In Illinois, state income taxes go directly to the job creators

Reuters' David Cay Johnston explains: For all employees who were on the payroll at the time of the deal, companies (Navistar, Motorola, the car companies with operations there) get half of the income tax their employees pay. For new employees, the companies get the full share.

http://www.reuters.com/video/2011/07/19/david-cay-johnston-paying-taxes-to-your?videoId=217231660

Johnston predicts that when other companies find out about this, they're all going to push for it by threatening to move to other states, which was the basis for Illinois handing out these inducements. I see no reason to believe he's wrong.

 

Illinois is in the first rank of the worst-run states in America, behind California.

 

Seriously, if you're going to go this route, just nationalize these companies and be done with it.