How hard can it be? Close the loopholes! Close. The. Loopholes.
State Sen. Toi Hutchinson (D-Olympia Fields) says it’s easier said than done. “Any incentive or loophole,” she says, “anytime it has risen to an importance level where it makes it into the code, that means there were some pretty powerful people who were lobbying to get it into the code. And, when you blanketly say, ‘OK, we’re going to close loopholes right now,’ those folks who want it in there are going to fight to keep it in there.”
That’s a problem facing a bill of hers. She wants to raise about $450 million by:
- n Taxing foreign dividends
- n Encouraging businesses to earn money in the U. S., rather than overseas
- n Repealing the non-combinational rule allowing complex tax shelters
Hutchinson says she introduced this bill last year and says it’s worth another try this year.