How do Illinois businesses respond to Democrat Governor Quinn’s tax increases?
The Chicago area will soon have a few hundred fewer jobs, while Northwest Indiana will have a few hundred more.
As CBS 2’s Susanna Song reports, sources say Modern Forge is moving from Blue Island across the state line to Merrillville, Ind., and the new town is rolling out the its welcome mat for the plant.
[…]On Tuesday, Indiana succeeded as Blue Island-based manufacturer Modern Forge announced it was moving across the state line. CEO Greg Heim said Illinois made it impossible to stay.
“The environment in Illinois, I would say there was no — we did not see any change coming in Illinois,” Heim said. “Illinois continues to stay on a path of not being – for us – a (pro-business) environment and the excitement and energy here in Indiana, that’s very important to us.”
That’s why, after 97 years in Blue Island, Modern Forge is picking up and moving its building and 240 jobs to Indiana.
“It’s a huge thrill for us,” Indiana Gov. Mitch Daniels said.
Daniels didn’t mince words when he said luring business is the Hoosier State’s #1 priority. And there’s no question that Illinois – and companies like Modern Forge – are main targets.
He claimed that “well over a dozen” businesses have moved from Illinois to Indiana in the past few months. “And it’s not like this just started recently,” he added.
In fact, it really ramped up last year when Illinois lawmakers hiked the state’s income tax. Since then, some businesses have bailed and others threatened to do so, citing high taxes, worker’s compensation issues, lack of incentives and an overall lack of encouragement from the Quinn administration.
[…]According to U.S. Labor Bureau statistics, Quinn needs to do something. Statistics show a steady jobs decline beginning in January, shortly after the tax hike passed.
Daniels said he sees tax concerns in Illinois as a potential Indiana win.
“We’ve had a big upsurge in contacts from businesses who want to explore an Indiana location because the arithmetic tells them it’s less expensive to hire people here,” Daniels said.
And more from the Illinois Policy Institute:
In a trend that continues to worsen, more Illinoisans found themselves unemployed in the month of July.
Illinois lost more jobs during the month of July than any other state in the nation, according to the most recent Bureau of Labor Statistics report. After losing 7,200 jobs in June, Illinois lost an additional 24,900 non-farm payroll jobs in July. The report also said Illinois’s unemployment rate climbed to 9.5 percent. This marks the third consecutive month of increases in the unemployment rate.
Illinois started to create jobs as the national economy began to recover. But just when Illinois’s economy seemed to be turning around, lawmakers passed record tax increases in January of this year. Since then, Illinois’s employment numbers have done nothing but decline.
Data released today by the bureau confirms this downward trajectory. When it comes to putting people back to work, Illinois is going backwards. Since January, Illinois has dropped 89,000 people from its employment rolls.
Democrats complain a lot about companies that outsource jobs. And now we see what causes companies to outsource jobs – Democrats.They cause the very thing that they complain about. That’s insane.