Marathon Pundit: Roskam: High taxes have consequences

Wednesday, March 30, 2011

Roskam: High taxes have consequences

Next stop, Texas?

Caterpillar has been headquartered in Peoria, Illinois for 101 years. But the Pat Quinn income tax hike, and a generally nasty business environment--for instance, Illinois' workers' compensation laws need reform--has "Cat" eyeing out-of-state exit ramps.

Which is the subject of a Daily Caller op-ed from US Rep. Peter Roskam (R-IL), the Chief House Majority Whip.

Over-taxing and over-regulation have consequences.

Caterpillar, a Fortune 500 company that employs 23,000 workers in Illinois, currently finds itself dealing with a new tax increase in an already over-taxed state. Their CEO, Doug Oberhelman, sent a warning shot on March 21st with a letter to Illinois' new Democrat Governor Pat Quinn:

"I want to stay here," Oberhelman wrote. "But as the leader of this business, I have to do what’s right for Caterpillar when making decisions about where to invest. The direction that this state is headed in is not favorable to business, and I'd like to work with you to change that."

The "direction" Oberhelman refers to is the economic sinkhole that Governor Pat Quinn recently plunged Illinois deeper into by raising taxes on employers by 30%. Overnight, Illinois went from having the 21st highest overall corporate tax rate in America to the 3rd.