Jimmy John’s Founder Considers Moving Corp. HQ out of Illinois
The founder of Jimmy John's sandwich shops says he's considering moving his company's headquarters from Champaign to Florida because of Illinois' new tax increase.
Jimmy John Liautaud told the News-Gazette on Tuesday that he's gathering information on a potential move and will ask the company's board to decide.
Liautaud said he could absorb the increased costs but doesn't believe he should have to.
Gov. Pat Quinn signed the income tax increase last week to help address billions of dollars in state budget shortfalls. And during a visit to the University of Illinois Urbana campus Wednesday, the governor said he hoped Liataud would reconsider any move out of the state. Quinn said a tax increase was necessary to get Illinois out of a "fiscal emergency".
"I inherited a budget deficit of billions and billions of dollars when I became governor," Quinn said. "I was direct right from the beginning. I said we needed to use the income tax to pay our bills"
With Quinn's signing of tax hike legislation last week, Illinois' corporate income tax rate increased from 4.8 to 7.0 percent. Quinn says that's still one of the lower corporate tax rates in the Midwest. But Florida, where Liautaud is considering a move for his company, has a even lower corporate income tax rate --- a flat 5.5 percent.
Jimmy John's headquarters employs 100 people in Champaign. The privately held chain has more than 1,000 sandwich shops around the country.
Liautaud said he recently moved his family to Florida from Champaign.
(Additional reporting from the Associated Press)