Illinois Isn't Just Losing Jobs to India; We're Losing Jobs to Indiana
Illinois Drops 7 Spots in National Business Climate Rankings
As if the Chicago Democrats’ control over Illinois couldn’t generate worse economic news, today the Tax Foundation released its annual Business Tax Climate Report. Indiana Gov. Mitch Daniels greeted the report with a triumphant press release:
Indiana's growing national reputation as a great state to do business has received another boost. The state moved up two places in the Tax Foundation's 2010 Business Tax Climate Index for business tax climate. Indiana is 12th overall, up from 14th in 2009, and remains the top state in the Midwest for business tax competitiveness.
But you won’t be seeing any press release from Gov. Pat Quinn’s office, triumphant or otherwise. According to the report, Illinois dropped seven spots from last year, falling to the 30th place in the nation in terms of business tax climate. That’s not the kind of news Chicago Democrats want to trumpet from the rooftops as Illinois’ economic death spiral picks up speed.
And this slide into economic oblivion is occurring even without the Quinn-Madigan proposed income tax increase.
However, as the report notes, Illinois did increase several excise taxes this past year and still has one of the worst sales tax climates in the country. Unlike Illinois, other states, like Indiana, have reformed their property tax systems or, like Maine, have reduced their income taxes to become more competitive in the global marketplace.
Gov. Daniels is right to be in a celebratory mood. He knows that his state trounces Illinois across the spectrum of indexes the Tax Foundation used to make their rankings.
* On the Corporate Tax Index, Indiana is 21st, Illinois is 27th.
* On the Property Tax Index, Indiana is 12th, Illinois is 39th.
* On the Unemployment Insurance Tax Index, Indiana is 11th, Illinois is 46th.
Why would any business, deciding between these two states, choose Illinois? They wouldn’t and they aren’t.
My opponents in this race want to congratulate themselves for opposing the Quinn-Madigan tax increase. Big deal. Without those tax increases we have the 48th ranked economy in the country in terms of job creation, the 30th ranked economy in terms of business tax climate, and the highest unemployment rate in 25 years.
My opponents who have been in Springfield for the last 15 years talk generically about “looking for” tax and fee reductions. What are they going to find now that they have been unable to find during the last 15 years that they went along to get along?
We need specific and significant tax relief and we need it right quick. I am the only candidate for Governor who has been specific: cut the state personal and corporate income tax rates in half and eliminate the state estate tax.
Businesses and jobs will not come back to Illinois in response to airy platitudes from politicians. We need to speak with the policy choices we make.
The Chicago Democrats have presented one path; I have presented another. With apologies to Robert Frost, it’s time we take the path less traveled. Let’s expand opportunity for the people who play by the rules and grow our economic base by rewarding work and investment.
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