Last week in Springfield, House Republicans introduced a major policy initiative to accelerate the repeal of the corporate income tax increase approved by Democrats this January.
While I think it is abundantly clear that we need to reduce this tax, there are sobering statistics that reinforce the dramatic impact that this tax increase has had on Illinois. According to the Illinois Policy Institute, since the Democrats' $7 billion tax hike in January, 70,000 more Illinoisans have found themselves on the unemployment rolls.
The legislation has the full support of my entire caucus and it is also supported by the Illinois State Chamber of Commerce, Illinois Retail Merchant Association, Illinois Manufacturers’ Association and National Federation of Independent Business and the Illinois Policy Institute.
The legislation takes a two-pronged approach to reducing Illinois’ business taxes:
- Accelerates the expiration of the temporary corporate income tax increase. For income earned during calendar 2013 the rate declines from 7% to 6% and for income earned during calendar 2014 the rate would further decline to 4.8%
- Effective immediately, the corporate income tax would be reduced by 0.25% anytime the Illinois unemployment rate increases by .3% in a four month span. For example, if the unemployment rate in January was 10% and in April it was 10.3% then this provision would take effect. At no point would the corporate income tax be less than 4.8% (the tax before Public Act 96-1496).
Without this legislation, the Democrats’ temporary corporate income tax increase is set to expire January 1, 2025.
I’ve attached a few links outlining the press coverage of the event. As always, please do not hesitate to contact me with any questions or suggestions.