Advertisement

Archive for Wednesday, November 30, 2011

After hiking taxes, Ill. now considers easing them

November 30, 2011

Advertisement

— What a state takes away, it also can give back.

Less than a year after raising personal and corporate income taxes, Illinois officials are pushing a $250 million package of tax breaks for several prominent businesses threatening to leave the state, including Sears and the Chicago Mercantile Exchange. To make the measure more palatable, individual taxpayers also would get a dollop of relief.

The measure suffered a setback Tuesday when the House rejected it, but legislative leaders said they were determined to reach a deal in the coming days or weeks.

The idea of giving tax breaks to companies is a hard sell in the state Legislature when many families are struggling and the Occupy Wall Street movement is reflecting anger at corporate interests. But advocates say if Illinois doesn’t take action, the businesses and their thousands of jobs will be lured away by states that are eager to take advantage.

“If we don’t do it, another state will. That’s the reality of the world in which we live,” said Rep. John Bradley, a Marion Democrat who is chairman of the Illinois House Revenue Committee.

The Senate approved the proposal Tuesday in a special session, but the House balked, sending lawmakers into further negotiations.

“We are prepared to come back as soon as there is an agreement, as soon as we are able to work this out,” said Bradley, who has overseen negotiations. “Unfortunately, that day is not today. Whether it’s tomorrow or the next day or next week, we are prepared to come back as soon as this is settled.”

Illinois’ tax dilemma is a collision between two different goals: Balancing the budget and avoiding the image of a state that’s bad for business. And in the process, officials want to avoid being exploited by companies making threats, perhaps empty ones, to flee Illinois.

Comments

just_another_bozo_on_this_bus 2 years, 4 months ago

So, are they getting guarantees from these companies that they'll stay if they get the tax breaks, and that they'll leave if they don't?

0

cato_the_elder 2 years, 4 months ago

From esteemed British actor Sir Michael Caine, in 2009:

"The Government has taken tax up to 50 per cent, and if it goes to 51, I will be back in America. I will not pay the Government more than I get. No way, ever. They've reached their limit with me, and that's what will happen to a lot of people. You know how much they made out of that high taxation all those years ago? Nothing. But they sent a mass of incredible brains to America. This return to high tax will only deepen our debt. While top-earners will be hit by the highest tax in 20 years, our MPs escape Scot-free. We've got three-and-a-half million layabouts laying about on benefits, and I'm 76, getting up at 6am to go to work to keep them. Let's get everybody back to work so we can save a couple of billion and cut tax, not keep sticking it on."

0

Commenting has been disabled for this item.