Tax Dogfight over O'Hare

Desperately hungry for money, Chicago, the big dog of Illinois cities, is circling lesser municipalities currently feeding off big corporations by collecting sales taxes that Chicago wants for itself. Jack Nicas writes in the Wall Street Journal (link may expire): The transportation authority here accused two of the world's largest airlines, United Continental Holdings Inc. UAL  and AMR Corp.'s  American Airlines, of dodging a combined $300 million in local taxes since 2005, expanding its allegations that several towns in Illinois are illegally operating as tax havens. The Regional Transportation Authority alleges United and American set up "sham offices" in Sycamore, Ill., population 17,500, in order to save tens of millions of dollars in annual sales tax on the fuel they purchase for their planes at O'Hare International Airport in Chicago. It seems that some Illinois towns actively recruit corporations to locate purchasing offices in their...(Read Full Post)