When tax credits are used as intended they are very good. But, when they are used inappropriately or for political purposes they are bad. So let me explain what's likely to happen in veto session later this month with respect to a 'tax credit package'. Legislation is drafted and filed that allows the following tax credit to be heard in the House Revenue Committee for movement to the House floor this month.
Archer Daniels Midland located in Decatur, Illinois is asking the State for a multi-million dollar tax credit which in simple terms is a tax break over several years. In the 2011 veto session, Sears and CME (Chicago Board of Trade) asked and received $330 million in tax breaks, threatening to leave Illinois if their requested tax breaks were not granted. The House and Senate passed the "bailout" legislation and Governor Quinn went on to allow this relief to become law.
I voted against the tax credits for Sears and CME in 2011, for several reasons. Foremost, it was your taxpayer money which was used to give away money to companies disgruntled with the business climate in Illinois. Or it can be viewed in a different way. The $330 million given away to these two companies was almost one-third of the corporate income tax received by the state the very same year the sixty-seven percent tax increase took effect.
To read Rep. Kay's full commentary click here.