Gov. Perry to Illinois businesses: “Get out while there’s still time”

Texas Gov. Rick Perry wrote a letter to businesses in Illinois, offering them a way to escape the state’s dire fiscal mess and punishing business climate – move to Texas.

Ben VanMetre
Senior Budget and Tax Policy Analyst

Texas Gov. Rick Perry wrote a letter to businesses in Illinois, offering them a way to escape the state’s dire fiscal mess and punishing business climate – move to Texas.

Perry rightly flaunts his state’s competitiveness, as he writes:

Get out while there’s still time: An open letter from Texas Governor Rick Perry

If you’re a business owner in Illinois, I want to express my admiration for your ability to survive in an environment that, intentionally or not, is designed for you to fail. With rising taxes and government interference on the upswing, your situation is not unlike a burning building on the verge of collapse.

If you’re thinking of “just riding it out” you might want to reconsider. There is an escape route to economic freedom… a route to Texas.

The lone star state has proven that limited government, low taxes and a pro-business mindset work wonders when it comes to job creation and a robust economy. If you’re ready for a fresh start in a place that appreciates job creators like you, it’s time to check out Texas.

Visit us at TexasWideOpenForBusiness.com/IL and learn about the advantages that Texas holds over Illinois including:

•    No personal state income tax
•    A workforce that is twice as large
•    An unemployment rate that is 3% lower
•    Union membership 1/3 of Illinois
•    A worker’s comp system that requires just 39 cents per $100 of covered wages (while Illinois hits you for $1.10)

And the letter is only one of many components of Perry’s campaign to lure Illinois businesses to Texas. The governor is also rolling out radio and print ads, and will be traveling to Chicago for a two-day meet and greet with Illinois’ businesses leaders.

Perry is right; Illinois’ business climate is not structured for success. Illinois has become the quintessential example of a tough state for businesses to survive in, let alone prosper in. That’s because poor policy decisions continue to sap economic activity and ruin opportunities for businesses operating in Illinois.

In the wake of the record income tax hike of 2011, Illinois businesses and consumers are suffering – operating in a state that ranks 47th in corporate taxes, 34th in sales taxes, 43rd in unemployment insurance and 44th in property taxes.

The only relatively competitive policy the state has going for it is the flat rate income tax. But Texas still fares better when it comes to income tax competitiveness because the state doesn’t tax personal income tax at all.

Unfortunately, Illinois Gov. Pat Quinn is eyeing a policy move that would be the crushing blow to Illinois’ competitiveness – swapping out the states flat rate income tax for a discriminatory and inefficient progressive income tax.

A progressive income tax would give Illinois’ residents and businesses one more reason to take Perry’s advice to get out while there’s still time.