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* Gov. Bruce Rauner and Mayor Rahm Emanuel talked about Chicago making the Amazon list yesterday…
Rauner referenced taxes and the perception of “a corrupt system” in the state. Speaking at an event in Country Club Hills to highlight property taxes in the south suburbs, Rauner said “The CEO of Amazon, Jeff Bezos, knows how bad taxes are, and … the state of Washington, where they’re coming from, does not have an income tax.”
“So what I think, we’ll have a better case to make to Amazon if we show that we’re disciplined about our own taxes, that we work to keep our taxes low and help bring our taxes down,” Rauner later added. “If we make progress on this, this will send a great message to Amazon that Illinois is not always just raising taxes with a corrupt system, that when they grow here and they bring their employees here and grow our economy. So I hope we can make these changes. It’ll help us bring Amazon here.” […]
Chicago Mayor Rahm Emanuel, told of the governor’s Amazon comments while speaking at a separate event Thursday, suggested “it would be helpful if the state was pulling with us.”
“The governor has some challenges, he has a campaign, he has a budget coming up,” Emanuel said. “But we have incredible strengths, and as I said, four years in a row the city of Chicago has been number one in both corporate relocations and direct foreign investment. And the only thing I would say to the governor is, we’ve done that in the face of pretty bad dysfunction in Springfield. Imagine if Springfield got its stuff together, how good it would be.”
Washington doesn’t have a state income tax, but it does have a corporate gross receipts tax.
The governor also pointed to Chicago’s “great universities,” and “great education system.” He just about decimated the state’s higher education system during the impasse and he once compared Chicago’s public schools to “crumbling prisons.”
* Greg Hinz…
Just hours after the city and state received the good news that Chicago has made the cut of 20 cities still in the running for its prized HQ2, sniping broke out between Mayor Rahm Emanuel and Gov. Bruce Rauner that can only imperil the city’s prospects. […]
Emanuel and Rauner had, until now, avoided just that kind of infighting, which a couple of years ago appeared to have been a factor in Chicago losing its bid to house the headquarters of GE. Their collective staffs were working well together, with World Business Chicago and Intersect Illinois in regular communication.
But today’s exchange may underline what outside experts have said is the weak point in Chicago’s bid: the perception that government here is more about quarreling and scoring points than getting things done.
In an email, Rauner communication director Patty Schuh rejected the mayor’s criticism.
“It’s BS,” she said. “It took bipartisan cooperation to make the bid. It will take bipartisan cooperation to get Amazon.”
* Meanwhile…
Emanuel has known privately for weeks — through back-channel communication with Amazon — that Chicago would make the cut. What the mayor didn’t know was that Chicago would have so much company on that list.
“The range of cities in terms of where they are, what they are and their airport, transportation and higher ed capabilities, their cost of living, the size and depth of their workforce, their diversity is still so varied that it is hard to read too much into this list,” a mayoral confidant, who asked to remain anonymous, wrote in a text message to the Sun-Times.
“No city on the list is that surprising to see and nobody missing that you thought you were in real competition with,” the person continued. “They received over 200 applications. Had to spend time on all of them. The hard work begins now.”
Despite the heavy competition, Chicago “makes a ton of sense” for Amazon, Google, Apple or “any other fast-growing company looking for scale. … We will compete hard and show well. We are very strong when you dig deep into the data and analyze it,” the Emanuel confidant said.
…Adding… From the governor’s office…
Rich,
There was a lot more to what the Governor said yesterday. He specifically said that Illinois has a very compelling case to make that’s not purely about tax incentives. He talked about how we’ve got hardworking people here, a good location and transportation network, a great education system and other assets that make Illinois’ bid attractive.
Audio of the media availability:
http://multimedia.illinois.gov/iisradio/gov-1-18-18qa.mp3Rachel Bold
Press Secretary
Office of Governor Bruce Rauner
…Adding… More from Greg Hinz…
But there’s a time and a place for everything. And this is not the first time Rauner has soiled a corporate location pitch with a simultaneous counterargument.
It happened a couple of years ago, when talks with GE about moving its headquarters here failed in part because the governor couldn’t stop himself from about talking about the need for changes in Springfield that he would be unable to deliver. And it happened just last year, when the governor plugged the state’s shortcomings even as Illinois was trying to land a big, next-generation Toyota-Mazda plant.
If Rauner had a new plan to get some of his agenda through Springfield, I might cut him a break. But if he has, he sure has kept it secret.
If Rauner had limited his comments to something along the lines of “Illinois has a great bid and I’m working hard to make it better,” I might let it pass.
Instead, though, he appears to have shot off his mouth, impatient that Speaker Mike Madigan has not rolled over and given him his heart’s desire. Or, worse, he’s decided his path to re-election is to make Illinois truly a basket case by sabotaging the Amazon bid.
The pity is, at the staff level, the mayor’s people and the governor’s people appear to be working well together on this one. If there’s any friction, they’ve kept it quiet. Too bad their bosses can’t do the same.
posted by Rich Miller
Friday, Jan 19, 18 @ 10:13 am
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Looks like this things going to the D.C. area regardless, but what a shame that these two can’t get on the same page. It’s primarily Rauner’s fault, but it would be nice if Rahm didn’t take the bait.
Comment by Roman Friday, Jan 19, 18 @ 10:21 am
Rauner needs to pick a lane and stay in it.
Or at least quit trashing Chicago.
Comment by btowntruth from forgottonia Friday, Jan 19, 18 @ 10:25 am
American Idol is more efficient in eliminating contenders.
Comment by City Zen Friday, Jan 19, 18 @ 10:40 am
My guess is Chicago will make it to the final five, but Dallas will take it.
Comment by Anonymous Friday, Jan 19, 18 @ 10:41 am
Full Metal Politics
Colonel Emanuel: You write a bi-partisan Amazon recruitment letter on your helmet and you wear a sign saying Illinois is overtaxed and corrupt. What’s that supposed to be, some kind of sick joke?
Private Rauner: No, sir.
Colonel Emanuel: You’d better get your head and your backside wired together, or I will take a giant (deleted) on you.
Private Rauner: Yes, sir.
Colonel Emanuel: Now answer my question or you’ll be standing tall before the man.
Private Rauner: I think I was trying to suggest something about the duality of man, sir.
Colonel Emanuel: The what?
Private Rauner: The duality of man. The Jungian thing, sir.
Colonel Emanuel: Whose side are you on, son?
Private Rauner: Our side, sir.
Colonel Emanuel: Don’t you love your state?
Private Rauner: Yes, sir.
Colonel Emanuel: Then how about getting with the program? Why don’t you jump on the team and come on in for the big win?
Private Rauner: Yes, sir.
Colonel Emanuel: Son, all I’ve ever asked of my marines is that they obey my orders as they would the word of God. We are here to help Illinoisans, because inside every Chicagoan there is an Illinois taxpayer trying to get work. It’s a hardball world, son. We’ve gotta keep our heads until this bipartisanship craze blows over.
Comment by 47th Ward Friday, Jan 19, 18 @ 10:44 am
You have to think that if Rauner would have governed from day 1 we would be well on our way to solving our problems. Not say the problems aren’t monumental, they are but they are not insurmountable. An honest assessment of the problems and a path forward no matter how painful is the answer. Demonizing the other side and demanding complete capitulation isn’t governing. The fact that Chicago has the success that it has is a testament to the real value of being here. Imagine if we had a functioning State government.
Comment by What's in a name? Friday, Jan 19, 18 @ 10:44 am
With a governor like Rauner, who needs enemies.
Comment by Norseman Friday, Jan 19, 18 @ 10:52 am
From a friend there - reporters were portraying Rauner’s comments as “he just #$%@ over the bid.” Rahm was laughing when he made the campaign comment then said “neither gov or I matter - companies look long term and neither of us will be here.” Not the newsworthy point but the accurate one.
Comment by S. Grobnik Friday, Jan 19, 18 @ 10:52 am
Apparently, Salesman Rauner never came across the business principle “you don’t micturate in your own cash register.”
Comment by wordslinger Friday, Jan 19, 18 @ 10:57 am
I expect the new Amazon HQ to be in the DC area because that makes their regulatory capture easier and Bezos already owns a big asset in WaPo there and just bought a new mansion there.
But it would be nice if Rauner could stop badmouthing this state for five seconds to actually try to accomplish something positive here.
Of course what does he care? he’ll change residency to one of his out of state homes within months of the voters rejecting him. He doesn’t care about us.
Comment by hisgirlfriday Friday, Jan 19, 18 @ 11:01 am
I had to look up micturate.
Comment by Blue dog dem Friday, Jan 19, 18 @ 11:40 am
Anybody who thinks that Amazon does not know exactly the state of affairs in the sorry State, needs to have their head examined.
Comment by Huh? Friday, Jan 19, 18 @ 11:41 am
==I expect the new Amazon HQ to be in the DC area because that makes their regulatory capture easier and Bezos already owns a big asset in WaPo there and just bought a new mansion there.==
Bezos could pick Chicago and crash with Ken Griffin. He’s got plenty of room in his new pad downtown.
Comment by City Zen Friday, Jan 19, 18 @ 11:43 am
47th 10:44 for the win.
Comment by Six Degrees of Separation Friday, Jan 19, 18 @ 11:45 am
Rauner didn’t say anything that was bad or untrue.
Comment by Ron Friday, Jan 19, 18 @ 11:47 am
If the Governor were trying to sell one of his many properties, I doubt that he would tell the prospective buyer that his neighbors stink and that they party till all hours of the morning, that his furnace is 25 years old and he prays every night that it doesn’t break down, that he regrets the use of marble in his kitchen because it stains and is prone to scratches, that he priced a new roof and can’t believe it would be a $75,000 job, etc. etc.
Why then as THE Governor of our state does he insist on trash talking our state every opportunity he gets, that he pays for air time for commercials that feature governors of neighboring states trash talking our state as well?
Succeed in getting Amazon to locate here and you can brag about it and take credit for it. Instead, he appears to want Amazon to locate elsewhere so it will fit his narrative that Illinois is a failed state.
I’ve never seen anyone cheer as hard for the apocalypse as Governor Rauner.
Comment by Tommydanger Friday, Jan 19, 18 @ 11:55 am
Rauner didn’t say anything that was bad or untrue.=
He implied that our taxes are higher than Washington’s while leaving out the fact that businesses pay a gross receipts tax. That is deceptive. And he is wrong, Chicago is very competitive.
And, running down Illinois when you are the governor of Illinois is pretty bad. Even if he isn’t in charge.
Comment by JS Mill Friday, Jan 19, 18 @ 11:58 am
Would it help if we just gave them the Thompson Center outright? I’m tired of waiting for that windfall.
Comment by Downstate43 Friday, Jan 19, 18 @ 12:14 pm
All kind of silly. Amazon is not coming here period
Comment by Sue Friday, Jan 19, 18 @ 12:15 pm
===But it would be nice if Rauner could stop badmouthing this state for five seconds to actually try to accomplish something positive here.===
Chicago winning the Amazon big undoes Rauner’s campaign message and indeed his entire reason for getting into politics in the first place: that Illinois is broken beyond repair. It’s similar who what OW keeps saying about why it’s better for Rauner, politically, to go a fourth year without a signed budget.
Comment by Nick Name Friday, Jan 19, 18 @ 12:20 pm
*the Amazon bid
Comment by Nick Name Friday, Jan 19, 18 @ 12:20 pm
Sue, why bother including Chicago in a top 20 list then?
Comment by Ron Friday, Jan 19, 18 @ 12:26 pm
As I recall Brucey spent more time helping Amazon try to go to STL than Chicago to help out his Blackmailing Buddy Greitens.
Comment by Precinct Captain Friday, Jan 19, 18 @ 12:26 pm
–I had to look up micturate.–
And I bet you have to get up about five times in the night to do so.
Comment by wordslinger Friday, Jan 19, 18 @ 12:26 pm
LoL. At least.
Comment by Blue dog dem Friday, Jan 19, 18 @ 12:33 pm
I’d put my money on Miami, Denver, Northern Virginia, Dallas and Austin for the last five.
Comment by Ginhouse Tommy Friday, Jan 19, 18 @ 12:48 pm
Serious props to 47 for that little Full Metal Jacket bit!
On a more serious note, shame on Governor Rauner for continuing to badmouth our state. Illinois has a lot going for it. His behavior is wildly counterproductive.
Comment by Chicago Cynic Friday, Jan 19, 18 @ 12:50 pm
Is Rauner unaware that Illinois businesses only pay corporate income tax on sales from profits outside of Illinois?
Does he understand what Amazon does?
Can he possibly believe that Amazon would have any Illinois tax liability with the package being floated out there? They’ll get the biggest EDGE payday of all time.
Comment by wordslinger Friday, Jan 19, 18 @ 2:13 pm