When asked recently by Neal Cavuto on Fox News about the recent tax hike pushed through by Gov. Pat Quinn, Caterpillar CEO Doug Oberhelman observed that "having the 36th highest tax rate, overall, out of 50 states in the U.S. is not good, and it doesn't promote job creation." He went on to add that while the company is not aiming to leave its home, Illinois will have to compete hard for new investment.
When companies stop investing in a state, their workers take the first hit, whether they're unionized or not. Because members of public-employee unions draw their pay and benefits from governments, there is a much longer delay before they feel any pain from an economic downturn. Sooner or later, however, a declining private sector will mean a declining tax base, and a squeeze on public finances.IPI budget here.
“This strange strategy of taxing, borrowing and overspending has long haunted Illinois, and it fails year after year,” said John Tillman, CEO of the Institute. “It fails the taxpayers. It fails job-providing employers and small businesses. And it fails the poor and disadvantaged, whose programs are often sidelined to make way for structural overspending and exploding public employee pay, benefits and pensions.
Governor Nursery rhyme snores on.