Friday, March 3, 2017

Caterpiller raided by feds. Tax cheats. | Fred Klonsky

Caterpiller raided by feds. Tax cheats. | Fred Klonsky:
Caterpiller raided by feds. Tax cheats

When Caterpiller announced it was joining other big corporations like Boeing and moving its headquarters to downtown Chicago, Crain’s reported that it took some analysts by surprise.
Aides to Gov. Bruce Rauner say they heard about the move “this morning” and the administration was “not involved” in the decision. With Cat apparently moving existing jobs to Chicago rather than creating new ones, the company would be ineligible for Edge payroll tax credits under changes to the incentive program adopted by Rauner.
City Hall isn’t yet commenting on whether it was aware of the decision, but companies almost always notify the city when they’re setting up shop in town.
Mayor Rahm Emanuel did release a statement, saying:
“Chicago’s unparalleled talent and status as a global transportation hub give a global company like Caterpillar the tools they need to thrive for generations to come. Chicago’s strengths benefit companies throughout the region, and we look forward to working with Caterpillar as they prepare to make this move towards their future.”
The city’s main incentive program is tax-increment financing. But most of the downtown area no longer is included in a TIF district, and giving tax breaks to a company that already has publicly announced its intention to move would be politically difficult.
The Edge payroll tax credit allows giant corporations in Illinois to keep the state income tax it collects. But it is supposed to be contingent on so-called job creation.
Moving 300 executive jobs form Peoria to Chicago doesn’t qualify.
Lot of major corporations are moving their headquarters to downtown Chicago. The execs like the lakefront condos and city restaurants and bars.
Peoria doesn’t provide that.
Caterpiller wasn’t worried about losing that tax benefit. It had other plans to Caterpiller raided by feds. Tax cheats. | Fred Klonsky: