Corporate Exodus, Higher Taxes, Job Loss, and You

 

Governor Quinn scrambling to keep Sears, a company whose humble beginnings started right here in the Chicago area, from leaving Illinois.  Sears employs about 6,000 people in Chicago and is based in Hoffman Estates.  Incidentally, my mother worked as an analyst at the Sears Tower (sorry, Mr. Willis) for over 18 years before she was laid off in the wake of the Japanese buying the building in 1988 (who at least, kept the name).  

 

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Taxes.  Governor Quinn got our taxes increased to keep our state from borrowing any more money to pay the bills.  We felt it this year when we paid our taxes.  In March, income tax collections were up 71% from 2010.  But businesses, who provide jobs in Illinois, are now finding attractive offers from other states - spend 5 minutes on AM780 and you'll catch any one of the commercials from New Jersey, Wisconsin, or Indiana serenading the promise of lower taxes.  Sears, apparently, heard the message and is considering a move.  This comes after another corporate giant, At&T( who employs around 1,000 people in the Chicago area) announced that they were considering a move out of state as well.  Illinois is facing the loss of another 7,000 jobs that we desperately need, while we are relying on Governor Quinn to beg and plead the same companies not to leave while maintaining the 50% increase in corporate taxes statewide.

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But we live in an increasingly, 'borrow from Paul to pay Peter' society.  A Catch-22 scenario that will 'damage us if we do, damage us if we don't' tailspin that only serves to confuse our legislators as well as our pocketbooks.  

 

How have the new tax hikes affected your company?  Look beyond the pocketbook and take a minute to ask if smaller companies like yours are considering moving to greener, tax-advantaged pastures. 

 

More importantly, what have you done in case your company dumps you and starts fresh somewhere else?  What have you done to offset the damage that potential layoff and job loss will do for your family?

 

What's the answer?

 

  • We actively engage in taking responsibility for our own finances.
  • We prepare by socking away between 3 - 6 months of cash reserves.  Longer, if you know that your job search will take more time
  • We educate ourselves to maximize savings with the least tax penalties. We can plan pre-emptive damage control while continuing to save for our retirement, college education, and long-term care/elder care for your parents.

 

Offset the unpredictable by taking measured steps against the 'what if's' life will inevitably throw your way. 

 

To learn how to offset the damage caused by jobloss to your family, give me a call at (312) 493-2054 or email me at gene@prophetfinancialinc.com.

 

Also, take a minute to read some helpful tips from my mentor, Matt Sapaula, about taking control of your personal finances

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