By Jamey Dunn, Illinois Issues
Just a day after passing a tax break package that would benefit some businesses, House lawmakers on both sides of the aisle Wednesday pushed for a rollback of corporate portion of the State's recent income tax increase.
“Business after business potentially will be coming to the state and looking for relief, and doing it on a per-company basis is not the way to go,” House Minority Leader Tom Cross said. Under his new plan the corporate rate would drop from the current 7 percent to 6 percent in 2013 and would return to 4.8 percent, the rate before the increase, in 2014. Any unemployment rate increase of more than .3 of a percentage point over a four-month period would trigger a .25 percent reduction in the corporate tax rate as well. However, the rate could not dip below the 4.8 percent mark.
Under current law, the corporate rate won't drop to 5.25 percent until 2015 and won't hit 4.8 percent until 2025.
Another bill filed by House Democrats, would roll the tax rate back to 4.8 percent as of January. Senate President John Cullerton said he supports lowering the tax rate if the taxing base is broadened and the revenue coming in remains the same.
John Bouman, president of the Chicago-based Sargent Shriver National Center on Poverty Law, however, said both bills do not appear to be “aimed at any kind of coherent economic or tax policy” but are instead “pretty clearly political moves” being made by lawmakers running for reelection.
You can read Jamey's full report at: http://illinoisissuesblog.blogspot.com/2011/12/lawmakers-seek-to-roll-back-corporate.html