400 Illinoisans receive notice of impending layoffs

At the end of July, about 400 Illinois workers were notified that they might be losing their jobs in the next few weeks. Filings with the Illinois Department of Commerce and Economic Opportunity highlighted this number, which includes cuts at major companies throughout the state. According to the Chicago Tribune: Lake Forest-based Grainger Inc. said it...

At the end of July, about 400 Illinois workers were notified that they might be losing their jobs in the next few weeks.

Filings with the Illinois Department of Commerce and Economic Opportunity highlighted this number, which includes cuts at major companies throughout the state.

According to the Chicago Tribune:

Lake Forest-based Grainger Inc. said it expected to lay off up to 94 workers at its Niles electrical supply unit beginning in September, citing a relocation.

More than 120 workers are expected to permanently laid offer at the Citibank office in Danville beginning in July. And telemarketing firm Charitable Resource Foundation said it will lay off 60 workers starting in September.

Robert Bosch Tool Corp., a hardware wholesaler in Watseka, said it expected to permanently lay off 126 workers starting in January. The company told workers in July that it planned to close its plant there, according to the Kankakee Daily Journal.

Other companies revealed they planned to lay off more workers than originally reported. KubeTech Custom Molding in Buffalo Grove, 26 more; Olin Corp. in Winchester, 27 more; Ball Metal Beverage Packaging in Elgin, 30 more; Allstate in Northbrook, ten more; and two additional layoffs at Caterpillar at 27th and Pershing in Chicago.

These latest layoffs are the result of Illinois’ incredibly unfriendly business environment.

In 2011, Illinois’ corporate income tax rate increased 47 percent, to 7 percent from 4.8 percent. Add to that the corporate personal property replacement tax of 2.5 percent and the total 2011 corporate tax rate becomes 9.5 percent. In terms of international competitiveness, the combined federal and state corporate income tax rate in Illinois is 41.2 percent, the fourth-highest in the country and in the industrialized world.

Illinois isn’t doing itself any favors when it comes to keeping business – and jobs – in-state. And state lawmakers considering making the 2011 tax increase permanent – and eventually adopting a progressive income tax – should view these job losses as a warning for what will happen if tax rates continue to rise.