 A plan to forgive income taxes for two years for businesses that
move to Illinois' northern neighbor has passed through one chamber
of Wisconsin's Legislature and is now awaiting state Senate
approval.
The measure got overwhelming approval in Wisconsin's
Republican-controlled state Assembly, and could be passed out of the
Republican-controlled state Senate as early as next week. It would
then go to GOP Gov. Scott Walker, who campaigned on corporate income
tax breaks.
"It's like when you see these rental properties that might have a
bunch of empty units and offers the first month's rent free if you
sign a lease with us. It's the same concept," Walker spokesman
Cullen Werwie said.
He added that while this was in the works even before Walker was
elected, it does gain extra relevance because of the tax increase
recently approved in Illinois.
Walker has been vocal about trying to drive companies out of
Illinois and into his state since the income tax hike, but at least
one Wisconsin business isn't listening.
Jim Rozell owns a hotel analytics company and plans to relocate from
Glendale, Wis., to Chicago by the end of the year. Hotel Compete
currently has five employees, but Rozell said he will likely hire 10
more people once he comes to Illinois.
Rozell said he started planning the move before taxes went up
Illinois, but hearing about it didn't deter him.
"Initially one of my big deciding factors was that taxes were much
lower (in Illinois). Even with your tax increase, it's still lower
than Wisconsin," Rozell said.
Illinois Gov. Pat Quinn has emphasized that money from the higher
taxes is necessary to fix a structural deficit that has made the
state a national illustration of what not to do fiscally.
"Illinois is focused on putting our financial house in order, making
us a stronger environment for business, and that is what Gov. Quinn
is focused on," Quinn spokeswoman Brienne Callahan said.
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"We're focused on us and doing the right things for Illinois and
bringing businesses to Illinois and making us a stronger
competitor."
Quinn's office has been working to counter claims by Walker and
opponents of the tax increase in Illinois that employers will flee
the state now.
Earlier in the week it was announced that a Evraz Inc., a steel
company, will locate its North American headquarters in Chicago,
bringing with it 70 jobs.
"Illinois continues making great strides toward economic recovery.
Evraz's decision to move here is one more indication that our
business climate and our work force are attractive to major national
and international corporations," Quinn said in a news release.
And Quinn's office even announced that Illinois would be doing some
business poaching of its own. A news release sent out Friday
afternoon stated that Becker Iron & Metal, a scrap metal company,
would be moving from Missouri to Illinois, bringing with it 40 jobs.
[Illinois
Statehouse News; By ANDREW THOMASON]
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