Hike Taxes, Hemorrhage Jobs

States: As another manufacturer leaves, Illinois leads the nation in job loss in July. The free fall began with a tax hike. When will liberals learn when you tax something, you get less of it?

The states were envisioned by the Founding Fathers as islands of sovereignty, laboratories of democracy, each free to discover what works and what doesn't. In Illinois, the experiment of taxing your way back to prosperity has failed miserably.

The passage of a 67% income tax hike in January 2011, as well as higher corporate taxes, has coincided with a downturn in state employment. Since the enactment of this massive tax increase, Illinois has lost 89,000 jobs.

This move by Illinois Democrats in the state legislature and Democratic Gov. Pat Quinn has helped drive businesses such as Blue Island, Ill..-based Modern Drop Forge Co., an automotive parts company with 240 employees, out of the state, in this case into the welcoming arms of Republican Gov. Mitch Daniel's Indiana.

Echoing the concerns of companies including Peoria-based Caterpillar, the CEO of Modern Drop Forge told CBS2 Chicago that "Illinois is becoming very, very unfriendly to manufacturers. We now have the highest state income tax in the United States, and the overall income taxes for corporations in Illinois are among the highest in the free world."

As the Illinois Policy Institute notes, the state lost more jobs in July than any other state in the nation, according to Bureau of Labor Statistics data. After losing 7,200 nonfarm payroll jobs in June, Illinois lost 24,900 more in July. The report also says Illinois' unemployment rate climbed for the third-straight month and now tops the national average at 9.5%.

Directive 10-289

“In the name of the general welfare,” read Wesley Mouch, “to protect the people’s security, to achieve full equality and total stability, it is decreed for the duration of the national emergency that—

“Point One. All workers, wage earners and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment, under penalty of a term in jail. The penalty shall be determined by the Unification Board, such Board to be appointed by the Bureau of Economic Planning and National Resources. All persons reaching the age of twenty-one shall report to the Unification Board, which shall assign them to where, in its opinion, their services will best serve the interests of the nation.

“Point Two. All industrial, commercial, manufacturing and business establishments of any nature whatsoever shall henceforth remain in operation, and the owners of such establishments shall not quit nor leave nor retire, nor close, sell or transfer their business, under pentalty of the nationalization of their establishment and of any and all of their property.

“Point Three. All patents and copyrights, pertaining to any devices, inventions, formulas, processes and works of any nature whatsoever, shall be turned over to the nation as a patriotic emergency gift by means of Gift Certificates to be signed voluntarily by the owners of all such patents and copyrights. The Unification Board shall then license the use of such patents and copyrights to all applicants, equally and without discrimination, for the purpose of eliminating monopolistic practices, discarding obsolete products and making the best available to the whole nation. No trademarks, brand names or copyrighted titles shall be used. Every formerly patented product shall be known by a new name and sold by all manufacturers under the same name, such name to be selected by the Unification Board. All private trademarks and brand names are hereby abolished.

“Point Four. No new devices, inventions, products, or goods of any nature whatsoever, not now on the market, shall be produced, invented, manufacturerd or sold afer the date of this directive. The Office of Patents and Copyrights is hereby suspended.

“Point Five. Every establishment, concern, corporation or person engaged in production of any nature whatsoever shall henceforth produce the same amount of goods per year as it, they or he produced during the Basic Year, no more and no less. The year to be known as the Basic or Yardstick Year is to be the year ending on the date of this directive. Over or under production shall be fined, such fines to be determined by the Unification Barod.

“Point Six. Every person of any age, sex, class or income, shall henceforth spend the same amount of money on the purchase of goods per year as he or she spent during the Basic Year, no more and no less. Over or under purchasing shall be fined, such fines to be determined by the Unification Board.

“Point Seven. All wages, prices, salaries, dividends, profits, interest rates and forms of income of any nature whatsoever, shall be frozen at their present figures, as of the date of this directive.

“Point Eight. All cases arising from and rules not specifically provided for in this directive, shall be settled and determined by the Unification Board, whose decisionswill be final.”

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