Editorial: Chicago’s broken olive branch to businesses

Many folks in downstate Illinois rightfully lament Chicago’s outsized influence in the state, especially its caustic attitude towards businesses. Chicago’s outgoing Mayor Lori Lightfoot couldn’t help but take routine potshots at corporate leaders and corporations in the city and across the state for not doing enough, instead of talking seriously about fixing problems like crime and an exodus of workers from the state. Her unhelpful comments might be red meat for her core political allies, but did little to improve the city or state’s economy. It’s no wonder numerous high-profile corporations like Boeing, Caterpillar, Tyson Foods and Citadel started relocating to other states during Ms. Lightfoot’s inauspicious tenure. A recent article in the Chicago Business Journal reported that the Financial Times suggested one of the state's most iconic homegrown brands, drug store behemoth Walgreens could be considering moving its corporate headquarters to Europe from north suburban Deerfield, Illinois. With Chicago voters showing Ms. Lightfoot the door during the primary, we were hoping that whoever succeeded her as mayor would offer an olive branch to the business sector. We were wrong. New Mayor-Elect Brandon Johnson continued Mr. Lightfoot’s approach by quickly targeting corporations as the source for many of the community’s and state’s ills. “Seventy percent of large corporations in the state of Illinois did not pay a corporate tax,” Mr. Johnson told CBS. “And it’s that kind of restraint on our budget that has caused the type of disinvestment that has led to poverty of course that has led to violence.” Did he really need to shore up his base constituency so soon after the election? Wouldn’t it have been better to work with the city corporate leaders to help make the city better rather than beating them up with tired political talking points? Apparently not. Unfortunately it appears that is what Mr. Johnson’s actions will be following his anti-business campaign rhetoric. The Wall Street Journal reported that Mr. Johnson pledged not to increase property taxes, instead saying he would raise some $800 million through a variety of levies. Most of the proposed taxes focus on the wealthy, including a corporate head-count tax, a tax on the sale of properties valued at more than $1 million, a securities-transaction tax and an increase in the hotel tax. Will these actions help or hurt the business climate in the city? Will they help make Walgreen’s decision easier? Expect more corporate departures from the city and state unless Mr. Johnson starts to see the light. It’s not too late for Mr. Johnson to change his rhetoric or approach to businesses and economic development. Mr. Johnson takes office on May 15. QCBJ