City leaders are also concerned about losing their businesses to bordering states.Same fears along borders with Indiana and Iowa.
Dennis Pauley, mayor of Rock Island, said his city — located on the Iowa border — will not lose any money from the state funding, but is worried that businesses would pack their bags and move next door because of the corporate income tax increase.
State Rep. Pat Verschoore of Rock Island said he voted yes on the tax hike so the state could pay off its deficit. The Democrat said he doesn’t think a lot of businesses would actually leave the state within the four-year time span of the temporary tax increase.
Because Danville sits just west of the Indiana border, Eisenhauer said the tax increase stiffens corporate competition with the Hoosier state.
Hoechst has a similar situation, since Alton sits across the Mississippi River from Missouri.
“We are creating a very anti-business climate in this state,” he said.
Sunday, January 16, 2011
Tax hike brings no money, more problems to Illinois cities