News

Madigan Proposes Halving Corporate Income Tax Rate

Madigan Proposes Halving Corporate Income Tax Rate

Photo: Newsradio WTAX

The Illinois House speaker introduced a bill today (Thursday) to cut the state’s corporate income tax.

The overall rate is now 9½ percent. That comprises the income tax of 7 percent and the Personal Property Replacement Tax, an income-based tax that businesses pay, of 2½ percent. The speaker’s measure would cut the income tax portion in half, to 3½ percent, leaving the overall rate at 6 percent.

State Rep. Keith Farnham (D-Elgin) says an across-the-board tax cut is better than making special deals with individual firms. “When we’re choosing individual companies, and they’re coming to us, we’re giving breaks to them, but what about the (existing) company that has 60 employees, 50 employees? They need to be treated equally,” he said.

State Sen. Sue Rezin (R-Morris) says she likes the idea of a tax cut, but she thinks the speaker has something up his sleeve. “We are being set up for a progressive (personal) tax, which is being advocated by our friends across the aisle,” she said. She and other Republicans in Springfield are against a progressive personal income tax.

The tax cut would not affect small businesses that pay tax at the individual rate.

Recent Headlines

in Local

Springfield School Board Approves Budget

Fresh
7-7-15 Springfield School Board

They're hopeful the money comes through, but for now, the Springfield Public School budget isn't reflecting the extra money signed into law for K-12 schools by Governor Bruce Rauner.

in Local

Springfield City Council Again Delays Decision on Vacation Buyout Perk

Updated
municipalcenter

Budget director says the perk is unsustainable.

in Local

Amtrak Train to St. Louis Delayed Twice — Once Due to Freight Train Derailment

amtrak

A freight train derailment in Pontiac resulted in a 14-hour train ride for Amtrak passengers looking to go toward St. Louis.

in Local

LaHood Gets GOP Nod in 18th Congressional District Race, Mellon Wins Dem Primary

capitol

Illinois state Sen. Darin LaHood has won the Republican special primary in the race to replace disgraced ex-U.S. Rep. Aaron Schock.

in Local

Authorities Issue Alert for Missing Cass County Teen

7-7-15 Missing Teen

Authorities have issued an alert after an 18-year-old girl is believed to have left home with a 45-year-old man.