Today marks my 15th year at the Tax Foundation. Looking back, the world was different when I started: people still had dialup internet, Bill Clinton was president, and the Tax Foundation was just seven people in a small...
- The Tax Policy Blog
- Illinois House Caves on Incentives for Sears and Chicago ...
Illinois House Caves on Incentives for Sears and Chicago Mercantile Exchange
The pattern is pretty consistent. A state raises their taxes, big companies with mobile capital realize they could save a ton of money by locating elsewhere; they lobby legislatures and make big public statements that they must leave unless they are offered targeted incentives to stay. The company is often a historic state landmark. With a sympathetic public that is concerned about jobs, the incentives are all but guaranteed.
In Illinois, which steeply raised its individual and corporate taxes in January, you could not get two more sympathetic companies: Sears and the Chicago Mercantile Exchange are threatening to leave the state unless they get targeted tax incentives. It looks like they will get their way.
The Illinois House yesterday passed SB 397, which would give tax credits intended to keep Sears Holdings Corp. and CME in-state. According to TaxAnalysts (subscription required), the bill, which was approved 81-28, would also create an independent tax tribunal to hear disputes between taxpayers and the state's Department of Revenue. The tax carve-outs amount to $263 million in FY 2013 and $325 million in FY 2014.
More on Illinois here.
Follow Scott Drenkard on Twitter @ScottDrenkard.
Get Email Updates from the Tax Foundation
We will never sell or share your information with third parties.
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.