Corporate Income Tax Rate Would by 10.9%

Tax fighter Jim Tobin, President of National Taxpayers United of Illinois is leading the charge about how bad the business climate will be in Illinois, if the Democrats succeed in almost doubling income tax rates.

SPRINGFIELD DEMOCRATS WANT TO RAISE ILLINOIS CORPORATE INCOME TAX TO 10.9%, MAKING IT THE HIGHEST IN THE COUNTRY

CHICAGO–The Illinois corporate income tax rate is not 4.8% as some politicians and media writers have erroneously reported, but actually 7.3%.

While the base rate is 4.8%, a constitutional amendment passed in 1980 added another 2.5%. This additional tax was named the “personal property replacement tax,” but no matter what they call it, it’s still a statewide corporate income tax.

“Senate President John Cullerton (D) is now saying that he wants to raise the state corporate income tax rate from 4.8% to 8.4%,” said Jim Tobin, President of National Taxpayers United of Illinois (NTUI).

“What Cullerton fails to mention is the added 2.5% personal property replacement tax, which would actually make the state corporate tax 10.9%.”

“This would make it the single highest corporate income tax rate in the country, beating out Pennsylvania by an entire percentage point,”

Tobin continued.

“Hiking this tax will increase unemployment and force businesses to move to nearby states with lower rates, like Indiana (8.5%),

  • Wisconsin (7.9%),
  • Missouri (6.25%), and
  • Kentucky (4%), or
  • even to states with no corporate income tax like Nevada and Texas,”(SOURCE: the Tax Foundation).

This corporate tax increase is on top of the 75% increase Cullerton and Gov. Quinn are already pushing for the state personal income tax.

Although Governor Pat Quinn said he would not raise income taxes by more than 33%, the proposal agreed upon is for a 75% tax hike.

“The people of our state are struggling with a 9.6% unemployment rate. Anyone who supports job growth in Illinois should be working to reduce corporate income tax rates. Raising taxes will only push businesses and jobs out of Illinois.”


Comments

Corporate Income Tax Rate Would by 10.9% — 1 Comment

  1. Is there a reason other than political not to combine “Corporate Income Tax” and “Personal Property Replacement Tax” into a single figure?

    Last night I faxed my State Representative and Senator that I am against any tax increase until further Public Sector Employee Union and Pension reforms are enacted.

    For example, many suburban Chicago K-12 school districts are still rewarding employees with a 6% annual increase the last 4 years of their career, for a 24% increase in 4 years, a practice known as pension spiking.

    The Teachers Retirement System (TRS) pension is based off the last 4 years pay. The sharp increase the last 4 years is not being accompanied with the correct contribution to fund the pension. The pension is thus underfunded, requiring the State of Illinois to tax citizens and business to come up with the shortfall!

    The practice perpetuates for several reasons. TRS rules don’t require the School District to contribute the proper amount to account for the spike.

    Teachers and administrators get their 24% salary increase and spiked pension.

    Unions receive union dues from teachers.

    Politicians and School Board of Director candidates receive campaign donations from Unions.

    Taxpayers and business are stuck with the tab.

    The State of IL exasperated the problem by skipping and delaying many scheduled pension contributions, which contributed to the underfunding.

    The defined benefit pensions are overly rich without pensions spiking.

    Many people are just starting to understand Public Sector Employee Unions, under which teacher union’s fall.

    Public Sector Employee Unions are growing, while Private Sector Employee Unions are decreasing.

    Due to their huge membership they are politically powerful.

    There are two main teachers unions, each with national, state, and local chapters.

    National Education Association (NEA) is the largest union in America, larger than the AFL/CIO. Its Illinois chapter is Illinois Education Association (IEA).

    The other main teachers union is American Federation of Teachers (AFT), and its state affiliate is Illinois Federation of Teachers (IFT).

    The teachers in your local school district also have a local union which will have a name something like “Acme” Education Association or “Acme” Federation of Teachers.

    Each of these unions have a Political Action Committee (PAC) associated with it at the local, state, and national level.

    The largest teachers Political Action Committee in Illinois is the Illinois Political Action Committee for Education (IPACE), which is associated with IEA.

    The unions have regional full-time professional negotiators on staff, which are present at the bargaining table, with the teachers, at Collective Bargaining.

    The Unions have full-time employees who lobby in Springfield and locally.

    The IEA has employees called “UniServ” reps that often assist in these areas.

    The union serves a purpose but over time has resulted in juicy compensation and benefits packages for its members in many middle class suburban communities.

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