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RTA accuses United, American of running 'sham' to avoid taxes

The Regional Transportation Authority is accusing United Airlines and American Airlines with running "sham business operations" that have deprived Chicago and Cook County taxpayers and public transportation agencies of nearly $300 million over the last seven years, the agency said today. ( Altro...

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Why did they wait 7 yrs to file the complaint?
You don't really expect the RTA to be on top of their game?
joel wiley 1
Back taxes, penalties and interest.
ken young 2
This is a classic case of poetic justice.
That's what United gets for having that big ass office in a city run by crooks. How ya likin' that friendly downtown neighborhood now.
wx1996 0
I bet UAL could get a great deal to move their Headquarters to Huston. May be the old Continental space if it is still be available?
preacher1 1
From what I have heard it is still there and a lot still being utilized by them. I think Houston is still their biggest Hub, as it should be.
Jim Quinn 3
Chicago politics, Chicago shakedowns. I can't blame United for legally avoiding taxes. Now the political bosses are furious because their shakedown taxes aren't coming in as expected. I say "Hooray!" for United! Give their accounting/tax people some bonuses! Give the city fathers of Chicago a finger...

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pjshield 4
Same thing happened at United. The fat cats got fatter while the airline employees got the shaft.
He, who does not learn from history, is doomed to repeat it.
Too late for AAL now - your cats are fat!
AAL got permission from a Dallas judge to abrogate the union contracts

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joel wiley 3
Depends on the leases you have on politicos and judges. As they say, politicians can't be bought, only rented.
That's what the unions argued. Think a Dallas judge would be partial?
How does management "steal" something which by definition is already theirs to "manage"? This idea that the employees are somehow entitled to a voice in running the company is a bunch of crap. Unions are mostly engaged in legalized extortion.

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The unions have taken the paycuts and mgmt still complains.
canuck44 2
United should send Chicago a message by correcting their previous mistake and announce relocation of their headquarters to Houston and all of their purchasing for IL operations to IN following the exodus of other IL business. I am still completely at a loss as to why Boeing picked Chicago over Dallas.
Probably some underhanded deals made with crooks lured them. Now it's coming back to bite them in the ass. When sleep with snakes......
Well it wasn't for the now doubled corp taxes
preacher1 0
Well, I still thnk it was stupid to move it all back up there and get in bed with a bunch of crooks and losers in the first place. Sure they relocated some key people but I think they just got overwhelmed and a bunch of good hardworking folks left without a job down South. IMHO
preacher1 2
Actually, it's like the Pot calling the Kettle Black
Would the corp taxes be less in Texas than Illinois? If it's the same, then they should have visited Wyoming - which has none!
If the airlines used legal means to pay less taxes, good for them. That is the American way. The Cook County way is to take from one transport company and give excessive money to transit schemes run by them. Many cash handling companies have located operations outside Cook County. Money is not stupid, only politicians.

Boo Hoo if the Unions are sent packing at American. The Union bosses have drained pilots dry with givebacks, while living the highlife and giving pilot's money to liberal politicians that want the balance of the pilot's paycheck.
I love Chicago, but there's a reason their (auto) gas is the most expensive anywhere this side of Honolulu....(Hint: It has nothing to do with refineries). If the politicians and cta want local businesses to shop locally, they better do something about the tax rates they're using to drive business elsewhere. In this case, giving up a little (rate wise) would have increased their tax revenues significantly. With as much fuel as ORD's hubmates consume, this is hardly surprising.
Welcome back to the jungle baby.......
United should move back to Houston, period.
We are happy to lose them
SootBox 1
Sounds like United out-Chicagoed Chicago.
sparkie624 0
I would be more suspicious of Chicago and Cook Country than the airlines. As high as they taxes are up there in the liberal chicago, I am surprised that all airlines just don't pull out and go some where else outside of that heavy tax area.
FlightSeer 0
Let's see, now. The most corrupt city, in the most corrupt county, in the most corrupt state. Guess they don't like it when the shoe is on the other foot, do they??? Just as with the IRS, tax evasion is illegal, but tax avoidance is simply doing your due diligence in keeping your business profitable.
AAL is doing the same thing. They're just not being sued because of the bankruptcy. Report is they'll be sued too when they emerge.


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