Posted on 06/10/2011 5:22:33 PM PDT by Kaslin
States: The company that owns Chicago's two largest futures exchanges is thinking about moving operations out of state to flee oppressive business taxes. Worried about climate change? How about the business climate?
The days when Chicago was the "hog butcher to the world" have long since passed, replaced by its role as a leading financial trading center that is home to the Chicago Mercantile Exchange, also known as the Merc, and the Chicago Board of Trade.
On Wednesday, Terence Duffy, chairman of CME Group Inc., which owns the two institutions as well as the New York Mercantile Exchange, and Chief Financial Officer James Parisi announced the financial giant is considering moving operations and jobs out of the state in response to massive increases in state taxes.
Parisi told the company's annual meeting of shareholders that the state legislature's tax hike on corporations from 4.8% to 7% costs CME an extra $50 million a year. Corporations in Illinois also pay 2.5% tax on income, called a personal property replacement tax, which is collected by the state and flows to local governments.
The two rates taken together come to 9.5%, the third highest corporate tax rate in the nation, according to the Tax Foundation. In February, CME reported a 3% drop in fourth-quarter earnings partly because of expenses it booked related to the tax hike.
"I'm going to do what's in the best interests of the shareholders," Duffy said, adding that "if that means opportunities are greater elsewhere, then we're going to look at those opportunities." CME joins other Illinois companies such as Caterpillar and Sears Holdings who have talked about leaving town.
(Excerpt) Read more at investors.com ...
It would be really funny if most major businesses like this one relocated to Texas. :D
Governor Perry, please pick up the white courtesy phone.
I don’t think so
Maybe. What are you judging, exactly? And where are you from?
I think United Airlines made a mistake after their merger with Continental to make their headquarters in Chicago rather than Houston.
I remember shaking my head and saying ‘WTF’ when I saw that.
Of course, you’ll also recall the mass exodus of Continental folks who didn’t want anything to do with Illinois.
And of course businesses are fleeing blue states, and heading for red states or over seas - and they should. They owe it to their stockholders to stay in business, period.
You can bet if the Chicago Merc does move, it will NOT be to another blue state. Gua - ran -damn - tee that.
Ya think they might consider California? We have lots of business vacancies here.
I hear you. Even moving to a red state isn’t the greatest as we still have the world’s highest federal corporate taxes, and federal regs that cost lots of money, etc.
I figure they can go to:
Chickasha, OK
Chickamauga, GA
Chickasaw, AL
Or better yet,
Chickaloon, AK
Close enough to “Chicago” to sorta preserve the name ;-)
“I’ve read posts from people who say we’re not to judge Illinois by Chicago or what comes out of Chicago.”
Why? Downstate Illinois could always part ways with Chicago if they really wanted to. They haven’t. It’s all part and parcel of the same sewer.
Not a chance in hell.
Getting out of Chicago is as good a move as getting out of Detroit. They should do it while the gettin’s good.
Would love to see Rick Santelli come to Florida - lots of sunshine, a Republican governor, and no income tax...
Ill. don’t need no stinkin revenue. Now watch them oppose any development of the shale oil deposits. Ill. don’t need no stinkin renevue. Watch close now.
Illinois Governor Pat Quinn carried only 4 of 102 counties in this forsaken state to win office. One of those of course was Cook (Crook) County. Quinn pushed to nearly double the income tax upon his election. Chicago gets what it deserves if these businesses leave. The Democrats keeping ruining this once great state.
Ok, I was simply sticking up for the Illinois downstaters, who are a good bunch (I’m from Chicago).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.