Illinois Loses Most Jobs in the Nation

[doctorwho]

8/19/2011

Download a PDF copy of this report here.

illinoispolicy.org/news/article.asp?ArticleSource=4362


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.






It’s too early to know conclusively the full impact of the tax hikes on the Illinois economy. Nevertheless, Illinois’s employment numbers serve as a good reminder that public policies have dramatic consequences for the daily lives of Illinoisans. A combination of high taxes, overspending and red tape do nothing but chase away job creators and leave too many citizens without jobs. Springfield needs to act now and reverse course.

[EagleDad]

This should come as no surprise, the current Springfield government is the exact opposite of that in Madison to our North. Quinn and cronies have driven Internet related companies who have business agreements with Amazon out of the state in droves, massively raised corporate and individual tax rates, and not dealt in any substantial way with the public pension crisis for which Illinois is one of the most underfunded in the country.

The net effect is that revenues (taxes) will only drop further, growth and recovery will be non-existent. Massive government tax and spend does not work. To me it's only a question of how far this will go until the voters realize and act on the change that is needed in Illinois.

[wvhsparent]

fairtaxer.wordpress.com/

The Lemonade Stand, by Max Pruger
Posted on August 21, 2011 by robtwilliams
It’s simple. Companies are created for one sole purpose, profit. they make decisions based on how to maximize their profit. In 1955, it was very costly to move a manufacturing facility to China or other places in the world. Today, with a click of a button, a company can export software, patents and jobs. Combine that with the fact that the Gov’t, through the manipulation of the tax code and ridiculous regulations, has created a non-profitable environment for companies to do business in the US. This has resulted in companies moving large portions of their business to other countries. This is a key driver to the numbers he has presented. In addition, because the tax system is so prone to corruption, corporations pay politicians billions to manipulate the tax code in their favor. I would argue that if you look at the tax code in 1955 as compared to the tax code today, and combine it with all the options available for where companies can move to today, America is no longer the best place to do business. Therefore, when companies leave, revenues fall.
Here’s another example. You and your brother, who are fiercely competitive, open separate lemonade stands in front of your parents house. The cost of lemons is 15 cents, the cost of labor is 5 cents and after weeks of lowering your prices to gain neighborhood marketshare you both have settled on a minimum profit of 5 cents, so you sell your lemonade for 25 cents (not price fixing, think Coke & Pepsi). One day your mother comes out and says that you are spilling lemonade all over the sidewalk, so she imposes a 5 cent sidewalk tax on both of you so she can hire someone to clean the sidewalk. You look around and unfortunately the lot across the street is wooded and not a hospitable place to move your lemonade stand so you agree to stay where you are and pay the tax. Of course neither of you will sit outside all day selling lemonade for no profit so both of you immediately raise your lemonade prices by 5 cents making the new price 30 cents. Mom, now gets a 10 cent windfall tax and the “economically challenged” neighbors are ecstatic that the two corporations are finally paying their fair share. Of course these are the same neighbors who buy lemonade every day and are now paying 5 cents more for it but that’s another story.
As you continue to compete for business, you notice that the wooded lot across the street is being torn down, a house is being put up and a nice new shiny sidewalk is being built. You walk across the street and ask the homeowner how much it would cost to move your lemonade stand across the street. They reply 2 cents. Seeing as you have a free trade agreement to sell lemonade across the street, you pack up your lemonade stand and move it. So what’s happened, your income now has now increased by 3 cents and your Mom’s take has dropped from 10 cents to 5. That’s a 50% drop in corporate lemonade taxes. The “economically challenged” see the 50% decrease and force your mom to raise the sidewalk tax on your brother by 5 cents to make up the difference. His cost to produce lemonade is now 30 cents. He has no choice but to raise his price to 35 cents to stay in business. Ah, once again the “economically challenged” are happy, even though the slowly start crossing the street to buy lemonade from you.
But it gets worse. At first you maintain the price on your lemonade and get a windfall profit of an additional 3 cents but then you think. Hey, I can drop my price to 27 cents, maintain my profit of 5 cents and put my brother out of business (remember those atomic wedgies, well this is payback). After a couple days of no customers, your brother has no choice but to move across the street with you. He lowers his tax burden from 10 cents to 2 cents and now you’re once again competing at 27 cents. Your poor mom has lost all of her sidewalk tax revenue. Your sister tries to open a stand but the HOA has passed a law that says any stand opened in front of your Mom’s house is now required to pay 15 cents to not only clean the sidewalk but also to make up for lost revenue. Your sister immediately declares bankruptcy, liquidates her lemonade and asks mom for her allowance, so she can sit on the couch and play video games.

[macrockett]

Oops...there goes another one!

www.nwitimes.com/business/local/article_ca97a596-5735-55b0-817d-96a688797769.html

Forging company expected to bring 240 jobs to Merrillville location

By Matt Saltanovitz [e-mail], [phone] | Posted: Monday, August 22, 2011 5:15 pm | (21) Comments

John J. Watkins | The Times

An economic development announcement Tuesday is expected to reveal about 240 new jobs will be coming to this building at 8757 Colorado St. in Merrillville.

MERRILLVILLE | Gov. Mitch Daniels is expected to join executives from the Blue Island, Ill.-based company Modern Drop Forge on Tuesday to announce the company will be moving a major operation to Merrillville, resulting in about 240 new jobs.

On Monday afternoon, Merrillville Town Councilman Richard Hardaway confirmed that Modern Drop Forge will be coming to Merrillville, following the Town Council's passage of a 10-year tax abatement for the company in May.

Hopefully this will result in a significant economic boost for Merrillville," Hardaway said. "We've been looking for some time for some type of home run. But up until now we've only had nibbles."

He credited a team effort by elected and other town officials for attracting the company to Merrillville.

The governor will make his announcement at 8757 Colorado St., according to the Indiana Economic Development Corp., the state's commerce department. That is just south of U.S. 30, where the company will be located. It offers custom forging, machinery and assembly services. It is expected to renovate the facility on the property.

The building previously was used by NSU Corp., which manufactured automotive parts.

Town Councilman Shawn Pettit in April said Modern Drop Forge would make a $7 million investment to improve the property if it decides to come to Merrillville.

Officials from the IEDC and Modern Drop Forge would not comment Monday. Pettit could not be reached for comment Monday.

Daniels said in June that representatives from IEDC have met with more than a dozen Illinois companies considering a move following the January increase in Illinois' corporate income tax rate to 7 percent from 4.8 percent.

The Republican governor has said he expects more Illinois companies will come to Indiana without IEDC assistance because they are attracted by the state's minimal government regulation on business and lower taxes.

In February, the IEDC and the Northwest Indiana Forum teamed up on a program to lure Illinois businesses to Indiana. The two organizations have bought ads in Chicago publications and billboard space as part of their "Illinoyed by higher taxes?" and "Feeling squeezed by taxes?" campaign.

Times staff writers Chas Reilly and Keith Benman and Times Statehouse Bureau Chief Dan Carden contributed to this report.

Copyright 2011 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Posted in Local, Merrillville on Monday, August 22, 2011 5:15 pm Updated: 10:55 am. | Tags: Merrillville, Business, Jobs, Mitch Daniels, Local News, Employment, Modern Drop Forge

Read more: www.nwitimes.com/business/local/article_ca97a596-5735-55b0-817d-96a688797769.html#ixzz1VuKdIVBF

[macrockett]

And if they aren't just leaving to go to another State, they are getting laid off.

articles.chicagotribune.com/2011-08-03/business/ct-biz-0803-illinois-job-cuts-20110803_1_job-cutting-jobs-in-plant-closings-mass-layoffs

1,100 Illinois workers to lose jobs by year's end
Media companies hit hard, state records show

August 03, 2011|By Becky Yerak, Tribune reporter

More than 1,100 workers at 10 companies learned last month that they'll lose their jobs in plant closings or mass layoffs before year-end, according to state records posted online Tuesday.

The Illinois Department of Commerce and Economic Opportunity requires employers with at least 75 full-time workers to provide 60 days' notice of plant closures or mass layoffs.

A mass layoff occurs when job losses at any single site in any 30-day period total at least a third of employees, numbering at least 25, or at least 250 employees regardless of the percentage.

The biggest cuts are being made by Sun-Times Media, which last month announced it would eliminate more than 400 jobs when the Chicago Tribune Media Group begins handling some of its printing operations.

The Sun-Times confirmed with the state that it will cut 456 jobs in Chicago starting in late September through year-end. Most are unionized and include electrical workers, machinists, mailers, operating engineers, pressmen, paper handlers and Teamsters who served the soon-to-close plant at 2800 S. Ashland Ave.

It's not the only media company on the state's July list of job-cutting notices.

Schofield Media Group LLC in downtown Chicago is closing, resulting in pink slips for 107 employees.

Also cutting jobs:

•Consolidated Container Co. will close a plastic bottle manufacturing plant in Elk Grove Village, resulting in the loss of 68 jobs by mid-September.

•On-CorFrozen Foods LLC in the West Loop will begin laying off 85 workers in November, when it moves work elsewhere.

•Braxton Seafood Grill in Oak Brook has lost its lease, leaving 82 without jobs.

•Pacific Coast Feather Co. in Des Plaines will begin laying off 70 workers in September.

•In Palos Hills, Sid's Greenhouse & Garden Center will close soon, affecting 55 employees.

•Furniture maker Clarin is closing in Lake Bluff, telling the state that it's letting 75 workers go because of the sale of assets.

•A Shopko store in Springfield is closing, affecting 113 jobs.

•A-1 Wire Tech Inc. is moving a Rockford operation elsewhere; 51 jobs will be lost, it told the state.

[e-mail]

Twitter: @beckyyerak