Tag Archives: Taxes

What happened to Illinois businesses when Democrats raised taxes?

Central United States
Central United States

How do Illinois businesses respond to Democrat Governor Quinn’s tax increases?

From CBS News. (H/T Marathon Pundit)

Excerpt:

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.

A closer look at Michele Bachmann’s record on fiscal policy

Michele Bachmann: On the Issues
Michele Bachmann: On the Issues

An analysis of Michele Bachmann’s record on economic policy, courtesy of the Club for Growth.

Summary:

Congresswoman Michele Bachmann was first elected to Congress in 2006 after serving in the Minnesota State Senate from 2001 to 2006. If elected President, she would be the first woman President and the second person elected directly from the U.S. House of Representatives since James Garfield. Congresswoman Bachmann received a 100% score in the Club for Growth’s 2010 scorecard and has a lifetime score of 94%. The average house Republican score from 2007-2010 was 78%. Congresswoman Bachmann also has a lifetime score of 94% from the Minnesota Taxpayers League during the time she served in the State Senate. The average score for Republican State Senators during that time was 76%.

These guys do the most thorough job of anyone vetting the candidates – they go over every bill, every speech, every vote, every editorial – even campaign advertisements.

The report covers the following areas:

  • TAXES
  • SPENDING
  • ENTITLEMENT REFORM
  • REGULATION
  • FREE TRADE
  • SCHOOL CHOICE
  • TORT REFORM
  • POLITICAL FREE SPEECH
  • POLITICAL ACTIVITY & ENDORSEMENTS

Excerpt:

SCHOOL CHOICE
The Club for Growth supports broad school choice, including charter schools and voucher programs that create a competitive education market including public, private, religious, and non-religious schools.  More competition in education will lead to higher quality and lower costs.
Congresswoman Bachmann not only has a strong record on school choice, she is the first major presidential candidate to actually found a charter school. In fact, Congresswoman Bachmann co-founded the first K-12 charter school in the nation, New Heights Charter School back in 1993.  Her record on school choice has, predictably, been flawless since then.
In 2011, Bachmann voted to re-establish the DC school voucher program.  As a member of the State Senate, Bachmann voted to prohibit teacher strikes during the school year.  She also voted to allow parents to use education tax credits for tuition at private schools.  She’s introduced legislation to make foster children eligible for education vouchers.
As far back as 2003, Bachmann was fighting the No Child Left Behind Act, filing a bill in the Minnesota legislature that would have prohibited the Dept. of Children, Families and Learning or any other state agency “from entering into a contract or other agreement under the provisions of the No Child Left Behind Act of 2001, unless the financial consequences to the state and each school district have been identified.”  Another bill, S.F. 1921, “requires all state plans, agreements and contracts associated with NCLB compliance to be nullified and revoked on June 1, 2004, unless the Legislature specifically affirms implementation of the federal law by that date.”

Conclusion:

With very few exceptions, Congresswoman Bachmann has supported pro-growth policies throughout her career. She especially deserves praise for her consistent defense of school choice. After reviewing her record, we are confident that Congresswoman Bachmann would be a pro-growth President.

For my social conservative friends: please print out the paper and read it. These guys are not indifferent to your concerns at all.

Pat Toomey and the Club for Growth

The past director of the Club for Growth is current Pennsylvania senator Pat Toomey.

Here’s a blurb from his web site:

Pat is pro-life and believes that children should be welcomed into the world and protected by its laws.

While reasonable people may differ on the question of abortion rights, we should all be able to agree on policies that encourage adoption over abortion, that avoid taxpayer funding of abortions, and that allow parental involvement in decisions that involve minors. As a senator, Pat will support policies that further these important goals.

Pat also believes the tradition of marriage is sacred and is best defined as between a man and a woman. As a congressman, Pat voted to protect the institution of marriage in many ways. For example, Pat voted to reduce the tax penalty on married couples and will support similar policies as a U.S. senator. Throughout his time in Congress, Pat voted for legislation to protect innocent life, strengthen marriage, and protect the traditional values upon which this country was founded.

His voting record on abortion:

  • Voted YES on making it a crime to harm a fetus during another crime. (Feb 2004)
  • Voted YES on banning partial-birth abortion except to save mother’s life. (Oct 2003)
  • Voted YES on forbidding human cloning for reproduction & medical research. (Feb 2003)
  • Voted YES on funding for health providers who don’t provide abortion info. (Sep 2002)
  • Voted YES on banning human cloning, including medical research. (Jul 2001)
  • Voted YES on banning Family Planning funding in US aid abroad. (May 2001)
  • Voted YES on federal crime to harm fetus while committing other crimes. (Apr 2001)
  • Voted YES on banning partial-birth abortions. (Apr 2000)
  • Voted YES on barring transporting minors to get an abortion. (Jun 1999)
  • Rated 0% by NARAL, indicating a pro-life voting record. (Dec 2003)

And on marriage:

  • Voted YES on establishing nationwide AMBER alert system for missing kids. (Apr 2003)
  • Voted YES on reducing Marriage Tax by $399B over 10 years. (Mar 2001)
  • Rated 100% by the Christian Coalition: a pro-family voting record. (Dec 2003)

This is the record of the former leader of the most fiscally conservative PAC. The most pro-business group. The most anti-spending group.

Fiscal conservatives are more socially conservative than you think. If you are a social conservative, but not a fiscal conservative, then you should print out the paper on Michele Bachmann, a radical social conservative, and see how these fiscal conservatives at the Club for Growth judge what counts as fiscally conservative. It might be the case that fiscally conservative positions actually dovetail nicely with socially conservative positions. I think they do.

Campaign speeches, interviews and debates

Speeches:

Reactions from her recent debate performance:

Profiles of Michele Bachmann:

Michele Bachmann on television news

Let Americans spend their own money

Time to prioritize spending

Obama’s plan is to raise your taxes

Michele Bachmann in the legislature

Against socialism:

For economic growth:

Against ACORN funding:

New survey finds that Canadian health care system quality is declining

Map of Canada
Map of Canada

A story about a recent survey on Canada’s universal health care system, from the National Post.

Excerpt:

A new survey on attitudes about the health-care system reveals some interesting responses, confirming that Canadians have widespread misgivings about the system, even while not fully understanding how it works. They also favour using tax incentives to encourage healthier living and eating.

The survey of 2,300 Canadians carried out in April by the consulting firm Deloitte was part of a larger poll covering 12 countries. It is considered accurate to within two percentage points, 95% of the time.

Some of the highlights include:

– Just 5% of respondents gave the system an A grade; 45% giving it a B, 36% a C, 10% a D, and 4% a failing F.

– 33% of Canadians said they understood how the system works, down from 39% in 2009 when Deloitte did a similar survey.

– 69% feel that the system has not improved in the last two years, while there were slightly more who thought it had deteriorated, as opposed to improved, in that period.

– 36% believe that half the money spent on health care is wasted; interestingly, half of those skeptics blame the waste on people failing to take responsibility for their own health.

– 13% reported that they are caring for another person, up from 10% in 2009, a possible sign of the increasing personal burden posed by the aging population. In a third of those cases, the individual is caring for a spouse.

– 55% rated their health as excellent or very good … even though 52% report having been diagnosed with one or more chronic diseases.

– 63% favour some kind of tax-based incentive to encourage more healthy diets and lifestyles.

– About 80% favour expanding medical-school enrollments to increase the supply of doctors.

You can find some more videos describing horror stories in the Canadian system in this previous post.

Everyone agrees that the American health care system is too expensive, but do we at least get better quality outcomes? Let’s see.

How good is the American health care system?

Consider this article from the Hoover Institute at Stanford University.

Medical care in the United States is derided as miserable compared to health care systems in the rest of the developed world. Economists, government officials, insurers, and academics beat the drum for a far larger government role in health care. Much of the public assumes that their arguments are sound because the calls for change are so ubiquitous and the topic so complex. Before we turn to government as the solution, however, we should consider some unheralded facts about America’s health care system.

1. Americans have better survival rates than Europeans for common cancers. Breast cancer mortality is 52 percent higher in Germany than in the United States and 88 percent higher in the United Kingdom. Prostate cancer mortality is 604 percent higher in the United Kingdom and 457 percent higher in Norway. The mortality rate for colorectal cancer among British men and women is about 40 percent higher.

2. Americans have lower cancer mortality rates than Canadians. Breast cancer mortality in Canada is 9 percent higher than in the United States, prostate cancer is 184 percent higher, and colon cancer among men is about 10 percent higher.

3. Americans have better access to treatment for chronic diseases than patients in other developed countries. Some 56 percent of Americans who could benefit from statin drugs, which reduce cholesterol and protect against heart disease, are taking them. By comparison, of those patients who could benefit from these drugs, only 36 percent of the Dutch, 29 percent of the Swiss, 26 percent of Germans, 23 percent of Britons, and 17 percent of Italians receive them.

4. Americans have better access to preventive cancer screening than Canadians. Take the proportion of the appropriate-age population groups who have received recommended tests for breast, cervical, prostate, and colon cancer:

  • Nine out of ten middle-aged American women (89 percent) have had a mammogram, compared to fewer than three-fourths of Canadians (72 percent).
  • Nearly all American women (96 percent) have had a Pap smear, compared to fewer than 90 percent of Canadians.
  • More than half of American men (54 percent) have had a prostatespecific antigen (PSA) test, compared to fewer than one in six Canadians (16 percent).
  • Nearly one-third of Americans (30 percent) have had a colonoscopy, compared with fewer than one in twenty Canadians (5 percent).

5. Lower-income Americans are in better health than comparable Canadians. Twice as many American seniors with below-median incomes self-report “excellent” health (11.7 percent) compared to Canadian seniors (5.8 percent). Conversely, white, young Canadian adults with below-median incomes are 20 percent more likely than lower-income Americans to describe their health as “fair or poor.”

6. Americans spend less time waiting for care than patients in Canada and the United Kingdom. Canadian and British patients wait about twice as long—sometimes more than a year—to see a specialist, have elective surgery such as hip replacements, or get radiation treatment for cancer. All told, 827,429 people are waiting for some type of procedure in Canada. In Britain, nearly 1.8 million people are waiting for a hospital admission or outpatient treatment.

7. People in countries with more government control of health care are highly dissatisfied and believe reform is needed. More than 70 percent of German, Canadian, Australian, New Zealand, and British adults say their health system needs either “fundamental change” or “complete rebuilding.”

8. Americans are more satisfied with the care they receive than Canadians. When asked about their own health care instead of the “health care system,” more than half of Americans (51.3 percent) are very satisfied with their health care services, compared with only 41.5 percent of Canadians; a lower proportion of Americans are dissatisfied (6.8 percent) than Canadians (8.5 percent).

9. Americans have better access to important new technologies such as medical imaging than do patients in Canada or Britain. An overwhelming majority of leading American physicians identify computerized tomography (CT) and magnetic resonance imaging (MRI) as the most important medical innovations for improving patient care during the previous decade—even as economists and policy makers unfamiliar with actual medical practice decry these techniques as wasteful. The United States has thirty-four CT scanners per million Americans, compared to twelve in Canada and eight in Britain. The United States has almost twenty-seven MRI machines per million people compared to about six per million in Canada and Britain.

10. Americans are responsible for the vast majority of all health care innovations. The top five U.S. hospitals conduct more clinical trials than all the hospitals in any other developed country. Since the mid- 1970s, the Nobel Prize in medicine or physiology has gone to U.S. residents more often than recipients from all other countries combined. In only five of the past thirty-four years did a scientist living in the United States not win or share in the prize. Most important recent medical innovations were developed in the United States.

Despite serious challenges, such as escalating costs and care for the uninsured, the U.S. health care system compares favorably to those in other developed countries.

The author of that article is a senior fellow at the Hoover Institution and a professor of radiology and chief of neuroradiology at Stanford University Medical School.

So, we saw that the quality of the U.S. health care system is good, but how can we lower the costs? Is government controlled rationing (like Canada) the answer, or is there another way?

Choice and competition in health care

The Center for Freedom and prosperity seems to have found another way: choice and competition.

Excerpt:

In many ways, America’s health care system is the best in the world. It has state-of-the-art technology and highly-skilled medical professionals. America is also home to most of the cutting-edge medical research in the world. However, there are also important problems, such as the “third-party payer” model where consumers rarely pay the full cost of their own health care. This creates an incentive for both excessive and expensive use of health care, a problem that would be exacerbated by current proposals for greater government control of the health care system.

But the third-party payer problem is not the only reason that health care costs are high. State governments impose health insurance coverage mandates, often for “gold-plated” coverage, that drive up the cost of insurance. These regulations, which are unique to each state, are imposed at the behest of interest groups seeking to increase demand for their services. Combined with protectionist barriers that prevent consumers from buying policies from providers in other states, these mandates have severe unintended consequences:

  • They limit competition in the health insurance market by preventing insurance buyers from shopping across state lines, creating monopolistic and oligopolistic situations in many states;
  • They impose coverage mandates that force health insurance buyers to purchase coverage that they either do not want or cannot afford;
  • They force insurers to use community rating instead of experience rating, which means healthy people are forced to subsidize unhealthy people – to the effect that insurance premiums rise for many buyers and healthy people are driven out of the market.

The symptoms of a dysfunctional health insurance market – foremost the significant number of uninsured, but also rising costs – are recognized by many legislators. But the problem cannot be solved, as some suggest, by means of increased government regulation. Indeed, government regulation is the cause of most problems in the health insurance market, not the solution.

Restoring a free market health care system would be a daunting task, one that would involve, 1) sweeping reforms to the 45 percent of health care directly financed by government programs, and 2) a complete rewrite of the tax code to remove the distortions that exist in employer-provided health insurance. This paper focuses on the so-called third leg of the stool – policies to remove government barriers and restore competition to the market for individual health insurance.

Reforming the government-financed programs is definitely necessary because there is so much fraud and waste, as there always is with government, when compared to the private sector. Private sector businesses have to turn a profit, so they actually try to prevent fraud and waste.

Here’s a documentary featuring John Stossel that explains the health insurance problem. (And featuring Regina Hertzlinger, too)

Part 1 of 5:

Part 2 of 5:

Part 3 of 5:

Part 4 of 5:

Part 5 of 5:

Choice and competition govern the way we buy things that we want normally, especially when we buy things online. I am pretty happy buying things from online retailers, because I have so many stores to choose from, with lots of product reviews and retailer ratings. I usually like what I buy, because I know that I am buying a good product from a good seller. And if I don’t get a good outcome, I can leave a review of the product, service or seller as a warning for the next person. That helps to encourage producers to make quality products and services Seller rating helps to make sellers care for customers, and to accept returns on items that don’t perform. Maybe we should do that with health care, and just leave health insurance for catastrophic care – like car insurance is for accidents, but not for oil changes.