Posted on 03/26/2011 1:09:14 PM PDT by reaganaut1
Caterpillar Inc., suggesting that it could shift jobs out of Illinois, is prodding its home state to cut government spending and roll back tax increases.
Doug Oberhelman, chief executive officer of the giant Peoria, Ill.-based maker of construction and mining equipment, protested against the state's tax and spending policies in a March 21 letter to Illinois Gov. Pat Quinn, a Democrat who took office in January 2009.
In the letter, first reported Friday by the Lee Enterprises newspaper chain and provided to The Wall Street Journal Saturday, Mr. Oberhelman said other states have stepped up their efforts to lure Caterpillar investments since Illinois raised income tax rates in January.
"I want to stay here," the letter said. "But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest. The direction that this state is headed in is not favorable to business, and I'd like to work with you to change that."
A spokeswoman for Gov. Quinn said he "welcomes frank and open exchanges between the business community and government" and will discuss the matter with Mr. Oberhelman at a meeting soon.
In January, the state's General Assembly passed a Quinn-supported bill imposing a four-year increase in income taxes designed to reap $6.8 billion in added revenue and help the state balance its budget. The legislation raised the flat rate for personal income taxes to 5% from 3% and for corporate taxes to 7% from 4.8%. In 2015, both taxes are set to decline but remain above the prior rate.
Mr. Oberhelman enclosed letters from governors or other officials in Texas, Nebraska, Virginia and South Dakota, all citing the recent Illinois tax increase and urging Caterpillar to invest in what they described as more business-friendly environments.
(Excerpt) Read more at online.wsj.com ...
Doug, Bring yourself and your Big Ol’ Company down here to Mississippi!
Unfortunately, business leaving liberal states (and/or countries) may be the only way to get their attention. Even then, I have my doubts...
You mean like it got Detroit’s attention?
Wisconsin woke up among the real working people of the state. Many companies made the announcement they were leaving the day that Quinn made the announcement with several mentioning Wisconsin.
Mr. Oberhelman should be receiving a letter from Gov. Scott any day now. When he became our new Governor, one of his first announcements was that Florida was again open for business. Although casting plants seem to be better suited for colder climates.
Buffalo, New York was kept afloat bt Bethlehem Steel for years. The local pols taxed the crap out of them. What are they going to do, they said amongst themselves, move the steel mill? Then, about thirty years ago, they just left. Buffalo has been circling the drain since there. I guess that it is impossible to get a liberal attention after all.
Liberal politicians in high tax states would rather sacrifice their economies to their unworkable Socialist policies, than implement conservative practices which actually promote growth and economic prosperity.
Liberalism is a mental disorder that makes one immune to facts and reason.
Sad to say, Detroit has been a lost cause for some time now. Even the middle class blacks are leaving in record numbers to the south as reported in an earlier story posted here earlier today.
So that leaves Detroit to the Islamists, I guess.
Like Reagan said, the more you tax something the less of it you get. But the Liberals know better dontchyaknow.
The board of directors has a fiduciary responsibility to the shareholders. If growing in IL is more costly than growing elsewhere, and there are no business judgment reasons to choose Illinois, then the company is set up to be sued for growing in Illinois.
When the Caterpillar gets ILL-n-annoyed locked in a taxed cacoon then it sprouts wings and butterflies onward to greener pastures. Good luck with that Quinn the Dimwit.
In all seriousness, what’s apt to happen is an exemption/exception, or similar favors toward CAT. States and localities do tax favors all the time. This letter is just setting a public stage for a tax favors meeting. Pressure, if you will, from CAT. Give us favors, or we split.
Texas has free parking!
Maybe they will move to Wisconsin
Liberalism is a mental disorder that makes one immune to facts and reason.
^This^ should be printed on 3x5 cards and handed out to everyone on Earth, starting in America. Well put.
In 2015, both taxes are set to decline but remain above the prior rate.
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When was he last time you saw a tax rate decline.
Yo, Cat, as a resident, my advice to you is: you want to be one of the companies that starts the death spiral, not one of those hanging on at the end of it. Start crawling to the border now.
When you see kalifornia running ads portraying their state as a playground state, then you know it MUST really be BAD for them to have to be begging people to come and live over there!
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