Indiana steps up efforts to lure Illinois business

By Kathy Bergen
Posted Feb. 14 at 2:38 p.m.

Indiana is cranking up its push to lure Illinois businesses in the wake of tax increases here, rolling out a $250,000 marketing campaign that tries to position the Hoosier state as a lower-tax option.

“Feeling Squeezed by Taxes?” is the tagline on a Northwest Indiana campaign launching Monday in Chicago print and electronic media, and it dovetails with a broader Indiana push rolled out late last month, using the tagline, “Illinnoyed by Higher Taxes?”

The two-pronged push, by the Northwest Indiana Forum and the Indiana Economic Development Corp., was the  focus of a press conference Monday afternoon at the Hammond Marina.

Corporate income taxes for a company with $1 million in net taxable income would be $85,000 in Indiana and $95,000 in Illinois, the Indiana officials said.

The gap is more pronounced in worker compensation costs, the officials said, estimating costs for a company with 100 employees would be $47,236 in Indiana and $135,926 in Illinois.

“We’ve had discussion with numerous companies that are interested in moving to a lower cost location,” Mitch Roob, Indiana’s commerce secretary and CEO of the economic development corporation, said in a release.

Print and electronic ads, along with billboards, will run through the spring. The development corporation also hired a director of business recruitment last fall to focus on wooing Illinois firms.

Moving out of Illinois would have no impact on a company’s Illinois income tax bill because the state only taxes profits on sales in the state, not payroll or property, according to Kelly Kraft, the budget spokeswoman for Illinois Gov. Pat Quinn. That taxing revision was made at the urging of major corporations and took full effect in 2001.

“Few states or countries can match Illinois’ highly skilled work force, our world-class universities and transportation assets, and our cultural innovation,” she said in a written statement. “This is what Illinois offers, and our actions in regard to revenue are making us an even stronger competitor.”

The corporate income tax hike, which is temporary, “will help us stabilize our budget, making us more attractive to business,” she said.

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  1. Hoosierbilly Feb. 14 at 3:56 pm

    Robert A. The tax increase was temporary, don’t you ever read the newspapers? Oh wait, you don’t because Fox and Glenn Beck told you not to.

    Do you even know the current tax rate? Illinois is 7%, which will go down to 5.5% in 2015. Indiana’s tax rate is 8.5%. Hmmmm, I dunno math, but it seems like Indiana is higher.

  2. Robert A Feb. 14 at 4:00 pm

    Jason do you really believe that? really, do you believe in Santa? how about the toof fairy? that sounds like Tax speculation, ever hear of a game called the shell game? They play it here in Chicago, they shuffle around the money, take some from here, pay off some friends here.

    People get the government they deserve. In Illinois, they get to pay for it all full price and than some.

  3. Hoosierbilly Feb. 14 at 4:00 pm

    People seem to think that Indiana is California or Florida. Why on earth would anyone want to live there?

    Cornfields and rednecks, can’t wait to uproot and relocate. Sign me up bud, not!!!

  4. Hoosierbilly Feb. 14 at 4:02 pm

    “Toof fairy”

    LOL. If this is the type of employee I’ll have in Indiana, no thanks, I’ll stay in Illinois.

  5. ChicagoJ Feb. 14 at 4:03 pm

    Indiana’s #1 export is college graduates. I grew up in Indiana so it’s not just a Chicagoan bashing that god awful cornhole. Some of my friends/classmates from high school did settle in Indy after college, but by and large anyone who finished college left and never looked back. Companies that move there will be astounded by how hard it will be to get people to relocate there or recruit an educated workforce once they’re there. Taxes suck, but living in Indiana is far worse.

  6. Hoosierbilly Feb. 14 at 4:06 pm

    Even if I had free rent I still would not live in Indiana.


  7. The Dish Feb. 14 at 4:15 pm

    Love living in Indiana – I can run to the beach from my house and drive to downtown Chicago in less than 50 minutes. Bought my house for $10,000 and fixed it up, paying less than $500 a year in property taxes. You guys sure don’t have an issue coming over to the outlets shopping and hiking our dunes.

  8. Robert A Feb. 14 at 4:19 pm

    Chicago, the armpit of the nation, corrupt, elected morons, full of gangs, bums, annoying parking meter maids, 2 bucks to park your car or it gets towed by some Mobbed up tow company, yeah you can stay in Chicago…its full of diverse and charming people, and when you get robbed, nobody will care. High rents, Expensive housing in ghettos, the whole city is a ghetto, there is no low crime rate, remember that Irish girl that got her head bashed and now can’t walk..Chicago, so much great culture…in expensive museums, from long dead civilizations. When you dial 911 maybe someone will respond, because trust me they don’t. But you can defend yourself with your 2nd amendment, oh wait, you have to pay for classes and a license and you can’t keep your weapon loaded because that is against the law. But hey, you can be gay and get married, yay that is so zeitgeist.

    What about the recycle bins, oh wait they just dump that stuff in the same dump as everything else but hey its a blue bin don’t we feel so GREEN, and hip, and socially minded.

    Yeah Chicago is so great. What about those great schools with the wonderful drop out rates? But if you are connected you can get into a charter school, and if you have some money like 10k+ a year you can send your kid to a private school. Anyone who remains in Illinois is a dummy, and the hopefuls who believe that they will have lower taxes should look at what the state has borrowed and what it brings in.

    I don’t understand why people keep saying, Glenn Beck, or Foxnews, this is reality, not an opinion piece.

    Chicago is garbage and a rust belt city with its best days behind it and its brains and economy slowly draining out of the state as time passes.

  9. Steve Feb. 14 at 4:22 pm

    Wow, threw out the stink bomb in a crowded room? The crap being passed along as usual, reliable “facts” is really more emotionally charged than a what comes out ofthe muths of third-graders.

    Wake up everyone. By the way BillyJoe second comment has a factual error “Sure, you can manipulate the figures all you want, but the fact is nearly one out of every ten people is unemployed…and at least three others of those ten are discouraged/stopped looking/underemployed”.

    The unemployment rate for the country is a little under 10% with 8 million plus out of work since Q3 2007 (that is on top of 7million preceding Q3 2007). The underemployed which equals doing less and being paid LESS is not in the almost 10% unemployed AND the completed discourage, e.g., NOT even looking for work are added up the total number of impacted work-age citizens is much closer to 15%.

    Unlike you all who espouse opinions, I’ve been engaged with executive search since 1976; have serviced many industries, etc, etc. And here’s the punchline for your kids — stop buying foreign products, the american century is over!

    Get ready for within 10 years that the US currency will now longer be the global currency for trades, etc. and will have to be converted for ANY transaction once you leave the USA (you will equate the US dollar to the russian rubles from the 1970s) and becoming worthless.

  10. TimT Feb. 14 at 4:22 pm

    Hoosierbilly don’t you just love living in 1920s Indiana? Sorry Indiana has changed since the 20s (Oh wait its 2011) Come to Indianapolis enjoy the scenary in the southern half of the state and to be honest i have been to both Indy and Northwestern Indiana and if you say Indiana sucks cause of the northwestern portion your wrong. (only the northwestern portion of Indiana has been decaying in certain areas like gary) Rest of Indiana is thriving Especially the Indy area.

  11. HillBilbo Feb. 14 at 4:22 pm

    Look at Robert A getting all huffy! Not one FACT in his rant. Must be scared of all them south siders gon’ mug ‘im ifn he comes to Chicago. Whole city is ghetto? My friend if your pickup could make it, you should come to the bog city. See how its done. Funny too you talking about recycling. In Indianer that means you put the pig crap on the corn field.

  12. HillBilbo Feb. 14 at 4:24 pm

    TimT “Rest of Indiana is thriving” with respect to the rest of Indiana, which means in relation to everything else, well you can do the math (if you don’t actually live in IN)

  13. HillBilbo Feb. 14 at 4:26 pm

    Indianer “patriots” pick on little girl because they are racist

  14. HillBilbo Feb. 14 at 4:27 pm

    Thriviing in Indianer means a Pamida just went up

  15. Tyler Feb. 14 at 4:32 pm

    The tax is temporary?? HAHAHAHA!!!! Why just look at this article in the Tribune today about Quinn wanting to take out an $8.5 billion loan. What is his plan to pay it back??? A 14 year plan taking a piece of the income rate hike…14 YEARS PEOPLE!! …not 4 years. I am so comforted at the states actions to fix the structural deficit that caused our current deficit in the first place. O wait, they haven’t changed anything…Im betting on another four year temporary tax extension in 2015, and then 2019…anyone?? This state is a joke.

  16. Closed Minded Chicagoans Feb. 14 at 4:34 pm

    I love how these arrogant moron Chicagoans bash states Like Arizona and Texas, yet those states are the states that people are moving to. From 2000-2010 Texans And arizona had the highest population growth rates of all 50 states. Illinois was third to last of all midwestern states in population growth. Minnesota, Wisconsin, Missouri, Indiana, Kentucky, Kansas, North Dakota, and South Dakota ALL are growing fasterthan Illinois. Illionis barely beat out Ohio and Michigan for population growth. Houston is on pace to be a bigger city than Chicago by 2030. Chicago has had it’s bet days. The south is where the growth of this country is happening, and you people up here just ignore the fact that they are beating chicago, becasue they “are just rednecks”. Well those red neck states are kicking Chicago’s ***.

  17. terry Feb. 14 at 4:35 pm

    Hi there all you hoosier haters. KI have a story for you.

    Once upon a time I got sick and I went to the hospital and they said I had to STAY there at the hospital. I called my next door neighbor and told her of my problem and so for the next week while I was hospitalized she went to my house every day three times a day and took my dog for a walk. when i got back after a week in the hospital there was a ‘Get Well” basket in the kitchen. Know what else? The house was never locked. I lived in that house for

  18. TimT Feb. 14 at 4:39 pm

    hey hillbilbo don’t you have a job or family to be attending to instead of acting like (Mr. Tough Guy) on the internet?

  19. terry Feb. 14 at 4:40 pm

    EIGHT YEARS and in those eight years I NEVER locked the front door because there was no need to.

    Are some of us hicks? You better believe it. You look down on us? That’s your problem, most assuredly not mine. Just remember this – when you decide to honor us with your most august presence – bring PLENTY of money.

    But if you don’t come – that’s fine too.

  20. bfree Feb. 14 at 4:42 pm

    You liberal stooges are funny. Some of you are really wasting either the taxpayers money or your daddy’s money while in school. The corporate tax is now actually 9.5% with the addition of the 2.5% property replacement tax.

    I’d rather live with rednecks, hillbillies, bible thumpers and any other insult you little whiners throw out, than in a welfare state full of stupid liberals and corrupt, lying politicians like Quinn. If ANYONE believes the income tax hike is temporary, well then, you deserve to stay in this state and pay for all the criminal pensions that the state gives out.

  21. terry Feb. 14 at 4:44 pm

    Recently Gov. Quinn enacted another tax increase for the suffering burghers of Illinois, and word is that more and more people – and businesses – are voting with their feet.

  22. SkepticalSam Feb. 14 at 4:51 pm

    Companies may WANT to move to Indiana. But their employees? Not so much. Especially if we’re talking about any burg except Indianapolis. Want to feel like you’ve fallen back in time to 1953? Go to Martinsville or Batesville or (to capture them all with one name) B.F. Indiana.

  23. Craig Feb. 14 at 4:55 pm

    “Moving out of Illinois would have no impact on a company’s Illinois income tax bill because the state only taxes profits on sales in the state, not payroll or property, according to Kelly Kraft, the budget spokeswoman for Illinois Gov. Pat Quinn. ”

    Kraft is either lying or ignorant. Illinois credits you for sales in other states if you have a nexus there, but everything else gets taxed back in IL.

  24. TimT Feb. 14 at 4:55 pm

    Indianapolis is leading the midwest and competition with the nation for job growth and the region is better than any other part of Indiana or Illionis or Ohio or basically any (Big Midwestern States) ND and SD have low unemployment rates cause their employees are farmers (people have to eat i know) Again Indianapolis will be bigger than detroit by 2020 and maybe bigger than chicago someday especially at the rate Indiana is going and the declining rate Illionis is going. To the haters of Indiana get your facts right before being Mr. (Tough Guy) on the internet bashing over worthless and wrong stuff.
    Currently there is over 3200 job openings in Indianapolis for various jobs etc. (Check it out live there for 5+ years like i have then start talking out your ***)

  25. KDB Feb. 14 at 5:13 pm

    Indiana is jumping on the same bandwagon that Arizona, Utah, Idaho and Texas are trying here in California. Sure, low paying, low skill jobs may head to another state but tech and degreed positions aren’t going to be leaving anytime soon. There aren’t that many highly paid employees that want to live in places like Indiana or Texas or etc. yes, people move to Chicago for jobs but they stay for the lifestyle they have in Chicago. As far as the bashing, is that really necessary? Very childish.

  26. tatamicky Feb. 14 at 5:15 pm

    I have family in Indiana and they think they understand the issues of a big city like Chicago, which they are quick to judge and put down, but yet they spend over an hour plus (in good weather) to come and work and provide for their family. But, they take their earnings to Indiana with them and use it to sustain their own state. Without Chicago (Illinois) they would go back to the Klan founding, loving simple folk that their toothless bretheren are.
    Quinn is beyound and IDIOT, but at least we don’t have to live in Indiana.

  27. Hoosierbilly Feb. 14 at 5:41 pm

    “Again Indianapolis will be bigger than detroit by 2020 and maybe bigger than chicago ”

    LOL. You are comparing your city to Detroit. End of story. Bigger than Chicago. An even bigger joke.

    Indiana once had the most Klan members in the USA. Got something to be proud of Hoosiers. As others stated, we’ll take corrupt politicians over cornfields and toothless Klan’s men.

  28. TimT Feb. 14 at 5:42 pm

    Kinda ironic those states you mentioned KDB are growing faster than ANY other states in america? funny stuff (census 2010 ftw)

  29. Hoosierbilly Feb. 14 at 5:42 pm

    I heard they call Indianapolis the Paris of the midwest. Any truth to it?

  30. Bluecrane Feb. 14 at 5:57 pm

    Amazing, you have to wonder how some of the right wingers get through the day without hurting themselves.

  31. Bluecrane Feb. 14 at 5:59 pm

    Yep, it’s a lot like Paris, Illinois; just not as high falutin’.

  32. JDMINDY Feb. 14 at 6:00 pm

    Have lived in Arlington Hts, Crete, Wheeling, Beecher, Bensenville, and other Chicago burbs. Have also lived in Ft Wayne, Lafayette & Indianpolis. The ONLY reason I’d consider moving back to the Chicago area is to be closer to elderly family. While there are a lot of good people there, and a lot of places to go/things to do… the place is just thoroughly corrupt and the fools keep voting the thieves back into office. It may be because you have all lied to yourselves for decades, as supporters of the first Mayor Daley defended his crimes by stating he got things done. ****, so did Sadaam Hussein… that doesn’t make either of them a good leader. Here’s hoping that lots of businesses just say no to organized crime and leave the cesspool. There’s more than corn in Indiana (and I believe IL probably still produces more corn anyhow)

  33. Hoosierbilly Feb. 14 at 6:02 pm

    800,000 car seats recalled from a company in Indiana. Sure you’ll save some pennies by moving but you’ll churn out an unsafe and inferior product.

  34. Craig Feb. 14 at 6:05 pm

    Yeah, Billy. I’ve never seen a recall from an Illinois firm.

  35. Hoosierbilly Feb. 14 at 6:43 pm

    JDMINDY said “Have lived in Arlington Hts, Crete, Wheeling, Beecher, Bensenville, and other Chicago burbs. Have also lived in Ft Wayne, Lafayette & Indianpolis”

    Wow, you are comparing suburbs of Chicago to cities in Indiana. Enuff said.

  36. TimT Feb. 14 at 7:03 pm

    everyone report Hoosierbilly for abuse its getting out of hand he needs to be doing something better than talking out his rear here.

  37. Hoosierbilly Feb. 14 at 7:10 pm

    I got a new state slogan for Indiana,

    Indiana, the Redneck Riviera.

  38. bfree Feb. 14 at 7:45 pm

    I figured out who Hoosierbilly is.

    PAT QUINN. Both guys are as dumd as a rock.

  39. Jaybuck Feb. 14 at 8:14 pm

    The corporate income tax hike, which is temporary, “will help us stabilize our budget, making us more attractive to business,” NOW THATS TOTAL BS.

  40. Medicindiana Feb. 14 at 8:15 pm

    I am amazed that so many of the previous posters seem to think that spouting ignorant unfounded insults about the residents of Indiana will somehow make thier cesspit city of Chicago seem like a better place to live and do business. By the way, most of Illinois, with the exception of Chicagoland, is much like Indiana. Good, honest, hardworking people, good land, a nice mix of agriculture and industry. Chicago (and northwest Indiana) on the otherhand….not so much, its more ignorant, lazy, uncouth, corrupt, and violent. In my 46 years I’ve been shot at once and threatened with a gun once, both in Chicago while doing my job, yet in Indiana, where I and my uncivilized redneck friends, can keep and bear arms, not once have I even seen a gun used unlawfully. So, those of you who do not care for Indiana, fine, stay in your state, please. We will, however, gladly take your businesses and make them profitable by not chokeing them with corruption and unreasonable taxation, and by staffing them with honest hardworking employees. Have a nice day.