Democrat policy: raise taxes. lose jobs

Wrong way, Illinois

Failed policies lead more Illinoisans down path of unemployment

As Gov. Pat Quinn prepares for the State of the State address on Feb. 1, he will find it difficult to defend the state’s economic policies that have resulted in more unemployed Illinoisans in 2011.

Almost a year after Illinois’ record income tax increase, the state’s unemployment woes contrast starkly with the slow but positive national economic recovery. Unemployment rates in 46 states dropped since January 2011, and some dramatically. Illinois’ unemployment rate, on the other hand, was 9.8 percent in December, up from 9 percent in January 2011. Simply put, Illinois placed more people on the unemployment rolls than any other state in the country.

Illinois leadership had substantive policy options when it began 2011 with major fiscal challenges. But rather than reduce spending, tackle its pension problems and reduce the cost of doing business in Illinois, officials chose to kick off the year with the largest tax hike in state history.

The results? More deficits, an estimated $7 billion in unpaid bills and a downgrade by Moody’s credit agency to the lowest rating in the country. The state had to pay companies to stay in Illinois, and, worst of all, more Illinoisans joined the ranks of the unemployed.

One in ten Illinoisans who wanted to go to work today could not. Skeptics can try to reason away Illinois’ failure in creating an environment where people can be put to work, but the graphic below says it all.

Illinois’ current leadership fails to recognize that Illinois is competing not only against other states for investment and jobs, but globally. Today, labor and capital flow freely, and without competitive policies, Illinois will continue to suffer.

Illinois leadership must be held accountable. The policies of increased spending, higher taxes and fiscal mismanagement have hurt the state. It’s time to reverse Illinois’ path from one of high unemployment and poor governance to one that focuses on reforms, puts the state on sound fiscal footing and gets Illinoisans back to work.