Shot in the Dark

Taxes Kill

We’ve known it for decades; raising taxes in a recession is stupid, stupid, stupid.

But being a liberal means believing history just doesn’t apply to you:

CME Group Inc. is evaluating whether to move some operations to other states from Chicago to reduce its taxes, but it has not decided on an exact timeline, CEO Craig Donohue said Thursday.

“Our tax situation is untenable,” Donohue told Reuters, noting that CME is taxed more heavily than any of its global competitors. The company is talking with at least three states — Texas, Florida and Tennessee — about relocating some of its business to take advantage of lower tax rates there, Donohue said.

Illinois bucked the trend that New York and (to some extent) Calfornia recognized; that not only do you have to cut spending (because government is out of control) but that taxes inhibit revenue.

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Mitch Berg

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6 responses to “Taxes Kill”

  1. bosshoss429 Avatar
    bosshoss429

    Anyone that doesn’t realize yet how f’d up the State of Corruption, I mean Illinois is, hasn’t been paying attention! They are so entrenched in union/liberal ideology that there is likely no hope for them. Unfortunately, a lot of those libturds are moving here to attempt to turn our state into a clone of the one that they just fled! I have always wondered how they ever got approval to turn interstate highways (I-94), that they they receive Federal funds to maintain, into tollways! I am sick of paying that state twice. As a classic example of fiscal stupidity, a friend of mine went through a toll stop in a rental car in May and didn’t pay the .40 cent toll. On Saturday, he received a letter from the rental car company advising him that the Illinois Theft, I mean Tollway Authority had notified them of an unpaid toll! The fine for not paying a .40 cent toll is $25.00. The stupid part is that they most likely spent far more than that to collect it! If that isn’t blatant government waste and stupidity vividly illustrated, I don’t know what is!

  2. Chuck Avatar
    Chuck

    I was in Peoria earlier this year and there was talk about Caterpiller moving out of state. Now, if this is the Twin Cities, the left would say “let them leave, f*ck um”. But there, people appreciate the jobs and know what a good corporate citizen Cat has been. They are sympathetic to Caterpillers delemna.

  3. Kermit Avatar
    Kermit

    Where is Honeywell’s headquarters now? New Jersey. Delta bought Northwest Airlines. Where is their headquarters now? Georgia. How much manufacturing does Minnesota Mining and Manufacturing do in Minnesota? Zero. But dang if we don’t have a big color TV in every public school classroom.
    Minnesota, hats off to thee!

  4. Seflores Avatar
    Seflores

    I’m in Ohio visiting family and the big scandal here is a woman who worked middle management for the sewer district near Cincinnati who was also head of the union for county/city middle managers. Apparently she absconded with all the dues paid over the last 6 years (around 750K) and a review of her employment found that for all her A+ reviews, she wasn’t showing up for work at all. Governor Kasich has a massive reduction of gov’t employee union power working through the legislature and this woman is the poster child for his side. He’s trying to move the state forward and all the Dem’s are shrieking that he’s turning the Buckeye State into a police state. Typical.

  5. Terry Avatar
    Terry

    Technically this is not a macroeconomic issue. If the economy was going gangbusters CME would have have the same incentive to move to a lower-tax business environment.
    In some sense I can see logic in the liberal view regarding taxes: if the options are to tax a company or an individual and spend the money on public goods, or allow that company to keep its money & invest it in creating jobs in China, well . . . what is the best for the US?

  6. bubbasan Avatar
    bubbasan

    Terry, technically true, but isn’t it true that executives tend to cost cut more aggressively when the economy is bad? Not only is the incentive stronger (get us profitable or get fired!), but the writeoffs that you get when you move a facility are great for goosing your gains on your stock options.

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