Down To Brass Tax, Caterpillar Might Move
Mar 28, 2011 Political
When the census numbers came in it was obvious that states with higher taxes lost population and those with lower taxes gained population. While a number of reasons could be responsible it is not unreasonable to assume that the tax situation played a part in the population shift. No one likes to pay more taxes, even Democrats who like to raise them.
The same is true of businesses. Case in point, Caterpillar and the state of Illinois. Illinois governor Pat Quinn raised taxes in January and that increase hurt business. Republicans who opposed the tax increase worried that businesses would leave the state. How right they were. Caterpillar CEO Doug Oberhelman wrote a letter to the governor indicating that he is considering moving the business out of Illinois to a more business friendly state(read lower tax state) and he goes on to cite examples of offers from several states that might entice him to move.
I have been called, ‘cornered’ in meetings and ‘wined and dined’ — the heat is on,” Oberhelman wrote. “Before, I never really considered living anywhere else and certainly never considered the possibility of Caterpillar relocating. But I have to admit, the policymakers in Springfield seem to make it harder by the day. Pantagraph
A Republican who commented on the issue made an astute observation in noting that he is concerned about the number of businesses being approached that the state knows nothing about.
One can bet that if Caterpillar was approached many other businesses are being approached as well.
This is what happens when politicians impose taxes that rise to the level of a punitive action. Businesses move to places where they are welcomed and where they are not made the scape goats for financial difficulties encountered because of poor management by government.
This is nothing new. Businesses have been leaving the country because of the crippling taxes imposed by government. Caterpillar is feeling at the local level what many businesses have felt at the federal level and that company might now vote with its feet.
Like the people who have fled high tax states for those with lower taxes, Caterpillar must do what is in its own best interests and those of the shareholders.
The unfortunate reality is that politicians will fail to recognize the root problem and Caterpillar will end up being made the bad guy by Democrats hell bent on squeezing every last cent from those who produce.
Cave Canem!
Never surrender, never submit.
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Tags: caterpillar, illinois, pat quinn, taxes
Caterpillar To Build New Factory
Sep 30, 2010 Political
Looks like Obama was right when he said the stimulus money would allow Caterpillar to put people to work (though the leader of the company denied he made that claim). Caterpillar is building a new factory to build mini hydraulic excavators.
The only problem is that Caterpillar will be building the factory in China.
I wonder if Obama will add all the Chinese workers who are employed to build the factory and those who will be employed to work at it in his jobs created number.
I mean, this is Obama, the master of double talk, and he did not say that the jobs the stimulus would create would be in America…
Cave Canem!
Never surrender, never submit.
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Tags: caterpillar, china, factory, jobs
Health Care Bill Hits Companies In Wallet
Mar 27, 2010 Political
Well, it has started. Major companies are already adding up the mounting costs of the health care takeover law recently signed by Obama:
AT&T Inc. will book $1 billion in first-quarter costs related to the health-care law signed this week by President Barack Obama, the most of any U.S. company so far.
~snip~
AT&T, the biggest U.S. phone company, joins Caterpillar Inc., AK Steel Holding Corp. and 3M Co. in recording non-cash expenses against earnings as a result of the law. Health-care costs may shave as much as $14 billion from U.S. corporate profits, according to an estimate by benefits consulting firm Towers Watson. AT&T employed about 281,000 people as of the end of January.
~snip
AT&T previously received a tax-free benefit from the government to subsidize health-care costs for retirees, who would otherwise be on a Medicare Part D plan. Under the new bill, AT&T will no longer be able to deduct that subsidy.
“As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree health-care benefits offered by the company,” the carrier said in the filing. Business Week
The health care takeover is costing businesses and their stockholders a lot of money. Businesses will have to make adjustments that will include removing retirees from subsidized plans and putting them on Medicare plans as well as downsizing the number of employees.
This will not be good for the economy.
The takeover is not about health and not about care. It is about control and about Socialism as pointed out by the NYT and other liberal sources.
We are watching the destruction of America.
Yep, this was a historic piece of legislation. Obama and his progressives will go down in history as the group that destroyed our way of life.
Never surrender, never submit.
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Tags: at&t, caterpillar, health care, lies, Obama
Caterpillar Will Get What It Deserves
Mar 20, 2010 Political
If the health care takeover passes then Caterpillar, the company that makes large earth moving equipment, will get exactly what it deserves. Caterpillar is howling about the bill because it claims that its health care costs will increase about 100 MILLION dollars in the first year alone. This is a bill that is supposed to decrease health care costs.
Caterpillar was walking hand in hand with Obama when he wanted to pass the stimulus and the company supported him in that process. Caterpillar was a useful idiot for Obama. He got what he wanted and now he could not care less about how the health care takeover effects this company. He valued the company’s input when he wanted its support and now that they have a different opinion about health care, Obama wants nothing to do with the company.
Caterpillar has no one to blame but itself. If you lie down with dogs you will get fleas and Obama is a dirty, flea bitten, mangy dog.
If this passes then I have no sympathy for Caterpillar and its increased health care costs which will certainly be passed on to consumers through higher equipment prices.
There are plenty of companies in other countries that make large earth moving equipment and they will not be handcuffed by the health care takeover so they will sell equipment at a lower price and gain business.
Caterpillar can try to hang on or go out of business. It is a tough lesson to learn but sometimes it takes a tough lesson for the information to actually sink in.
Hey Caterpillar, how’s that hope and change working out for you?
Source:
Chicago Breaking Business News
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Tags: caterpillar, dogs, health care, lies, Obama