Many of you are wondering why the federal government does things to hurt small business when small business creates a ton of jobs in this country. My bigger question right now is why Illinois wants us to move? Ok, you might think this is a bit out there, but Illinois has done some major things to impact Illinois businesses recently.
1. Illinois significantly raised corporate income taxes and personal taxes.
We went from 3 to 5% income tax and 4.8 to 7% corporate taxes. We also have a 2.5% corporate surcharge and a yearly fee for filing the coporate report (i.e. franchise fee). How can business sustain such a hike? I know that there are several states where corporate taxes and personal taxes are not so high. It looks like Wyoming might be the place to go, or Ireland.
My state is starting to become the place to be from, sort of like Iowa was in the 1980’s or Michigan today. Do you really want to lose small business Mr. Quinn?
2. Illinois now requires sales tax to be paid by Amazon.com and other web retailers that use affiliates in the state
The impact to affiliates that live in Illinois was major in some cases. We lost the ability to use Amazon.com as an affiliate program which doesn’t impact us in a major way, but it does impact some businesses in a major way. Enough so that they may relocate to other states, such as FatWallet.com. We have referenced many Amazon.com books on our site here and we will have to go through and remove the references. I am not sure if we will go to another affiliate program for books or if we will just give up on offering books through this site.
3. Caterpillar and other larger businesses are threatening to leave
Caterpillar is now threatening to leave Illinois along with 23,000 jobs. With the hostile business environment here, we may see several others leave. The larger companies are just the tip of the iceburg, as smaller companies may do the same thing just to stay afloat. We won’t hear about them, they won’t make headlines. They will just pick up and go elsewhere, and many other states will welcome them with open arms.
Governor Quinn, we need to make Illinois favorable for companies to move to, not so hostile that great companies will move away. You think you have revenue problems now?
- Illinois tax hikes will hurt companies – Money.cnn.com
- U.S. States Lead The World in High Corporate Taxes – Tax Foundation
- The Iowa Shared Superintendency: The School Board President’s Perspective
- Michigan Cities Losing Residents Faster Than Estimated – SizLy.com Global News
- Quinn rating takes an early hit – MySuburbanLife.com
- Amazon.com Ending Affiliate Program In Illinois – Pulse2.com
- Caterpillar CEO’s letter talks of leaving Illinois – Illinois Conservatives
- FatWallet to move operations to Beloit, Wis – Rockford Register Star