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Saturday, January 8, 2011

Mitch Daniels Favors Tax Increases ... in Illinois

Mitch Daniels, Republican of Governor of Indiana and prospective presidential candidate, is having some fun with proposed tax increases in neighboring Illinois, as reflected in Daniels' interview with The Northwest Indiana Times (h/t Illinois Review):
Gov. Mitch Daniels thinks Illinois' proposed 75 percent hike in its corporate and personal income tax rates will be great -- for Indiana.

In an exclusive interview Friday with The Times, the Republican governor said he looks forward to welcoming to the Hoosier State any Illinois business or resident that wants to pay less in taxes.

"We already had an edge on Illinois in terms of the cost of doing business, and this is going to make it significantly wider," Daniels said.

Illinois lawmakers are poised to vote next week on a plan that will raise the state's personal income tax rate to 5.25 percent from 3 percent, hike the corporate income and personal property replacement tax rates to a combined 10.9 percent and add an extra tax of $1 per pack of cigarettes. The income tax hikes would be retroactive to Jan. 1 and be reduced after four years.

Hoosiers pay a 3.4 personal income tax rate, while Indiana's corporate income tax rate is 8.5 percent.
Of course, Democrats have a solution to losing businesses to lower-tax red states - raise taxes everywhere via cap-and-trade, Obamacare, and a host of environmental and other regulations.  That way, businesses will have nowhere to go. 

(Psst, there's always China or going out of business, braniacs.)

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  1. Wisconsin, like Indiana is now open for business. We have a Conservative Governor and GOP majorities. Governor Walker is moving quickly to make Wisconsin more business friendly, including appointing a Conservative (Cathy Stepp)ass head of the DNR. As long as we can keep the RINOs in check, we will do well.

  2. http://www.taxfoundation.org/research/topic/67.html

    Wisconsin is hardly competitive.

  3. I believe that our new governor (Florida) is going to implement a campaign in high tax states to have businesses move on down to our more business friendly state.

  4. The debtor states are already sucking wealth from the red states via "stimulus" spending for government worker retentions.

    Federalism is (near) dead.

  5. Now Doc, you're forgetting the Atlas Shrugged-esque prospect of legal prohibition against companies going out of business. FTC will be able to forbid companies from stopping production, don'cha know?

  6. Screw Indiana. Texas has NO INCOME TAX, so it can't be any lower. And business taxes hover around 2%. But you better hurry. We're filling up from all those Kalipornia businesses leaving that failed state and moving here. Oh and it only snows about once every ten years. And that was before globull warming.

  7. With a newly elected governor, and Republican senate and house, Micigan will be joining the lower tax party. Our huge unemployment numbers will force our leaders to take drastic measures to improve our business climate...so watch out, Michigan will rise again!!!

  8. I'm going to count down the days before the Dem's introduct a law to prevent "social dumping" to harmonize tax rates in the states, like in Eursoc.

    Nothing a Progressive hates more than competition.

  9. This is the reason that I strongly support the impending tax and regulatory increases in California.

    I live in Nevada.

  10. I notice the Illinois "Replacement Tax" is mentioned. It may amuse you to know what the "Replacement Tax" is.

    Illinois had a "Personal Property" tax which was levied on the values of all the things a person used to conduct his business.

    Somebody sued, claiming the tax was unequal because, while a paving contractor might have to have large amounts of money tied up in front loaders and bulldozers, an attorney (ahem) could conduct his business with nothing more than a set of law books and a typewriter.

    The judge upheld the suit.

    So Illinois passed the "Replacement Tax."

    A reporter finally asked someone what the "Replacement Tax" was. He replied that it was a replacement for the tax that was ruled unconstitutional.