The state of Illinois has been facing some tough times and a whopping #13 billion budget deficit. This week it was announced that our state tax rate for companies will increase from 4.8% to 7% as the corporate tax. As a result many businesses are going to have an even more difficult time staying afloat. Although this is supposed to be a temporary tax increase for the next 4 years, there's no way to know if it will at some point be voted into permanency. And in any case, 4 years is a long time for a struggling business. Today's CNN Money article on the Illinois corporate tax hike describes this situation best.
This new tax hike, along with the increase in the personal income tax rate, is causing many Illinois businesses to consider packing up and moving across the border to neighboring Indiana, Wisconsin or Iowa. In the words of John Tillman, CEO of the Illinois Policy Institute, "It means the best growth business in the state of Illinois will be moving companies."
Moving companies have had their own struggles in the past couple years due to the slow housing market, so a little more business from companies moving out of IL is always welcome. On the other hand, when companies move out of the state, that may mean less business for movers in the long term.
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