns has been able to muster up??? I think maybe–oh, and I remember when some folks were mocking Pat Quinn for a Chinese Ping-Pong Tournament/games he attended several months back in Chicago…did anybody ever ponder that maybe there just IS some method to his alleged madness….
Comment by Just The Way It Is One Wednesday, Jan 19, 11 @ 4:44 pm
- Last, insult and excoriate those CEOs who opt to relocate. -
Perhaps we should send them thank you cards? Wouldn’t want to hurt any feelings.
Comment by Small Town Liberal Wednesday, Jan 19, 11 @ 4:46 pm
Just listened to PQ in Cham-bana…..bleeping genius…he twirled those reporters around his little finger and tied em in knots
No wonder NoTaxBill lost….Maybe he can loan the FL condo out to Ji$$yJohn.
Unless it is full of campaign staff plotting the 2014 comebacker.
TeeHee
Comment by CircularFiringSquad Wednesday, Jan 19, 11 @ 4:49 pm
@dave -
So, about $300K in campaign contributions, but he can’t afford a four year, 2% tax hike?
He must be SUPER rich.
In order to pay $300,000 in new taxes over four years, he’d have to report $3.75 million in income a year.
Boy, if I was making $3.75 million a year, I’d probably bail on the state where I got my start too.
Comment by Yellow Dog Democrat Wednesday, Jan 19, 11 @ 5:04 pm
–Last, insult and excoriate those CEOs who opt to relocate.–
Did JJ say he was relocating his headquarters? I think he said rented a house in Florida, enrolled his kids in school there, and would be commuting between Illinois and Florida for the time being (whoever heard of a businessman doing that?).
He went on to say that he was thinking about expanding his corporate headquarters in Champaign, but is getting feelers from other states and that he likes to be courted and feel wanted.
Savvy?
JB, hold your cards a little closer to the vest, son, if you’re going to play poker.
Comment by wordslinger Wednesday, Jan 19, 11 @ 5:18 pm
I’ll admit that Jimmy’s argument is weakened by the contributions. But, I would argue that the same logic should be applied to SEIU the next time they come around for a wage increase or health care. Talk about some contributions that could have been used to help the membership.
Comment by More courage Wednesday, Jan 19, 11 @ 5:35 pm
Anybody that has $100,000 with nothing to do but contribute to Dan Rutherford’s campaign for Treasurer has too much money for his own good. Perhaps we need a special tax on sandwich shop owners? We could call it the Bologna tax!
Comment by Louis Howe Wednesday, Jan 19, 11 @ 5:39 pm
Mr/Ms Howe :
most think it was love at first sight!
Comment by CircularFiringSquad Wednesday, Jan 19, 11 @ 5:45 pm
This is as subtle as Quinn’s people can be, making it easy as possible for Johnny Monken to make a graceful exit and take Quinn off the hook for his hiring. After this point, it will get more embarrassing for all involved. Leave now, you can blame it all on the equivalent of an HR department paperwork snafu, and nobody has to take any real blame. He can say that in the gap of time where everything was up in the air, Monken found a better situation that worked for his family and professional goals.
Or you can let it get ugly.
Comment by Newsclown Wednesday, Jan 19, 11 @ 6:01 pm
Here’s where I once again make my pitch for Senator Millner to head the State Police.
Comment by Yellow Dog Democrat Wednesday, Jan 19, 11 @ 8:37 pm
@More Courage -
Trust me, lawmakers and the governor don’t need an excuse to say No to SEIU. They routinely do.
Over the last 15 years, the Illinois General Assembly has gone from:
“You just got a cost of living increase two years ago”
to
“You just got a cost of living increase five years ago”
to
“Are you kidding me? Do you READ the newspapers?? We’re BROKE!!”
That goes not just for AFSCME, SEIU, and the other unions, but all private, non-union service providers as well.
Comment by Yellow Dog Democrat Wednesday, Jan 19, 11 @ 8:42 pm
The time to imitate Gropuon and ask for handouts was *before* the tax increase and caps passed. I think That’s what Jimmy was angling for, to make some noise expecting to be wooed with some “sweeteners”.
Comment by Newsclown Wednesday, Jan 19, 11 @ 9:23 pm
The Domino’s pizza guy use to regularly appear before Congress whenever raising the minimum wage was on the table. He argued against raising the minimum wage, claiming it would impoverish him. He collects Frank Lloyd Wright.
Comment by Emily Booth Wednesday, Jan 19, 11 @ 9:50 pm
no dialog on reducing spend or addressing the bloated pensions. nothing but tax, tax, tax. quinn and madigan are guilty of fiscal malpractice
how can we recall these dopes?
Comment by sage Wednesday, Jan 19, 11 @ 9:53 pm
@Emily,
You are also missing the point. Things like the minimum wage increases hit the little business owners very hard, especially in rural areas that don’t have Chicago’s scale of economy. Unless you are arguing that the Domino’s guy is representative of the average small businessman? You do realize, don’t you, that the average small businessman makes a fraction per year compared to that mega-company CEO you just used as your poster boy…
Comment by Liandro Wednesday, Jan 19, 11 @ 10:22 pm
OT - I got a kick tonight watching Sheriff Tom Dart whining about the 16% budget cut Toni Preckwinkle is imposing on all county offices. Here is a hint, Tom, drop the useless enforcement of the unwinnable Federal War on Drugs. Try focusing your reduced resources on crimes that actually have victims not enforcing a stupid prohibition that only enriches drug lords and gangs.
Comment by wishbone Wednesday, Jan 19, 11 @ 11:14 pm
As long as Jimmy John is walking out our state’s door in a hissy fit of mayonnaise and mumbled threats, I don’t really feel like walking into his door anymore to buy his Billy Club.
I’m going to miss that. Oh well. There are literally three other sub shops within a block of the local JJ’s and none of those guys are wussing out on us.
Comment by G. Willickers Thursday, Jan 20, 11 @ 1:38 am
after poisoning half the state with alfalfa sprouts jimmy johns wants to leave the state…good riddance..
Comment by pyrman Thursday, Jan 20, 11 @ 6:36 am
Wiki account of Jimmy Johns:
http://en.wikipedia.org/wiki/Jimmy_John’s
Jimmy bites the hand that paved his start. With a grounding in IL college towns of Charleston and Macomb, Jimmy’s initial and much of his continuing success in college towns across the country could be seen as being heavily subsidized by the taxpayers, the parents of college students, and college students themselves, many of whom earn minimum wages to put themselves thru school.
Jimmy John’s move should be viewed as another case of paradoxical hypocrisy, the tale of the “self made” millionaires who have depended heavily on a base of the lower and middle class consumers and taxpayers to amass their fortunes and befriend Republican politicos.
Jimmy John, sub vendor. You’ll find like company in Florida.
Comment by vole Thursday, Jan 20, 11 @ 7:06 am
As a long time customer of Jimmy Johns, I am saddened that the company would abandon the State that put them on the map. The company prospered from Illinois customers, while paying artificially low taxes, while the State was having to borrow from the pension fund and go 6 plus months past due on paying their debts. I for one will boycott Jimmy Johns and will never patronize their stores, if they leave Illinois. If they aren’t willing to participate in the shared sacrifice of increased taxes, as all of their Illinois customers will be doing, they won’t deserve the continued loyalty of the customers that got the company started. I hope their customers are loud and strong and tell Jimmy Johns that if they abandon Illinois, Illinois customers will abandon Jimmy Johns.
Comment by Champaign Voter Thursday, Jan 20, 11 @ 8:27 am
Why is this surprising to anyone (the move of Jimmy John’s founder out of Illinois)? This is basic economics - the higher taxes go, the more high earners you’re going to force out. Unfortunately for Illinois, many of the highest earners live within an easy drive of Iowa, Indiana or Wisconsin. This is just one public story - I’m sure there are many others who are contemplating similar moves.
Comment by Bluejay Thursday, Jan 20, 11 @ 8:42 am
==Unfortunately for Illinois, many of the highest earners live within an easy drive of Iowa, Indiana or Wisconsin==
And if they move there they will pay much higher taxes than they pay in Illinois even with the increase. Look it up. Don’t just listen to the wingnuts.
Comment by Bill Thursday, Jan 20, 11 @ 8:53 am
- This is basic economics - the higher taxes go, the more high earners you’re going to force out. -
No one is forcing them. Basic economics actually explains that with a flat tax, the high earners are affected less than lower earners (try reading about utility).
Comment by Small Town Liberal Thursday, Jan 20, 11 @ 8:56 am
Yes, boycott your local Jimmy John’s…because sticking it to that local franchise owner and his employees is going to badly damage the CEO of corporate JJ’s, which is a SEPARATE COMPANY…why do I even bother trying to explain this?
The people you’ll be hurting the most are that local owner, his employees, and the local community that gets taxes and (probably) charity involvement out of that d.b.a. company. Further, that local owner is tied down and dedicated to that local community/economy…is any of this sinking in? Are you so absorbed by your politics that you are blinded to how business and economies work?
Comment by Liandro Thursday, Jan 20, 11 @ 10:34 am
There’s more corporate owned Jimmy Johns stores in Illinois than any other state. If you boycott a Jimmy Johns in Charleston, Champaign, or Macomb, there’s a good chance you would not be hurting a franchisee. If Jimmy Johns corporate leaves Illinois, there’s a good chance that there will be Jimmy Johns corporate employees out of work in Champaign. I’m not boycotting Jimmy Johns now, but if they leave Illinois, that will be the end of my days of patronizing Jimmy Johns.
Comment by Champaign Voter Thursday, Jan 20, 11 @ 10:56 am
Liandro,
Yes the local franchise owner will be hurt. However, it’s Jimmy Johns name on that storefront, so I am not comfortable patronizing such at this time. And it’s too bad because I love their bread.
I also have a long memory. It took me 15 years to start reading the Sun Times again because I boycotted it in college due to a labor dispute that was then ongoing.
Comment by cermak_rd Thursday, Jan 20, 11 @ 11:50 am
Jimmy John’s Freaky fast in leaving the state
Comment by Anonymous Thursday, Jan 20, 11 @ 12:01 pm
I don’t know why people are demonizing Jimmy John’s for this. Other companies, such as Caterpillar, etc are doing the same thing, only more quietly. They’re building plants in right to work states, and gradually shifting their presence to other states. I think it’s going to take time to see what the effect of this, but I don’t think you can fault a business owner for making a decision that allows him to pay fewer taxes. It isn’t as if we’re assured that the increased taxes will actually pay down the debt, or anything; and no one I know really believes that the increases will ever sunset.
Comment by Champaign Dweller Thursday, Jan 20, 11 @ 12:02 pm
NBC 5 reported last night in their piece that the owner of JJ’s “his family” was already in Florida. Is this really about the tax increase for him?
Comment by anonymiss Thursday, Jan 20, 11 @ 12:04 pm
Sage, see HB146 and HB149 - pensions ARE being addressed.
Comment by Former Merit Comp Slave Thursday, Jan 20, 11 @ 12:04 pm
=== This is basic economics - the higher taxes go, the more high earners you’re going to force out. ===
Right, that’s why Bill Gates and Microsoft left Washington State, with its 10% personal income tax, the highest in the country.
You simply cannot build a state that works collectively toward the Common Good by peddling to unenlightened, cowardly self-interest.
Comment by Yellow Dog Democrat Thursday, Jan 20, 11 @ 12:05 pm
Liandro & Champaign Voter - excellent points.
It’s interesting many choose to excoriate the guy for “giving up” on IL rather than emphasize the fact IL policies are finally driving out a job creator that loves the state.
Pulling one’s children out of their neighborhood/school and re-settling 1/2 way across the country is pretty far down on the list of priorities for most. It’s not an easy decision to make.
The guy is heavily invested in Illinois primarily because of his gratitude and respect for starting here - donating millions to U of I, expanding his headquarters here, raising his family in the same town his parents met in, sponsoring local cultural events, donating to politicians he believes might help improve the state (and business climate) instead of just complaining or sitting on the sidelines.
Not to mention the fact his business supports other local businesses (”Liautaud said his business accounts for “350 motel nights a week in Champaign, 1,400 motel nights a month.” “They eat at Cheddars,” get automotive service at Sullivan-Parkhill and “drink at Carlos (Nieto’s) bars,” he said). He could have done that anywhere in the United States.
He never got a big head. He never moved to Chicago or NY or LA. He chose to keep his family here and build his business here, even after tremendous success.
Now, he’s backing up his words with actions. Meanwhile, some automatically dismiss him as “another disgruntled, wealthy IL GOP candidate backer”.
Maybe the guy really is saying what he feels. Who wouldnt like to receive some attention from other states after building such a successful enterprise? It would make anyone feel warm and fuzzy, and he deserves it. That doesn’t negate his sincerity. Nor does it mean he’s moving his business to Indiana tomorrow.
His actions validate his words. Doubtful a mass exodus will develop, but he serves as one person apparently sincere in his statements.
Good luck Jimmy John. Thank you for all the jobs and personal income tax revenue you have created for this state.
I’m sorry we’re losing you.
Comment by S Thursday, Jan 20, 11 @ 12:25 pm
Champaign Dweller,
Most people can’t really impact caterpillar, not many of us are into buying heavy earth moving equipment.
Sandwiches, though, we buy and since there are so many places to get sandwiches (or hit a grocery and buy the stuff to make one’s own), we have an ability to make a direct statement here.
Comment by cermak_rd Thursday, Jan 20, 11 @ 12:27 pm
–Pulling one’s children out of their neighborhood/school and re-settling 1/2 way across the country is pretty far down on the list of priorities for most.–
Yeah, he’s the first guy from Illinois ever to make a buck and take a house in Florida — in January.
He made money — salud. It’s a free country, he can go wherever he wants.
But this stuff yesterday — about being “pummeled” and needing an “apology” — was just hysterical.
I doubt if JJ would take too kindly if I ate a sandwich, then told him I’d try to pay for it in seven months.
He’s a big boy, he knows business. And he knows p.r., too.
Yesterday’s story — which appeared to have been orchestrated by him, for him — was an announcement that he wants a state handout to keep and expand his headquarters in Champaign.
Maybe he has a deal on the table in Florida already. Can-you-top-this in state handouts is pretty SOP in business today, unfortunately.
Notice how he said he was going to “let his board” make the decision. What guy who owns 2/3 of a company lets “his board” make a decision, independent of him?
Comment by wordslinger Thursday, Jan 20, 11 @ 12:41 pm
S wrote “Not to mention the fact his business supports other local businesses (”Liautaud said his business accounts for “350 motel nights a week in Champaign, 1,400 motel nights a month.” “They eat at Cheddars,” get automotive service at Sullivan-Parkhill and “drink at Carlos (Nieto’s) bars,” he said). He could have done that anywhere in the United States.”
How much will Jimmy Johns support the local motels, Cheddars, Sullivan-Parkhill, Nieto’s, etc. when Jimmy Johns leaves? That’s all we need now, more unemployed in Champaign and in Illinois. Will that be the lasting impression Jimmy Johns wants to give Illinois?
Comment by Champaign Voter Thursday, Jan 20, 11 @ 12:41 pm
So this multizillionaire is going to move out of state to save himself from paying a temporary 2-point increase in his income tax, thereby destroying hundreds of jobs in his home town, and we’re supposed to feel sorry for HIM?
Comment by soccermom Thursday, Jan 20, 11 @ 12:49 pm
Uh, Yellow Dog Democrat, Washington State doesn’t have a personal income tax. http://dor.wa.gov/content/findtaxesandrates/incometax/
Comment by lincoln's beard Thursday, Jan 20, 11 @ 12:58 pm
I wonder if Jimmy John’s crying about the minimum wage is anything like Knight’s Action Park in Springfield. Knight’s Action testified prior to the last MW increase how they would suffer mightily. I wish I had a pic of the Park prior to the increase to compare with the vast capital investments that have since taken place let alone the increase in the hiring of summer help.
If JJ leaves his jobs here then all I can say is so long.
Comment by nadia Thursday, Jan 20, 11 @ 2:33 pm
I’ve noticed that when I have a sale I bring in more customers. And, when I increase prices, I sometimes lose a few sales. Common sense, right?
Policy changes have repercussions. This seems basic, yet I see so many across this comment board, and across the state, who seem to believe that a dramatic increase in taxation rates wouldn’t have repercussions. These individuals attacked anyone who claimed that businesses might leave or slow their growth, or that individuals might do the same thing.
Maybe that works in a fantasy, but now we’re faced with actual economic repercussions. Amazon is cutting ties, and JJ’s is thinking about it. One local store near me is dumping its brick-and-mortar store to go online; two other local shops are closing down as their owners retire rather then stay open. Anyone who has ties to the business community could go on for awhile with stories like these.
There is no way all these changes are the fault of any one policy; many were years in the making. But if you think for one moment that recent events from the General Assembly have no bearing, you are living in that fantasy land.
Instead of a rational examination of cause-and-effect, some want to blast businesses for making logical and completely predictable actions in response to policy changes. Some are even self-righteously going on about boycotting the local community locations of any business that dares state the obvious. Taking your anger out directly on those considering obvious, rational, and predictable reactions is foolish; taking it out on others, who are minimally involved, is just petty. All of it is counterproductive.
It is neither ethical nor reasonable to go after someone’s money and success and expect then to roll over. And, as I’ve been repeatedly saying above, it completely misses the point…the point is that not only do we WANT the involvement of these millionaire’s capitol in our economy, but it is all the little guys who get screwed over the worst. We small guys, however, only make the news when we go under…so all you’re going to see is the big players. I’m sorry to say that “righteous” anger you’re feeling is hollow.
Comment by Liandro Thursday, Jan 20, 11 @ 3:09 pm
–I’ve noticed that when I have a sale I bring in more customers. And, when I increase prices, I sometimes lose a few sales. Common sense, right?–
What happens when you’re a chronic deadbeat and stiff your vendors and creditors for months on end?
How about when you don’t invest in educating or training your workforce?
Is there any downside to not properly maintaining your equipment?
Comment by wordslinger Thursday, Jan 20, 11 @ 3:19 pm
–So this multizillionaire is going to move out of state to save himself from paying a temporary 2-point increase in his income tax, thereby destroying hundreds of jobs in his home town, and we’re supposed to feel sorry for HIM? –
Soccermom, that was a real miscalculation in p.r. strategy: the idea that he was some unique victim needing special sympathy.
Kind of surprising, because if you do the google, he’s had some very positive placement in the past. Hubris, perhaps.
The language of victimization in the self-serving monologue in the hometown newspaper is over-the-top: “pummelled,” “stick it to us,” “doesn’t feel good in my soul.”
Then, there’s the neediness (AKA, the shakedown bidding): The need to feel “wanted and important,” how he likes the process of being “courted,” and how maybe he’ll keep his HQ here if “the state admits it made a mistake” and “apologizes.”
My guess is he’ll take the money without the admission or the apology, if it’s in his financial interest.
And that’s the way it works. It’s a free country, and he can do whatever he wants to maximize his position.
But if he throws those folks in Champaign out of work, it will also be for selfish reasons.
The “Oprahesque” crying game in the News-Gazette yesterday was spin. If he gets enough from the SOI, he stays and he’s a hero (in his own mind). If he gets something better elsewhere, he’s a victim and it’s someone else’s fault.
Comment by wordslinger Thursday, Jan 20, 11 @ 4:37 pm
@Lincoln’s beard -
My bad…wrong chart.
Thanks for the correction!
Comment by Yellow Dog Democrat Thursday, Jan 20, 11 @ 4:53 pm
@word:
All incredibly valid questions of which the GA, when faced with related issues, put off until they could finally dump it on the rest of us in the middle of an attempted economic recovery. Instead of answering, the GA did things like add All Kids, Free Rides, the list goes on. Good things if you can afford them and operate them properly…which we couldn’t.
If we’re going to stick to the business comparison, I would (and did) cut all kinds of labor hours and costs, amenities, bonuses, services, and put off some purchases, until I finally raised prices. The reason no one believes this tax increase is temporary is because it’s pretty obvious the GA isn’t going to do that kind of serious, disciplined belt tightening. I’d feel a lot better about a tax increase if I felt there were competent people handling that money.
Bear in mind, too, that most taxes are percentage based, meaning that inflation is built in, unlike an actual business’s prices.
Comment by Liandro Thursday, Jan 20, 11 @ 5:13 pm
Liandro, no offense, but I’m really getting tired of the willful ignorance by commenters from the Right here. There have been cuts in Illinois. But that doesn’t fit the meme, so there have been no cuts in your minds. There are expenditure caps in the tax bill, but, again, that doesn’t fit the meme, so they don’t exist. On and on, but nothing exists as far as many of you are concerned.
The problem with deleting these comments is that I’d only end up with comments from the center and the left. I don’t wanna lose conservative commenters, but if y’all won’t even bow a little to reality, then those who refuse to accept a few facts are gonna have to go.
Comment by Rich Miller Thursday, Jan 20, 11 @ 5:25 pm
Speaking of cuts, is there a due-date on JBTs billion-dollar baby? The blessed event sounded imminent the other day, painless and with no complications.
Saw that Chapin Rose ran the old one-license-plate-play that Tom Cross gave the NYT a preview of earlier from his four-page playbook of cuts.
That’s short yardage, stuff though. It’s late in the fourth quarter and the home team’s down. Time to empty the playbook with some big-gainers.
Comment by wordslinger Thursday, Jan 20, 11 @ 5:45 pm
@Rich,
Not sure why that’s directed at me, I don’t think I’ve ever claimed, in any of my comments, that there haven’t been cuts. My point has always been that they haven’t been up to snuff, or have been balanced out by spending increases in other areas. Take the two examples I gave in just the last comment–IL did an entitlement expansion in All Kids while knowing we were already behind in our current payments, to say nothing of our long-term debts then (and now). Same with the Free Rides for Seniors program…I don’t know how much cost for that came out of Springfield, but I know it comes from the taxpayers somewhere. I was reading a report on all the appointed salaried commissions/councils, etc, in the Illinois bureaucracy and it reminded me of the spoils system.
Yes, we’ve had education cuts, etc…and these are undermined by the fact that new spending pops up, and new contracts get awarded. Yes, we’ve done some pension reform, but it is too little and too late. The too late part we are helpless against now, but…I digress.
My argument isn’t that no cuts have been made, it’s that there is a plethora of cuts left to done. Every $100,000 in labor cuts probably saves another $15,000-$25,000 in various payroll taxes and expenses. Not all, or even most, of that needs to be in the form of cutting jobs–make pay cuts instead of axing the entire job.
If you’re interpreting my commentary as saying no cuts have been made, you’re reading something I’m not writing. I’m saying it hasn’t been enough, and over the last decade they’ve managed to find new programs that we just had to purchase, despite being worse then broke.
@word: while I support the one license plate idea, I agree that it’s small potatoes…less then a mil saved I think. Do it, sure, but we definitely need to “empty the playbook” with some bigger things.
Comment by Liandro Thursday, Jan 20, 11 @ 6:41 pm
@wordslinger -
JBT’s billion dollar baby is due on January 31, 2011.
30 ILCS 540 of the Prompt Payment Act required the Comptroller to report by the end of the month how much the state is spending on interest for all of our late payments to state vendors.
The state is carrying a balance of $8 billion right now. The interest payments are 1% per month for most vendors but 2% per month for Medicaid.
I expect that’ll be somewhere in the neighborhood of $1 billion a year in late payment penalties we could avoid.
Comment by Yellow Dog Democrat Friday, Jan 21, 11 @ 6:19 am