Illinois “solved” its budget crisis by passing an increase in the state income tax from 4.7% to 7%, a 48% increase.
The Chicago Tribune reports that the Chicago Board Options Exchange (they run the service where people buy and sell options on stocks and other things) is looking to move out of Illinois. Computers can be anywhere. The CBOE doesn’t have a physical trading floor, so they could just as easily move to Texas (or Dubai)
A lot of rich people make their living from the CBOE and would be glad to move their homes as well. The NYSE also has a major operation in Chicago as well as the CBOT/CME. According to the story, about 120,000 people in Chicago work in the financial trading business.
In the age of computerized trading networks, you can’t milk this cow any more. See how fast Chicago could become Detroit…