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News

Caterpillar decides to not build its new manufacturing plant in Illinois

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From the Peoria Journal Star.

Excerpt:

Caterpillar Inc. will not be building its new North American plant anywhere in the state of Illinois, officials with the company told local leaders Tuesday, with part of the reason being continued concerns about the business climate in the state.

The company will instead focus on a location closer to its division headquarters in Cary, N.C., Peoria County officials were told in an email sent to them shortly after the close of business and later obtained by the Journal Star. The plant stood to bring with it from Japan roughly 1,000 jobs manufacturing track-type tractors and mini hydraulic excavators.

Peoria County had submitted a regional proposal for the facility at the end of last year, and the Galesburg area also had a proposal on the table for the manufacturer. Peoria’s proposal reportedly included economic incentives as well as a promise of a legislative effort to establish a tax increment financing district to benefit the company.

At its core, Caterpillar’s decision reflects some concerns its officials had previously expressed about the economic condition of the Land of Lincoln.

“Please understand that even if your community had the right logistics for this project, Caterpillar’s previously documented concerns about the business climate and overall fiscal health of the state of Illinois still would have made it unpractical for us to select your community for this project,” the letter reads in part. “Caterpillar intends to continue calling for long-term changes in Illinois and to offer help to the state as it works toward real and fundamental reforms that will position communities like yours to compete for future projects.”

And:

Still, the rejection didn’t come as much of a surprise to state Rep. David Leitch, R-Peoria.

“I think Caterpillar has been very frustrated by the state’s inability to improve the business climate,” he said. “I still think that workers’ comp is a very serious issue for Caterpillar and others. I think there’s great concern about the financial situation within the state itself. The precarious nature of the state’s finances and having the worst bond rating in the country and huge liabilities … have not been addressed.”

The decision to locate elsewhere — and the reasons for it — should serve as a wake-up call to the region and the state as a whole, Rand said.

“I think the lessons learned here shouldn’t read like recriminations but instead resonate like a call to action,” he said. “Perhaps someone in Springfield will take notice. It’s our job to make certain they do.

“You can’t move a mountain while wearing a pair of roller skates. The disadvantages Cat identifies in Illinois are all man-made. We have to make ourselves competitive. It won’t happen because of a wish.”

Illinois is one of the bluest states in the union – totally dominated by Democrats. It’s very important for working Americans to understand that a Democrat can stand up and complain about outsourcing and greed and corporations and income inequality until they are blue in the face. It doesn’t mean a thing. Democrats are for higher taxes and more regulations on businesses, and that’s what causes outsourcing. Democrats cause unemployment. It doesn’t matter what they say. What matters is how job creators respond to the incentives created by Democrat policies.

Videos

Rick Santorum and Barbara Boxer debate partial birth abortion in 1999

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First, let’s watch a video that explains what partial birth abortion looks like. (Using drawn images. Warning: Still graphic and disturbing, but no blood)

What is partial birth abortion? (from the South Dakota Department of Health):

Intact Dilation and Extraction (Partial Birth Abortion)

In this procedure, the physician pulls the fetus feet-first out of the uterus into the birth canal, except for the head which is kept lodged just inside the uterus.

The base of the fetus’s skull is punctured with a sharp instrument such as a long scissors or pointed metal tube.

A catheter is inserted into the wound and removes the fetus’s brain with a powerful suction machine.  This causes the skull to collapse, and allows for the expulsion of the fetus.

Here’s Rick Santorum on the floor of the Senate asking Democrat Senator Barbara Boxer to defend partial birth abortion in 1999, (when Mitt Romney was also pro-abortion).

(The clip is very low volume)

Transcript:

Santorum: Good! All I am asking you is, once the baby leaves the mother’s birth canal and is through the vaginal orifice and is in the hands of the obstetrician, you would agree that you cannot abort, kill the baby?

Boxer: I would say when the baby is born, the baby is born, and would then have every right of every other human being living in this country. And I don’t know why this would even be a question, to be honest with you.

Santorum: Because we are talking about a situation here where the baby is almost born. So I ask the question of the senator from California, if the baby was born except for the baby’s foot, if the baby’s foot was inside the mother but the rest of the baby was outside, could that baby be killed?

Boxer: The baby is born when the baby is born. That is the answer to the question.

Santorum: I am asking for you to define for me what that is.

Boxer: I don’t think anybody but the senator from Pennsylvania has a question with it. I have never been troubled by this question. You give birth to a baby. The baby is there, and it is born. That is my answer to the question.

Santorum: What we are talking about here with partial birth, as the senator from California knows, is a baby is in the process of being born —

Boxer: “The process of being born.” This is why this conversation makes no sense, because to me it is obvious when a baby is born. To you it isn’t obvious.

Santorum: Maybe you can make it obvious to me. So what you are suggesting is if the baby’s foot is still inside of the mother, that baby can then still be killed.

Boxer: No, I am not suggesting that in any way!

Santorum: I am asking.

Boxer: I am absolutely not suggesting that. You asked me a question, in essence, when the baby is born.

Santorum: I am asking you again. Can you answer that?

Boxer: I will answer the question when the baby is born. The baby is born when the baby is outside the mother’s body. The baby is born.

Santorum: I am not going to put words in your mouth –

Boxer: I hope not.

Santorum: But, again, what you are suggesting is if the baby’s toe is inside the mother, you can, in fact, kill that baby.

Boxer: Absolutely not.

Santorum: OK. So if the baby’s toe is in, you can’t kill the baby. How about if the baby’s foot is in?

Boxer: You are the one who is making these statements.

Santorum: We are trying to draw a line here.

Boxer: I am not answering these questions! I am not answering these questions.

The full transcript is here.

It’s important to note that Barack Obama is on record as a supporter of partial birth abortion. He voted for it several times.

The liberal Washington Post discusses Barack Obama’s voting record on abortion.

Excerpt:

Obama has had difficulty explaining some of his 129 “present” votes in the Illinois legislature on issues such as promoting school discipline and prohibiting sex shops near places of worship. In the case of his votes on the anti-abortion legislation, however, he has had a solid alibi. The Illinois branch of the Planned Parenthood organization has given him a”100 percent” pro-choice voting rating and depicted the present votes as part of a previously agreed strategy to provide political cover for other legislators.

Under the rules of the Illinois legislature, a present vote effectively functions as a no vote because only yes votes count toward passage of a bill. Legislators vote “present” rather than “no” for a variety of tactical reasons, including making it more difficult for their political opponents to use their votes against them in campaign advertisements.

“We worked on the ‘present’ vote strategy with Obama,” said Pam Sutherland, chief lobbyist for the Illinois branch of Planned Parenthood, an abortion rights group. “He was willing to vote ‘no’, and was always going to be a ‘no’ vote for us.”

Sutherland said Planned Parenthood calculated that a ‘present’ vote by Obama would encourage other senators to cast a similar vote, rather than voting for the legislation. “They were worried about direct mail pieces against them. The more senators voted present, the harder it was to mount an issues campaign against the senator.”

Here is a full list of Obama’s seven ‘present’ votes on issues related to abortion:

1997 Votes

  •  SB 230 Partial Birth Abortion Ban Act. Senate approved bill 44-7, with five senators voting present, including Obama.
  • HB 382 Partial Birth Abortion Ban Act. House version, passed Illinois State Senate, adopted as law. Under the bill, doctors who perform partial-birth abortions could be sent to prison for one to three years. The woman would not be held liable.

2001 Votes

  • HB 1900 Parental Notice of Abortion Act. Bill passed 38-10, with nine present votes, including Obama.
  • SB 562 Parental Notice of Abortion Act. Bill passed Senate 39-7, with11 present votes, including Obama.
  • SB 1093 Law to protect Liveborn children. Bill passed 34-6, with 12 present, including Obama.
  • SB 1094 Bill to protect children born as result of induced labor abortion. Bill passed 33-6, with 13 present, including Obama.
  • SB 1095 Bill defining “born alive” defines “born-alive infant” to include infant “born alive at any stage of development.” Bill passed 34-5, with nine present, including Obama.

Obama defended his voting record on abortion as recently as 2007.

If Rick Santorum were the nominee, he would ask Barack Obama about his views in the Presidential debates, just like he asked Barbara Boxer on the Senate floor. Wouldn’t you like to hear Obama defend partial birth abortion in a debate? I would. Maybe it’s about time that Obama had to do more than vote present to cover up his radical pro-abortion record.

Commentary

How well did Obama-style tax hikes on the rich work for Illinois?

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From the Wall Street Journal.

Excerpt:

Run up spending and debt, raise taxes in the naming of balancing the budget, but then watch as deficits rise and your credit-rating falls anyway. That’s been the sad pattern in Europe, and now it’s hitting that mecca of tax-and-spend government known as Illinois.

Though too few noticed, this month Moody’s downgraded Illinois state debt to A2 from A1, the lowest among the 50 states. That’s worse even than California. The state’s cost of borrowing for $800 million of new 10-year general obligation bonds rose to 3.1%—which is 110 basis points higher than the 2% on top-rated 10-year bonds of more financially secure states.

This wasn’t supposed to happen. Only a year ago, Governor Pat Quinn and his fellow Democrats raised individual income taxes by 67% and the corporate tax rate by 46%. They did it to raise $7 billion in revenue, as the Governor put it, to “get Illinois back on fiscal sound footing” and improve the state’s credit rating.

So much for that. In its downgrade statement, Moody’s panned Illinois lawmakers for “a legislative session in which the state took no steps to implement lasting solutions to its severe pension underfunding or to its chronic bill payment delays.” An analysis by Bloomberg finds that the assets in the pension fund will only cover “45% of projected liabilities, the least of any state.” And—no surprise—in part because the tax increases have caused companies to leave Illinois, the state budget office confesses that as of this month the state still has $6.8 billion in unpaid bills and unaddressed obligations.

It’s worth contrasting this grim picture with that of Wisconsin north of the border. Last winter Madison was occupied by thousands of union protesters trying to bully legislators to defeat Republican Governor Scott Walker’s plan to require government workers to pay a larger share of their health-plan costs, and to shore up the pension system by trimming future retirement liabilities. The reforms passed anyway.

In contrast to the Illinois downgrade, Moody’s has praised Mr. Walker’s budget as “credit positive for Wisconsin,” adding that the money-saving reforms bring “the state’s finances closer to a structural budgetary balance.” As a result, Wisconsin jumped in Chief Executive magazine’s 2011 ranking of each state’s business climate—moving to 17th from 41st. Illinois dropped to 48th from 45th as ranked by the nation’s top CEOs.

And in Ohio, Republican Governor John Kasich also saw success.

Excerpt:

Ohio’s new fiscal responsibility is getting noticed and rewarded.

Standard & Poor’s upgraded the state’s credit forecast from “negative” to “stable,” in time for a $417 million bond sale last week to refinance at a lower interest rate and restructure debt.

Ohio’s lean budget will pay off with lower costs for borrowing, saving taxpayers as much as $1 million or more over the course of a year, according to the state’s Office of Budget and Management. It’s like having a credit-card company lower its annual percentage rate: The borrower can either accelerate the payoff or spend the savings elsewhere.

So essentially, cutting state programs spared money for state programs.

This is vindication for the Kasich administration. When Gov. John Kasich took office this year, the state was $8 billion in the hole and its rainy-day fund totaled $1.78. That’s not a typo; Ohio barely had enough in the bank to buy itself a cup of coffee. A small one.

[…]Investors pay attention to these ratings, especially since Ohio stands out as other states continue to struggle. “There are a lot of jitters in the credit market; I can’t imagine it won’t be helpful,” said Robin Prunty, primary credit analyst with Standard & Poor’s.

[…]Most states still are struggling with the economic recovery and phasing out one-time money from the federal stimulus program that Kasich’s predecessor used to paper over the deficit. S&P’s revised outlook reflects its view that Ohio’s economy “is steadily recovering.”

“The outlook revision reflects the state’s progress in moving toward structural budget balance through fiscal 2013 and the modest economic recovery under way,” its report says.

Republican tax policies work, and Democrat policies don’t. Taxing the rich sounds good, but it doesn’t help the poor. To help the poor, we need to encourage people with capital to risk it by engaging in enterprises for profit. That is what causes workers to be hired and wealth to be created – forming valuable products and services through ingenuity and labor.  Workers who build skills and experience while working have more confidence and can be more productive, making them more free because they can succeed independently of government handouts.