A Clear and Present Failure – CME Group threatens to leave

by Drew McKinley As the Institute noted this week, Illinois is currently suffering from the thirdworst job loss rates in the nation. Also this week, the CME Group announced it was considering leaving Illinois. The corporate tax hike passed during the most recent lame-duck session of the state legislature is poised to cost the CME Group $50 million...

by Drew McKinley

As the Institute noted this week, Illinois is currently suffering from the thirdworst job loss rates in the nation. Also this week, the CME Group announced it was considering leaving Illinois. The corporate tax hike passed during the most recent lame-duck session of the state legislature is poised to cost the CME Group $50 million a year, and is the force behind the potential move.

In response to the announcement of the potential move, Governor Quinn showed his inability to understand business. Quinn said that he was open to offering incentives for CME Group to remain in Illinois, but threw in this qualifier:  “The taxpayers of Illinois are just not going to subsidize private companies unless they give something back to the people of Illinois.”

Rather, private companies across the state are subsidizing our government’s failed policy of spend, spend, spend. The CME Group is the source of jobs for thousands of people (some estimate up to100,000) and adds to the state’s revenue through corporate taxes, the personal property replacement tax, and income taxes paid by its employees. Rather than thanking companies, working to help them expand in Illinois, hire more employees, and invest money back into our communities, we punished them with a 48% increase in taxes. For all that our great companies do, none of it, according to Governor Quinn, is giving “something back” to the citizens of Illinois.

Instead of offering incentives and playing favorites, Governor Quinn should push for free-market reforms and lower the tax burden on Illinois businesses. Businesses are abandoning Illinois as a direct result of the decision to raise taxes. There is no clearer sign of the failure of this approach than having to exclude groups from the impact of higher taxes.

A good paying job can provide what a family needs and most of what they want. The CME Group and the businesses built around it provide those jobs. Why should Governor Quinn punish businesses for this and make it harder for families to find jobs?