Politicians’ quick answer to the state’s problems is consistently to raise taxes, but evidence shows tax hikes are a negative for families struggling in a state already lacking opportunity.
Illinois’ workers’ compensation system has not evolved to meet the modern workplace, and is instead working more for special interests than employers and employees.
By linking unemployment payments with the requirement to submit a résumé, the Illinois Department of Employment Security is trying to connect unemployed people with employers faster, helping job seekers find employment, and saving taxpayers money.
BLS data show that Illinois had a net loss of 354,000 adults over the last decade from its prime working-age adult population (ages 25 to 54), with 290,000 of that loss attributable to migration rather than mortality. This is a troubling sign that indicates a weak economy – and the loss of adult taxpayers and their children.
Illinois’ June WARN report shows 600 mass layoffs for the state in June, with 44 jobs lost in manufacturing, an improvement over May’s 1,300 layoffs and 500 manufacturing job losses.
Madigan’s stated concern for the middle class rings hollow given that his own plan to boost the state’s fiscal health consists solely of income-tax increases, which would directly reduce the wages and standard of living for Illinoisans.
Illinois entrepreneurs face myriad regulations that impede starting or running a business. Compliance with those regulations is costly; more importantly, it is almost impossible for entrepreneurs to know every regulation that affects their businesses. The uncertainty of not knowing the law creates a regulatory minefield and takes away opportunity for Illinoisans.
Most states have far outstripped Illinois on the number of jobs recovered. And even worse, Illinois has also lagged in the quality of jobs recovered. Illinois was the 37th state to recover and match its pre-recession jobs count. But there are still 110,000 fewer Illinoisans working today than before the recession began.
Weak jobs numbers across the Midwest reflect the possibility of an oncoming economic slowdown. In fact, it would not be surprising to face a recession in the upcoming months, given that U.S. jobs growth has been weakening, and it has been seven years since the previous recession ended – a long period of expansion by historical norms.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.