If one wanted to blame the move on taxes then I would suggest focusing on the Federal Corporate Tax rate of around 35%, and not the Illinois tax rate(s) of a combined 9.5%. Since the Federal Tax rate effects companies in any of the fifty states, it would be more substantiated to blame the Federal Tax Rate then the State tax Rate as a reason to outsource the jobs to China.
However, I contend that the shipping of jobs to China has more to do with the fact that the Chinese work for approximately $2 per 16hr day, then the move had to do with taxes -either Federal or State. The reason I believe this is because the article didn't mention that the HQ -and therefore the entire company- was moving to China; the article piece only stated that the manufacturing jobs were being shipped to China.
If the Company HQ is still in operation here in the states then the tax is still incurred here in the states, because the plant in China isn't directly selling anything -the HQ is selling the products so any profit or gain would be attributed and accrued here in the states and therefore taxable by the Federal and State tax collectors. Therefore -if in fact the company HQ is staying in the states- then the only variable which changes for the positive -in the businesses eyes- is the pay and benefits of the employees; which drops significantly.
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