So in light of the impending tax increase in Illinois, Governor Scott Walker is planning some sort of campaign to try and lure Illinois businesses to Wisconsin, which might sound like a kind of okay idea, except for the last part that I bolded (from Governor plans business border war with Illinois):
The governor has not said how much the campaign will cost, or what it will entail. But he was confident his efforts, combined with the changes in Illinois, will cause businesses to consider relocating — even if Wisconsin’s tax rate remains the higher of the two.
First off, there is more to the business climate than just taxes. And since Illinois has a lower-rate, it seems like a bizarre thing to emphasize. I mean, I’m thinking these business owners know how to count…
One more paragraph from the same article just to drive home the point:
The Illinois bill would increase individual income taxes from 3 percent to 5 percent, and corporate taxes from 4.8 percent to 7 percent. That still compares favorably to Wisconsin’s individual income tax rate, which ranges from 4.6 percent to 7.75 percent, and a corporate tax rate of 7.9 percent.
Dane County Executive candidate Zach Brandon also raises this point (same article):
“If it were just about taxes, every business would move to West Virginia,” he said.
Or you could take the argument to it’s logical conclusion, and you get this point from James Warren:
“Both governors should note that the weather is a lot sunnier in Mexico, the local officials infinitely more generous, the environmental regulations more lax and the gang violence probably no worse than Chicago or Milwaukee,” Mr. Neimand said.
So ridicule Illinoisans picnicking in the Dells, Badgers. But realize that it’s folks around the world who are really eating your lunch, Mr. Walker, and ours.
Not I’d expect Governor Walker to realize the full implications of his arguments….
Our Lt. Governor, Rebecca Kleefisch, is backing up this campaign with telemarketing (emphasis mine):
One of the companies Kleefisch contacted, a public relations firm in Chicago called the Blitz Group, said it had been considering the consequences of the tax increase and the company told her her call was “serendipitous.”
“I thought, ‘Wow, what a creative way to brand your state, but to go after a group of people that may be wondering what they will be able to afford and not to afford businesswise,’” said Trish Hoffman, of the Blitz Group.
Despite that sentiment, Hoffman said the business won’t be moving to Wisconsin anytime soon. She said she won’t be a deserter, and that she loves Chicago.
Another company, CouponCabin.com, issued a statement saying it had also been contacted by Kleefisch, but the statement said the last thing it would want to do is relocate.
It’s a never a good idea to buy something from a telemarker over the phone, what kind of business owner would think it’s a good idea to move their business based on a random cold call?
Categories: | Economics | Media | Scott Walker | Wisconsin