“Like a good neighbor State Farm is there,” but “there” will soon be Texas not Illinois

 

By Kevin “Coach” Collins

 State Farm, the nationally knowninsurance chain headquartered in Bloomington Illinois, has apparently had its fill of “The Land of Lincoln’s” confiscatory taxes.  The 800 million dollar company is reported to have purchased “substantial workspace” in the Dallas, Texas area. The giant insurance firm’s workers are being kept in the dark reportedly to avoid “alarming them” but is it their workers or the State of Illinois they would like to keep in the dark about this move? If this doesn’t signal State Farm’s coming dash out of Illinois’s clutches what could it mean?

A knowledgeable Dallas real estate insider has called this impending move “a major business relocation” of record breaking proportions. The numbers involved are approximately 2.5 million square feet of workspace and thousands of workers. No company in Dallas’ history has made a move this large.

Texas isn’t the only state State Farm is running to. There has also been a report that it has leased office space in Atlanta. The combined amount of both new locations roughly equals the 3.5 million square feet it has in Bloomington.

These moves should come as no surprise to anyone.  In spite of (or maybe because of) raising its corporate and personal income tax rate by 67% in 2010, Illinois has seen its credit rating fall and its deficit raise.  A review of the tax structure in Georgia shows the personal and corporate income tax is 4% as compared to Illinois’ 6.25%.

Texas has no personal or corporate income tax.

Add to this the fact that gasoline tax in Illinois is 60.9 cents per gallon while Texas collects just 38.4 cents per gallon and Georgia charges 47 cents tax on a gallon of gas and it is easy to see why any company or individual would want to move.  

The worst thing about the coming loss of jobs in Bloomington is that both the town’s state senator and Assembly representative are Republicans who did not vote for the policies that have destroyed their state and local economies.    

Source:

http://www.retirementliving.com/taxes-new-york-wyoming#TEXAS

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2 thoughts on ““Like a good neighbor State Farm is there,” but “there” will soon be Texas not Illinois”

  1. Who could blame them for moving? Poorly managed states do little to control spending and do their budgeting on the backs of the corporations that are located within their borders.

    Illinois, Michigan, New York and California will see even more corporate flight in the months and years to come, especially after Kenyan-Care kicks in after 2014. Texas and Nevada are prime destinations if a company wants to cut taxes. .

    These failed states will discover that using large corporations for cash cows is a sure way to make them leave. Who knew? LOL.

    I was born in Illinois and I left when I found out where I was.

  2. I think a few Red States such as Illinois, New Yotk and New Jersey
    may start to really feal the pinch. Republicans need to start every Campaign out with The Democrats without Republican suport did.
    Then get into exactly what the argument might be. Like Democrats voted for Obamacare that will set up Death Panells that will Kill your
    Grand Parents when they get too sick for a cheap Cure. This could cover almost every Problem we have had begining with Obama’s first day of Golf.

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