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View Full Version : CME Group calls tax situation 'untenable;' says it may exit state



HardlyPeeved
07-28-2011, 11:43 PM
Chicagoland is hurtin'

Taxin and corruptin'

Maybe CME will move to China ? ! :o

Rahm is cryin' boo-hoo :(


CME Group Inc. is evaluating whether to move some operations to other states from Chicago to reduce its taxes, but it has not decided on an exact timeline, CEO Craig Donohue said Thursday.

"Our tax situation is untenable," Donohue told Reuters, noting that CME is taxed more heavily than any of its global competitors. The company is talking with at least three states -- Texas, Florida and Tennessee -- about relocating some of its business to take advantage of lower tax rates there, Donohue said.

http://www.chicagotribune.com/business/breaking/chi-cme-group-says-tax-situation-is-untenable-may-exit-state-20110728,0,6322503.story

namwalker
07-29-2011, 12:31 AM
This should come as no surprise. The CME could easily move it backroom operation to almost any state. I don't think that they will move to China. They'll definitely move somewhere where communication would be easy back to Chicago. The only thing that could stop such a move is Obama making a move against the trading center through the SEC. Their workers are not unionized (I don't believe) so the NLRB could not easily step in like they did with Boeing.

From what I have also been hearing is the Boeing is not very happy there either. However the NLRB is already on their case over moving assembly lines to one of the Carolinas. This is any ploy of Obama trying to shore up the jobs of his union allies.

This is all not about equity but power.

In the electronic age the backroom operation could be done anywhere, even in someones den. The trading pits could also be moved anywhere. The only thing the the CME would have trouble of getting rid of is there building at LaSalle and Jackson in downtown Chicago. Which by the way is no less the a half mile from City Hall. Rahm could be looking at an empty building when he gets into his limo to go home at the end of his day. By the the way, the CME is also across the street from the Chicago Fed. What would happen if that building moved somewhere else say to Milwaukee or Indianapolis.

The CME is not the only big company looking to leave Illinois, Catepillar in Peoria has already put Illinois on notice that they are also dissatisfied with the tax structure of the state. And are starting to investigate moving operations elsewhere from Peoria. I wouldn't be to surprised if the NLRB also stepped in to stop them from moving like they did to Boeing.

Where was the NLRB when we started to lose jobs to overseas markets. They were hiding in the offices with their secretaries. Union jobs didn't mean to much back in the 80's and 90's so what is different now. Union contributions to the Democrats?

PS: There are probably more companies looking to leave Illinois than have been publicly notices. Look for more desertions from Illinois in the next few years.