Governor Pat Quinn (D-Ill) is now known as the most taxing governor in the United States. When he raised taxes on businesses this year surrounding states started luring businesses to their states, with a barrage of ads and publicity aimed into Illinois.
He had just signed into law a 6.25% sales tax for internet sales to Illinois residents and the most immediate effect it has had is that Amazon announced that it was dropping 9000 affiliates from Illinois so that Amazon does not have to collect the tax. What was he thinking? Experience in other states support that high taxation dampens business activity and result in less revenue. Even Governor Cuomo of New York proposes spending cuts instead of the standby Democrat habit of increasing taxes, to address the budget shortfall.
This follows the principle of “tax it and you’ll get less” and “subsidize and you’ll get more.”