NCPA
For virtuous tax competition we usually think of Hong Kong. But who would have thought of Chicago as a lower-tax refuge asks the Wall Street Journal?
- The bright idea comes from Chicago Mayor Richard Daley who is looking to lure employers from Oregon after that states voters approved a huge tax increase last week.
- Oregon raised its top income tax rate to 11 percent from 9 percent and its corporate rate to 7.9 percent from 6.6 percent while doubling many small business tax charges and fees.
The tax hike in Oregon will help our economic development immediately. Youd better believe it Mayor Daley told the Chicago Sun Times late last week. Well be out in Oregon enticing corporations to relocate to Chicago.
- One of Daleys biggest selling points is that Illinoiss top marginal income tax rate is 3 percent less than one-third as high as in Oregon.
- But the Democrats who dominate the state government did try to raise it to 4.5 percent last year before failing and Chicagos property taxes are high and its sales tax rate is a whopping 10.25 percent.
- Illinois doesnt look nearly as good as Texas or Tennessee which have no income tax.
What happened in Oregon is not good news for Oregon explains Daley. They believe that anybody who makes $125000 or more (annually) or businesses or anyone who makes $250000 -- theyre gonna start taxing them. They call them rich people.
Daley isnt buying that. Ive always thought America stands for (rewarding success). You finish high school. You work hard go to college and you hope to succeed in life. I never knew its a class war -- that those who succeed in life are the ones that have to bear all the burden. I never realized that. It will be a whole change in America that those who succeed and work hard were gonna tax em more than anyone else.
Source: Editorial Why Chicago Loves Portland; Mayor Daley has his eye on jobs from high-tax Oregon Wall Street Journal February 2 2010.
For text:
http://online.wsj.com/article/SB10001424052748704722304575037640975408612.html
