Where is the outrage over this Income Tax hike? (Chicago: apartments, lawyers)

[Attrill]

The corporate tax increase won't change anything. First off - it doesn't impact most businesses in Illinois (only 1/3rd of businesses currently pay the tax at all). It also encourages companies to invest in themselves, the tax is only on profits and if the company spends the money to hire more people, improve facilities, etc. they can avoid the tax entirely.

Also, Illinois has lower taxes than most of it's neighbors (only Michigan and Indiana have lower tax rates, sorry Wisconsin). Finally, the difference in tax rates has to be VERY drastic in order for a company to move. The costs of relocation are so steep for most companies that it almost never makes sense for a company to move to get lower taxes (the differences between Illinois, Michigan, and Indiana taxes are not very large).

I think it does impact Illinois' ability to attract businesses that are looking to open new facilities, but a lot of those companies are currently avoiding Illinois because of the financial insecurity of the state. So that one is pretty much a wash.

[GettaJetta]

I'm under the assumption Chicago and rural Illinois are pretty separate. It's easy for a small manufacturer to pick up and move. As for some of global companies, I think they will stat put. Am I wrong?

[tonythetuna]

Originally Posted by GettaJetta

I'm under the assumption Chicago and rural Illinois are pretty separate. It's easy for a small manufacturer to pick up and move. As for some of global companies, I think they will stat put.

Pretty much. Most of Chicago's manufacturers are gone now anyway. The corporate income tax hike is going to hurt the burbs and the rural areas more,which is really a shame because a majority of people in those areas did not vote for governor bozo.

[AuDiBelle]

Daley says tax increase will send businesses out of state

Mayor Richard Daley today predicted the increase in the corporate income tax rate passed by state lawmakers overnight will prompt a quiet exodus of jobs to neighboring states.

[Chi-town Native]

Originally Posted by Attrill

The corporate tax increase won't change anything. First off - it doesn't impact most businesses in Illinois (only 1/3rd of businesses currently pay the tax at all). It also encourages companies to invest in themselves, the tax is only on profits and if the company spends the money to hire more people, improve facilities, etc. they can avoid the tax entirely.

Also, Illinois has lower taxes than most of it's neighbors (only Michigan and Indiana have lower tax rates, sorry Wisconsin). Finally, the difference in tax rates has to be VERY drastic in order for a company to move. The costs of relocation are so steep for most companies that it almost never makes sense for a company to move to get lower taxes (the differences between Illinois, Michigan, and Indiana taxes are not very large).

I think it does impact Illinois' ability to attract businesses that are looking to open new facilities, but a lot of those companies are currently avoiding Illinois because of the financial insecurity of the state. So that one is pretty much a wash.

Nicely put. I'd just add that the business community spokespeople might want to ask if they are shooting themselves in the foot by constantly harping on what a lousy business environment Illinois has.

Fact is, yeah, cost of doing business in Illinois is high. But at least we have markets that sustain businesses, and business will always come to a populated state with decent infrastructure/wealth and highly educated people.

[zz4guy]

Hahaha. It sure is fun to see the people who vote Democrat get exactly what they voted for - tax hikes and increased spending. LOL

Enjoy your 5% income tax.

[GettaJetta]

Originally Posted by Chi-town Native

Nicely put. I'd just add that the business community spokespeople might want to ask if they are shooting themselves in the foot by constantly harping on what a lousy business environment Illinois has.

Fact is, yeah, cost of doing business in Illinois is high. But at least we have markets that sustain businesses, and business will always come to a populated state with decent infrastructure/wealth and highly educated people.

I think this hike will hurt the state of Illinois outside of Chicago more than Chicago. Taxes are a small piece of the pie in business growth. in an urban area. High tax cities like NYC, Boston, DC, San Francisco and LA are thriving. Low taxes DO help businesses but you need a balance of taxes, infrastructure, quality of life, cost of living, quality of higher education, etc. I think quality of higher education is one of the major factors, I don't see too many Yale and Harvard Grads fleeing to Iowa or North Dakota. Unfortunately low skilled manufacturing jobs have fleed the state, they fleed every state and have moved overseas. This is the sad reality.

As for this Wisconsin dude, he's making a fool of himself. Yes some small manufacturing firms might go elsewhere but I don't see too many large companies shipping to Wisconsin. As for someone that works in marketing for a large business, potential clients from cities all around the world won't be too impressed by Wisconsin or any other surrounding state. If the big job producers in Chicago are going to Ship out, they will go to a similar city.

Chicago has a great quality of life. As for Illinois, I don't know enough about the entire state, but this is a Chicago thread.

YES Chicago businesses can find a place to find cheaper rent or lower taxes, but there is a reason they are in Chicago to begin with. You can always find cheaper rent, lower taxes, workers willing to work for less but sometimes you get what you pay for.

I just wish there would have been temporary spending cuts along with temporary taxes. I think something like this would be good if kept temporary.

[Frank DeForrest]

Originally Posted by zz4guy

Hahaha. It sure is fun to see the people who vote Democrat get exactly what they voted for - tax hikes and increased spending. LOL

Enjoy your 5% income tax.

And yet you still hear "you don't understand how it works, taxes are low" or "no biggie, corruption is everywhere" or "don't talk about it, it just makes it worse" or "we don't need cuts in spending, but we do need an increase in taxes".
With attitudes like these across the voting block,you have to wonder if Illinois will ever recover.

[GettaJetta]

Originally Posted by zz4guy

Hahaha. It sure is fun to see the people who vote Democrat get exactly what they voted for - tax hikes and increased spending. LOL

Enjoy your 5% income tax.

I don't get it, according to your profile you live in Marion, IA, Iowa is taxed higher than Illinois as far as I know. Also how can you judge coming from a city that has an average salary of $40,766 for males versus $26,241 for females.

[MannheimMadman]

Originally Posted by zz4guy

Hahaha. It sure is fun to see the people who vote Democrat get exactly what they voted for - tax hikes and increased spending. LOL

Enjoy your 5% income tax.

Says the guy whose state has an 8.98% income tax rate for those making over 63K.

If I lived in IA, I'd be paying 6.8% of my income and I'd have to live in the hellmouth.