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* I can understand this person’s argument, but if Sears abandons its Prairie Stone campus in Hoffman Estates, there won’t be many businesses left in that development to pay taxes to the schools…
Allison Strupeck, a spokesperson for Community Unit School District 300 — of which the Sears property is a part — said that [tax incentive] expiration would work for the good of the Carpentersville-based school district, calling it “the light at the end of our fiscal tunnel.”
If that state extended those property tax incentives, she said, “we would not have any financial hope for the future of our school children.
“The light at the end of our fiscal tunnel would be snuffed out in one signature of the governor,” Strupeck said.
Because of the property tax incentives, the school district currently receives the same amount of tax dollars from the Sears property it did 21 years ago, according to the District 300 spokeswoman. But Prairie Stone and the nearby Arboretum shopping center have significantly increased the value of that property, she said.
* Bail Sears out with yet another tax giveaway and we look weak for being taken advantage of. Tell the company to take a flying leap and we look far weaker if they do depart, which won’t help our standing in the world, not to mention the most important part: We’ll lose thousands of good Illinois jobs in the process…
If Sears did pull up its longtime suburban roots, it could cost the state roughly $3 billion, with the loss of about 6,200 local jobs, the ensuing unemployment insurance paid to them and the loss to nearby hotels, businesses and vendors that could ripple through the local economy for years to come, [John Melaniphy, president of Melaniphy & Associates, a Chicago-based retail research firm] said.
A study commissioned by Sears reached a similar conclusion, saying the local job loss could total 9,000 if vendors, contractors and nearby businesses were included.
And considering that Sears Chairman Edward Lampert is a “self-made multibillionaire who cut his teeth at Goldman Sachs,” you just know he’s looking for the very best deal possible. We pretty much have no choice here.
* Our situation is not ideal by any means…
It’s often difficult to parse whether a company that takes incentives to stay was serious about leaving. In Motorola Mobility’s case, the company promised to spend more than $500 million on research and development over the next three years, essentially what the company already had planned to spend.
As for Sears, the company has been shifting the nucleus of decision-making outside the state in recent years.
Sears moved its apparel buying and merchandising office to San Francisco in 2010. About 80 percent of the staff has been hired as new employees since the move, the company said at its annual meeting last week.
Sears Chairman Edward Lampert, the hedge fund manager who combined Sears and Kmart in 2005, lives and works in Greenwich, Conn. And Sears’ newly appointed CEO and president, Lou D’Ambrosio, has spent most of his career on the East Coast.
* And this very serious mortgage problem isn’t going to get a whole lot better any time soon if we have no jobs…
More than four out of 10 homes with debt in the Chicago area now are worth less than their mortgages, according to a report released Monday.
Home values here have fallen so much that 45.7% of those with debt are “underwater,” meaning their owners’ equity has been completely wiped out, according to Zillow Inc. That’s up from 38.6% in fourth-quarter 2010 and 31.8% a year earlier.
Nationally, 28.4% of homes with mortgages have “negative equity,” up from 27% in the fourth quarter and 23.3% a year earlier, according to Zillow, a Seattle-based company that tracks the residential property market.
* Related…
* Coal plant to hire 200 more workers
* State to give boost to West Side film studio working on ‘Boss’: But the Cinespace studio and its state subsidy could hurt Chicago Studio City, 5660 W. Taylor, which calls itself the biggest filming complex between the U.S. coasts. Owner John Crededio said the state has turned down his requests to help expand his nearly 120,000-square-foot facility. “I wish them well, but how do I compete when the state is subsidizing them?” he said.
* AT&T seeks to sublease Hoffman Estates campus
* Chamber: New IL Dept. of Labor director is quick to issue notices of violation
* Lakeview group says Wal-Mart agrees to store limits
* Pair of trading news outlets set sites on Chicago: Tastytrade and Benzinga
* Foreclosure suit hits office building of restaurateur Stefani
posted by Rich Miller
Tuesday, May 10, 11 @ 8:33 am
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As someone pointed out to me regarding the CAT departure from Illinois……Quinn can possibly get the CEO’s ear from time to time on keeping a company in Illinois. But, the CEO is surrounded by an executive team (all making handsome 6 figure salaries) that are paying a minimum of $5,000 and more per year in state income taxes, all for the priveledge of living in Illinois.
Those execs are whispering in the CEO’s ear that life would be better in another state.
Each company that Quinn tries to save only highlights the problem. It reminds me of the phrase “Catching falling knives”. Quinn might catch one or two but will get bloodied in the process.
Comment by Observer Tuesday, May 10, 11 @ 8:48 am
I love that the Chamber is complaining that the law is being enforced too well, i.e. the Department is doing too good a job. Stop being so effective!
Comment by chi Tuesday, May 10, 11 @ 8:56 am
-the CEO is surrounded by an executive team (all making handsome 6 figure salaries) that are paying a minimum of $5,000 and more per year in state income taxes, all for the priveledge of living in Illinois.
Those execs are whispering in the CEO’s ear that life would be better in another state.-
We’ve talked about this here before; the tax burden in Illinois is lower than in most other states. That’s not to say there isn’t a problem regarding keeping companies from leaving, whether to give tax breaks, etc., but it’s not related to our tax rates vis a vis another state’s tax rates so much as it is related to these grants and giveaways that Illinois and other states are offering. It’s a race to the bottom-but I don’t know how to stop the race.
Comment by chi Tuesday, May 10, 11 @ 9:01 am
I seem to remember this blog, about two months ago, being dismissive about the claim that Illinois is trending anti-business and is prone to lose employers to more competitive, pro-business anti-tax states. This site seemed to push the narrative that there is little substance to those fears, little value to the enticements of neighboring Republican governors, and bedrock reasons why Illinois businesses will stay.
The facts seem to suggest that business departures from Illinois is not only a serious problem, but a growing problem. Caterpillar, Motorola, now Sears.
It seems to me that having a low tax, pro business environment is a better solution for keeping businesses here than the piecemeal, “pitch them an incentive”, eleventh hour attempts to save individual employers once they threaten to leave. If every business perceives this state as one that is business-friendly and keeps the cost of doing business low, then that would seem to benefit everyone, as opposed to this system of business blackmail that creates a divide between company “winners” and “losers” when it comes to dealing with the Illinois governing class.
Comment by Conservative Republican Tuesday, May 10, 11 @ 9:02 am
CR, you’re wrong on so many points.
First, I wrote that Illinois would lose companies, without doubt. And I haven’t been banging the drum about workers’ comp for nothing, ya’ know.
===The facts seem to suggest that business departures from Illinois is not only a serious problem, but a growing problem. Caterpillar, Motorola, now Sears.===
Um, Cat and Motorola stayed. What’s your point?
===It seems to me that having a low tax, pro business environment is a better solution for keeping businesses here than the piecemeal, “pitch them an incentive”===
So, Texas isn’t offering Sears any incentives, eh? Yeah, OK.
Comment by Rich Miller Tuesday, May 10, 11 @ 9:04 am
The state gop should probably do an online petition about it.
Comment by just sayin' Tuesday, May 10, 11 @ 9:07 am
Sears is going bankrupt, isn’t it? I mean, who shops there anymore? They’re leaving Illinois one of these days, but the bankruptcy lawyers would probably prefer that they stayed here.
Comment by lakeview Tuesday, May 10, 11 @ 9:13 am
We say keep the giveaways going….actually you are just giving away what you don’t have.
If C’ville is tax based on predevelopment they are ahead becuase
1. Sears generates no additional darlings to clog the schools
2. provides better pay job opportunities for those who can pass background/fingerprint checks
3. Allows those workers to spend their cash in C’ville
Comment by CircularFiringSquad Tuesday, May 10, 11 @ 9:14 am
===Sears is going bankrupt, isn’t it?===
$133 million in income and an $8.4 billion market cap doesn’t sound like bankruptcy yet.
Comment by Rich Miller Tuesday, May 10, 11 @ 9:16 am
====low tax, pro business environment====
Quoting Yellow Dog Democrat from yesterday:
“According to the non-partisan Tax Foundation, here are the 2011 Business Tax Climate Rankings:
Illinois - 23
North Carolina - 41
Texas - 13
Tennessee - 27
New Jersey - 48
In other words, of the four other states in consideration, only one has a better tax climate for businesses than Illinois.
Keep in mind that while Texas is often hailed as having no corporate income tax, it DOES have a gross receipts tax, and its budget mess is as bad or worse than Illinois.”
But why let pesky facts get in the way of a good talking point?
Comment by Jimmy CrackCorn Tuesday, May 10, 11 @ 9:17 am
It is very hard to understand what the right thing to do regarding Sears. Of course they will get the best deal out of Quinn that they possibly can. They know that he only cares about the short term and is oblivious to the long term effect of any deal.
Economic development in Illinois is approached using an old playbook and hasn’t been reconsidered for a very long time.
Comment by cassiopia Tuesday, May 10, 11 @ 9:33 am
Extend the tax incentives for Sears, but in doing so modify the terms to value the property at a more current level than the original agreement 21 years ago and also provide for an adjustment every 3 to 5 years. Although there are numerous benefits in keeping Sears, the representative of Dist 300 does make a point that due to these types of agreements school funding in growing districts like Dist 300 fall largely on residential property owners. There need to be a balance.
Comment by WRMNpolitics Tuesday, May 10, 11 @ 9:34 am
===It’s a race to the bottom-but I don’t know how to stop the race.===
I completely agree with Chi. These salivating companies are holding states hostage. Instead of the media properly reporting the whole story most gloss over the details and play to the same old sound byte arguments of “Quinn shouldn’t have raised taxes,” “IL sucks for businesses” etc.
How about the fact that if these property tax incentives are extended then Sears is still paying what they were to the schools 21 years ago. What a crock. Seems like a nice little excuse for Sears to use to not have to live up to their end of the bargain. Rich is right that there is no easy choice either way, but why do these companies get to shirk all responsibility/ media ire when they pull this shtick?
Comment by Bring Back Boone's Tuesday, May 10, 11 @ 9:38 am
Whatever happened to the idea of progressive taxes - shouldn’t Sears be paying higher taxes? No the little guy in the middle who works hards gets screwed when government plays around in the marketplace.
Comment by Liberty_First Tuesday, May 10, 11 @ 9:40 am
And while we are spill endless ink on keeping Sears, more and more small companies head for the exits. I know one tech company who I have a friend working with is leaving for Orlando, and that’s just a personal anecdote.
No one is pulling out the stops for them… they just shutter or go someplace else.
Comment by John Bambenek Tuesday, May 10, 11 @ 9:46 am
–As someone pointed out to me regarding the CAT departure from Illinois……–
Weirdest, shoddiest Illinois journalism of the year — so far.
Read what the CAT CEO actually said.
–“We’ve got a lot of good things going for us in Illinois,” (CAT CEO Doug Oberhelman) said.
While Oberhelman’s letter informed Quinn of offers by four other states that sought to lure Caterpillar from Illinois, the CEO reaffirmed his commitment to the state. “Cat is here to stay. We’ve got 23,000 manufacturing jobs in this state.”–
Sears is a different story. They can do what they’re doing in Hoffman Estates anywhere. They’re sitting on prime real estate right off the interstate that could be developed for a bundle in the right economic environment.
State taxes have nothing to do with it. They don’t pay state taxes. They’re looking for the best deal.
Comment by wordslinger Tuesday, May 10, 11 @ 9:47 am
Conservative Republican -
How else are we going to play favorites if we don’t offer incentive packages?
And where is the “incentive” for all the mom-and-pop small businesses? The high tech startups?
Is Illinois sending a message they only want the Caterpillars and Motorolas of the world, and not the Groupons and Googles of the world?
Comment by Leroy Tuesday, May 10, 11 @ 9:53 am
===As someone pointed out to me regarding the CAT departure from Illinois===
They left?
Comment by Rich Miller Tuesday, May 10, 11 @ 9:54 am
===And where is the “incentive” for all the mom-and-pop small businesses? The high tech startups?===
There are programs for both. You answered your own high-tech question with your comment on Groupon.
Comment by Rich Miller Tuesday, May 10, 11 @ 9:55 am
-and that’s just a personal anecdote-
Exactly.
Comment by chi Tuesday, May 10, 11 @ 10:01 am
“You answered your own high-tech question with your comment on Groupon. ”
What incentives did Groupon get when it had 10 employees?
Sure, once it was worth billions they could afford lobbyists to pull for it.
But where were the incentives when it was worth nothing??
Comment by Jonsey Tuesday, May 10, 11 @ 10:20 am
government doesn’t need to dole out incentives to businesses with just 10 employees - they are so small that they aren’t likely to move out of state.
Comment by Robert Tuesday, May 10, 11 @ 10:31 am
As to the Chamber artical on IDOL. Thier position is not unexpected. I will have to go with them on a couple of things though. The appeals process on both sides need to improve and contractors do need to make an effort to understand prevailing wage law.
In talking with employees at IDOL I was lead to believe Director Shannon did not like to be the Cop. Sounds like the new guys has a different take on IDOLs mission.
I know folks differ on the need for certain laws. They often feel laws they do not like should not be enforced and ignore them. If you get caught speeding pay the ticket and learn something or pay again.
Comment by Bemused Tuesday, May 10, 11 @ 10:34 am
Some people here need to quit looking at and parroting every foundation/lobbying organization and magazine that puts out a poll or ranking chart or press release– and instead listen to their neighbors and use their own eyes about the reality of this state.
Like, notice the empty corporate real estate. And I am not talking about the vacancies in former nail salons in little overbuilt strip malls. Real employees used to work from and earn income inside those vacant Illinois offices and cubicles and shop floors. And pay taxes and buy things from their earnings. Sure, some open space is due to telecommuting, but anyone who thinks that working from home accounts for much of it is fooling himself.
And, did you get your own real estate tax bill yet? Maybe yours also went up. Substantially. (Even though your area recently voted down a huge bond issue and your house has lost perhaps 25% of the value it was assessed on, and you already pay extra for water, sewer, and garbage pickup.) Corporate employees at all levels, not just the top execs, are getting hit with these obscene bills from state and local government and feel utterly helpless to do anything. They know there is only more of this down the road as far as the eye can see. You’d better believe they talk among themselves and that it not so subtly affects corporate decision making on location, space, and future investment. Corporations know that every dollar regular people spend on taxes is one less dollar available to purchase goods and services, no matter what business the company is in. Expand? Hire more employees in Illinois right now? Ha.
Do you notice the constant throbbing beat of bad news about of state’s political corruption, and the costly effects of cronyism, and its inability to right itself fiscally on TV and in the papers and blogs? One certainly does not need to be a partisan to see what an embarrassing buffoon Quinn is. (You can console yourself and say, “well he is better than the other guy”, but c’mon.) He’s still an embarrassing, ineffective buffoon. A big confidence builder for the foreseeable future for everyone living in and investing in Illinois, yes? Then there’s the GA. A joke, and most citizens know it–the people in Springfield do not have a clue and over the years they have punted it has made the debt and pension problem almost insurmountable. Does that look to change anytime soon?
The business climate is so much more than corporate tax incentives and access to an educated workforce. The climate is also the daily pounding of the state’s failing finances, the growing tax burden, and the hopelessness about all that.
Comment by Responsa Tuesday, May 10, 11 @ 10:38 am
–The climate is also the daily pounding of the state’s failing finances, the growing tax burden, and the hopelessness about all that.–
Yeesh. Beautiful day outside, brother.
Comment by wordslinger Tuesday, May 10, 11 @ 10:42 am
There are lots of reasons to be hopelessness about the state’s failing finances… I still don’t think they’ll pass a balanced budget even after that huge tax hike. If they were honest, they would have raised the individual rate to 7%. But I have little faith the cuts will take place in the end (or at least at the level they need to be) to say nothing about the level of cuts needed to ensure the tax hike was temporary.
Even Martire is saying he wants more.
Comment by John Bambenek Tuesday, May 10, 11 @ 10:43 am
Rich,
I think your title on this piece “Corporate Overlords” is blatantly biased.
An overlord is a powerful lord that has power over many people or even other lords.
Do you really think Sears fits this category? When looking at the power of Pat Quinn vs. Sears, you really think Sears is the overlord to Quinn and the people of Illinois?
It’s pretty clear who the overlord is when it comes to business in the state of Illinois. He resides in the Governor’s mansion.
Comment by Downstate Tuesday, May 10, 11 @ 10:45 am
- What incentives did Groupon get when it had 10 employees?
Sure, once it was worth billions they could afford lobbyists to pull for it. -
Obviously Illinois had nothing to offer them if they stayed here and grew into a billion dollar company…
Comment by Small Town Liberal Tuesday, May 10, 11 @ 10:47 am
Has the CTBA ever proposed a tax or budget cut? Not trying to be facetious, it just seems that in the 5 years I’ve been reading their stuff it always invokes some sort of tax hike. More than that, their reports read as one big justification to raise taxes.
That doesn’t mean Ralph & Co. aren’t sincere… I just wish they’d use their knowledge of the budget to help suggest occasionaly cuts instead of constant expansion.
Or is that just me? Has anyone ever seen a report from them proposing cuts? I’d like to keep reading their stuff, but not if the proposed solution is always the same.
Comment by S Tuesday, May 10, 11 @ 10:52 am
Taxpayers, once again, are playing a losers game with Mega Buck corporations raking in the loot. We need a 100% federal tax rate on all state provided “incentives” to corporations, and thereby stop the ridiculous bidding wars between- the-states.
Comment by Louis Howe Tuesday, May 10, 11 @ 11:02 am
Someone needs to ask the School district how much tif money they get that doesn’t count against them for General State Aid calculations.
Comment by frustrated GOP Tuesday, May 10, 11 @ 11:15 am
==Corporate employees at all levels, not just the top execs, are getting hit with these obscene bills from state and local government and feel utterly helpless to do anything. ==
The “multibillionaire” CEO of Sears is making a decision to uproot his company’s corporate HQ and thousands of employees because the cost of his garbage pickup at home is just putting too much of a strain on his personal finances? Please…
It’s just another in a long line of shakedowns, who’s up next? Kraft? Maybe McDonald’s?
Comment by Jimmy CrackCorn Tuesday, May 10, 11 @ 11:52 am
There is no win for thwe schools in any decision that is made. That is why we must find a better way than property taxes to support our schools and why business incentives, whether given out by the state or by local governments through TIFs have to bring every affected entity to the table.
Also as an aside this is a perfect example of why in the current age of unabashed greed the business model of giving business a free rein no longer works. The GOP for years have said take all governmental control off of business and our economy will grow and everything will fall into place. And now in the face of the current economy they are again pushing to let businees have a free rein. Apparently they are slow learners, they do not remember what got us into this mess; the greed of Wall Street and the housing lenders who want no governmental interference until they need a bail out.
The days of a firm’s loyalty to a community and becoming a part of that community are long gone, never to return. Greed has replaced morality in the business world and it is acceptable.
Comment by Irish Tuesday, May 10, 11 @ 12:08 pm
==The “multibillionaire” CEO of Sears is making a decision to uproot his company’s corporate HQ and thousands of employees because the cost of his garbage pickup at home is just putting too much of a strain on his personal finances? Please…==
Jimmy, if you perused my 10:38 comment and out of all of it the above paraphrase is the point you think I am making– then either I am a terrible writer or you are a very poor reader. Whatever.
Comment by Responsa Tuesday, May 10, 11 @ 12:09 pm
Maybe Jim Credido is next… as Rich’s link above notes: “Owner John Crededio said the state has turned down his requests to help expand his nearly 120,000-square-foot facility. ‘I wish them well, but how do I compete when the state is subsidizing them?’ he said.”
If the state: 1.) won’t help you expand + 2.) begins subsidizing a brand new direct competitor
= 3.) the lesson appears to be it’s your turn to hold out and threaten to leave IL.
Sad but true.
Comment by S Tuesday, May 10, 11 @ 12:10 pm
Illinois is a great place to do business, with its low tax burden, highly educated population, great quality of life, wonderful summers, etc. Didn’t you see the article in ‘Site Survey’ magazine rating Illinois higher than Texas?
Sears should be paying a premium to do business here. Where else are the going to put their headquarters? Arkansas? Nothing but outhouses, stills, and shotgun toting grannies there.
Comment by Kilroy Tuesday, May 10, 11 @ 12:33 pm
“We pretty much have no choice here”
I beg to differ. Illinois could take the required action to make the state a better place to do business and that would go a long way to keeping jobs their and perhaps (gasp) even get other employers to move operations their as well.
Comment by Other States That Want Illinois Jobs Tuesday, May 10, 11 @ 12:43 pm
We are going to see a lot more of these stories. The State cutting school funding only shifts the burden to the local taxing entities. With pressure to give tax breaks to keep job, you wind up with this type of boondoggle.
We will see what school reform brings about this year, but I am not optimistis. Cutting schools without cutting the mandates does not save taxpayers money. It shifts the burden from the State to the local taxpayer. Cap local taxes in as many ways as IL does and you have some real problems.
Comment by the Patriot Tuesday, May 10, 11 @ 12:51 pm
I think Sears saw what Motorola got and said we’ll do it, too. Watch for many more companies to do the same. The Governor has opened Pandora’s chest.
Comment by GA Watcher Tuesday, May 10, 11 @ 12:53 pm
Let the Governors fight to see who can give away the most to land Sears. When they file for bankruptcy in a year or two the jobs will be non-existent. The race to bottom in the Country is astounding.
Comment by WhyMe Tuesday, May 10, 11 @ 12:53 pm
“Yeesh. Beautiful day outside….”
Don’t mind Responsa, word. Just trying to drive some odd point that’s lost to the rest of us home, I’m sure.”
Comment by Anonymous Tuesday, May 10, 11 @ 12:56 pm
==Jimmy, if you perused my 10:38 comment and out of all of it the above paraphrase is the point you think I am making– then either I am a terrible writer or you are a very poor reader. Whatever.==
I agree with you that perception is important and Illinois currently has a problem with how it is perceived.
However, there is a serious void of any quantitative data in the argument that Illinois is “not friendly to business.” And aren’t we told all the time thats what business is all about, the bottom line numbers?
Your writing is just fine, my friend… I just don’t agree with the reasoning.
Comment by Jimmy CrackCorn Tuesday, May 10, 11 @ 1:14 pm
All the more reason to NOT give these breaks in the first place.
You put yourself ( the state and the taxpayers ) of being extorted at end term, creating a special class of favored businesses at the expense of everyone else.
Comment by You Can't Stop What's Coming Tuesday, May 10, 11 @ 1:14 pm
After several years of doing economic development I came to the conclusion that incentives never work. They can buy a little time, but ultimately, if a business can’t make money without incentives, it will eventually either move or go out of business.
I used to get very frustrated with those who act like economic development agencies are paramedics. You are supposed to go in and revive the dying patient. But the fact is, if the business can’t make money without incentives, it isn’t a sound business anyway. Trying to make an unprofitable business profitable is a great way to waste a lot of tax dollars.
On the other hand, if you cut the cost of doing business for everyone (by lowering taxes; reducing workers’ comp costs; quit imposing feel-good mandates on businesses and stop catering to the trial lawyers)you’ll end up creating an environment that allows the sound companies to grow and encourages people to start their own small businesses.
When I started doing economic development, a more experienced person told me he thought the ONLY government expenditure that can spur development is to provide the physical infrastructure that only government can provide. After a few years of real world experience, I came to the same conclusion myself.
Provide the infrastructure, lower the costs and get out of the way.
Incentives put the government into the business of picking winners and losers. That’s a role that the marketplace is much better suited to provide.
Comment by Voice of Experience Tuesday, May 10, 11 @ 1:23 pm
The liberals on this blog just blind themselves. Yeah, just personal anecdotes…and newspaper stories, and jobs lost, and…
I’ve run through the litany of local businesses that have closed in northern IL area in the last 5 years or so. I can easily think of over a thousand jobs in just the last couples years. The names of companies big and small are running through my head, and I can only shake my head at the willful blindness. Some of the bigger ones were Marshall’s, National Hardware…eh, why bother listing ‘em all.
Yeah, it’s a beautiful day out, as Wordslinger said upthread. But for those of us inside working, or maybe looking at balance sheets, etc…you enjoy that sun Wordslinger.
Comment by Liandro Tuesday, May 10, 11 @ 1:56 pm
If nobody stands up to the schoolyard bully he will take all the lunch money. In the 70s corporations atarted to move to the cheaper south. Then Mexico and points south became even cheaper so it was see ya USA. Now it’s Asia. But you know I still have people tell me that the unions are unnessary because todays corporations are much more benevolent and in tune with the needs of those they employ.So lets get rid of unions and get rid of all those nasty business taxes and have a midwest utopia. And by the way a middle class is highly over rated. Of course who then pays for the infrastucture to move those goods and who buys them. Henry Ford knew people had to be able to buy his cars.
Comment by Bemused Tuesday, May 10, 11 @ 2:04 pm
Liandro, I’m not a pollyanna, but I also think state fiscal policy has very little effect on global capitalism. Many more powerful forces at work.
That said, Illinois is the fifth largest economy among the fifty states. Is the state a basket case because it’s not fourth? What’s going on with the lower 45 then?
And I plan on enjoying the sun real soon. Every day above ground is a good day, brother.
Comment by wordslinger Tuesday, May 10, 11 @ 2:08 pm
“Corporate Overlords”? A little over the top, don’t you think? Do you really mean to suggest that Sears (or corporate America for that matter) compares to feudalism?
Comment by Easily Entertained Tuesday, May 10, 11 @ 2:11 pm
It was mentioned above that the Illinois tax rates are not really that high. However, I would suggest people think about what these various rankings fail to pick up. Property taxes and fees in this state are very high. Property taxes are very high, in part, because Illinois has the highest number of indepenent units of local government in the nation. We have more special districts and layers of government than any other state. Each unit has its own bureacracy, managment, pensions and duplicity. You can’t tell me that doesn’t cost the people of Illinois some major coin. Part of the solution must be consolidation of government.
Comment by Reality Tuesday, May 10, 11 @ 2:14 pm
Oh, pardon me, EE and others for having insulted our corporate ov…. Uh, never mind. lol
Comment by Rich Miller Tuesday, May 10, 11 @ 2:32 pm
Easily Entertained:
I won’t speak for Rich, but for myself, the answer is a resounding YES.
Growing up in America, you are told your whole life to go to college so you can get a good job, while the cost of college continues to climb, forcing you to go into debt so you can “get a good job.”
Once you have that job, you have all that debt to pay back. Plus you have to pay for your health insurance, which continues to climb, and there is no option for you to get it without (wait for it…) your job!
So, we saddle young people with debt, make it impossible for them to have access to health care, and show them the only path to a debt free and healthy life is to fight and claw and screw over their peers to get a job with a corporation big enough to offer real health insurance and to compete with the other big corporations (because the small companies are being forced under or can’t provide you with a salary/benefits that will let you meet your obligations).
How is this not a modern form of indentured servitude? Yes, the headline is bombast, but no, it is not over the top, not one little bit. You are just as beholden as a 17th century farmer just coming over to the New World.
The best stimulus possible for the country would be to instantly forgive all federal student loan debt. How many of you in your 40s are still making payments on student loans? Not as many as those of us in our 20s (I’m only out of my 20s by a few months, I’ll take license here) will be when we are your age. That money would be instantly put to use, and not just for toys - think of what it would do to prop up home sales and housing prices.
Ok, I got off on a tangent with my pet cause. Not trolling, but you brought up something I happen to care about deeply. On an individual worker level , these behemoths have put the workforce right where they want them: desperate and not likely to make any waves, no matter what the bosses say or do, because the alternative is catastrophic. This is absolutely no different than Sears (et al) holding a gun to the state’s head for handouts, or else they will cause untold damage to thousands of citizens just trying to get by, pay down their debt, and keep their families healthy.
Comment by Colossus Tuesday, May 10, 11 @ 2:47 pm
Reality, here is a useful link concerning combined state and local tax collections:
http://www.taxfoundation.org/research/show/22320.html
It appears Illinois ranks 13th per capita which I suggest is a good place to be given Illinois wealth, compared to other states.
Remember that Illinois has many buildings such as the Sears Tower (sorry, Willis Tower) while Indiana does not. Therefore, the property taxes paid on those very valuable buildings are factored in when calculating our per capital rank.
Comment by Bill White Tuesday, May 10, 11 @ 3:24 pm
Sears would be hard pressed to walk away from its huge investment in Hoffman Estates- so Quinn shouldn’t give away the store and perhaps he needs to outsource the negotiations since he has proven to be a lousy business guy- Any deal reached with Sears better have lots of safeguards in terms of maintaining employment levels since the next several years will be difficult for the Company- More importantly, NO FRONT LOADING - all benefits should be staggered over the term of the deal so Illinois isn’t stuck shelling out the money only to find itself to have given out a great deal and Sears then is hamstrung by the economy and lays off the workforce mid-deal
Comment by sue Tuesday, May 10, 11 @ 3:27 pm
It would appear that of all the large urban states, Illinois has one of the lowest combined state/local per capita tax rates of all.
Essentially tied with MA, slightly more taxed than OH and less taxed than CA, NJ, NY, PA etc . . .
Comment by Bill White Tuesday, May 10, 11 @ 3:28 pm
- since he has proven to be a lousy business guy -
As evidenced by what, the companies that have decided to stay? CAT’s CEO lavishing praise on him? What exactly is your definition of proof?
Comment by Small Town Liberal Tuesday, May 10, 11 @ 3:33 pm
Reality, here is a useful link concerning corporate tax rates:
http://www.taxfoundation.org/publications/show/26965.html
It notes that since our tax hike, Illinois enjoys “the fourth-highest state corporate income tax in the United States, and the fourth-highest combined national-local corporate income tax in the industrialized world.”
That is NOT to say that’s the whole story. IL still has a ton of advantages. Bill’s comment @3:24 holds legitimacy as well
Simply supporting data to your point and some food for thought to our felow posters.
Comment by S Tuesday, May 10, 11 @ 4:01 pm
small town liberal- how about the fact that after raising taxes by 66 percent and promising to reign in spending, the Governor still is proposing a budget which is 2 plus billion north of the state’s anticipated revenue stream- Governor Quinn is simply undisciplined which is not a great characteristic when negotiating with Edward Lampert
Comment by sue Tuesday, May 10, 11 @ 4:23 pm
> Chi, What would you say if a policeman gave you a ticket for driving one mile over the speed limit? Or gave you a ticket for resisting because you took too long to producce your license?
Comment by 3 beers to Springfield Tuesday, May 10, 11 @ 4:39 pm
@S -
As I pointed out yesterday, when you look at the ENTIRE tax burden on businesses in Illinois, we rank 23rd in the country…right in the middle of the pack…according to The Tax Foundation.
In fact, except for Texas, Illinois’ tax burden on businesses is lower than every other state Sears is considering.
New Jersey, for example, is ranked 48th in the country.
Comment by Yellow Dog Democrat Tuesday, May 10, 11 @ 5:54 pm
If one CEO in Illinois sneezes, the newspapers declare a pandemic.
Comment by Yellow Dog Democrat Tuesday, May 10, 11 @ 6:17 pm
As GA watcher implied, this is a plot by Sears to get a Motorola deal. I am impressed that they were the first to follow Motorola’s lead. That complex drives all the business for that area which ha sgrown immensely in the past several years. Quinn would be stupid not to do something. Those people in District 300 need to realize how many people work and spend in their little district.
Comment by Wumpus Tuesday, May 10, 11 @ 6:58 pm
“Corporate Overlords” is a very accurate description for the current state of affairs in America and the most of the Globalized economies. Ask a UAW worker in Peoria what Caterpillar’s prosperity has meant to their families well being. The answer is reduced benefits with every new contract and starting wages cut in half.
Comment by Louis Howe Wednesday, May 11, 11 @ 6:26 am