Illinois Tax and Spend Governor Does It Again

Posted by Jeff Carter
on March 10th, 2011

That economic genius Illinois Governor Pat Quinn signed into law the internet tax bill passed by the Democratic legislature. The “Main Street Fairness Act” will tax internet sales in Illinois.

How come these tax and spend solutions have names that seemingly come from Atlas Shrugged or Fahrenheit 451?

Many businesses supported by Amazon.com and Overstock.com will close, leaving many more jobless. Coupon Cabin is going to be leaving Illinois. They employ about 50 people. Now they will employ 50 people in some other state.

The sales tax curbs innovation. Businesses figure out new ways to interact with their customers. Internet retailers already have a handicap-they have to ship their goods. Brick and mortar retailers have an advantage in that the customer gets the goods immediately. They can physically touch and try them on. It’s great for the general public to see two retailing titans like Amazon and Walmart do battle. They get more goods of higher quality at cheaper prices.

Illinois Democrats just don’t get it. They think that Chicago is so great, people won’t leave. I have news for you, they will and are. Chicago lost 200,000 people as of the last census. Chicago is the largest economic engine in the state. Large corporate businesses that are based in Illinois can move the money out of the country and avoid taxes. Other businesses, like the Chicago Mercantile Exchange are stuck and are forced to pay the tax.

Chicago is the center for risk management for the entire world. It’s not just the CME. It’s all the high frequency trading firms that have located here. DRW, GETCO, and JUMP trading employ over 1000 traders. Plus all the back office support personnel they employ. But, if I were those firms I would really be looking hard at pulling up stakes. Taxes rarely if ever go down. The cost of doing business in Illinois has gone up exponentially in the last two months. I am sure a town like Memphis, TN that is centrally located would welcome them with open arms.

Chicago legislators ought to take a trip through the midwest. If they don’t think what happened to Detroit can’t happen here, they are nuts. Last one left turn out the CFL light off.

RANDOM THOUGHT
Illinoisians, buy as much from Amazon and other internet retailers as you can from now until May 11, and boycott Illinois retailers. Drive the tax revenue for the next couple months in Illinois down.

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