CME Group Threatens To Leave Illinois

CHICAGO (CBS) — The parent company of the Chicago Mercantile Exchange and Board of Trade is the latest firm to threaten to move out of Illinois over the corporate income tax increase earlier this year.

As WBBM Newsradio 780’s Nancy Harty reports, Terrance Duffy, chairman of the CME Group, said company officials are looking at opportunities elsewhere, but no decision has been made.

CME group chief financial officer James Parisi says Illinois’ tax hike in January to 9.5 percent from 7.3 percent cost the company an extra $50 million a year.

LISTEN: Newsradio 780’s Nancy Harty reports

Duffy tells the Chicago Sun-Times he is upset by the state’s failure to close corporate tax loopholes. He accuses the state of favoring some companies, but leaving others, including CME, to pay the full rate.

CME owns the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Mercantile Exchange. The firm was created after the Mercantile Exchange bought out the Board of Trade for $11.9 billion in 2007.

Duffy said CME could retain some operations in Illinois if it relocated.

The CME Group is the latest in a slew of companies that have threatened to leave the state over the tax hike.

Peoria-based Caterpillar made headlines in March for a letter indicating that it might leave the state, but chief executive officer Doug Oberhelman decided to keep the company in following a meeting with Gov. Pat Quinn.

Later, Quinn offered Motorola Mobility $100 million in financial incentives to keep its corporate headquarters in Libertyville.

Navistar and Sears, Roebuck & Co., have also reportedly considered moving out of Illinois over the tax hike.

Quinn supported a hike in corporate and personal income tax rates this year as a way to shore up the state’s historic budget deficits.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS Radio and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)

  • Sergei Shushunov

    slap them with more taxes before they leave

  • Danimal

    Well it is another story of the threats by companies that will get concessions from the governor. As a small business owner I will have to bear the tax increase while the big dogs get the breaks. If I threaten to leave who will care. Think about all the small business owners like us who will go broke carrying the big dogs while they report record profits. No one is going to cut my corporate taxes. The governor coudl care less. These guys threaten and Quinn caves. Like to see him gets some stones and tell them to leave not cuts coming. It will cost the a fortune to leave. HEY QUINN GET SOME GUTS AND STAND UP FOR THE LITTLE GUY. WE VOTE TOO!!!!!!!

  • Ryan

    Yes that is a brilliant idea..”Slap them with more taxes before they leave”

    Then you can slap all the employees, families, & productive citizens with “more taxes” as they leave. Pretty soon you have Detroit #2. Have fun when that happens. Don’t think it will? It’s already started.

    • LkWeirgal

      You are so right! Come to Florida! Rick Scott is making Florida business-friendly!

  • commonman

    Corporations should be concerned with providing jobs to the people who keep them in business instead of finding ways to reduce the taxes they pay.

    Just another way for Corporations to place more of the tax burden on the middle class. Use moving out of a state as a way to get tax concessions, and then rake in the profits while the middle class suffers.

    As for the jobs, they’re all being sent overseas, so who benefits?

  • joehateseverything

    It costs a lot of money to own politicians and elected officials. Someone has to “pay” those costs.

  • Philip J. Wayne

    Let em leave….enough bullying.

  • Philip J. Wayne

    Let em move to California on a large Fault in Los Angeles or San Francisco…flee to California people…The earthquake that is in a ready position in California is going to be far worse than Japan’s. There won’t be any Merchantile Exchange or Silicon Valley left! No more Oprah either. The people of Chicago fell all over this woman and she shows how wonderful she is by laying off people here. What a jerk. How about to Texas or Vegas where the water supply is going to run out in the next ten years. Dallas, Houston, Phoenix, San Antonio, Vegas, San Francisco and Los Angeles, Orlando are running low on water….dead cities in the future.

  • Joan L Mcgrath

    ITis sad that the big cos. never seem to make enough when things get a little tough they should try and help the little guy instead of threatening to leave the state, after a few grumbles to the gov. they get thier rewards and the little guys have more dumped on them, it is so tragic that they dont try and stick it out like everyone who cant make the threats ,,they dont have the backing of gov.. Iwould say let them move and boycot them before and after they move

  • franklin808

    Let them go if they do not want to pay their fair share. We don’t need them.

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  • Vicky

    Way to go, Quinn…you moron.

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  • Ian

    CME Group’s 2008 Net Income was 720 Million. 50 Million extra in taxes represents a 6% increase. CME/CBOT consumes ALOT of electricity with all those servers running trading algorithms, and with electricity prices rising that’s gonna hurt them, too. Quinn should compromise with them: reduce the increase to 3% and cut state gov’t spending. Raising taxes without substantial cuts in spending is stupid & wasteful.

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  • MotorCity007

    Come to Michigan to do business. We now have a 6% corporate tax rate. That sure beats the 9.5% corporate tax rate your currently paying. Think smart think Michigan.

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