Latest posts by Nancy Thorner (see all)
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On October 24, 2011, President Obama said:
Without a doubt, the most urgent challenge that we face right now is getting our economy to grow faster and to create more jobs. . . . We can’t wait for an increasingly dysfunctional Congress to do its job. Where they won’t act, I will.
Counter productive was the Obama administration’s jobs plan based on a greening of the economy. Candidate Barack Obama said in 2008 that he would create five million well-paying “green” jobs within 10 years.
Solar panel company, Solyndra, was one of many boondoggle companies that went belly up after being the recipient of government largess (taxpayer’s money) through stimulus funds intended to boost the green economy. A Johnson Controls plant in Michigan, toured by Obama to much fanfare in 2011, was able to produce 150 jobs with its $300 million in conservation grants at a cost of $1 million per position.
Despite Obama’s initial pledge to create millions of well-paying green jobs, 88% of all jobs created in 2013 were “part-time” jobs. Considered a plus was that the unemployment rate declined in November of 2013 from 7.3% to 7.0%, although millions still remain out of work, not counted because they are no longer looking for work.
How did Illinois fare in 2013 at the state level with job creation? With a ranking of 48 out of 50 states on economic outlook and 47 out of 50 in economic performance, Illinois’ performance could rightly be called dismal and unacceptable. In the Monthly Rankings of Unemployment Rates for States, Illinois was ranked 48th at 8.7% by the Bureau of Labor Statistics for November, 2013.
Some areas of Illinois even experienced double the national average of unemployment, which, according to the Bureau of Labor Statistics, dropped to 7.0% in November (This 7% figures fails to consider those who have dropped out of the work force because they are unable to find jobs.)
Three of the ten top Illinois cities with the worst unemployment in 2013 were: 1) East St. Louis, 14.8%; 2) Harvey, 14.4%; and North Chicago, 14.3%.
Illinois legislators were chided by Illinois Chamber of Commerce President, Doug Whitley, when both the Senate and House failed to follow through on bills offering tax breaks for companies to stay or move to Illinois, but instead left town after the pension vote on Tuesday, December 4. Since lawmakers aren’t due back until January, the issue was pushed ahead into 2014.
According to Brent Pollina, head of Pollina Corporate Real Estate in suburban Chicago, whose firm helps companies find new locations:
It seems like Illinois can’t get its act together. Illinois really is behind the times when it comes to the concept of economic development and helping work with business.
Not so, according to Illinois lawmakers. Their first concern was to deal with the state’s roughly $100 billion pension crisis that had diverted money from other services and had led to repeated credit downgrades. Nevertheless, House Speaker Michael Madigan did tell reporters that “It’s still under consideration” to give tax incentives to corporations when lawmakers return to Springfield in late January.
While other states are in competition to snag large businesses here in Illinois — governors from Texas and Florida have waged public campaigns trying to get Illinois companies to move out of state — it is Illinois’ own messy state finances and incomes taxes that are presenting obstacles to what remains at the heart of America’s engine of growth for economic success and job creation. It is small businesses and start-up companies established through entrepreneurship that create new jobs. In-state large corporations generally do quite well without incentives, even here in Illinois.
Talk to any small business owner in your community and you will find that many are just barely making it. It is not uncommon for a small business to go bankrupt and go out of business almost overnight. But what has Illinois does to help small businesses survive in this time of economic uncertainty?
On January 1, a new drag was imposed on small business with a large new tax, compliments of Obamacare. It is the levy on health insurance premiums that targets small business and individual markets. Although the IRS classifies the tax as a “fee”, it functions like an excise tax on premiums.
Most gold-plated public, private and labor plans are exempt from the “fee” IRS regulations imposed last November which excluded “any entity that is a self-insured employer to the extent that such employer self-insures its employees’ health risks.” This political selectivity means that the tax burden will fall on those who work for small businesses, the self-employed and individuals. These are the people who can least afford the large, new Obamacare tax.
According to the research arm of the National Federation of Independent Business, these higher insurance costs will shrink hiring by 146,000 to 262,000 jobs over the next decade, with 59% of the losses hitting small business. Also prevalent will be the temptation to dump insurance coverage and send workers to the mercies of Obamacare, which most likely was the preferred outcome from the start.
Editorial page editor Paul Gigot discusses the new health-care tax on premiums that starts on January 1 via a video presentation at: Opinion: “Obamacare’s Coming Assault on Small Business.”
In case you’re feeling safe and secure from the reaches of Obamacare, not so fast! Surprises will be in store for you on your insurance premiums and income tax bills. Taxes and fees will be listed as a line item titled “Affordable Care Act Fees and Taxes.”
The government thinks we should surrender without complaint even though it is trying to make us buy something many of us don’t want. To add insult upon insult, government is now forcing us to pay additional taxes for what the government is demanding we buy, taxes that are set to increase year after year.
In my mind this results in the government’s confiscation of our liberty and freedom. What about you?
[First posted at Illinois Review.]