Illinois' First Tax Hike Victim

[traelin0]

In the first of what is likely many Illinois business exoduses to come, Jimmy John's founder contemplates moving headquarters out of Illinois.

The founder of Jimmy John's said he has applied for Florida residency and may recommend that his corporate headquarters move out-of-state as a result of the Illinois tax increases enacted last week.

Jimmy John Liautaud told The News-Gazette on Tuesday that he is angry about the moves, which boosted the individual income tax from 3 percent to 5 percent and the corporate income tax from 7.3 percent to 9.5 percent.

"All they do is stick it to us," he said, adding that the Legislature and governor showed "a clear lack of understanding." "I could absorb this and adapt, but it doesn't feel good in my soul to make it happen," Liautaud said.

Champaign has been its corporate base, but Liautaud said it will not necessarily continue that way. Liautaud said he has been contacted by "multiple pro-business states" that made him feel "wanted and important."

"I enjoy being courted and the process," he said.

Once he collects information on alternative sites, he will present it to the company's board of directors and ask the board to decide.

As for himself, "my family and I are out of here," he said.

Jimmy John's employs 100 at the corporate office in Champaign and has 190 other employees who work elsewhere but come to Champaign every four weeks, Liautaud said.

Some people may not realize how many travel to Champaign-Urbana as a result of Jimmy John's being here – many of them for training. Liautaud said his business accounts for "350 motel nights a week in Champaign, 1,400 motel nights a month."

"They eat at Cheddars," get automotive service at Sullivan-Parkhill and "drink at Carlos (Nieto's) bars," he said.

Liautaud also lashed out at union protesters who demonstrated against a "low-cost" contractor his company is using to build a Jimmy John's in Urbana. That restaurant will provide 30 jobs, he said.

He said he's sick of being "pummeled."

Jimmy John's offices occupy 23,000 square feet on Fox Drive, and Liautaud said he had considered buying a 20,000-square-foot building just north of those offices. Those plans went out the window with the tax increase, he said.

He said he also planned to hire 80 more people at the executive level.

With regard to the tax increase, Liautaud criticized the way the Legislature "snuck it through" and called the procedure "sneaky."

When asked whether Illinois could do anything now to change his mind, he said "the state could say they made a mistake" and "apologize."

Read more here.

[vonnie6200]

This is a real shame - their subs are awesome!

[jkapp]

I don't think the chain stores are leaving, just Jimmy and the Corp HQ (maybe). I don't blame him, though...our state (WI) is just as bad when it comes to property taxes and business taxes. The sales taxes are still (fairly) low, but that could all change overnight these days.

And I agree...Jimmy Johns rocks. I could never eat cheap crap like Subway again after eating their sandwiches.

[Deleted]

Why are gov'ts so arrogant to think they can do whatever they want to people with more money than others and they will just pay it out and behave?? They are leaving the country, leaving their states, and it just keeps making things worse and worse. People work hard to build their businesses. Just because they become more successful than others is no reason or excuse to take their money and give it away to people that do nothing at all. What do those of you that support this think will happen to this country when all of the money has moved away?? I'll tell you what-- no ponies for anybody, even the people that WANT to work and save and buy their own little pony.
Since I have been reading Atlas Shrugged this week I keep feeling like I am in some weird kind of time warp as I go from the book to the board and back. Great book.

[stayput]

The states that get it, will get all of the businesses and the prosperity, flooding in to tax friendly states, from all of the Liberal states that will NEVER get it. California, New York...................and every other Liberal state controlled government will see all of their businesses leaving for states like Florida, and others that can easily follow suit.

Florida. Show your southern manners and tell those Liberal states Thank You!!

[Deleted]

And as I've said at least a couple of times: The same will apply to the rich being unfairly taxed. The only difference is that they will take their money & go to other countries (& I don't blame them). That's why we should have a fair tax system & everybody should pay the same percent.

[floridayankee]

The founder of Jimmy John's said he has applied for Florida residency and may recommend that his corporate headquarters move out-of-state as a result of the Illinois tax increases enacted last week.

Bring it on JJ....we'll gladly take the jobs here

Florida. Show your southern manners and tell those Liberal states Thank You!!

Well, I was raised with northern manners so I'll say...
Thank you liberal states...just tell your residents fleeing your oppressive taxes and legislation to check their liberalism at your state border as they leave. We don't want your expensive, unfunded, destructive liberal policies that bankrupted your states to drag our great states down as well.

That's why we should have a fair tax system & everybody should pay the same percent.

Are you ?? That wouldn't be fair!!!

[Value Buy]

Hey, as long as Mickey D'S does not movetheir Hamburger University, Illinois will be happy

And overweight

[traelin0]

Jan 21, 2011 0:07:50 GMT -5 @oldtex said:

And as I've said at least a couple of times: The same will apply to the rich being unfairly taxed. The only difference is that they will take their money & go to other countries (& I don't blame them). That's why we should have a fair tax system & everybody should pay the same percent.

Even those who aren't rich, and who see the writing on the wall, will do this. Capital flows tell us all we need to know and I do not know anyone in my personal life who would consider starting a small biz in this country...me included.

[AgeOfEnlightenmentSCP]

Here's how it works- states raise taxes, and become less competitive, so businesses leave. Tax revenues drop off, instead of going up because the people that actually pay taxes are gone. People lose jobs, so tax revenues drop off. Those who lose their job are free to look for opportunities elsewhere because there's no job holding them back- plus most of the jobs are in those states that are more business-friendly, so they move-- and now tax revenues haven't only dropped, they're gone forever. Then the idiots that raised taxes in the first place see they don't have enough money, so they raise taxes again.

The solution is pro-growth, business-friendly policies. NOT crony-capitalist, goodies for some big business-- but across-the-board, in the spirit of equal protection under the law, good for everyone pro-growth policies. When your state is on a frozen plain and nobody ships anything by rail or boat anymore, you better have some reason for people to live there. Right now, IL isn't exactly rolling out the welcome mat.

It's not just that people are LEAVING-- they are. It's that when people are considering moving someplace-- IL doesn't even make the list.

[ugonow]

Should be interesting to see if he closes his stores there or just moves headquarters.

[AgeOfEnlightenmentSCP]

Either way, IL loses. If FL (a zero income tax state) becomes his residence, anything he gets paid is not taxed in IL. Yes, individual JJ franchisees will get hammered, but JJ corporate (if it moves), and Mr. Liautaud won't pay a dime to IL.

[AgeOfEnlightenmentSCP]

And it's killing towns, too. No more property tax revenue as more inventory comes on to the market and housing values in IL plummet yet again.

IL shouldn't think it can't and won't happen. They need only look as far as Michigan.

[ugonow]

My personal opinion on this is I don't care because it does not affect me. What concerns me most are the states that take more from the federal pot than put in.

[brdsl]

So, what is Missouri's excuse for losing jobs, people and business?

They are one of the lower tax states...

[floridayankee]

Jan 25, 2011 15:40:37 GMT -5 brdsl said:

So, what is Missouri's excuse for losing jobs, people and business?

They are one of the lower tax states...

You mean there needs to be another excuse besides...it's friggin cold up there!

[Deleted]

Jan 25, 2011 16:38:40 GMT -5 @sroo4 said:

Jan 25, 2011 15:40:37 GMT -5 brdsl said:

So, what is Missouri's excuse for losing jobs, people and business?

They are one of the lower tax states...

Have you ever been to Missouri???

Missouri: The "Show me the fastest way to get out of here!" state!

[handyman2]

Send them our way. We have some textile plants that have been empty for several years. Read in the paper that there are several companies that are looking at the plants contemplating a move.

[brdsl]

Have I been to Missouri?

Sure, I am there a couple times a week.

Cold?? But IL is warm?


My comment is that states with lower tax rates are also losing business.

It might be more climate than taxation.

[fairlycrazy23]

As a nation we are in a financial mess so we should expect job losses everywhere, but has Missouri lost more or less than the national average.