Springfield, IL… State Representative Mike Bost (R-Murphysboro) along with members of the House Republican Caucus today offered a broad-based approach to keeping good employers and making Illinois more competitive for jobs through legislation to accelerate a roll-back of the temporary corporate income tax hike passed by Democrats in January.
“It has been nearly a year since the Democrats passed their tax increases, and it is no surprise how our business community has reacted. Just Monday, we worked with the majority party to pass legislation to keep a few major employers here in Illinois, but it is only a matter of time before more companies come knocking at our door looking for relief . The days of special tax deals need to end,” said Cross. “A better solution is to speed up the expiration of the Democrats’ tax hike.”
“Moving Illinois to a sound financial footing means creating jobs, retaining Illinois employers and rolling back Democrat tax hikes,” Rep. Bost said. “Today’s legislation sends a clear message to families and communities who rely on businesses for good-paying jobs and local revenue we, the House Republicans, are listening and fighting for them.”
Rep. Bost continued, “Illinois can be on the path to economic recovery by investing in a stable, reliable business climate where employers can grow and prosper.”
House Bill 3918 takes a two-pronged approach to reducing Illinois’ business taxes:
- Accelerates the expiration of the temporary corporate income tax increase. For income earned during calendar 2013 the rate declines from 7% to 6% and for income earned during calendar 2014 the rate would further decline to 4.8%.
- Effective immediately the corporate income tax would be reduced by 0.25% anytime the Illinois unemployment rate increases by .3% in a four month span. For example, if the unemployment rate in January was 10% and in April it was 10.3% than this provision would take effect. At no point would the corporate income tax be less than 4.8% (the tax before Public Act 96-1496).
Without HB 3918, the Democrats’ temporary corporate income tax increase is set to expire January 1, 2025.
Rep. Bost continued, “Jobs, jobs, jobs. We need jobs. With double digit unemployment throughout the state, families are suffering. We need to make Illinois a place where business is encouraged to grow and succeed.”
House Republicans believe HB 3918 is needed to produce a better business climate in Illinois and what is lost in tax receipts to the state will be replaced with a gain in new employment and a broader tax base.
House Bill 3918 is supported by the Illinois Manufacturers’ Association, the Illinois Retail Merchant Association, the State Chamber of Commerce, the National Federation of Independent Business, and the Illinois Policy Institute.
“Illinois currently has one of the highest income tax rates in the United States. Lowering the state’s income tax rate sends a positive message to job creators and will help entice companies to locate and expand in Illinois,” said Mark Denzler, Vice President & Chief Operating Officer of the Illinois Manufacturers’ Association.
Denzler continued, “We applaud Rep. Bost for fighting to reduce the tax rate and help create predictability and stability for employers.”
Rep. Bost stated he is a co-sponsor of legislation to bring immediate tax relief to families by rolling back the personal income tax increase. House Bill 175 also repeals the corporate income tax hike.