January 21, 2011
Illinois Tax Hikes Claim First Victim: Jimmy John's to Leave StateFollowing up on my recent posts (here and here) on the gigantic individual (67%) and business (45%) income tax hikes just approved in Illinois: Jimmy John Liautaud, the founder of Jimmy John's Gourmet Subs, has announced that he is pulling the company out of Champaign because of the tax increases.
- Champaign News-Gazette, Jimmy John's Founder Contemplates Moving Headquarters Out of Illinois
- Chicago Examiner, Jimmy John's Anounces May Move Headquarters From Illinois to Florida
- Chicagoist, How Fast Can Jimmy John's Leave Illinois?
- Conglomerate, State Budgets: Raise Taxes or Slash Spending (or Both)?
- Crain's Chicago Business, Jimmy John's Might Flee Illinois Over Higher Taxes
- NBC Chicago, Gourmet Sandwiches on the Go: Founder May Take His Free Smells Elsewhere
- Reason, Smells Like Goodbye: Jimmy John's Bails Out of Illinois?
- South Florida Business Journal, Jimmy John’s Founder May be Florida Bound
(Hat Tip: Andrew Morriss.)
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The first of many, no doubt.
Posted by: Dan | Jan 21, 2011 6:46:31 PM
Good for Jimmy John's.
But why do Illinois voters elect those whose answer to every problem is to raise taxes?
Is it gullibility or plain old stupidity? Or did they just like his name?
The voters wanted Quinn. They got him.
Too bad for those who did not want Quinn and are stuck with him.
Posted by: Jane | Jan 22, 2011 5:58:37 AM
As an Illinois resident, I can tell you that it is the the sheep mentality in Illinois, mostly in the city of Chicago, that elected Quinn and his merry band of thieves. I am one of those who did NOT vote for him and am stuck with him and the rest of the Democrats who haven't seemed to learn Economics 101. I wish it was as easy for me, as it is for Jimmy John's, to leave this godawful state.
Posted by: Linda | Jan 22, 2011 8:48:32 AM
I can understand the anger and frustration of the citizens of Illinois on the tax issue, but it is a situation they largely brought upon themselves, electing incompetent and corrupt officials of both parties and all ideologies.
Those who focus only on the tax side need to understand that in the real world, there are a lot of other factors besides taxes that govern business decisions with respect to employment and investment and where to locate their operations. Exactly how would severe reductions in education, law enforcement, transporation, health care and other vital public services encourage a business to locate, remain or invest in a particular state? It is easy to envision a scenario where the drastic cuts in public services necessary to balance the Illinois budget without tax increases would have been even more devastating to the business climate.
Laws are not permament. The people of Illinois can elect legislators that will undo the tax increases and enact the cuts in government services that will result. I doubt very much if they will. It is more likely that those who voted against the tax increases did so knowing that they would pass anyway, and so for political reasons cast their opposing votes, knowing that they would escape blame. Of course, they could have done what Gov. Christie of New Jersey did when he found he did not have the funds to make the state's contribution to the Pension Fund. Did he cut services? Did he raise taxes? No, he simply did not make the payment. Not exactly Profiles in Courage there, is it?
The really sad thing is how much joy many Conservatives have taken in the Illinois problem. As I said the people of that state are getting what they deserve, but I fail to see how anyone like the Governors of Wisconsin and Ohio can gloat and take satisfaction in what is happening to the Land of Lincoln.
Posted by: Sid | Jan 22, 2011 7:35:12 PM
Went to a favorite Illinois middle-class restaurant in No. Illinois last night.
The restaurant was unusually deadly quiet, even the bar. The waitresses & chef were so upset & talked to us quite openly.
The consensus in this little Illinois restaurant--the tax increase is going to finish them. Those on limited incomes have to make cuts somewhere.
Sorry, Sid, I don't think you get it. This is a matter of people surviving.
BTW, are you even an Illinois resident? I don't think so. Sorry, but when you start talking about the egregious harm cuts in spending would make...well, I think of the poor working class stiffs of Illinois and how they're going to survive. And, unfortunately, I'm one of them.
Posted by: Judy | Jan 24, 2011 6:20:16 AM
Judy is correct, I am not a resident of Illinois. I do not have a recommendation on what they should have done.
My point was not that the tax increase was proper policy, but that one should at least consider and reallize that the alternative, a substantial cut in public employment and governmental services may have been an even worse decision. Government services, particularly those provided by state and local units are vital to economic well being.
In a representative democracy, the people cede power to those elected representatives, and trust that they will act ethically and make decisions in the best interests of the populace. In Illinois (and other states) the elected officials have violated this trust for decades, and this cuts accross ideology and party. The costs of that violion is now coming due.
I am the one who is sympathetic, it is Conservatives in neighboring states that are gleeful and gloating.
Posted by: Sid | Jan 24, 2011 10:19:56 AM
Jane, it really is too bad.
Posted by: J | Jan 24, 2011 2:20:26 PM
Illinois has had terrible economic policy for decades. The tax increases were a horrible mistake.
Posted by: Webber | Jan 24, 2011 9:52:54 PM
Anyone who voted for Quinn is well let's say uneducated on money 101. The democrats have a large part to do with the state's unfixable debt. No more tax increases,,Eliminate the pensions, cut pay 15%, reduce headcount, contribute more of income to healthcare,,gee this sounds like the private sector, eliminate retiree health benefits.
No one in control of the state has the balls to do it,bring on bankruptcy,,let all the state employees sweat it out for awhile.
Posted by: Mike | Feb 5, 2011 8:56:57 AM