Illinois Republicans blame taxes, lawsuits after Morton Salt exits Chicago

By Catrina Barker | The Center Square contributor
The Center Square

(The Center Square) – Republican lawmakers are warning that the departure of iconic salt producer Morton Salt from Chicago is the latest sign Illinois is becoming increasingly unfriendly to businesses, citing high taxes, litigation costs and regulatory hurdles as key reasons companies are leaving the state.

The company, founded in Chicago in 1848 and long associated with the city through its iconic “Morton Salt Girl” branding, has shifted its headquarters operations to Overland Park, Kansas, after decades in downtown Chicago.

State Sen. Chris Balkema said Morton Salt’s departure reflects a larger trend he believes is being fueled by Illinois’ business climate.

“It’s absolutely a trend,” Balkema said. “The overall scenario that keeps playing out in Illinois is the higher taxes, the inability for us as a General Assembly right now to dial down the workers’ compensation laws, and the lack of tort reform. Companies run the numbers and look at the cost of doing business in Illinois, and it becomes easy for them to make a decision to relocate to another state.”

Balkema, a former Caterpillar employee, pointed to other companies that have relocated operations out of Illinois in recent years, arguing the state’s policies are driving employers elsewhere despite Illinois’ economic advantages.

“We are a wonderfully geographically located state,” Balkema said. “We’ve got some of the best infrastructure in terms of waterways and transportation, and we’re still one of the top GDP states in the nation. If we were to move some of these levers in terms of reducing corporate income taxes and working on tort reform, companies would stay and companies would relocate here.”

State Rep. Dan Ugaste echoed those concerns, saying businesses across Illinois continue to raise alarms about operating costs and legal burden.

“My guess would be high property taxes, litigation costs, over-regulation and just the basic high cost of doing business in this state as compared to many other states in the country,” Ugaste said of Morton Salt’s decision. “I know from when I was in the private sector this has been an ongoing issue for some time, and it continues to increase.”

Ugaste warned the economic effects of a major company leaving extend beyond the corporation itself, impacting local tax revenues, employment and surrounding businesses that depend on workers spending money in the community.

“When a company moves, there’s a certain tax base that’s gone,” Ugaste said. “All those people will be out of jobs or relocating their jobs. It’s income that’s lost that would otherwise be spent at local businesses, restaurants, stores and services in the area.”

Balkema also criticized what he described as Illinois’ increasingly plaintiff-friendly legal environment, arguing trial lawyers wield too much influence in Springfield.

“I think the trial lawyers have a lot of influence on laws that are created, and that leads to continued lawsuits,” Balkema said. “It’s become more and more egregious, and it’ll just be a matter of time before companies move to more fertile pastures.”

Ugaste said incentives alone will not solve the state’s business retention problems unless lawmakers address broader structural issues.

“We can’t offer incentives for people to stay or come here and then keep raising taxes and making the business climate more and more unfriendly every year,” Ugaste said. “If we really want to keep businesses here and attract more businesses, we need structural reforms — property tax relief, regulatory reform and litigation reform.”

Morton Salt has maintained ties to Chicago for decades, previously relocating its headquarters to the River Point tower in the West Loop in 2016 after leaving its longtime Wacker Drive offices. The company has also closed or redeveloped several historic Chicago-area facilities over the years.