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  • Illinois Loses Most Jobs in Nation Following Massive Tax Increase

    Correlation doesn’t necessarily equal causation, but some disturbing correlations are evident in the nation’s economic woes.

    Take Illinois. If you take a look at the chart below, you can see a startling picture. In Illinois, employment numbers increased steadily until January 2011, at which point they took a sharp dip downward—the same time that state’s governor announced plans to increase the personal income tax rate by 67 percent and the corporate rates by 46 percent. And things keep getting worse.

    Number of Illinoisans Employed 2010-2011

    The Illinois Policy Institute reports:

    Illinois lost more jobs during the month of July than any other state in the nation, according to the most recent Bureau of Labor Statistics report. After losing 7,200 jobs in June, Illinois lost an additional 24,900 non-farm payroll jobs in July. The report also said Illinois’s unemployment rate climbed to 9.5 percent. This marks the third consecutive month of increases in the unemployment rate.

    Illinois started to create jobs as the national economy began to recover. But just when Illinois’s economy seemed to be turning around, lawmakers passed record tax increases in January of this year. Since then, Illinois’s employment numbers have done nothing but decline.

    On top of that, BusinessInsider reports that “Moody’s Investors Service continues to rate Illinois at the lowest level among states (A1 with a negative outlook), and said issuing long-term debt to pay bills ‘would significantly increase the state’s bonded debt burden.’”

    Illinois’ sharp turn for the worse calls to mind another set of data. Nationally, the economy went from losing 841,000 jobs in January 2009—the recession’s low point—to gaining 229,000 jobs in April 2010. But within two months—after Obamacare passed—that all changed, and the economy ground to a halt. (See the chart below.) Heritage’s James Sherk writes:

    In May 2010, the job situation stopped improving. Job creation dropped to just 48,000 net private sector jobs, and private-sector hiring took a new course. From May 2010 onward, private job growth improved by only 6,500 jobs per month—less than one-tenth the previous rate.

    Again, correlation can’t prove causation, but the data are hard to ignore, especially amid the cries of the business community against regulations and taxation. The lesson for policymakers? At the state level and the federal level, taxing, spending, and regulating have consequences.

    Posted in Featured [slideshow_deploy]

    26 Responses to Illinois Loses Most Jobs in Nation Following Massive Tax Increase

    1. egw says:

      But yet they allow him to hold Chicago as his campaign headquarters. Blago wasn't guilty of doing anything wrong more so then any other politician. That is why the state is so riddled with illegal activity and I was surprised that they found Blago guilty of anything unless it was under orders of Obama & Rahn Emanuel. It seems to me Blago honestly thought this was the way political business is done & sometimes I wonder the same thing.

    2. Bobbie says:

      people use the term "unintended" in reference to consequence, as if! His advisors are no excuse when retort of common sense and reason with proof of productivity are ignored. Who are his advisors? Muslim clerics? Why is this man getting away with this? It doesn't matter if he has key corrupt players in position. If he can bend the rules of America to the lowest level possible into the communism, socialism dictator he is, the people can bend them right back to get rid of him!! NOW! There's plenty of him all over the place thanks to the indignant failed leaderships before him, allowing this mindset of uncivil preference!!!

    3. Que says:

      Is this what obama wants to happen all over the USA????? he wants to raise taxes!!

    4. Former_Californian says:

      When will they (Dems) ever learn that increasing taxes does just the opposite of what is needed in increased revenues. This is why Gray Davis was recalled, high taxes kill business. And look at states like NY, NJ, and OR that have tried the same with identical effects. Why do they think it will work different when they do it this time? By lowering taxes employers are going to hire, therefore increasing the number employed, therefore increasing the tax base, and therefore increasing the tax revenues. This isn't rocket science.

    5. Rich L. says:

      Einstein said, "the definition of insanity is doing the same thing over and over, and expecting a different result." By that definition, liberla Democrats are officially insane.

    6. And Liberals in America think that Obama's idea of raising Federal taxes is a good thing. Are they really that ignorant?

    7. Stirling says:

      Thank you Illinois for being a shinning example of Keynesian economics for the rest of the country to see. Hows that "Hope and Change" working out for you now ???

    8. allen says:

      Do You remember when the Great Deal that was made to BOEING and when they moved from Gangland Washington State. Now some one has to pay for that Corp.Deal, Boeing wants to Build a Plant in S.C. and Hell has broken loose, these crooks never stop from stealing from the people. Did yoy ever think that this Gov would tell its citizens that they cannot build a Plant some where to help out another state.. Now GE has shipped all its engine factory jobs to China. Chinese Labor Unions? not in your life-time buddy. Welcome to Thrid World Country, good ole 'UNITED STATES of AMERICA'.

    9. Matt says:

      The state governor of Illinois needs to read up on John James Cowperthwaite, he did a remarkable job turning Hong Kong into what it is today and that was by lowering taxes across the board!
      http://en-cowperthwaite.blogspot.com/

      • Benjamin Fuller says:

        Yes Hong Kong is great, if you are fine with working for the new federally mandated minimum wage of 28 HKD=~4USD/hour

    10. Ben Fuller says:

      In April of 2011 before Governor Scott Walker of Wisconsin was elected, Wisconsin's unemployment hadn't risen since July of 2009. From April 2011 until now it has only increased.

      Also, in November of 2000 unemployment nationwide was 3.9%, and was level. After Bush was elected unemployment numbers started to steadily rise and never decreased to pre-election values, finishing at 6.8% in November of 2008.

      Again, correlation can’t prove causation, but the data are hard to ignore…

      Both my arguments and those in this post are completely stupid.

      Did you know that over 98% of convicted criminals eat bread, and that 100% of people that have siblings die. I think that data shows that we should outlaw bread, and institute a one child policy.

    11. Lloyd Scallan says:

      What the posters on this blog do not realize is that true facts about what's happening to jobs and the Illinois economy will not be reported on any main stream media outlet. We must realize when any Dem, socialist plan does not work, it's hidden from the American public.

    12. Benjamin Fuller says:

      I appreciate the moderators, unbiased selection of comments to post or not to post.

    13. Former IL Resident says:

      Illinois gave us this hack for a president and deserve all of their state woes and more. Damn liberal state. I moved away many years ago and never looked back…..best decision I ever made.

    14. Fred says:

      Well, "employment numbers increased steadily until January 2011" bare witness to a naive view of perpetual steady growth. Of course people want to find a correlation to recent events once the growth is going down. Nobody wants to live in a reality where everybody cannot have perpetual steady growth. Something else must be to blame. And by the way, the scale of their graph is a joke which surely should tip anyone to see that the blog is for a political purpose. Compare it to the graphs here for example http://www.wolframalpha.com/input/?i=illinois+emp… and try to scientifically claim that "employment numbers increased steadily until January 2011" when giving a reference to a more or less bogus data source.

    15. Slick says:

      Guess what happens when you raise taxes, and there are other States where one can move their business and do it for more profit!!! That is EXACTLY why Big O wants to raise taxes all over the country . . . . where would a businessman be able to go where he/she would NOT be faced with more taxes? You got it . . . . overseas!!! If you wanted to make America just another Third World Country, what better way to do it than to DRIVE business outside our borders to boost economies in other countries.

      The repercussions in IL are no accident . . . . . .you might want to ask yourself WHY Jeffrey Emelt, CEO of GE, has already moved another segment of GE to foreign shores. And while you are at it, ask yourself WHY Big O met with Warren Buffett, and then good old boy Warren went out and invested $5 billion in Bank of America. There is definitely a skunk in the woodpile . . . . I see "freebies" for both men coming down the pike. Big O's motto is "If you do this for ME, I will make sure that America does something special for YOU!"

    16. Slick says:

      Guess what happens when you raise taxes, and there are other States where one can move their business and do it for more profit!!! That is EXACTLY why Big O wants to raise taxes all over the country . . . . where would a businessman be able to go where he/she would NOT be faced with more taxes? You got it . . . . overseas!!! If you wanted to make America just another Third World Country, what better way to do it than to DRIVE business outside our borders to boost economies in other countries.

    17. jhsunbum says:

      Send Obama back there; he'll fix it!!!

    18. Kim Vincent says:

      More taxes, less taxpayers.

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