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Like a Good Neighbor State Farm Will Move From Illinois to Texas

by huckfunn ( 15 Comments › )
Filed under Business, Democratic Party, Economy, government, Headlines, Progressives, Regulation, Socialism, taxation at February 15th, 2013 - 11:55 pm

 

State Farm has recently leased up about 2.5 million square feet of commercial work space in Richardson, Texas (North Dallas) in what appears to be the largest office lease in Dallas County history. State Farm continues to put out the line that they are not leaving Bloomington, IL, but all signs point to a probable move. In 2010 Illinois increased the corporate tax rate by 67% and they now have the worst credit rating of any state in the U.S. Welcome to Texas, State Farm. You’re going to like it here. No corporate or personal income tax.

Insurance chain State Farm is reportedly buying up substantial workspace in Texas, which may signal a coming exodus from the company’s home state of Illinois.

State Farm is keeping the move quiet so as not to alarm employees. But the Dallas Morning News reports that it is a “major business relocation” already underway and that this is “one of the biggest stories in the Dallas-area real estate market and will ultimately involve thousands of workers.”

Texas-based real estate expert Bob Gibbons notes in a blog post that State Farm’s Dallas office space lease–about 2.5 million square feet of workspace in a few different places–is the Dallas area’s largest-ever office space lease by a single company.

The Atlanta Journal-Constitution reported this week, too, that State Farm leased several hundred thousand more square feet of office space in Atlanta.

The company has 3.6 million square feet of office space in central Illinois and the spaces in Atlanta and Dallas easily total that amount.

At the end of 2010, in a special session, the Illinois Legislature passed a 67% hike in its corporate and personal income tax. The state is struggling with a structural deficit and its credit rating was recently lowered. The state now has the worst credit rating in the country. A number of businesses have floated the idea of leaving the state. A move by State Farm, however, would devastate the downstate economy.

State Farm says publicly it is not moving its headquarters from Bloomington, Illinois, but reporters in Atlanta and in Dallas do not seem persuaded. They have tried to figure out where all the workers would be coming from to occupy the new office spaces.

Illinois Democratic Sen. Dick Durbin does not seem to be buying it either. While he told Breitbart News’ Kerry Picket he needs “to learn a little bit more about” the specifics of the State Farm moves, he expressed some concern over the potential Illinois may lose a huge workforce. “It’s a very respected important business in Illinois,” Durbin said of State Farm. “It’s a very large workforce in Bloomington.”

Continue reading here. Hat tip Breitbart.

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15 Responses to “Like a Good Neighbor State Farm Will Move From Illinois to Texas”
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  1. huckfunn
    1 | February 16, 2013 12:06 am

    I wonder how many employees 2.5 million square feet of office will accommodate.


  2. Calo
    2 | February 16, 2013 12:17 am

    @ huckfunn:
    Everything grows bigger here in Texas.

    Look out California, you’re up next for defections.


  3. huckfunn
    3 | February 16, 2013 12:22 am

    @ Calo:
    Guv Rick just got back from a recruiting drive in California. He didn’t bag anything while he was out there, but they will come.


  4. Calo
    4 | February 16, 2013 12:29 am

    @ huckfunn:
    Perry won’t bag a big move for a while, but you are right, they will come.

    I did. I’m not a big business, but I knew what I was, didn’t want and could not survive in that particular piece of real estate.

    Beautiful part of the States, perfect climate. A shame to see it weighed down in useless regulations and taxes.


  5. randian
    5 | February 16, 2013 12:29 am

    Texas has a corporate gross receipts tax (the “margin tax”) instead of an income tax. Like other gross receipts taxes, it’s nastier than an income tax and has distortionary features (tax pyramiding) that favor large, vertically integrated firms over their smaller competitors.


  6. huckfunn
    6 | February 16, 2013 12:41 am

    @ randian:
    You sound like you know what you’re talking about and I honestly know very little about business taxes except for the fact that I don’t pay them. Here’s what I found with a google search. Business Tax Structure -- State of Texas. Whatever it is, Texas is routinely touted as a low tax, business friendly state and that was my primary point in the thread.


  7. Speranza
    7 | February 16, 2013 8:16 am

    Just leave the liberal politics in Illinois.


  8. 8 | February 16, 2013 8:24 am

    Expect ‘Turban’ Durbin to propose a federal tax on businesses that relocate from one state to another.


  9. coldwarrior
    9 | February 16, 2013 8:59 am

    randian wrote:

    Texas has a corporate gross receipts tax (the “margin tax”) instead of an income tax. Like other gross receipts taxes, it’s nastier than an income tax and has distortionary features (tax pyramiding) that favor large, vertically integrated firms over their smaller competitors.

    less regulation and a business friendly tax compared with other states.

    texas wins, california loses…the market in action


  10. Bumr50
    10 | February 16, 2013 9:58 am

    Bonjour, y’all!


  11. 11 | February 16, 2013 10:50 am

    mfhorn wrote:

    Expect ‘Turban’ Durbin to propose a federal tax on businesses that relocate from one state to another.

    We already not only tax, but also persecute, Americans who do business overseas, and the banks that do business with them.

    Probably won’t affect us that much because our income level is minimal. But it’s just one more way to try to punish those who vote with their wallets and their feet.

    It’s time to strike back and punish those state governments that infringe upon what’s left of our liberties.


  12. 12 | February 16, 2013 12:10 pm

    mfhorn wrote:

    Expect ‘Turban’ Durbin to propose a federal tax on businesses that relocate from one state to another.

    He is…an Illinois Nazi!


  13. darkwords
    13 | February 16, 2013 3:13 pm

    @ 5 randian:
    All economies of scale favor Walmarts over mom and pops. It’s not just restricted to Texas. It occurs everywhere. Texas with it’s penchant for individualism is a much better place for freedom to thrive than say a California. At the anvil cloud level of economics big govt loves big labor loves big ag loves big pharma loves big business.

    Their whole shtick is to turn the individual into a matrix like consumer of their bigness.


  14. darkwords
    14 | February 16, 2013 3:15 pm

    @ 11 1389AD: Alaska and Texas and South Dakota need to start a state consortium that reflects states rights over the feds.


  15. darkwords
    15 | February 17, 2013 5:11 pm

    They will shack up with Flo there. She is on the prowl.


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