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Political Hay

The Cost of Doing Business

Illinois Democrats raised the minimum wage and now state contractors are paying the price.

(Page 2 of 2)

Yet, Illinois won't do that. Instead of making the state more competitive, the Illinois Senate simply chose to spend more. By a unanimous vote the Senate decided that if state contractors were struggling financially, then they would give them hiring preferences and pay the extra costs. To them it made sense.

After all, the state senate wasn't voting to spend their money, they were spending ours. Another irony is that while state government is willing to pay a premium for contractors, they are also in a bi-partisan fashion crying poverty and working to hike taxes.

State Sen. Dave Syverson (R-Rockford) has stated a willingness to hike taxes to pay to current services. Two House Republicans supported a massive tax hike cloaked as education funding reform in Committee earlier this spring. Senate Democrats, who have a veto proof majority, overwhelmingly support tax increases for new spending on education and health care.

Yet, by their willingness to pay more for government contractors, they are proving they are poor stewards of the public treasury who shouldn't be trusted with more money.

After being flogged in the 2006 elections and having the increase rammed down their throats, one would think that Illinois Republicans would have been spoiling to collectively say, "We told you so." After all, the Governor told us this would help Illinois workers, but it's his Administration throwing workers under the bus. Instead, Senate Republicans rolled over. We can only hope House Republicans will have more spirit.

While an argument can be made that Republicans were focused on the fighting the Governor's now all but dead $7.6 billion gross receipts tax. It's more likely a well beaten party just wanted the minimum wage debate to go away -- even when they have a winner.

For the rest of the country, however, we now have a striking example of how even government is even unwilling to pay for the wages it has set. Highlighting how the Illinois minimum wage increase backfired, and Illinois lame attempt to fix it, is a lesson we should remember in future minimum wage fights.

Pointing to Democrat hypocrisy and incompetence won't hurt either.

Page:   12

topics:
Taxes, Education, Health Care, Business, Law, Africa, Oil

About the Author

Greg Blankenship is director of the Illinois Policy Institute in Springfield, Illinois.

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