Caterpillar threatens to leave Illinois
Caterpillar is an Illinois institution. If the company leaves the state, it will be a big blow. It would be interesting to see how much increased tax revenue Illinois is actually going to get from this tax increase.
The chairman and CEO of Peoria-based Caterpillar Inc. is raising the specter of moving the heavy equipment maker out of Illinois.
In a letter sent March 21 to Gov. Pat Quinn, Caterpillar chief executive officer Doug Oberhelman said officials in at least four other states have approached the company about relocating since Illinois raised its income tax in January.
"I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest," Oberhelman wrote in the letter obtained Friday by the Lee Enterprises Springfield bureau. "The direction that this state is headed in is not favorable to business and I'd like to work with you to change that."
Oberhelman said he's being actively courted to move.
"I have been called, 'cornered' in meetings and 'wined and dined' -- the heat is on," Oberhelman wrote. "Before, I never really considered living anywhere else and certainly never considered the possibility of Caterpillar relocating. But I have to admit, the policymakers in Springfield seem to make it harder by the day."
Cat spokesman Jim Dugan said the letter was designed to show Quinn that Oberhelman wants to be involved in finding solutions that benefit the company, which employs 23,000 people in Illinois. . . .
Labels: Taxes
posted by John Lott at 4:23 AM
4 Comments:
Markie Marxist sez: "They can't do that! How dare they flee our oppressive taxation! We need, uh, like a big wall or something to keep them in. How is communism supposed to work if people can just walk away from it any time they please? Where's the totalitarian oppression in that? It's just not common communist sense! We need to start building that wall."
I seem to recall that Fearless Leader had said something along the lines of Caterpillar not losing jobs if his stimulus package was passed.
http://www.msnbc.msn.com/id/29139938/
I guess relocation wouldn't count as losing jobs, even if their main HQ is in Obama's state.
Executives at Boeing, which fled Seattle for Chicago ten years ago, may want to send the governor of Illinois a letter too.
As usual, there is an disconnect between government, and reality.
When a company is driven out of a State, the State not only loses taxes from the company that no longer operates in said State, they lose employee income taxes, property taxes due to foreclosures, sales taxes, and a whole lot more.
This disconnect seems to be a symptom of the Democratic Party that so far proves to be incurable.
Madness: Doing the same thing over, and over again, and expecting different results each time.
Post a Comment
<< Home