CME: Illinois Tax 'Untenable', Looking South

Discussion in 'Wall St. News' started by bone, Jul 28, 2011.

  1. bone

    bone ET Sponsor

    Breaking News from the Chicago Tribune:

    "Our tax situation is untenable," Donohue told Reuters, noting that CME is taxed more heavily than any of its global competitors. The company is talking with at least three states -- Texas, Florida and Tennessee -- about relocating some of its business to take advantage of lower tax rates there, Donohue said.

    http://www.chicagotribune.com/busin...nable-may-exit-state-20110728,0,6322503.story
     
  2. dewton

    dewton

    Imagine a Chicago Mercantile Exchange in a place other than Chicago! It doesn't make sense!
     
  3. trendy

    trendy

    Florida Mercantile Exchange, eh? Maybe now I can have an opportunity to co-locate.
     
  4. Bring on the FME!
     
  5. bone

    bone ET Sponsor

    Listen to what the jackass Illinois Governor said when Caterpillar threatened to leave Illinois over tax rates:

    and I quote, from the Chicago Tribune:

    "Caterpillar's not leaving Illinois. They have well-skilled workers who know how to get the job done. They just signed an agreement with the United Auto Workers. I think it's for six years," Quinn said.

    Last summer, Quinn lobbied for a new Caterpillar excavator plant to be built here, but instead it went to Texas, one of the states now trying to lure the company away.
     
  6. "Memphis Merc" has kind of a nice ring to it. :cool:
     
  7. WS_MJH

    WS_MJH

    TN makes no sense. Miami, yes, because it's international or Houston/Dallas.
     
  8. bone

    bone ET Sponsor

    Nashville makes alot of sense, actually.

    No state individual income tax. No state capital gains tax. Lowest electricity rates in the country. Cheap local taxes. The published corporate tax is half of Illinois', and they will be very accomodating on a case-by-case basis. Lots of companies are relocating to the central part of the State.
     
  9. How about Texas Merc Exchange?
    :D
    Or if they just gotta keep the CME moniker, Consolidated Merc Exchange?
     
  10. Actually the 2nd most important factor after taxes is the internet fiber optics backbone, and AFAIK Miami is far better located than Chicago, resulting in lower latency for CME products worldwide.
    For NY traders there will be almost no difference, and west coast traders will be a little worse off.
     
    #10     Jul 28, 2011