News

Corporate Tax Cut Proposal Evaluated

Corporate Tax Cut Proposal Evaluated

A proposal by the Illinois House speaker to cut the state’s corporate income tax may not be a cure-all for Illinois’ job growth woes – but it couldn’t hurt.

That’s the assessment of Dan Long, head of the state’s Commission on Government Forecasting and Accountability. He was asked about the corporate tax cut plan during an Illinois House committee hearing on tax policy in Springfield.

“While states that lowered their tax rates tended to have better unemployment rates and rates of job growth than states than increased their tax rates, it would be premature to simply blame these differences on one sole factor of higher tax rates,” said Long.

Long went on to say it wouldn’t be detrimental to cut the corporate income tax but added it wouldn’t guarantee an uptick in job growth.

House Speaker Mike Madigan (D-Chicago) is proposing a cut in the corporate tax rate from 7 percent to 3½ percent, characterizing this as cutting the tax in half. However, the personal property replacement tax, which is assessed based on corporate income, would remain as-is at 2½ percent, so the combined rate would fall from 9½ percent to 6 percent.

 

 

Recent Headlines

in Local

Millionaires’ Tax Falls Short

Illinois Speaker of the House Michael Madigan, D-Chicago, talks from the speakers podium in the House chambers Tuesday, May 13, 2014, in Springfield Ill. The Illinois Legislature resumes work toward its end of May deadline.

3 Democrats join Republicans against

in Local

Butler: Campaign Donation Doesn’t Impact Relationship with Governor

Rep Tim Butler

State Representative Tim Butler got some political campaign cash from Governor Bruce Rauner.

in Local

Senate Approves Medical Marijuana Program Extension, Heads to Governor

medical marijuana

Dispensaries could begin selling the product later this year. The legislation extends the program to four years after that date.

in Local

Senate Passes Pot Decriminalization, Measure Heads to Governor

marijuana

The Illinois Senate has approved legislation that would treat possession of small amounts of marijuana like a speeding ticket rather than a crime

in Local

Illinois Unemployment Rate Holds Steady at 6%

illinois job link

Illinois' unemployment rate held steady over the last month.