Tuesday, March 29, 2011

Will the caterpillar leave the cacoon?

Governor Quinn's most recent tax hikes have caused much controversy in the state of Illinois. Perhaps one of the most affected companies is Caterpillar Inc. Caterpilllar's headquarters are in the state of Illinois and many of its branches can be found scattered throughout Illinois such as in Peoria, IL and Will County. The company employs more Caterpillar has threatened to leave Illinois due to Quinn's tax hikes. It seems that our current government believes it can make money on its own without the aid of businesses. Let me just say that if this idea has been pushed on you, you have been misled. Government needs to maintain a strong tie with the business sector. Businesses form the private sector. Without a private sector, there is no public sector. Businesses provide employment opportunities and products/services. In turn, employees and businesses provide tax dollars. But what happens if we increase taxes? Well, I think any business owner in the right state of mind would look for alternatives. These alternatives come in forms of offshoring or relocating businesses. Such alternatives take away the tax dollars that make up the public sector. If businesses are driven away, unemployment rises, products/services are lost, and government is forced to reduce funds to citizens that comes in forms of MAP grants, social services, etc. When government does not have the funds needed to function, then they have no alternative but to borrow money. I think our trillion dollar deficit is enough. Don't you think? It's time that we stop driving businesses, like Caterpillar, away. We need to provide companies with corporate tax breaks and give them incentives to stay at home. Why give other states their tax dollars? Giving incentives to companies will increase revenue and expand businesses. Thus, companies hire more employees. The unemployment rate goes down and if businesses are successful, employees are given incentives like better benefits, higher pay, etc. However the question remains, will Governor Quinn do the right thing and keep Caterpillar in Illinois or will the Caterpillar leave the cacoon?