View Full Version : Illinois tax increase opportunity for Oklahoma City?

01-12-2011, 03:56 PM
Illinois just raised their individual and corporate income taxes by 66%. You may see more of the same from California soon. I think this is a perfect opportunity for our new government leaders and Mayor Cornett to see how effective they will be at poaching businesses from states like California and Illinois.

The head of the Illinois Manufacturing Association and the Illinois Chamber of Commerce says many of their businesses are now looking at new locations to move their operations. Wisconsin has already launched a public campaign targeting Illinois businesses, saying "Escape to Wisconsin."

Boeing and the entire aerospace industry have major operations in Illinois--maybe they can be convinced to move more jobs here.

Anyway, my main concern is whether our leaders have their plans in order to immediately seize on any opportunities like that. The fact that Wisconsin and their Chamber of Commerce already had a campaign ready to go is impressive.

Illinois companies hit by an extended economic downturn say the state's proposed remedy to its own financial crisis -- a beefy tax increase -- will deplete investment in local businesses, trigger job losses and force companies to leave the state.

The Midwestern state is home to some of the biggest and best-known U.S. companies, including three components of the Dow Jones industrial average -- Boeing Co, Caterpillar Inc and McDonald's Corp.

An income tax increase that passed the Illinois Legislature on Wednesday would raise the individual income tax rate temporarily to 5 percent from 3 percent and the corporate tax rate to 7 percent from 4.8 percent.


Maisch said the increase would raise Illinois's corporate tax rate higher than in several neighboring states. When a 2.5 percent personal property replacement tax is factored in, the rate would be 9.5 percent, compared with 7.9 percent in Wisconsin, 8.5 percent in Indiana, 6 percent in Kentucky, 4.95 percent in Michigan and 9.8 percent in Minnesota.

01-12-2011, 04:07 PM
I am sure the city's chamber of commerce has a active plan in place for luring such businesses.

When you compare say Milwaukee to our fine city, One thing that put them a step up against us is that they are a Great Lake city.

Although, I think we have many things to offer as well. Would be great to see some of those businesses mover here.

01-12-2011, 04:54 PM
Illinois is a horrendous fiscal basket case, but it would be difficult for OK to take the high road since we are in only slightly better position. Our pension system is in just as much trouble as theirs and even after a massive tax hike their income tax is still lower than ours (5 percent to 5.25 percent). OTOH our corporate tax is lower (OK is a flat 6%) and the sales tax here is generally lower. I know in some parts of Cook County, sales tax is well north of 10%, but some cities here in OK it is as high as 9.5%.

We would probably get more traction in touting our overall cost of living and doing business, of which taxes are a large but not overwhelming factor.