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.


* A grand good morning to you all!
* Late, late poll... Who won the debate?
* 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

          
        * Talon (Plus) for Android 5.0 released, Classic unpublished
        * Poll results: How do you use your Lumia smartphone?
        * Microsoft Drops Nokia Name, Sticks With ‘Lumia’ For Windows Phones
        * Samsung Galaxy Mega 2 available on AT&T this October 24
        * Leeo Smart Alert Nightlight review: $99 is cheap if it saves your house from burning down
        * Apple Patent Hints Remote Unlocking And Trunk Operation Possible For Future CarPlay
        * Nexus 6, Android 5.0 will include ‘Ambient display’

        * Download Free Excel Templates to Manage Time, Money or Productivity
        * Notti Smart Light Changes Colour Depending On Your Received Phone Notification (video)
        * BMW M4 DTM Champion Edition Announced
        * Samsung Galaxy S5 Plus Appears On Samsung Netherlands’ Website
        * Candy Crush Soda Saga Makes Its Way Onto Facebook
        * New Social Network Tsu — Which Pays Users Who Post — Raises $7 Million
        * How Did You Overcome a Spending Problem?

        * Reading Room: A wild card of a World Series
        * Following same path as '59 White Sox, KC eyes title
        * larry's Offseason Plan
        * Abreu wins Sporting News' AL Rookie of the Year honors
        * Jose Abreau wins the Sporting News AL Rookie of the Year
        * Jose Abreu wins the Sporting News AL Rookie of the Year
        * Lost in Isolation: A White Sox fan abroad.


        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


        * Pat Quinn challenger: 'I can't be bought' - Was.....
        * Democrats love seeing minimum wage on the ballot..
        * Governors to watch for 2016 and beyond: What th.....
        * Bill Clinton to campaign for Governor Quinn in .....
        * Final guv debate: taxes, jobs, schools..
        * That’s Probably The Flu That You’ve Got & NOT E.....
        * What is at stake in the 2014 gubernatorial races?..
        * Ill. Governor, Challenger Spar over Economy..
        * Lobbying In The United States..


        * Funeral set for basketball coach Wayne McClain
        * USDA: Illinois corn, soybean harvests slogs along
        * Bill Clinton to campaign for Quinn Tuesday
        * Illinois governor candidates spar on finance, jobs
        * Democrats love seeing minimum wage on the ballot
        * Quinn, Rauner debate income tax increase
        * Governor hopefuls disagree on charter schools
        * Illinois governor candidates spar in last debate
        * Police: Indiana suspect hints at more killings
        * EPA awards $8.6 million to reduce Lake Erie algae

        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight
        * U of I sees turning point as election nears
        * Chicago Sun-Times endorses Rauner for governor
        * Sun-Times, Belleville, Champaign, Peoria newspapers endorse Rauner for governor
        * Bill Clinton to address workers at pro-Quinn rally
        * Body camera use concerns Illinois police officers
        * Illinois unemployment rate falls again, to 6.6 percent
        * Panel to look at body cameras in eavesdropping law discussion

        * McDonald's: 'By all measures our performance fell short of our expectations'
        * Final guv debate: taxes, jobs, schools
        * With a boost from Lurie, Central DuPage wants to expand
        * It's official: AbbVie and Shire end merger talks
        * Northwestern, U of C among four hospitals that would treat Ebola patients


        * Fix pot law conflicts so industry can grow
        * Chicago Public Schools to sell headquarters for $28 million
        * Cardinal George’s advice to Archbishop Cupich: ‘Spend a lot of time listening’
        * Convicted sex offender in custody after 7 bodies found in NW Indiana
        * Fioretti tries to put heat on Emanuel over short yellow lights
        * Neely’s pre-election resignation deja vu of how she got her start
        * Emanuel’s cable tax hike to cost average consumer $28.80 a year
        * Scholar’s take on bishops’ synod: ‘Amazing days if you’re a Catholic’
        * Obama votes early, campaigns for Quinn
        * Dr. Lawrence Solomon: Renowned dermatologist, book collector loved a mystery


        * Cops: Boy, 17, fatally shot by officer after refusing to drop knife
        * Man killed, two people wounded in Dixmoor shooting
        * Chicago to see partial solar eclipse Thursday
        * Ebola fear puts family in voluntary quarantine in Rock Island
        * Foes, supporters speak out on New Trier tax increase request
        * 'My heart breaks,' says mom of one of 7 Indiana slaying victims
        * What experts say about serial killers
        * Suspect in Indiana serial killings has violent past
        * Millions pledged to carry out CPS arts program
        * Quinn, Rauner unleash negativity in final debate


        * Area Cub Scouts Burned In Explosion
        * Notes On The Final Governor Debate
        * Scary Story: Hand In Glove By Shawna Mayer
        * Task Force Hopes To Help Turn Students Into Good Citizens
        * Digging up the history of a Civil War camp on Chicago's South Side
        * Indiana suspect hints at more killings
        * Illinois' Medical Marijuana Program At Odds With Federal Policy
        * UIS Poverty Series Continues With "American Winter" Screening
        * Third & Final Governor Debate Tonight
        * Are Computer Keyboards Killing Cursive?


        * Our Opinion: White, Madigan for another term
        * Quinn, Rauner spar over jobs, taxes
        * Our Opinion: Say yes to Magro’s project
        * John Schick: Letter confirmed aggression toward bicyclists
        * Election 2014: Learn about all the candidates
        * U of I sees turning point as election nears
        * Our Opinion: Re-elect Durbin for another term in U.S. Senate
        * Bill Press: Do you trust your government on Ebola?
        * Quote of the Day: Monday, Oct. 20, 2014
        * Our Opinion: Rodney Davis has earned another term


        * Granite City man accused of exposing himself to students on bus -- twice
        * Domestic abuse simulation lets participants live ‘In Her Shoes’
        * Body cameras become the norm for police
        * Carbondale police investigating two incident over the weekend
        * Throw the bums out on Nov. 4
        * LWV canceled; Weibel did not
        * Central site means no on referendum
        * Late UI prof was man of great stature
        * Looking out for No. 1
        * Pull plug on new gambling


        * Chef du Jour: Naperville chef perfects pairing for Portuguese wine
        * Dawn Patrol: Quinn, Rauner in feisty debate; how deputies' lives saved
        * Finding victims in Indiana case a lengthy process
        * Constable: Teens eclipse expectations for observatory
        * McHenry sheriff: Shooter ready to 'finish off' wounded deputies

        * 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...

        * Democrats love seeing minimum wage on the ......
        * Dick Durbin bio...
        * Democrats love seeing minimum wage on the ......
        * Democrats love seeing minimum wage on the ......
        * Democrats love seeing minimum wage on the ......

        * Senator Mark Kirk: Congress Will Not Suppo......
        * Dear Editor,...

        * Hinsdale teachers ratify the contract. Now it is up to the board to abide by their commitment.
        * Why you should care about Hinsdale. Tea Party loses the vote on a new contract.
        * The [Thursday] Papers
        * Millionaires Not Sweet On Halloween
        * The Weekend In Chicago Rock
        * The NSA's "U.S. Corporate Partners"
        * Will anyone care Sun-Times may have dumped all over its statehouse reporter to appease a political candidate?
        * Take note of first complaint received through Ethics Citation Program
        * Morning Minute: Don’t make these credit score mistakes
        * Morning Minute: Mortgage rates fall below 4 percent, hit yearly low


        * Rauner Campaign Statement on Final Debate
        * What They’re Saying About Pat Quinn
        * What They’re Saying About Bruce Rauner
        * Illinois EPA Registration of Smaller Sources Program Hits Program Landmark - 3,000 Illinois Small Businesses Benefit from Permit Streamlining
        * Rauner Sweeping Endorsements Across Illinois




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