Dear Illinois, Do you think you can keep raising taxes with no ill effects? Think again.

See Governor Christie is actively courting Illinois businesses to move to New Jersey (and he is not the only Governor to take advantage of Pat Quinn’s chronic stupidity) – Ah, the free market at work!  That pesky law of unintended consequences will get you every time.  Make your state difficult to do business with and people and companies will leave.

This works on the national level as well.  If you raise taxes and raise barriers to effective commerce, capital funds will go elsewhere and take their jobs with them.  And that lowers tax bases that further erode employment, and the spiral continues.

These are basic economic principles that a 7th grade Junior Achievement student can grasp yet these highly paid politicians cannot.  Like horrible chess players, they can’t think one simple move ahead.  And more and more people will suffer for their ignorance.

2 thoughts on “Dear Illinois, Do you think you can keep raising taxes with no ill effects? Think again.”

  1. Unintended consequences? I’m not sure. More like a feature than a bug. Here’s how it works:

    1. Deal another blow to capitalism with an insane business-killing tax hike.

    2. When revenues plummet, go to Washington for a bailout.

    3. Walk away with cash that ultimately will come from businesses all over the country, including those that relocate out of IL after somehow surviving Quinn’s taxation holocaust.

    For Marxists, what part of that scenario is unintended?

    Like

  2. Ah! Good point by Rightklik! It’s always been a question of stupidity or evil intent. Me? I always assume stupidity, but one never knows.

    As I’ve just gotten a full time job for the first time in two years, this situation is of great concern. I live in Illinois (stop laughing) and the new employer is Illinois based. I will be inquiring about this once I begin in a week.

    Like

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