For virtuous tax competition, we usually think of Hong Kong. But who would have thought of Chicago as a lower-tax refuge?
The bright idea comes from Chicago Mayor Richard Daley, who is looking to lure employers from Oregon after that state’s voters approved a huge tax increase last week. The tax hike in Oregon “will help our economic development immediately. You’d better believe it,” Hizzoner told the Chicago Sun Times late last week. “We’ll be out in Oregon enticing corporations to relocate to Chicago.”
Oregon raised its top income tax rate to 11% from 9% and its corporate rate to 7.9% from 6.6%, while doubling many small business tax charges and fees. “What happened in Oregon is not good news for Oregon,” explains Mr. Daley. “They believe that anybody who makes $125,000 or more [annually] or businesses or anyone who makes $250,000—they’re gonna start taxing them. They call them ‘rich people.'”
Mr. Daley isn’t buying that. “I’ve 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 it’s 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, we’re gonna tax ’em more than anyone else.”
It’s nice to think that SOMEONE knows there’s a link between higher taxes and higher job losses.
But Chicago has other taxes that are just as onerous. I think the States like Texas or Idaho will stand a better chance of scooping up those jobs.