I don’t know if you saw this with all the news yesterday. Illinois lost 89,000 jobs since enacting the largest tax increase in the history of the state, as reported by the Illinois Policy Institute.
It was the largest job loss of any state in the nation.
Democrats will blame it on a poor economy. The truth is, higher taxes change behavior. Combine that with the fact that Illinois pols have given tax waivers to some large companies. John Deere ($JD), Motorola Mobility ($MOT, $GOOG), Sears, and others have gotten roll backs on the tax. So, like most tax levies it falls on small businesses and medium size companies.
Motorola Mobility promised to hire people for the tax rollback. Now that they have been purchased by Google, that promise goes out the window. Say goodbye to those jobs.
There is no doubt, other companies are exploring a move from Illinois. Recall that the Democratically controlled Illinois legislature didn’t just raise the corporate income tax, but they killed internet businesses too.
One major company, $CME, that actually has to pay it’s taxes said on the latest earnings call that they have had discussions with other states. I wouldn’t blame CME one bit for leaving. They can increase their earnings 9% simply by moving. I am one shareholder that endorses the move.
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 28th 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom