Dupage Policy Journal

As a Mayor and congressional candidate focused on improving the economy and creating jobs, I’ve been shocked to see how state legislative leaders have been callously disregarding the current economic crisis and continuing to pass legislation that harms our job creators in Illinois.

While many state governments across the nation provided relief to business during the pandemic, ours doubled down on aggressive, anti-growth policies that exacerbated job loss and business closures. What’s worse, to pull it off, advocates of these policies hid their agenda behind misleading “pro-environment” or “pro-consumer” initiatives and complicated changes to our legal system known as “stacked costs.”

For starters, the Illinois General Assembly passed the most radical energy bill I’ve seen anywhere in the country. It aims to reduce carbon emissions to zero in just two decades, while achieving 100 percent carbon-free energy by 2050. If you’re wondering why a single state thinks it can pull this off with zero consequences, when federal lawmakers won’t even pass something so unrealistic, you’re not alone. If this bill remains in place, it will devastate Illinois’ economy, and small businesses will pick up the tab when energy costs skyrocket at record levels.

Senate Bill 72 attacks businesses from a different angle. Known as the Prejudgment Interest Act, defendants in Illinois courts are now on the hook for six percent interest on possible future damages the day a lawsuit is filed. In other words, before even having the chance to defend themselves in court, defendants must begin allocating dollars toward interest costs—the nation’s highest pretrial interest costs, no less.

Of course, this mostly affects businesses, where more dollars are at stake and plaintiff’s attorneys can shop around for small code violations or disgruntled employees. Small businesses are an especially enticing target since many can’t afford to risk a loss in court, even when the case against them is meritless. Essentially, this gives trial attorneys carte blanche to file lawsuit after lawsuit, banking on easy settlements. The rest of us get stuck with more job losses, business closures, and a shrinking economy.

In the same legal vein as Senate Bill 72, Illinois is notorious for over-the-top workers compensation measures. Essentially, when a dispute arises between an employer and employee, our businesses are restricted from working directly with the aggrieved party to achieve a more effective, mutually agreed upon solution. Instead, the courts get involved, and both parties are forced to spend money on attorneys and court costs.

This is a lose-lose situation for both plaintiffs and defendants. If someone is injured at work, victims receive a smaller portion of the damages they are awarded after paying to take the lawsuit to court and once their attorneys take a substantial cut. On other side, defendants—again, mostly small businesses with limited funds—will either be forced to settle for more than what is justifiable or risk an even worse outcome in front of a judge.

If we add to this list of bad policies the increase in business taxes by $655 million this year, over 192,000 lost jobs, a $2,094 “tort tax” per Illinois resident, and the worst inflation in 40 years, the path forward is clearly unsustainable. Near-term, job losses will increase and prices will dramatically rise for consumers as businesses fight both inflation and allocate more money for legal expenses. Long-term, residents and businesses will continue to flee our state, and these increasing costs will be shouldered by fewer taxpayers and job creators—a recipe for an economic  collapse.

Illinois residents, we must reverse course now. Please help amplify this message and tell your lawmakers in Springfield to return to commonsense lawmaking that supports jobs and small businesses that helps us get out of our economic tailspin.

Keith Pekau

Mayor of Orland Park

Republican Candidate for Illinois’ 6th Congressional District