SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Cat again complains about Illinois business climate

Thursday, Dec 1, 2011

* I can’t say as I blame the company for its disgust with the state legislative process. Cat pushed hard for the reinstatement of the research and development tax credit, which is only $25 million, yet is quite valuable to a state with several pharmaceutical and manufacturing headquarters

Caterpillar spokesman Jim Dugan said he saw some irony in the fact that “a week or two ago we see the state quoted as saying they’re interested in” in working with Cat to bring the new plant slated for the continent to the Land of Lincoln - with the 1,000 or so jobs expected to come with it - but then lawmakers reject the measure containing the tax credit that Cat hoped to receive.

“Contrasted with this expressed desire to have businesses grow here, to locate here, (this) is a disconnect that is unexplainable,” he said.

However, Dugan said a decision on the siting is not linked to the R&D tax credit, and in fact involves reviewing a number of criteria. A number of different locations within the U.S., as well as in Canada and Mexico, will potentially be vying for the plant, with a decision on the location expected by the end of the year.

Inaction on the tax credit “is an example of a much, much broader, deeper, fundamental issue and problem” for the state, Dugan said. “We have a state that’s clearly lost without a rudder in the midst of a company like Caterpillar with 23,000 employees in Illinois.”

The problem, Dugan said, is that “there’s no long-term stability” or predictability in state policy for the company to depend upon.

No argument here.

The R&D tax credit should never have been allowed to expire in the first place. And if an agreement on a broader tax package can’t be reached, it ought to be revived on its own.

And maybe that’s what the GA needs to do with the rest of the tax cuts anyway. Allow members to submit amendments and vote on these tax cuts individually, perhaps during a Committee of the Whole. There’s an agreement on the Sears tax break, so that may pass. The Democrats can pass the EITC proposal. Just about everybody would vote for R&D. And that Chicago theater tax break will probably die. The CME deal would be an interesting debate in and of itself. I’d like to see it.

* By the way, Chiquita is leaving Ohio, so you can bet that Ohio will be pushing hard on its $400 million relocation offer to Sears

On Tuesday, Chiquita accepted a $22 million in tax incentives from North Carolina to move its world headquarters from Cincinnati to Charlotte.

“It hurts to lose yes. Especially when we are losing nearly 400 jobs,” said Cincinnati councilwoman Cecil Thomas.

“It’s disappointing for your city and it’s a loss income tax wise as well,” said Cincinnati councilman Chris Bortz.

Nearly 375 jobs will be transferred from Ohio to North Carolina by 2014. Chiquita executives have contemplated the move since September.

Sears may or may not be a dying company, but they are our dying company and their state tax break is pretty small in comparison to the overall budget.

- Posted by Rich Miller        


23 Comments
  1. - walkinfool - Thursday, Dec 1, 11 @ 11:09 am:

    I agree with Dugan, it’s not the tax itself which bothers most big dcompanies in Illinois. It’s the unpredictability, and inability to depend on a given state position when planning.

    Exactly the same thing is happening nationally: it wasn’t so much the size of the debt which caused our rating downgrade, (as explained by the rating agencies themselves), but the inability of our Congress to move forward on any plan whatever. Strict ideologues, resisting compromise at all levels, are killing us.


  2. - How Ironic - Thursday, Dec 1, 11 @ 11:11 am:

    I’m tired of the tax incentive ‘games’ corporations are playing. Being held hostage to demands to either cut taxs or leave is baloney. The sooner cities and states realize this a losing proposition, the better.


  3. - wordslinger - Thursday, Dec 1, 11 @ 11:18 am:

    In lieu of a thoughtful and comprehensive review of tax restructuring, whacking up these individual deals is not a bad idea.

    I think CATs complaint is a little overstated, particularly in their case. They don’t pay much, if any, state income tax now.

    That’s pretty predictable.


  4. - Pot calling kettle - Thursday, Dec 1, 11 @ 11:20 am:

    I second HI’s comment but I do not think the race to the bottom will end anytime soon. Politicians love to show their skills landing “jobs” for their state, even when the proposition is a net loser. It seems the press rarely digs deep enough to provide a clear explanation to the public on the costs vs the benefits of some of these deals.


  5. - OneMan - Thursday, Dec 1, 11 @ 12:09 pm:

    Yeah Sears may be our dying company but if Ohio is going to offer them $400 Million they should take it.

    Still think the idea of them trying to do a HQ move with all the other issues they are facing right now is idiotic.


  6. - Plutocrat03 - Thursday, Dec 1, 11 @ 12:29 pm:

    “trying to do a HQ move with all the other issues they are facing right now is idiotic.”

    No more idiotic than United moving into the city from the suburbs while reorganizing.


  7. - Rich Miller - Thursday, Dec 1, 11 @ 12:32 pm:

    Plutocrat03 is exactly right. And who can blame a cash-starved company for being lured by $400 million?


  8. - Observer - Thursday, Dec 1, 11 @ 12:49 pm:

    Maybe they should not have imposed that tax hike. Seriously, and dont bombard me with partial statistics, Illinois is over regulated and over taxed


  9. - Cook County Commoner - Thursday, Dec 1, 11 @ 12:53 pm:

    As the owner of some CAT stock, I wrote the company expressing my preference that new facilities go to Mexico, even with all its drug problems. That way it would be closer to the likely future development in Mexico and Central, South America. Illinois and most of the rest of the states just won’t face up to their fiscal problems. Who cares if CAT doesn’t pay any taxes when its Illinois employees and surrounding communities begin to degrade with increasing speed? Absent some unprecedented government epiphany, my vote is anywhere but Illinois.


  10. - wordslinger - Thursday, Dec 1, 11 @ 1:00 pm:

    CCC, so you prefer the good government and well-managed state of affairs in Mexico? That’s incredible.

    Some people just really hate this place. Why on earth do you stay? It’s quite a mobile society.


  11. - Small Town Liberal - Thursday, Dec 1, 11 @ 1:04 pm:

    - Seriously, and dont bombard me with partial statistics, Illinois is over regulated and over taxed -

    Kind of ignoring the plank in your eye there, aren’t you? The tax increase has nothing to do with Sears, the massive tax credit they’ve received for more a decade expiring is what’s driving their threats. But please, feel free to continue bombarding us with partial thoughts.


  12. - he's right - Thursday, Dec 1, 11 @ 1:11 pm:

    Beijing is much more predicatble.


  13. - MidGround - Thursday, Dec 1, 11 @ 1:21 pm:

    Talk about speaking out of bothsides of your mouth!

    Cat profits up 90 percent

    October 25, 2011

    Caterpillar has reported a 44 percent jump in revenues for the nine months to the end of September and a record third quarter.

    Nine month revenues were $42.9 billion - 44 percent up on the same time last year, while new machine sales increased 45 percent to $40.8 billion. Sales growth has come from all regions, but Europe and Asia lead the way at 51 and 55 percent respectively. Pre-Tax profits were up 90 percent to $4.75 billion.

    The third quarter saw revenue growth continue at similar levels, with total sales up 41 percent to $15.7 billion and new machines sales up 444 percent to $15,6 billion. Pre–tax profits grew by more than 47 percent to $1.63 billion.

    Caterpillar chief executive Doug Oberhelman said: “I am pleased with how we’re performing. This was the best quarter for sales in our history, and our order backlog is at an all-time high. Excluding Bucyrus impacts, this was also our best profit quarter in history, and year-to-date operating profit as a percent of sales was higher than any full year in more than three decades. Machinery and Power Systems operating cash flow has also been very positive, with the first nine months of the year better than any full year in our history,”


  14. - Rich Miller - Thursday, Dec 1, 11 @ 1:33 pm:

    ===As the owner of some CAT stock, I wrote the company expressing my preference that new facilities go to Mexico===

    I wish we could deport you as well. Seriously, are you a complete idiot?


  15. - Fed up - Thursday, Dec 1, 11 @ 1:33 pm:

    Illinois government isn’t just dysfunctional it’s also corrupt. No way cat brings a new plant to Illinois. Sears is dying not much future in that badly managed company. In some ways Illinois future is much like sears. Very bleak. Can’t blame CME for leaving the tax structure screws them but I still think giving the millionaires at CME a tax break using 95 million of pension money is wrong and disgusting. We can’t keep destroying the middle class to appease the millionaires


  16. - wordslinger - Thursday, Dec 1, 11 @ 1:43 pm:

    –Illinois government isn’t just dysfunctional it’s also corrupt. No way cat brings a new plant to Illinois.–

    CAT has plants in noted pure and goo-goo locations including Brazil, India, Indonesia, Italy, Mexico, Northern Ireland, Russia and China.

    I know some people dig the self-flagellation, but c’mon.


  17. - western illinois - Thursday, Dec 1, 11 @ 3:18 pm:

    China and Mexico have no corruption and wonder ful rule of law …gee give me a break. BTW Cat is adding jobs in Illinois.
    I really dont mind giving RD or manufacturing credits or some to Sears but forget 400 million. Its the CME that gets me outraged especially since they were supposed to be regulating MF Global while 1.2 billion in supposedly separate accounts dissappeared ….Why dont we just get real and leaglize all gambling but make them call it Gambling instead of “financial services”


  18. - JP - Thursday, Dec 1, 11 @ 3:23 pm:

    “I think CATs complaint is a little overstated, particularly in their case. They don’t pay much, if any, state income tax now” ??

    CAT has 23,000 employees in Illinois. Let’s say conservatively they get paid $50,000 each per year. At 5% State Income Tax, that is $57 Million in State Income tax before CAT can makes one dime in profit in Illinois.

    Move to a State without Income Tax, and $57 Million goes to the bottom line.

    JBP


  19. - Rich Miller - Thursday, Dec 1, 11 @ 3:29 pm:

    JP, that comes out of the employee salaries, not out of Cat’s bottom line. Sheesh.


  20. - JP - Thursday, Dec 1, 11 @ 4:06 pm:

    cat writes the check, not the employees. they don’t write the check if there is no income tax.


  21. - Small Town Liberal - Thursday, Dec 1, 11 @ 4:24 pm:

    - cat writes the check, not the employees. they don’t write the check if there is no income tax. -
    So you’re assumption is that all those employees will just be ok with the deduction from their paycheck normally labeled “State Income Tax” being relabeled “Bottom Line”? Somehow I think they may get some questions…


  22. - Observer - Thursday, Dec 1, 11 @ 9:09 pm:

    My guess is most of those employees only lok at what their net pay is and have no idea how it is derived.
    I heard some one the other day going on about being put in a higher Illinois tax bracket…when Illinois has a flat tax.
    CAT would take the tax breaks and the employees wouldnt know anything about it


  23. - wishbone - Thursday, Dec 1, 11 @ 11:40 pm:

    “The sooner cities and states realize this a losing proposition, the better.”

    Amen, amen, amen!


Sorry, comments for this post are now closed.


* Oberweis now for gay marriage
* The patented Pat Quinn close has begun
* Question of the day
* McKinney resigns from Sun-Times: "I’m convinced this newspaper no longer has the backs of reporters like me"
* Another one pops
* Reality vs. reporting
* New anti-Rauner theme: "Wolf of Winnetka"
* Redefining Bobby
* Pat and Bruce
* The lindane file
* US judge orders hiring monitor at IDOT
* Underdog endorsements
* Birth control, millionaires and the minimum wage
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Microsoft Lumia branding goes official, new device coming soon
        * LG G3 Screen announced with new NUCLUN octa-core processor
        * OFFICIAL: LG comes out with own proc, F490 is the LG G3 Screen
        * LG’s F490 shows up in Vietnam, up close images available
        * Say hello to Microsoft Lumia
        * Xbox Video for Windows Phone gets new features in update
        * Leaks point to an HTC Desire 820 Mini, that’s not so mini

        * Verizon Starts Taking Sony SmartWatch 3 Pre-orders
        * Motorola Reveals Symbol TC70 Touch Computer
        * Microsoft Claims 2.4 Million Xbox Consoles Sold In Q1 2015
        * Microsoft Lumia Is Now Official
        * Counter-strike: Global Offensive Gets New Halloween Update
        * Verizon Puts Sony Smartwatch 3 On Pre-Order
        * Netflix To Offer 3 More Original Series

        * Longtime scout Provas passes away after battle with cancer
        * Eaton, Ramirez named AL Gold Glove finalists
        * Gold Glove Awards finalists revealed
        * White Sox AFL class features talented Anderson
        * Nori Aoki: The White Sox Killer of 2014
        * World Series Game 2: Notes and discussion
        * 23 potential MLB free agents as SkyMall items


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * BC-IL--Illinois News Digest 12 am, IL..
        * Rauner Campaign Accused of Bullying Newspaper..
        * Candidates Differ on Charter Schools..


        * Officials rethink vote-counting after AG decree
        * Quinn says he'll comply with hiring monitor
        * Complications arise just 12 days before Ill. vote
        * Vereen brothers square off when Bears visit Pats
        * Gary killings put spotlight on abandoned buildings
        * Illinois GOP files lawsuit over poll practices
        * New bridge helping ease Chicago rail congestion
        * Injured Illinois Cub Scouts expected to recover
        * Woman admits theft from Quincy community theater
        * Jobless rate falls in all 12 Illinois metro areas

        * Officials rethink early vote-counting after Madigan ruling
        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight

        * Quinn says he'll comply with hiring monitor
        * Sun-Times' colorful past in covering (and making) news
        * Chicago KPMG executive named Girl Scouts board president
        * Record annual haul for U of C fundraising
        * Airlines say Ebola not scaring away flyers


        * Marina City residents reminded to watch their step during Wallenda’s walk
        * At panel on school closings, board acknowledges more planning needed
        * Republican senators question Quinn’s IDOT scandal response
        * Child who became ill on plane tests negative for Ebola
        * Tollway might permanently lower cost to open I-Pass account
        * Illinois needs better way to deal with terminally ill inmates
        * Killer gets 27 years for throwing woman out 3rd-floor window
        * CPS wants to delay new standardized test, even though state already has said 'no'
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85
        * Scandal or not, Bring on that  federal monitor


        * Chicago police officer shot on the South Side
        * 1 stabbed, 3 teens shot in separate incidents
        * Ebola test negative for child who fell ill on flight from Liberia to O'Hare
        * Cops: Girl, 12, with bipolar disorder missing
        * War vets vying in 8th District diverge on Islamic State tactics
        * Tollway update: 400 lawsuits filed against scofflaws
        * Pit bull breaks through screen door, attacks woman in Carpentersville
        * Victim of serial killing suspect lived in fear: 'She was too scared to do anything'
        * Man sentenced to 35 years for sex assault on girl, 12
        * Man charged with arson in Logan Square fire


        * Bedrock 66: Charlie Parr Plays Springfield Friday
        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin
        * Real estate and religion: The tale of Seventeenth Church of Christ, Scientist
        * Suspicion lingers over Ebola treatment
        * Judge Orders Court Appointed Monitor For IDOT Hiring
        * 13th Dist. Candidates Talk NAFTA, Ebola During Springfield Debate
        * Attorneys Due In Court For Quinn Hiring Lawsuit


        * Our Opinion: Bell, Manar, Davidsmeyer endorsed in state legislative races
        * Craig Burns: Honesty, integrity in great supply at CWLP
        * E.J. Dionne: Ebola, pandering and courage
        * Esther Cepeda: Benefits of closing the word gap
        * Officials rethink early vote-counting after Madigan ruling
        * Our Opinion: Frerichs has the expertise to be Illinois treasurer
        * Robert Kaestner: Good education policy is good health policy
        * Eugene Robinson: Warren makes the case for a presidential run
        * Bernard Schoenburg: Local Rauner ad leaves out ‘everything Springfield isn’t’ line
        * Minimum wage increase supporters urge early voting


        * Open Line
        * Our View: Checking vote a sound caution in these days
        * Looking Back (Oct. 24, 2014)
        * Group to host movie and costume party
        * Animal shelter to hold annual fundraiser
        * ‘Dr. Jekyll and Mr. Hyde’ takes the stage in time for Halloween
        * Tucker completes basic training
        * Interfaith Council to host dinner
        * SIU and Co-op hold community project
        * Ghost historian to present program


        * Girls tennis: Thursday's results
        * Girls volleyball: Thursday's results
        * Girls volleyball: Carmel picks up share of ESCC title
        * Could Hinrich, Mohammed coach one day?
        * Hawks can't climb out of 2-goal hole

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * US Senate: Durbin for another term...
        * Rauner Campaign Accused of Bullying Newspaper...
        * Rauner Campaign Accused of Bullying Newspaper...
        * Rauner Campaign Accused of Bullying Newspaper...
        * Rauner Campaign Accused of Bullying Newspaper...

        * U.S. Senator Mark Kirk to talk with Triton......
        * A Brief History of Michelle Obama Career-G......
        * Marco Rubio, Mark Kirk Warn John Kerry on ......

        * Bustos and Illinois Dems attempt to paint Schilling as "pro-rape"
        * Lessons Learned from Past Tax Reform Efforts [video]
        * Illinois Watchdog Radio - Live on IR
        * Stantis: Captain Pat Quinn and our ship of state
        * Do celebrity backings mean much to pols? Or just to their wallets?
        * Chicago Ald. Latasha Thomas Will Not Run For Re-Election
        * McKinney, Clout & The Freedom Of The Press: Where Would Illinois Be Headed Under Rauner's Reign?
        * Waukegan’s school board president speaks. Crazy talk.
        * Slime Time.
        * Englewood International Film Festivals Kicks Off Tonight!!! #GOODINENGLEWOOD


        * New Ad: Labor leader backs Rauner
        * Jewish Newspapers Endorse Rauner for Governor
        * TV Breaking News: Ethics blow for Pat Quinn
        * Federal judge deals Quinn ethics blow on IDOT patronage hiring
        * Rauner Statement on Federal Hiring Monitor at IDOT




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller