Increased state business taxes and fees are forcing Illinois firms to cut jobs, forgo new hires and consider moving out of state, three statewide business groups said Monday.
Doug Whitley, president of the Illinois State Chamber of Commerce, said the survey validates concerns raised a year ago when Gov. Rod Blagojevich proposed increasing business fees and taxes by more than $1 billion to balance the state budget.
“We now have proof that there are real detrimental consequences. Thousands of Illinoisans are losing their jobs,” said Whitley at a news conference held in Springfield that also was attended by the Mid-West Truckers Association and the National Federation of Independent Business.
According to the survey, more than 16,000 jobs and $120 million in business investment have been lost since the new fees and taxes were imposed in July. In addition, the survey found that at least 30 companies are considering moving to nearby states to avoid the fees and taxes.
Becky Carroll, a spokeswoman for the governor’s office of management and budget, disputed the job-loss figures.
“This discussion needs to be based upon facts and not fuzzy math,” she said, noting that there was an increase of 6,000 jobs in Illinois in the six months from July to December. “This is a real number that is not based upon some formula.”
But some businesses said the new taxes and fees have been particularly difficult.
Keith Sessler, president of Sentro Printing Equipment Corp. in Machesney Park, said he has been unable to absorb the financial hit caused by the new state sales tax on printing equipment purchases.
Sales of printing equipment previously were exempt from the state sales tax.
“Our business is barely surviving,” he said, saying he has put his building up for sale and is planning to move across the border into Wisconsin.
Citing confidentiality agreements, the groups declined to identify other companies they say have been hurt by the fees and higher taxes.
Kim Clark Maisch, state director of the National Federation of Independent Business, said the governor needs to remember the fundamentals of Business 101.
“What do business owners do when they can’t afford to pay these taxes, pay these new fees? They do one of three things. They either do nothing and eat the cost, which makes it extremely difficult to stay in business; they pass the cost on to consumers; or they put a closed-for-business sign on their front door,” Maisch said.
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Consumers also are hurt by the increased costs, she said.