East Central Reporter

Hostile business environment stifling economic growth in Illinois

By State Representative Adam Niemerg

One of the common deterrents to locating a business in Illinois is the state’s hostile business environment. The combination of high taxes and excessive business regulations makes Illinois one of the worst states for business.

 

Chief Executive Magazine ranks Illinois the third worst state in the nation for doing business. Illinois, New York, and California have long been the three worst states for business in the nation, according to the Magazine’s annual report.

 

The hostile business environment is taking its toll on Illinois as the Land of Lincoln currently has the ninth highest unemployment rate in the nation. We clearly have a problem but unfortunately the Governor and the Democrat majority in the House and the Senate refuse to provide any solutions. In fact, they are doing the opposite.

 

The Legislature is not rushing to pass pension reforms or tax reforms or other measures to put our state on better financial footing. No, instead, the Democrat majority rushed through a bill to pad the pockets of personal injury lawyers. Senate Bill 72 is one of the few bills that have passed both chambers and is already on the Governor’s desk awaiting his signature.

 

Senate Bill would impose a 6 percent prejudgment interest annually in medical liability cases. The personal injury lawyers claim this is a compromise because the interest rate is 6 percent as opposed to the original 9 percent rate proposed. But this is not a compromise as stakeholders such as the Illinois State Medical Society were not involved in negotiating the bill and Illinois currently has no pre-judgement interest requirements on the books.

 

It is nothing more than a personal injury lawyer enrichment bill and is just another assault on businesses and another example of why Illinois continues to be ranked one of the worst states for business.

 

The legislative session ends in May and already the Governor has a bill on his desk to benefit the largest contributors to the Democrat party. When it comes to helping Illinois taxpayers or creating a better environment for job creation there is just not enough time on the legislative calendar to accomplish these goals. But the Democrat majority will move mountains to help their contributors. 

 

Illinois businesses have been hit hard by the COVID-19 lockdowns. About 35 percent of small businesses in the state have closed and 500,000 Illinois jobs have been lost. If Illinois is going to see an economic comeback – we need policies that help not hurt businesses.

 

Senate Bill 72 as well as the nearly $1 billion business tax increases being considered in Springfield would do irreparable harm to businesses and lead to more business closures. States like Indiana still have a budget surplus despite the economic hardships of the pandemic. It may come as a surprise to our inept Governor but sound economic policies when implemented actually work.

 

More jobs and more economic activity would solve a lot of the financial problems at the state level in Illinois. The path to more jobs is better business policies. Vetoing Senate Bill 72 and backing away from the proposed $1 billion in new business taxes won’t solve all of the state’s economic problems, but it will be a good start.