Originally Posted by emathias
They were there earlier. The week before Thanksgiving they were there and told the legislature they needed an answer by the end of the week. Given the legislature's lack of substantive action, just how much kow-towing do you expect the CME to do just to be able to get fair tax treatment of their earnings? In case you're not aware, this isn't so much about a higher tax rate for the CME as it is the fact that the tax applies to income generated by trades between two non-Illinois entities. A lot of places don't tax that sort of income because it puts an exchange at a competitive disadvantage internationally, so the CME is really just asking Illinois to help keep it globally competitive - which is something that benefits Chicago, the state of Illinois and the U.S. as a whole. As bad for Chicago as it would be for the CME to leave the state, it would be far worse for it to be at such a competitive disadvantage that it was acquired by a foreign exchange.
I read that both the House and Senate versions of the bill wouldn't take effect until June. I realize that moving corporate headquarters requires months of planning, and that CME would ostensibly like to start that process ASAP, but it's not like they're going to benefit from their tax deals tomorrow or even by the end of the year. I doubt they'd be able to relocate by June, and another bill (which it sounds like the legislators are anyway amenable to) passed before then would surely prompt CME to cancel whatever relocation plans they'd be in the midst of making (the cost of relocating being far greater than the few months put into planning that move). Saying they want an answer to a complex problem (this is not simply an issue of "being fair" to CME/Sears as you make it seem) by "the end of the week" seems just like a way for CME to assert its power/bully the legislature into accepting its terms.
I'm by no means anti-corporation, but, despite claims by the nation's highest court, they're not people or even like people; their ultimate goal is always
to profit, and they will engage in whatever PR campaigns/lobbying/nasty politics necessary in order to do so. It is up to legislators, as representatives of the people, to see through the threats and figure out what is genuine vs. disingenuous.
The legislation in the Senate crashed and burned, reflecting a broad consensus, the will of a bipartisan majority
. The common refrain was that the bill didn't go far enough to help "the little guys" and catered only to the demands of CME and Sears. I don't think its "kowtowing" for those corporations to continue to be part of this process while the General Assembly works out the kinks in complex legislation that affects many other smaller corporate entities and, you know, actual people.