Jobs & Economy
Economic growth is the only means through which our state can be fixed. New businesses must be created, existing businesses must expand, and both must have a strong reason to stay and grow in Illinois. Job creation is the only way to broaden the tax base. We need to foster an economic environment that is favorable to creating jobs, and we must do so with a balanced budget.
The Bad News
Illinois has one of the highest unemployment rates in the nation and is ranked 48th in Economic Performance and 47th for Economic Outlook.
Our State’s budget deficit, lengthy permitting process, workers’ compensation costs, proposed corporate tax increase, rising unemployment tax, cap and trade legislation, bureaucracy and corruption all combine to cultivate hesitation and uncertainty for expanding and prospective businesses. In many circumstances, Illinois businesses are forced to first pay political consultants and fixers to get approval for specific tax breaks, then employ specialized zoning consultants to acquire appropriate approvals for business expansion, and finally, special contractors must be hired at above market prices. This is the secret of tax corruption that discourages growth.
Local businesses are forced to look towards friendlier states like Wisconsin, which actually has a higher business tax but lower "corruption taxes" and less onerous labor laws. The business cycle is NOT the reason Illinois ranks at the bottom of all states in terms of growth, it is the culture of corruption, the bureaucratic processes and the air of uncertainty in Illinois.
The Good News
Illinois is the greatest state in the nation! We have more miles of railway than any other state, a sophisticated highway system, the great Lake Michigan, the Mississippi River, hundreds of airports, a desirable centralized location, lush and fertile farmland, the booming city of Chicago, some of the nation's best universities, a plethora of natural resources...the list goes on and on. Illinois is NOT a lost cause! We have nearly everything that we need to create jobs in Illinois; the only thing we lack is a government that allows and encourages economic growth. Below are some simple steps that I will take to get government out of the way of progress and bring jobs back to Illinois.
Reform the Permitting Process
We must take steps to make Illinois a more attractive place for new and growing businesses. The State desperately needs to upgrade its permitting process in order to promote job creation and retention, and private sector investments. The lengthy, confusing, bureaucratic and unreliable process of obtaining mandatory permits in Illinois drives business and investment away from the State. Many job creating companies and projects are delayed for YEARS by our out-dated permitting process.
One example frequently referenced by the Illinois Chamber of Commerce is the construction of a pipeline from Lockport, IL to Patoka, IL. This project, which would create an estimated 1,000 well-paying jobs for the people of Illinois, has been held up in the permitting process for 2 years, and it is anticipated to take another 2 years before permits are acquired and construction can begin. ONE THOUSAND people in our State will have to wait another 2 years to find employment. Illinois has one of the highest unemployment rates in the nation and we simply cannot afford this delay. An upgraded, expedited permitting process is obtainable by limiting the bureaucracy and redundancy within government agencies and WILL NOT come at the cost of diminished environmental protections.
Offer Tax Credits to Job Creating Businesses
During these uncertain economic times, employers are hesitant to expand their workforce and entrepreneurs are cautious about starting new businesses. To help offset this uncertainty, I advocate offering tax incentives to employers for each new job they produce. Additionally, I am a strong supporter of Economic Development for a Growing Economy (EDGE) tax credits which encourage companies that are considering locating in another state to choose to locate or expand operations in Illinois. The EDGE program has proven to be a useful tool in helping Illinois draw new business and remain competitive with surrounding states. To further the benefits of this program, EDGE tax credits should be expanded and the awarding of credits should be expedited.
Micro-Loan Program
The weak economy has caused lenders to be much more cautious in lending to entrepreneurs and small businesses. Entrepreneurs and small businesses are the foundation of economic growth and, in order to create jobs, we must ensure that they are offered an opportunity to thrive. I advocate for a small business micro-loan program whereby the state offers security and incentives to lenders by providing a 10-20% guarantee for loans to small businesses that could not be secured through traditional financing.
Eliminate the Commercial Distribution Fee
Illinois truck registration fees are nearly $1,500 HIGHER than the average of surrounding states. One of the primary reasons that our trucking fees are so high is the commercial Distribution Fee. Since the implementation of the Commercial Distribution Fee in 2003, Illinois once thriving trucking industry has declined exponentially while the trucking industry in surrounding states, such as Indiana, has more than doubled in size. This is a prime example of how increasing fees does not necessarily increase revenue.