Legislators Contemplate Corporate Tax Overhaul

Illinois Senate President John Cullerton
Illinois Senate President John Cullerton

photo

STANDARD

House Speaker Michael Madigan

A public hearing to review the Illinois business tax structure is scheduled for July 19 in downtown Chicago.

Januarys 45 percent corporate tax hike in particular has sparked business owners to call for a review of the states business tax arrangement. The surge raised the corporate tax rate from 4.8 percent to 7. In 2015, the rate is scheduled to drop to 5.25 percent. A decade later in 2025, the rate is to return to 4.8 percent.

The increase is prompting some businesses to consider leaving Illinois including submarine restaurant chain -Jimmy Johns and construction equipment manufacturer, Caterpillar, Inc.

On June 23, Illinois Senate President John Cullerton and House Speaker Michael Madigan announced the House and Senate would be working together to evaluate the states corporate tax configuration.

Rep. John Bradley (D-Marion) and Sen. Toi Hutchinson (D-Olympia Fields) will spearhead the joint House-Senate Revenue Committee review.

John Patterson, spokesperson for President Cullerton said Bradley and Hutchinson were selected to lead the joint committee because they both lead the revenue committee in their respective chambers.

Speaker Madigan said he expects the review to involve key groups and leaders representing businesses big and small throughout the state.

Input would be sought from groups such as the Illinois Chamber of Commerce, Illinois Manufacturers Association, Illinois Retail Merchants Association, National Federation of Independent Business, Chicagoland Chamber of Commerce, Illinois Construction Industry Committee and the Civic Committee of The Commercial Club of Chicago.

"I see this as a timely opportunity for critics and advocates alike to participate in the process and offer their views on what the states business policies should be," Madigan said.

Steve Brown, spokesperson for Speaker Madigan said the process will look at concerns different business leaders have raised about the states tax structure. As a result, the review will help legislators seek ways to make Illinois a better place to do business.

President Cullerton said there is a growing sense of urgency regarding the need to reform the states current business tax structure.

"We need to take a holistic approach to business taxes as opposed to the continued piecemeal policies that often pit one business against another," he said.

Rep. Bradley recently told a downstate news station that the review is in response to requests from business owners around the state.

Its been requested by major businesses and minor businesses throughout the state. This is in response to the concerns that have been expressed, Bradley told WSIL-TV.

Sen. Hutchinson was contacted for comment, but calls were not returned by Citizen deadline.

Thelma Sardin, press release, reports

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