Gov. Scott Looks to Lure Chicago Mercantile Exchange to Florida

Citing a recent Wall Street Journal article where Chicago Mercantile Exchange Group Chairman Terrence Duffy bemoans a rise in Illinois' corporate income tax, Gov. Rick Scott wrote a letter last week to Duffy attempting to lure his company to Florida.

Scott touted Florida's lack of a personal income tax and a low corporate income tax rate of 5.5 percent, as well as the Sunshine State's natural advantages -- its weather and beaches. The Wall Street Journal article stated that CME pays 8.9 percent of its income in state taxes. Scott pushed for the eventual elimination of the business income tax this year, but Florida lawmakers instead raised the tax exemption from $5,000 to $25,000. In his letter, Scott states that he "will not rest until the business tax is completely phased out in our state."

Here is the letter in full:

Dear Chairman Duffy:

I read with great interestyesterday your comments in the Wall Street Journal opinion article, Review & Outlook: Escape From Illinois, Cont.,regardingtherecenttax hikesin Illinoisand its impact on CME Group and other companies.I wanted to let you know that like Illinois, Florida has begun a transformation of its own to not only be the best place during your cold winters, but to also be the best business environment in the country.

Since becominggovernorin January,my top priority has been makingFlorida the No. 1state to start, grow or relocate a business. Loweringtaxes,streamlining government andeliminating red tapeare just a few of the ways we are attracting businesses and creating new private-sector jobs.

Ofallthese steps,tax relief isthe most important.I started this year by implementing a tax reduction plan which targets almost half of Floridas businesses. Meanwhile, companies in Illinois are facing a tax rate of9.5 percent, f4 percentage points higher than Florida.I will not rest until the businesstax is completely phased outin our state so that both Florida and companies like CME Group can thrive.

As a businessmanmyself, I know thefrustration of spending significant revenue just to pay your companys state taxes. Imagine the growth your company could achieve if you could reinvest those additional state taxes to hire more employees and expand operations.

Florida was recently named No. 3 on Chief Executive Magazines list of best states to do business. Illinoisranked nearly last in the nation at No. 48. Florida is also a right-to-work and no-income-tax state, another positive for your employees who would enjoy having more money in their pockets. But more than just a better business climate, we have a trained work force that is ready to provide talent your company can benefit from, and we are focused on providing the best educated work force in the country.

In addition, Florida is the fishing and golf capital of the world. We also have the best beaches, world class theme parks and 160 state parks. Our state is the best place to live, work and play.

As CME Group continues to explorecost-saving options, Iask that you considerdoing business in Florida, where Im confident you will get the greatest return on your investment, the best work force, a convenient location and a great place to live.

As the leader of economic development for the state of Florida, I invite you and your team to call me directly to discuss in more detail the specific benefits that CME Group can gain by expanding in Florida. You may contact me personally at 850-488-5603.

Sincerely,

Rick Scott

Governor