Monday, May 03, 2010

UAL-Continental merger: Could Illinois' lawsuit climate send jobs south?

Over the weekend Chicago-area based United Airlines and Houston-based Continental Airlines announced a merger--creating the world's largest airline. It's expected to be a jobs boon for Illinois.

But it could end up being one for Texas.

In a Houston Chronicle op-ed, Patrick Oxford makes a compelling argument why those jobs should head south to Texas, arguably the most pro-business state in the union.

• • No personal income tax.

• •  Only a 1 percent franchise tax.

• •  No jet fuel tax.

• •  Health care costs are 5 percent below the national average.

• •  The lower cost of litigation in Texas.
In The PrairieStater, Ed Murnane, president of the Illinois Civil Justice League doesn't think that the new airlines will place its headquarters in Houston--after all, United is the "big brother" in this deal. But he doesn't rule it out. Illinois seems closed to business.

In Illinois, our General Assembly may -- or may not -- adjourn this week and the only serious civil justice issue that has been on the table was a proposal to allow third parties to fund lawsuits. It doesn't appear likely to go anywhere but the fact that EVERY member of the Illinois Senate voted for it is not a good sign and the fact that virtually EVERY major civil justice reform proposal put forth by the Illinois Civil Justice League languished in committee.

That doesn't include the medical malpractice reforms enacted by the Illinois General Assembly in 2005 which were overturned in a partisan vote by a partisan Illinois Supreme Court two days after the partisan Illinois primary in February.
Related posts:

Illinois' lawsuit climate among worst in the country

Lawsuit loan sharks might take a big bite out of Illinois

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