March 30, 2011 – Gov. Pat Quinn of Illinois isn’t making many friends in the business community these days. Companies in that state now have to pay a 7 percent corporate tax rate for the next four years, up from the previous 4.8 percent. And Illinois businesses are already subject to a 2.5 percent surcharge. Caterpillar Chief Executive Officer Doug Oberhelman reportedly told Quinn in a March 21 letter that at least four other states had approached the company about relocating since the tax passed. Would Caterpillar really consider moving? Don’t rule it out. After all, they have switched states before, starting out in California before ending up in Illinois. The Illinois Association of Aggregate Producers is also up in arms over the Governor’s proposed FY 2012 transportation budget. An extremely troubling part of thisproposal is the planned diversion of $85.5 million from the Road Fund to pay operating subsidies for transit and rail (which have traditionally and appropriately been paid from General Revenue Funds). Although the impact ofthis new diversion may appear small when compared to Illinois’ multi-billion-dollar budget problems, the association’s position on this issue is clear: this new Road Fund diversion would have an extremely negative impact on the state’s multi-year road program. Stay tuned for more on the budget battles unfolding in Illinois.
Making Noise in Illinois
- Written by Mark Kuhar