McSweeney Proposes No Income Taxes on Manufacturing Firms

A press release from State Rep. David McSweeney:

Rep. David McSweeney Proposes Legislation to Help Create Illinois Manufacturing Jobs

Dave McSweeney

Dave McSweeney

Springfield, Illinois—State Representative David McSweeney (R-Barrington Hills) hopes to help create manufacturing jobs in Illinois by exempting manufacturers from the state’s income tax.

“We need to have a strong manufacturing base to have a strong Illinois economy,” McSweeney said.

“We continue to lag in job creation and manufacturing companies are generally not considering Illinois as a top tier choice for expanding.

“Eliminating the income tax on manufacturers will create a strong incentive for manufacturing companies to consider locating to Illinois and it will encourage existing Illinois manufacturers to stay in Illinois and even expand their operations here.”

House Bill 4381 would allow existing and new manufacturing operations (corporations as well as LLCs and LPs) to fully deduct their net income, which essentially would exempt them from the state’s income tax.

For a manufacturer with $10 million of Illinois net income, HB 4381 would reduce that manufacturer’s tax liability by $525,000 ($10 million x 5.25% corporate tax rate).

The Belvidere Chrysler Plant was built in the early 1960's.  One of the incentives was a four-lane road running through Belvidere parallel to the Tollway from which this photo was taken.

The Belvidere Chrysler Plant was built in the early 1960’s. One of the incentives was a four-lane road running through Belvidere parallel to the Tollway from which this photo was taken.

While manufacturing jobs have increased in other states, Illinois continues to shed manufacturing jobs. From 2001-2015, Illinois manufacturing jobs have decreased by 38.9%.

“We have to get the Illinois economy moving again and reviving the manufacturing sector is an important step we need to take,” McSweeney said.

“The current policies are not working.

“Raising taxes has only served to drive middle class jobs away from Illinois.

“Let’s lower taxes and create incentives for manufacturers to invest in Illinois.”

Representative McSweeney has asked the Commission on Government Forecasting and Accountability (COGFA) to review the full revenue impact of HB 4381.‎

McSweeney said, “The best way to create new revenues for the state is to create new jobs and thus new taxpayers. I’m confident that my proposal will create new jobs.”

HB 4381 has been filed and is awaiting assignment to a legislative committee.


Comments

McSweeney Proposes No Income Taxes on Manufacturing Firms — 8 Comments

  1. Another legislator willing to practice crony capitalism to perpetuate support of the social welfare Ponzi scheme.

    What tax breaks were given to Henry Ford?

    Just how does creating “new revenues” correct the problem with the
    Constitutional public pension guarantee?

    Prevailing wage?

    Continuing increase in teacher and administrator salaries / benefits while producing a product of diminishing quality?

    Wheeler wants to tax pensions and now McSweeney wants to encourage more crony capitalism while the foundation of this state continues to crumble.

  2. So these jobs would create enough new employee’s [taxpayers] to offset the lost revenue or should the existing taxpayers foot the bill as usual as I imagine that would take a considerable amount of new employee’s?

    Of course none of this happens overnight so I wonder who will take up the slack in the mean time… Mmmm

  3. No more corporate welfare.

    If they do not pay their fair share we do.

    These companies don’t create jobs unless taxpayers fund them.

    If they can’t be in business on their own let them close or move and then we will go back to small family owned businesses.

    Globalism doesn’t work.

  4. McSweeney – we will remember this when time comes for
    your reelection, you clueless fool.

    Unfortunately, we can not remove you sooner via recall
    as of yet.

    Better try running as a Democrat next time, it would
    suit you better.

  5. While everyone else is talking about tax increases, David McSweeney is the only one talking about lowering taxes.

    Illinois is centrally located in the middle of the country.

    It should be a leader in manufacturing.

    But bad policies are driving these jobs to other states.

    Why not create some economic incentives to lure manufacturing back to Illinois?

    Bringing more jobs to Illinois will bring more revenue to the state.

    More jobs also would help lower property taxes.

    Instead of people moving out of Illinois – more jobs would mean more demands on housing which means more people paying property taxes which would help reduce the amount of property taxes each of us pay.

    Sure it would take time for these things to happen but this is a far better outcome than raising taxes.

  6. Dave, I could copy and paste the same thing I commented on to Jack.

    Get the state fiscally responsible first, that means balanced budgets with no borrowing.

    Then cut spending as you cut any revenue.

    Fact is without good foreign trade deals that level the paying field for American workers, companies will just keep out sourcing.

    What you proposed could help, but only if spending and borrowing is dealt with FIRST.

  7. Does McSweeny know what he’s advocating, or is it election season and he’s sweet-talking for his next free lunch?

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