Friday, January 28, 2011
 
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Quinn aides discount NJ, Indiana ads

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[January 28, 2011]  SPRINGFIELD (AP) -- Illinois won't let itself be dragged into a public relations war with states that are trying to use Illinois' new tax increase to poach jobs, top aides to Gov. Pat Quinn say.

InsuranceIndiana and New Jersey may be criticizing Illinois with billboards, newspaper ads and radio commercials, but Illinois won't respond in kind, Quinn chief of staff Jack Lavin said in an interview with The Associated Press.

Instead, Lavin said, Illinois will talk directly to the executives and consultants who evaluate states and decide where companies will do business.

"I think you've got to go to the decision-makers," Lavin said Wednesday evening. "That's who we need to focus on, rather than billboards."

The state's message, Lavin said, will be that Illinois still has a moderate tax burden even after the increase, but now state government is on sound financial footing. That will let the state pay its bills, improve services and make plans for the future, he said.

Warren Ribley, director of the Illinois Department of Commerce and Economic Opportunity, said neighboring states should applaud Illinois for getting its financial house in order and then cooperate on attracting overseas business to the region.

"As Illinois goes, so goes the Midwest," Ribley said. "Our competition isn't Indiana or Wisconsin so much as it is China and India."

One business consultant said Illinois officials are smart to focus on talking to the people who actually make decisions about where to do business.

"That's probably the better way. Take the professional approach," said Mark M. Sweeney, senior principal at South Carolina-based McCallum Sweeney Consulting.

Sweeney wasn't impressed by the ad campaigns portraying Illinois as unfriendly to business.

"That's for public consumption. I'd almost say for public entertainment," Sweeney said. "That's as much politics as economic development."

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Illinois Democrats approved an increase this month that boosts the personal income tax rate by two-thirds, to 5 percent. The corporate rate goes up by nearly half, to 7 percent. Some analyses also count a second corporate tax that essentially pushes the Illinois rate to 9.5 percent.

Other states, some with taxes comparable to Illinois' new rates or even higher, have seized on the increase to criticize Illinois as a place to do business.

New Jersey and Republican Gov. Chris Christie have been especially active. Christie appears in newspaper and radio ads running in Illinois to promote New Jersey.

Quinn has publicly criticized the New Jersey governor's job-creation record and handling of that state's budget. But Lavin said responding with an ad campaign would be a bad use of Illinois' money -- something Christie should consider.

"I'm not sure they're investing their money wisely," Lavin said. "I think he might be better off spending his money in New Jersey."

[Associated Press; By CHRISTOPHER WILLS]

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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