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Saturday, March 26, 2011

Caterpillar May Leave Illinois Over Harmful Tax Increases

In a letter to the tax-raising Gov. Quinn, Caterpillar CEO said that it might have to leave the state of Illinois because of its anti-business climate, particularly given the recent massive tax increases that Democrats pushed through.

Cat employs 23,000 people in Illinois. Assuming the company moved even a portion of those employees to plants in other states, which seems highly likely, the state can reduce its expected income taxes by that amount. Needless to say, if it moved the whole company out of state, it would be a complete disaster for the state...and a boon to the state it moves into...