The Imploding State: Illinois
The Market Ticker ® - Commentary on The Capital Markets
Posted 2011-06-09 08:58
by Karl Denninger
in States
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The Imploding State: Illinois
 

Now it's the CME:

CME's Executive Chairman, Terry Duffy, said the company was exploring a potential move of its corporate base, after Illinois earlier this year sharply lifted the corporate tax rate paid by the Chicago-based exchange company.

Sears has also issued a similar threat.

The problem with these threats is that the usual response of governments is to placate the big corporation involved by giving them some sort of tax break somewhere else that compensates for the "extra hit."  But this doesn't fix anything, because it simply forces the revenue increase that they were trying to get from everyone into a smaller bucket (e.g. smaller firms) and they then either shut down or leave the state.

That in turn makes the revenue that was expected not materialize, and then in turn the state goes back to the well with yet another tax increase.

Repeat until the alleged "tax increase" is being paid by nobody, all of the entrepreneurs have left, and your job market looks like Chernobyl.

I have one simple question: If liberalism is such a great policy, and all of what the government does in this regard, from gun control to social spending to safety nets to the rest works so well, why is it that the states that practice the most of this sort of policy are the ones in the worst economic trouble?

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User Info The Imploding State: Illinois in forum [Market-Ticker]
Lordhumongous
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Quote:
Why is it that the states that practice the most of this sort of policy are the ones in the worst economic trouble?


According to a leftist that I know it's because we don't have a dictatorship.

The left also believes that "society" owns everyone (tax slavery) and that anyone that isn't paying their "fair share" is a thief. Furthermore, the public sector produces all wealth and the private sector steals it.
Captainkidd
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Quote:
Why is it that the states that practice the most of this sort of policy are the ones in the worst economic trouble?

That question has been answered by Margaret Thatcher, wasn't it?
The Liberal / Socialist agenda puts the practicing entity into economic trouble because, as Margaret said, "They keep running out of other people's money."

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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
Mortgageguymn
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Cutting special deals for big companies - sounds just like Dodd-Frank.
Jata1
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And from the other perspective look at the states that have low tax policies, right to work laws, and economic freedom. Texas for example, I heard yesterday is responsibile for 38% of all new jobs created in the past 3 years. This ain't an accident
Smacktle
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You gotta feel sorry for the poor people that live there and don't see what's coming.

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Ishmael
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Why is it that the states that practice the most of this sort of policy are the ones in the worst economic trouble?
--------------------------------------

Ding, Ding, Ding --- Give this man the jackpot. Karl you just won the prize with the best question in answer about our failing country. So obvious but so ignored!

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Trades50
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There should be a long list of businesses in IL. threatening. There are many business-friendly states with better weather. If enough leave Chicago will turn into another Detroit or Gary Indiana.

Illinois has been loosing people. The democratic legislature in Springfield has just accelerated this with the big jump in tax increases.

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When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson

Captainkidd
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Quote:
Cutting special deals for big companies - sounds just like Dodd-Frank.

....and Obamacare.
....and the bailout.
....and General Electric.
....and General Motors.

Is there a pattern developing here?

**********************************************

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A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
Shrimpngrits
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They are in the most economic trouble because liberals grade themselves on intent, not results.


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Tdray
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Smacktle - don't feel sorry for them. I have friends with businesses in Illinois. Despite the******job from Springfield and Cook County, they think it's the greatest place in the world. I tell my friends how much better off they would be in Tennessee or Texas, and they look at me like I am from another planet. They think that they couldn't conduct business if they weren't in the Chicagoland area. I'm sure once the mobs start running to there suburbs, they'll reconsider. By then, it will be too late though.
Icanhasbailout
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Imaginationland
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Quote:
Is there a pattern developing here?


It is quite well developed already, it's called fascism.

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Dashingdwl
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Liberalism is a disease.

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When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty.
Halfbrite
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@Tdray - Yeah, I know. I have over 70 direct family members in and around Detroit - most of them think I'm crazy for having lived on the west coast in the sunshine for the last 30+ years. Why would anyone move to paradise when you can live in Detroit? (sarc)

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Pika-steph
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This is so amusing from where I sit near Detroit. Michigan tried that. Exponentially rising taxes, handing out 'exceptions' and 'special rates' for big companies to stay or come here. That's how we got the stupid Hollywood film companies (who ****ing hire people from California and not Michigan anyway). smiley It resulted in a bizarre form of cronyism that was pervasive and everywhere.

Governor Snyder just undid all that in one fell-swoop. While he will honor past agreements for their limited time frames, none will be renewed and many were just outright eliminted. The playing field is (mostly) back to level. After all this time - about 8 years of distorting the entire tax structure with handouts to 'special' people.

We're now pushing for being a right to work state. smiley We have apparently had multiple inquiries from businesses in the Chicago area.

You KNOW it's bad when people are actually coming TO Detroit!

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Ktrosper
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Pika wrote..
We're now pushing for being a right to work state. We have apparently had multiple inquiries from businesses in the Chicago area.

You KNOW it's bad when people are actually coming TO Detroit!


Thank God for State-sovereignty...

Voting with our feet, whether it's an individual, a family or a corporation, is an effective way (usually when all other methods have failed) to pressure these States to clean up their acts.
Our founders understood that State sovereignty would be one of the most important tools in preserving our individual rights, as it promotes competition between the States... It's why lefty/statist/totalitarian-types HATE sovereignty and the freedom to move. When given the choice, their oppressive policies are always rejected.

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The unexamined life is not worth living.-Socrates
The only stable state is the one in which all men are equal before the law.-Aristotle
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Vidad
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If Sears left Chicago... that would be incredible.
Flaps10
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I wonder how my employer, Boeing, feels about having planted roots there to "get away from it all".

Out of the pan and into the fire?

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Lenguado
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Gen,
Quote:
why is it that the states that practice the most of this sort of policy are the ones in the worst economic trouble?

Come on Gen...seriously?!?!?

We ALL KNOW (especially 'Nobel Prize winner' Paul Krugman...) - it's because, 'they aren't doing enough of it.....
smiley

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I just realized... they aren't saying, "Keynesian Economics"
they're saying "Kenyansian Economics". Grass Huts for everyone!
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Lordhumongous
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What the left really thinks is "because we can't force you to do whatever we want at the point of a gun yet".

It's going to be "up against the wall mother****er!" as soon as they have all their pieces in place. Until that happens we will only get glimpses of what is to come.
Joejohns
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There won't be any place left to run. The facts are set. The chance to shift away from consume at any cost was missed.

No state of any size will escape. The middle is toast no matter where you move.

You can run (for awhile) but you won't hide.

AT LEAST 50-60% of those with a job NOW are toast, they just can't understand that their gluttony of today will be their starvation later.

2dogs
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Flaps10 wrote..
I wonder how my employer, Boeing, feels about having planted roots there to "get away from it all".

Out of the pan and into the fire?
I remember thinking Boeing was ****all crazy when they announced the move to Chicago. Didn't get it then; still don't get it now.

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Lowcarb
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The problem with Chicago/IL is that its home to two of the most corrupt organizations in the country:

The ABA - American Bar Assn, and
The AMA - the American Medical Assn

These two organizations in conjunction with a population addicted to handouts and entitlements.


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Sunkeye
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ha illinois land of bling-coln

just yesterday at impeached governor blagojevich's corruption trial
it came out then congressman rahm phoned the then governor to have him
appoint a stooge to his house of representatives seat

seemed rahm was moving on to bigger things but wanted
the stooge to keep rahm's spot warm if he ever decided to return to it

who cares that that's illegal - there's this little problem
called democracy as in holding elections - hey chicago
dont follow no stinkin laws - election or otherwise

corruption much?

odds this bombshell'll be followed up on? 10 million to 1 minimum

emanuel's parting phone quote 'i wont forget this'
as in 'you'll be taken care $$$$-wise later on dont worry'

of course blago was all ears and did as he was told

gotta chuckle now that blago's going down for doin' business as usual
while rahm sits pretty on his new mayor's throne ... 'er ... chair

i always had blago for a chump and rahm anything but ...
saying that based on rahm's 'in' w/ the money boys
and blago just a wannabe 'playa'
silly rodney

and that chuckle of mine necessary to keep from puking

oh btw just came out too ex-mayor - the guy before rahm - daley's
son bagged 700k+ in a no-bid city contract
nice work if you can get it huh?

excuse me now i do gotta puke







Flaps10
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"Better to die on your feet than live on your knees"
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