The first thought that hit me when I read of House Speaker Mike Madigan’s proposal to cut the corporate income tax in half was that he was trying to cut GOP gubernatorial candidate Bruce Rauner’s pitch to business off at the knees.
I have heard Rauner make his pitch in various settings–public meet and greets, a Chamber luncheon, privately to businesses people and political gatherings.
He always talks about improving the business climate. In generalities he talks about government regulations and tax relief.
The only corporations who would not benefit would be those not making money and those who have had the lobbying might to carve exemptions in the tax code that result in their paying little or no Illinois state income tax.
Most smaller business are organized so that they pay the personal income tax rate, so Madigan’s proposal would not help them either.
But it certainly shows Democrats are tilting toward business.
The Chicago Sun-Times’ Dave McKenney says that Madigan is one-upping Governor Pat Quinn.
Maybe, but I believe the primary target is Rauner.
McKenney adds that it will give cover to his members at election time, a valid observation.
By cutting the income tax rate for corporations from 7% to 3.5% (no change in that part of the 2.5% business income tax called the Personal Property Tax Replacement Tax), Madigan goes where no other Democrat would dare.
Can you imagine Populist Democrat Pat Quinn’s attack on Rauner had he made such a proposal?
Quinn did not attack Madigan.
One must remember that Madigan is not at all policy-oriented.
It’s all about politics.