(Crain's) — The founder of Jimmy John's Gourmet Sandwiches is considering moving the chain's headquarters out of Illinois since the Legislature boosted taxes on businesses and individuals.
Jimmy John Liautaud told the News-Gazette newspaper in Champaign, where the company is headquartered, that he's angry the corporate tax rate is being increased to 9.5% from 7.3% and individual taxes to 5% from 3%.
Mr. Liautaud says "multiple pro-business states" have contacted him, which has made him feel "wanted and important."
He'll collect information on alternate locations and present it to the company's board. But, he told the paper, "My family and I are out of here." Mr. Liautaud has rented a house in South Florida and his children started school there last week. He said he has applied for Florida residency and plans to commute to Champaign.
Jimmy John's has more than 1,000 sandwich shops nationwide, many of them franchise operations, and employs 100 workers at its headquarters.
"All they do is stick it to us," he told the paper, adding that the General Assembly and Gov. Pat Quinn showed "a clear lack of understanding."
"I could absorb this and adapt, but it doesn't feel good in my soul to make it happen," he said.
A spokeswoman for the Illinois Department of Commerce and Economic Opportunity would not discuss the Jimmy John's situation specifically, but she told the News-Gazette that the temporary increase in the corporate income tax "will help stabilize the budget, making Illinois more attractive to businesses."
"Through this plan, we're taking the necessary steps to strengthen the economy, attract new investment and put people to work," she said.
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