By John Ruberry

Last Monday I had a errand to run for work–which brought me to Milwaukee’s suburbs. And for the first time in five years I drove on Interstate 94 north of the Illinois-Wisconsin state line–on what is known as the Milwaukee to Kenosha I-94 Corridor.

A lot has changed since 2012. As I left a toll road south of the border and entered a true freeway–okay, to be fair, the toll road has been there for decades–I noticed a lot.

Businesses–with huge facilities–that weren’t there five years ago leap out at you. Most obvious is the massive Uline warehouse in Pleasant Prairie. The headquarters office of the industrial supplier moved a few miles north from Waukegan, Illinois into Pleasant Prairie in Kenosha County in 2010. Its “Chicago warehouse” followed four years later.

In the 1980s Wisconsin’s tourism slogan was “Escape to Wisconsin.” Illinois businesses are now heeding the call.

Yes, the Chicago area has a couple of Amazon fulfilment centers, but farther north on my drive I saw a massive one in Kenosha–it opened in 2015. The Milwaukee Business Journal calls it “the largest in the recent Kenosha County industrial boom.” There is a “Hiring Now” sign out front.

Sears Holdings, an Illinois loser

South of Kenosha County is Lake County in ILL-inois. There is no Lake County industrial boom. There is no Illinois industrial boom.

Why is that? Sure, tax incentives from Wisconsin’s Republican governor, Scott Walker have helped greatly. Illinois, when inept Democrat Pat Quinn was governor, offered tax breaks to Sears Holdings, which operates the Sears and Kmart brands, and Mitsubishi Motors, to encourage them to stay. This was a few months after a huge income tax hike was enacted. What about attracting new business? By all accounts Sears and Kmart are on life-support and Mitsubishi closed its Bloomington plant in 2015.

Corporate taxes might be slightly higher in Wisconsin–no place is perfect. But Illinois has the nation’s highest median property tax rate. And Illinois’ expensive workers compensation laws frighten business owners.

In 2015 Wisconsin became a right-to-work state. All the states that border Illinois except for Missouri are right-to-work states and Show Me State voters will be asked next year if they want to join the trend. Nearby Michigan has been right-to-work since 2012. Job creators don’t like unions and based on recent workplace votes, neither do workers.

Illinois has its 800-pound odious gorilla in its basement, a woefully underfunded public-worker pension system. Wisconsin’s state pensions are by most accounts fully funded. Businesses don’t like uncertainty and Illinois’ pension bomb, despite a massive personal and corporate tax hike put in place this summer, has not been defused. Not even close. Ka-boom is coming.

Blogger in Pleasant Prairie

This summer Wisconsin and the Milwaukee to Kenosha I-94 Corridor snagged its biggest prize, the Foxconn factory. The Taiwanese manufacturer will hire anywhere from 3,000 to 13,000 employees for its facility in Mount Pleasant in Racine County. Yes, Illinois had also bid on the Foxconn plant.

Indiana is also enjoying great success poaching Illinois firms for the similar reasons.

And when the jobs leave the people leave. And Illinois is one of only three states with negative population growth.

John Ruberry regularly blogs from Illinois at Marathon Pundit.

By John Ruberry

“And it was inevitable that some of these people pushed back…”
Ray Bradbury, The Martian Chronicles.

Overtaxed residents of Cook County, where Chicago is, are finally waking up. After decades of being slapped by tax after tax–folks are fighting back.

Last week the Cook County Board of Commissioners voted to repeal a hated penny-per-ounce sweetened beverage tax, one that until the repeal takes effect on December 1, places a 39 percent tax on a $4.88 12-pack of soda pop.

“The pop tax is dead, but the issue is bigger than the pop tax,” Cook County Commissioner John Fritchey (D-Chicago) told the Chicago Tribune’s John Kass last week. “The issue here is that the people of Chicago and Cook County are not used to having their voices heard and making a difference, with public outrage forcing an elected body to reverse course. This is something.”

Cook County Board President Toni “Taxwinkle” Preckwinkle (D-Chicago) last year had to issue a rare tie-breaking vote last year to enact the soda tax, which took effect two months ago. Last week commissioners voted 15-2 to kill it.

Over the years Cook County imposed with little pushback a 0.75 percent sales tax, along with tobacco, gasoline, and liquor taxes, as well as an additional one-percent sales tax. Okay, there was a rebellion with that last one. Taxwinkle defeated her unpopular predecessor in a Democratic primary on the promise to repeal it–and she followed through. Then five years later she led the effort to successfully bring it back.

Chicagoans pay the nation’s highest sales tax rate.

Meanwhile Chicago residents have been pulverized by repeated property tax hikes to mainly pay for underfunded municipal worker pensions. Illinoisans just got socked with a 32 percent income tax increase, much of that money will go to pension obligations. And Taxwinkle has said that some of that soda tax money is needed for county worker pensions.

Taxwinkle dismissed criticism of the pop tax, which she ludicrously claimed was a public health measure, as the message of Big Soda. Yes, the American Beverage Association’s Can the Tax Coalition did pay for television, radio, and internet ads calling for a repeal. But Taxwkinkle enlisted the aid of “Nanny” Michael Bloomberg, the billionaire former New York City mayor, to pay for pro-soda tax ads. And after the Illinois Retail Merchants Association delayed imposition of the soda tax, Taxwinkle quickly sued the group for $17 million in lost revenue, exposing her “it’s for our kids’ health” argument as a lie.

Toni “Taxwinkle” Preckwinkle

No figures are available, but anecdotal evidence is abundant that Cook County residents in droves have been driving to collar counties and Indiana to purchase pop since collection of the soda tax began. And does anyone think they were only buying soda on these grocery runs? And gee whiz, do you think they noticed that gasoline, and well, a whole lot of other things are cheaper outside Crook County?

Fill ‘er up. Oh, grab a case of beer too! Oh, and buy that stuff as long as we are here. And this stuff too!

Democratic office holders–and not just county ones–heard the sharp message from ordinary citizens: get rid of this tax!

The repeal of the sugary drink tax repeal is a big victory for long suffering Cook County residents such as myself. Cook is heavily Democratic. Hillary Clinton won nearly three-quarters of the vote in last year’s presidential election. Cook County hasn’t had a Republican president of the Cook County Board in nearly five decades, which is when the county’s population peaked.

Yet people in one of America’s bluest counties screamed “Enough” and they pushed back.

But this victory is only partial. The soon-to-be-canned soda tax is only a symptom. Voters need to understand why Taxwinkle needs to spend so much. Pensions for unionized retirees are only part of it. Taxwinkle has been building a massive “free” public-health care network that caters to the jobless and Cook’s burgeoning illegal immigrant community since taking office seven years ago.

Chicago is a sanctuary city and Cook is a sanctuary county. And last month our state’s Republican governor, Bruce Rauner, signed a bill making Illinois a sanctuary state.

These may be the type of governments that Illinois voters want. If it is, then so be it. But prepare to pay dearly for it too.

John Ruberry, a fifth-generation Cook County resident, regularly blogs at Marathon Pundit.

Not all my interviews were from vendors at the Catholic Marketing Network, Alex Jacobs of Three Planets a web service I use lives in Chicago and he stopped by.

It’s a great pleasure to finally meet someone you known for years in person. If you’re interested in his services (and you should be) you can find him here.


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