Border wars

Despite the tax increase, Illinois remains the go-to state for employment


While I appreciate Wisconsin Gov. Scott Walker's zeal to debate economic development in the Midwest, no amount of rhetoric changes the fundamental facts: Illinois is the economic engine of the Midwest, and our efforts to stabilize and reform our budget only strengthen our competitiveness in the global economy.

As The New York Times editorialized last weekend, criticism of Illinois' recent tax and budget reforms "… makes great political theater. But businesses and voters in Illinois, and around the country, should take a closer look at the facts and figures, including their own."

Facts are stubborn things, and it's time to set the record straight.

Even with the temporary increase, Illinois' personal and corporate taxrates are lower than Wisconsin's and comparable to other nearby states. For years, we have collected revenues at rates far below those of our neighbors — one of the contributing factors to our current financial instability. Last week's reforms actually bring us in line with our neighbors.

In addition to Illinois' lower or comparable rates, our corporate tax structure is based on the location of a business' customers — not where the business itself is located. At the behest of the business community, Illinois changed the way it collects corporate taxes in recent years; as a result, a company's taxes due to Illinois won't change if it relocates.

The corporate tax rate is not an obstacle for companies to locate and invest in Illinois. Frankly, our state's unstable finances have stood in the way of business investment. Businesses crave stable economic environments, which is why I supported and signed into law unprecedented limits on state spending, real budget reforms and the revenues we need to meet our obligations. We are putting our financial house in order, which will only make Illinois a stronger competitor.

With these reforms, we will be able to take greater advantage of our state's existing advantages: a strategic location that has made us the hub of the nation's rail network and the aviation gateway to the world; an unmatched transportation infrastructure that makes us the distribution center of North America; unparalleled intellectual resources through our world-class universities and research institutions; and a long-standing place as one of the world's top financial centers. And Illinois' commitment to green energy and high-speed rail is making us a world leader in the 21st century economy.

Our efforts to forge strong business partnerships have paid off, as companies continue to locate, grow and create jobs in Illinois. Boeing is manufacturing in Metro East; Nippon Sharyo recently left Wisconsin to expand its rail-car manufacturing in Illinois; and online innovator Groupon is staying in its hometown of Chicago, even as it catapults onto the global stage.

Illinois has 78 consulates, 44 foreign trade commissions, 26 foreign chambers of commerce and more than 1,500 subsidiaries of foreign companies. We are the nation's sixth largest exporter, and the Midwest's gateway to the world. Illinois is competing globally.

Make no mistake, Gov. Walker, there's no room for short-sighted vision and political gamesmanship in the international competition for jobs.

It is time for the Midwest to come together to better compete in the global marketplace. Illinois can help the entire region meet the demands and opportunities of global business. A key factor in our position in the global marketplace will hinge on whether states make the hard decisions — as Illinois has done — to address the impact of the recession on their budgets and take the difficult steps necessary to achieve fiscal stability.

Rather than political rhetoric and scare tactics, we should focus on finding ways to collaborate and bring more jobs to the region.

We have a lot of work to do, and I look forward to facing these challenges together.

One more stubborn fact — the Chicago Bears, the pride and joy of Illinois, are going to bear down and win on Sunday.

Pat Quinn is the governor of Illinois. He is a Democrat.

http://www.chicagotribune.com/news/opinion/ct-oped-0119-illinois-20110119,0,3624016.story