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