Caterpillar, a manufacturer of construction vehicles, said Tuesday that it is relocating its corporate headquarters to Texas. Illinois Governor J.B. Pritzer (D) is attempting to put a brave face on the departure of another big Illinois firm to a Republican-controlled state.
The Wall Street Journal reports:
The 97-year-old company was based in Peoria, Ill., for decades before shifting its headquarters in 2018 to Deerfield, Ill., a Chicago suburb. Caterpillar said it would begin moving its headquarters to Texas this year.
The Wall Street Journal reports: The move is expected to affect the roughly 230 corporate employees at the company’s headquarters, Caterpillar said, a fraction of its total workforce of nearly 108,000. It is a setback for Chicago and Illinois leaders’ efforts to bring more companies to the city and surrounding area, which has drawn the headquarters of Conagra Brands Inc., Archer Daniels MidlandCo. and other companies in recent years.
Texas Gov. Greg Abbott, a Republican, has touted his state’s low taxes and looser approach to business regulation, and Texas lawmakers have offered financial measures to lure employers from the coasts. Illinois has an individual income tax of 4.95%, while Texas doesn’t have a state income tax.
Pritzker challenged the decision in a statement, noting what he claimed to be favorable economic figures regarding Illinois, such as its “GDP growth is outpacing its pre-pandemic rate.”
— Mary Ann Ahern (@MaryAnnAhernNBC) June 14, 2022
Pritzker also noted that the company would retain manufacturing plants in the state.
Last month, Boeing announced that it was moving its headquarters from Chicago, Illinois, to Arlington, Virginia.
Pew reported in 2019, before the coronavirus pandemic: “People are leaving Illinois in droves.”