Here is a great lesson on the negative effects of taxes on the economy.  Illinois recently enacted the so-called Amazon tax that extends their sales tax to out-of-state vendors.  From our sister, free-market think-tank in Illinois (Illinois Policy Institute):

As news that Amazon.com is seeking to challenge the new California law attacking online affiliates via a ballot initiative, it’s worth remembering that Illinois passed its own misguided online affiliate tax hike not too long ago.

This documentary tells the story of how that bad Illinois policy spurred FatWallet.com to move just a few miles north into Wisconsin. Now Illinois gets none of their money — no property taxes, no income taxes, no fees, nothing. It is a must watch.

Bad policy caused this bad outcome for Illinois. The good news is that good policy — repealing the tax — can help bring companies home and keep others from leaving.

Below is the mini-documentary of fatwallet.com fleeing Illinois . . . do watch it, it’s worth the trip.

http://www.youtube.com/watch?v=ckP0HWl_w3c&feature=player_embedded