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I read a story that the Governor of some neighboring State was pleased as punch at the tax hikes.
http://www.chicagobusiness.com/artic...#axzz1BY131wcj
Jimmy John's might flee Illinois over higher taxes
(Crain's) — The founder of Jimmy John's Gourmet Sandwiches is considering moving the chain's headquarters out of Illinois since the Legislature boosted taxes on businesses and individuals.
Jimmy John Liautaud told the News-Gazette newspaper in Champaign, where the company is headquartered, that he's angry the corporate tax rate is being increased to 9.5% from 7.3% and individual taxes to 5% from 3%.
Mr. Liautaud says "multiple pro-business states" have contacted him, which has made him feel "wanted and important."
He'll collect information on alternate locations and present it to the company's board. But, he told the paper, "My family and I are out of here." Mr. Liautaud has rented a house in South Florida and his children started school there last week. He said he has applied for Florida residency and plans to commute to Champaign.
Jimmy John's has more than 1,000 sandwich shops nationwide, many of them franchise operations, and employs 100 workers at its headquarters.
"All they do is stick it to us," he told the paper, adding that the General Assembly and Gov. Pat Quinn showed "a clear lack of understanding."
"I could absorb this and adapt, but it doesn't feel good in my soul to make it happen," he said.
A spokeswoman for the Illinois Department of Commerce and Economic Opportunity would not discuss the Jimmy John's situation specifically, but she told the News-Gazette that the temporary increase in the corporate income tax "will help stabilize the budget, making Illinois more attractive to businesses."
"Through this plan, we're taking the necessary steps to strengthen the economy, attract new investment and put people to work," she said.
That was really fast. Seriously.
Guess that's what happens when people think that debt problems can be hit head on without drastic cuts.
I read a story that the Governor of some neighboring State was pleased as punch at the tax hikes.
Yeah, seen one of them also. I would be happy also.
Stupid to have the HQ registered there to begin with... that's why every ing company that know their salt is registered in Delaware...
"registered in Delaware"
Nothing to do with Illinois' taxes. It's purely defense because Delaware's corporate law statutes are so clear, elaborated. Incorporating in DE has been going for decades for companies HQed in all the states.
I love Jimmy John's Gourmet Sandwiches!
That's one product I will say that I tried only because of the commercials.
I can't go in there. They scream, yell at the customers. A little to jolly for me.
(ack, erk)
I... agree... with... jack
Well, a lot of people have talked about it, but every neighboring state is facing the same kinds of budget crunches that Illinios is, and a lot of them have higher tax rates to begin with. Illinois is doing one of the obvious things first, but to balance budgets most other states, including Texas, will have to raise revenues SOMEHOW. Meh.
At some point, I'm sure his CFO or accounting dorks will tell him what the real costs of moving headquarters will be, and that will quite possibly exceed any avoidance of taxes.
There is a reason why companies rarely pull up stakes and move their HQ's. If the guy really is that mad, it is his company, I guess. I just don't think it will make as much of a difference as he indicates it will.
Illinois is the third highest tax rate in the county. I'm sure moving relocating with having 100 employees isn't that big of a deal. We'll see, but in the least it will squash those you were thinking about opening a small business in the next couple of years.
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