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Archive for the ‘Wall Street Journal’ Category

Sheridan G. Gorman (Via Instagram)

By William McGurn | Wall Street Journal

Sheridan Gorman should still be alive. The 18-year-old freshman should be with her family and catching them up on what’s new at Chicago’s Loyola University. Instead she’s gone, and this weekend her family came with moist eyes and broken hearts to her funeral at the First Presbyterian Church in her hometown of Yorktown, N.Y.

This family has been through the unspeakable: The light of their lives snuffed out before her time, cut down as Ms. Gorman gathered by the Chicago lakefront with friends to catch a glimpse of the Northern Lights. The politicians who failed to protect her from a criminal have since compounded the pain with ill-conceived statements about who’s to blame. These statements—by the governor, the mayor, a Chicago alderwoman—weren’t intended to wound, but they did.

Our political class, apparently, has lost all sense of what’s important in moments like these. It’s become all about scoring political points against your enemies. Comforting the afflicted, supporting communities and individuals, all that comes later—or not at all. This is not normal.

Begin with Illinois Gov. JB Pritzker. A week ago he admitted there were “real failures” in the immigration and criminal-justice systems that led to this murder. The accused murderer is 25-year-old Jose Medina, a Venezuelan who crossed into the U.S. illegally amid the border chaos of the Biden years. He has been arrested and charged with Ms. Gorman’s murder.

Mr. Pritzker’s real message wasn’t the “real failures.” It was: This is Donald Trump’s fault, notwithstanding that there’s hardly a Republican to be found in Illinois. “I know that the Gorman family has suffered mightily,” the governor said. “I agree. There have been real failures. Those failures, of course, extend beyond the borders of Illinois. There [are] national failures, a failure to have comprehensive immigration reform, a failure of the president to follow his own edict to go after the worst of the worst.”

Alderwoman Maria Hadden told Fox32’s Chicago Live last week that Gorman “might have been a wrong-place-wrong-time, running into a person who had a gun. They might have startled this person at the end of the pier unintentionally.” Ms. Hadden has since apologized for suggesting the victim caused her own death while blaming media for “intentionally creating sound bites to misconstrue my words during this tragedy.”

Not to be outdone, Mayor Brandon Johnson gave a master class in deflection when asked if he would apologize to Gorman’s parents for her death. He then characterized it as “senseless violence.” This was followed by a filibuster, in which he said the city’s sanctuary status was established 40 years ago and was somehow shaped by a 2021 criminal justice reform, which he incorrectly said was passed under Gov. Bruce Rauner who was—wait for it—a Republican. (The law was signed by Gov. Pritzker.)

Finally he, too, went to the old reliable: Mr. Trump. “He points the finger at everything and everyone else versus doing some real self-reflection on what his responsibility is.”

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Illinois’s governor has given at least $5 million to a group backing his lieutenant governor and upsetting the Congressional Black Caucus. | Eileen T. Meslar / Chicago Tribune/Zuma Press

By John McCormick | Wall Street Journal

CHICAGO—Illinois Gov. JB Pritzker’s deep financial involvement in his state’s U.S. Senate primary on Tuesday has angered potential allies for his possible 2028 presidential bid.

The billionaire is helping finance a multimillion-dollar barrage of ads to boost Juliana Stratton, his lieutenant governor, in a race that is also testing Pritzker’s political clout in a state where he has leveraged his wealth to dominate the Democratic Party.

The contest has turned sharply negative in its closing weeks, while revealing divisions within the party over how progressive the Democratic brand should be. It has also become a debate about the influence of outside money.

Pritzker’s involvement has especially angered the Congressional Black Caucus, an influential party group backing one of its own, Rep. Robin Kelly (D., Ill.). Both Stratton and Kelly are Black.

“His behavior in this race won’t soon be forgotten by any of us,” Rep. Yvette Clarke (D., N.Y.), the CBC’s leader, said in a statement also critical of the governor for trying to “tip the scales” in a primary.

Black voter support is critical in Democratic presidential primaries. Clarke declined an interview, while Pritzker recently told reporters he has a proven record of supporting nonwhite candidates.

“I would like a Black woman to represent us in the United States Senate. I just want the best person. She happens to be a Black woman,” he said. “I stand with communities of color across the state and with candidates who are running for public office.”

Illinois Lt. Gov. Juliana Stratton, taking a selfie, has stressed her progressive leanings. | Kamil Krzaczynski/AFP/Getty Images

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J.B. Pritzker (Scott Olson/Getty Images), Chicago Bears play the Carolina Panthers (via Wikimedia Commons)

By Ira Stoll | Washington Free Beacon

The latest business to pick up and leave the high-tax, high-regulation, high-crime nightmare of Illinois may be its iconic professional football franchise.

The governor of Indiana, Mike Braun, announced Thursday morning that a “framework” had been reached for a final deal that would move the Chicago Bears about 20 miles south from Soldier Field to Hammond, Ind.

“Indiana is open for business, and our pro-growth environment continues to attract major opportunities like this partnership with the Chicago Bears,” Braun said. “The State of Indiana moves at the speed of business, and we’ve demonstrated that through our quick coordination between state agencies, local government, and the legislature to set the stage for a huge win for all Hoosiers. We have built a strong relationship with the Bears organization that will serve as the foundation for a public-private partnership, leading to the construction of a world-class stadium and a win for taxpayers.”

statement from the Bears said in part, “We appreciate the leadership shown by Governor Braun, Speaker Huston, Senator Mishler and members of the Indiana General Assembly in establishing this critical framework and path forward to deliver a premier venue for all of Chicagoland and a destination for Bears fans and visitors from across the globe.”

Braun, Huston, and Mishler are all Republicans. The governor of Illinois, J.B. Pritzker, is a Democrat and aspiring 2028 presidential candidate, and Democrats also control both houses of the State Legislature in Springfield. The mayor of Chicago, Brandon Johnson, is a tax-raising leftist who was elected in 2023 over the more moderate Paul Vallas.

So many businesses and people have left the Prairie State that the Illinois Policy Institute, a center-right research group, calls it the “Illinois Exodus.” “One of the major factors pushing businesses away from the state is Illinois’ unfriendly tax climate,” the institute said in a 2025 analysis. Companies that have moved headquarters out of the state in recent years include Citadel, which moved to the Free State of Florida along with its founder and CEO Ken Griffin; Boeing, which moved to Virginia; and Caterpillar, which moved to Texas. When Griffin left in 2022, he told the Wall Street Journal that crime in Chicago was part of the reason: “I’ve had multiple colleagues mugged at gunpoint. I’ve had a colleague stabbed on the way to work. Countless issues of burglary. I mean, that’s a really difficult backdrop with which to draw talent to your city from.”

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Stacy Davis Gates | Nam Y. Huh Nam/Associated Press

Stacy Davis Gates will bring her educational failures to Springfield.

By The Editorial Board | Wall Street Journal

Talk about failing up. Stacy Davis Gates, the Chicago Teachers Union president who has presided over the educational failures of Chicago public schools, has been elected to lead the Illinois Federation of Teachers. Here we have in a single event the problem that is ruining Illinois.

From her new perch, Ms. Davis Gates will be the voice of more than 100,000 Illinois teachers, faculty and others at the statewide union. Downstate parents wondering what’s ahead are warned: It won’t be higher test scores. Less than a third of Chicago eighth grade students are proficient in reading and math. For that, she gets a promotion.

Students and parents don’t get to vote in union elections, alas. But union teachers do and they care most about money and dodging accountability for student failure. Ms. Davis Gates has delivered on both counts. In 2024 she told a Chicago radio station that academic testing “at best is junk science rooted in white supremacy” and “you can’t test black children with an instrument that was born to prove their inferiority.”

Yes, grading is racist, so stop using tests to judge students—and heaven forbid don’t hold teachers accountable. By the way, Ms. Davis Gates sends her own son to a private school.

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Illinois Gov. JB Pritzker is scheduled to speak at an event in New Hampshire this month, fueling speculation about a potential 2028 presidential run. | Photo: Brian Cassella/Chicago Tribune/AP

Billionaire Gov. JB Pritzker of Illinois is one of the top Democrats being watched as the party searches for a way out of the political wilderness

By John McCormick | The Wall Street Journal

CHICAGO—If JB Pritzker runs for the Democratic presidential nomination, he will be betting his party’s best prospect is a political punch-throwing heavyset billionaire who inherited massive wealth. While that sounds like President Trump, the two-term Illinois governor would be wagering on himself.

Pritzker, an heir to the Hyatt hotel fortune, has become one of the most-outspoken critics of Trump at a time Democrats are struggling to counter him. Wealth has long opened doors for Pritzker and there are signs he wants the next one to be into the Oval Office.

The 60-year-old is visiting New Hampshire, traditional home of the nation’s first presidential primary, to speak April 27 at a party fundraiser about what he sees as Trump’s authoritarianism and to call Democrats to action. The trip is likely to boost speculation that Pritzker, among those vetted by Kamala Harris’s presidential campaign as a possible running mate, is interested in the 2028 nomination.

“There is no doubt that he is going to run,” said Chicagoan Bill Daley, who served as President Bill Clinton’s commerce secretary and President Barack Obama’s chief of staff. “The real question is whether he runs for re-election first or just runs for president.”

The governor, who declined an interview, has yet to say whether he will seek a third term. An announcement is expected in the next few months, with the March 2026 primary less than 11 months away.

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Electric vehicles (EV) at an Electrify America charging station, Atlanta, Aug. 28. PHOTO: MEGAN VARNER/BLOOMBERG NEWS

By The Editorial Board | The Wall Street Journal

The House on Friday voted, 215-191, to overturn the Environmental Protection Agency’s vehicle emissions rule, with eight Democrats joining Republicans. Kamala Harris says she doesn’t support an electric vehicle mandate, but that’s what the Biden EPA rule effectively is.

The EPA in March finalized greenhouse gas emissions requirements for auto makers through 2032. EPA’s models show that gas-powered cars will make up no more than 30% of sales by 2032. EVs made up a mere 7.6% of auto sales last year and less than 4% for General Motors and Ford. In eight years they will have to increase their EV sales by some 15-fold.

The emissions standards are especially punitive for U.S. manufacturers that mostly sell trucks and SUVs. Companies will effectively have to produce one to two electric trucks for every gas-powered one in 2027 and closer to four to one by 2032. Yet electric trucks cost much more to produce than sedans since they require much bigger batteries.

Ford lost $44,000 on each EV sold in the second quarter, which is more than some of its trucks retail for. Auto makers are scaling back EV investment amid slowing demand. Ford announced last month it is cancelling production of an electric SUV and delaying an electric pickup. The same week Stellantis delayed retooling a shuttered plant in Belvidere, Ill., for EV production. The Energy Department awarded Stellantis $335 million in subsidies to convert the plant to make EVs. President Biden boasted about the plant in his State of the Union address this year.

“Before I came to office the plant was on its way to shutting down. Thousands of workers feared for their livelihoods,” he said. “A new state-of-the art battery factory is being built to power those cars . . . 4,000 union workers with higher wages will be building that future, in Belvidere, in America.” Or not.

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A new study shows which states are losing their young and wealthy.

By The Editorial Board | Wall Street Journal

More bad news for California, Illinois and New York. A recent analysis finds that their most upwardly mobile millennials are fleeing for lower-tax states. Call it a high-tax state brain drain. The flight of the young and newly affluent promises to compound the states’ budget and economic problems.

Using IRS data, the fintech company SmartAsset ranked states based on net migration of young households (ages 26 to 35) in 2022 that earned at least $200,000 a year. The biggest losers: California (-3,226), Illinois (-1,323), Massachusetts (-1,102), New York (-345) and Pennsylvania (-320).

Michigan, Louisiana, Delaware, Minnesota and Missouri round the top 10 losers. Delaware (6.4%) and Illinois (4%) lost the largest share of their young, higher-earning households.

The biggest gainers were Florida (1,786) and Texas (1,660), which have no income tax. They attracted more than twice as many such households as any other state. “Half of states attracting the most young and rich households don’t charge state income tax,” the study notes. The other big gainers without an income tax are Tennessee (347) and Nevada (162).

Washington state (383) also ranked in the top 10 gainers of young affluent households, along with Colorado, North and South Carolina, Arizona, and of all places New Jersey. The Garden State had significant movement of young households into and out of the state, and perhaps it benefited on net from young families moving out of New York City.

Although Washington state doesn’t tax wage income, Democrats imposed a 7% tax on capital gains above $262,000 in 2022. An initiative to repeal the tax is on the ballot this November. Do Washington voters want their software engineers and entrepreneurs following those migrating from Silicon Valley to Austin?

Damage to high-tax state economies will compound as more young, upwardly mobile people leave. Local businesses and their workers will lose customers. On the other hand, lower-tax states will benefit from the influx of high-earning young professionals who will grow wealthier as they get older. Newcomers may also start families and businesses.

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A worker prices produce at a grocery store in San Francisco, June 7. | Photo: David Paul Morris/Bloomberg News

The latest IRS data shows that the migration of taxpayers to GOP-run states from the left coasts and Illinois continued in 2022.

By The Editorial Board | Wall Street Journal

The pandemic lockdowns accelerated flight from Democratic-run states with onerous taxes and a high cost of living. The latest data from the Internal Revenue Service shows that the exodus has continued after life got back to quasi-normal.

The IRS last week published its annual data on the migration of taxpayers and adjusted gross income (AGI) between states. California ranked, again, as the biggest income loser ($23.8 billion) in 2022, followed by New York ($14.2 billion), Illinois ($9.8 billion), New Jersey ($5.3 billion) and Massachusetts ($3.9 billion). The top gainers were Florida ($36 billion), Texas ($10.1 billion), South Carolina ($4.8 billion), Tennessee ($4.7 billion) and North Carolina ($4.6 billion).

Although higher interest rates and housing prices reduced mobility in 2022, the flight from progressive states far surpassed pre-pandemic levels. California lost nearly three times as much income in 2022 to other states as it did in 2019. New Jersey’s net income loss hit a record in 2022, largely owing to fewer New Yorkers moving across the Hudson River.

Fewer taxpayers left the Empire State in 2022 than during the pandemic, but its income loss was still about 50% higher (unadjusted for inflation) than in 2019. According to an analysis by Wirepoints, New York lost 1.8% in AGI from out-migration in 2022, 3.1% in 2021 and 2.5% in 2020. That’s a lot of taxable income.

On the other hand, Florida gained about twice as much income in 2022 from other states as it did in 2019, while Texas’s income haul surged by more than 150%. Other Republican-led states such as South Carolina and Tennessee also continued to draw more income from other states than before the pandemic, even after adjusting for inflation.

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Schools with abysmal graduation rates would get more money simply for enrolling minorities.

By Neetu Arnold | Wall Street Journal

Many Americans are fed up with the diversity, equity and inclusion initiatives that have proliferated on college campuses and in the workplace. These programs fixate on identity over objectivity and excellence. But despite the backlash, DEI advocates haven’t given up. In Illinois, lawmakers want to embed racial considerations into state appropriations for public universities.

In 2021 Illinois lawmakers established a commission to come up with ways to make appropriations to state universities more “equitable.” The commission, consisting of lawmakers, university officials and members of advocacy groups, released a report in March that proposes to tie state appropriations to each university’s ability to achieve outcomes “grounded in equity.” The commission wants to provide universities incentives “to enroll underrepresented and historically underserved student groups, including students who are Black, Latinx, or from low-income families.” If fully implemented, the plan would cost Illinois taxpayers $1.4 billion annually.

Under the Illinois Commission on Equitable Public University Funding’s proposals, lawmakers would determine how much funding a school deserves. They would do this using a variable called the “adequacy target,” which takes into account the school’s mission and enrollment as well as the programs it offers. The state would pay to help universities increase enrollment of minority, low-income and rural students. Larger amounts would be set aside for groups the commission considers underenrolled—say, with a $6,000 bonus for each enrolled black student, $4,000 for each enrolled low-income student and $2,000 for each enrolled rural student.

Next, the commission would calculate the university’s “resource profile,” or its available funds to cover operating costs. The adequacy target minus the university’s resource profile equals the amount each school should additionally receive from the state government, according to the commission.

As part of the resource-profile calculation, the commission would use a new concept called “equitable student share,” which represents how much universities can hypothetically expect to receive in tuition from students based on racial characteristics. This is where things get strange: The commission pretends that universities charge different prices for different races. Specifically, the plan wants lawmakers to assume that universities will charge minority students a lower tuition rate than whites and Asians, regardless of income. This won’t happen in practice, as the commission knows. It’s simply a justification for paying higher subsidies for minority enrollment.

Illinois’s plan is part of a growing movement to inject equity into state funding models for universities. The State Higher Education Executive Officers Association issued a request for a proposal in 2023 to study equity funding in state appropriations research. Education researchers at the University of Wisconsin-Madison, which boasts one of the nation’s top education schools, released a report this year in support of equity-based state funding models. Illinois’s model was informed by programs in five other states, including Louisiana and Oregon, whose formulas explicitly consider race. Illinois lawmakers also turned to the state’s equity-based funding model for K-12 schools to guide the formula for state universities.

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Windy City voters reject a property tax hike pushed by Mayor Brandon Johnson and the Chicago Teachers Union. | PHOTO: ERIN HOOLEY/ASSOCIATED PRESS

By The Editorial Board | Wall Street Journal

Maybe Chicago isn’t fated to a downward progressive spiral after all. On Tuesday voters shocked everyone by soundly rejecting a ballot referendum to raise the city’s real-estate transfer tax, despite active support by Mayor Brandon Johnson and the Chicago Teachers Union (CTU).

Or perhaps the defeat was because of their support. Chicago residents voted 54% to 46% against the tax scheme with most votes counted. The result is all the more surprising because turnout in the primary was an unusually low 20%. Low turnout typically helps political machines like Chicago’s, which is why they scheduled the tax increase vote for March. They lost anyway.

The Bring Chicago Home referendum billed itself as a way to raise taxes on the wealthy to aid the homeless. But the measure ran into headwinds as the plan to raise the real-estate transfer tax to 2% on properties valued over $1 million and 3% on properties over $1.5 million would have hit many middle-class homeowners and small businesses.

The referendum was one of Mr. Johnson’s signature initiatives, but the mayor’s approval rating is in free fall. A January survey for the Illinois Policy Institute showed his job approval at 29%. It’s 24% on crime and 20% on homelessness. The voters who rejected Mr. Johnson’s tax hike are the same Chicagoans who voted 71% in favor of a failed tax increase proposed by Gov. J.B. Pritzker in 2020.

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