SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Wisconsin tax expert: Proposal may not do much

Tuesday, Dec 11, 2012

* Senate President John Cullerton has often pointed to Wisconsin when he talks up his proposal to require publicly traded corporations to disclose their Illinois income tax payments. But at least one Wisconsin taxpayer group doesn’t think much of the idea

Taxpayer advocates in Wisconsin, which has its own tax-disclosure law, say corporations are generally structured in ways too complicated and too widely scattered to force them to produce a simple, accurate bottom-line figure on the revenue they generate in any given state. Skeptical economists in Illinois agree. […]

Tod Berry, president of the nonpartisan Wisconsin Taxpayers Alliance, said the information is likely to provide the public with, at best, an incomplete portrait.

“Based on Wisconsin’s experience with a different law but in the same general vein,” Berry said, “I would say that the value of this is somewhat limited and the resulting information is probably somewhat suspect just because of the reality and dynamics of a business organization.” […]

Berry points out that many corporations consist of a number of separate subsidiaries, many paying their own taxes. And many companies legally conduct at least a portion of their business in states that have no corporate tax, such as Delaware, by incorporating there rather than in the states where they’re actually based.

“Corporate structure makes this a lot more problematic than it may seem at first,” Berry said.

Judging the effectiveness of Illinois’ corporate subsidies is a nice idea, University of Illinois economist Fred Giertz added, “but this isn’t going to allow them (to do that).”

In case you’re wondering, the Wisconsin group doesn’t appear to be one of those knee-jerk “all taxes are horrible” outfits.

* Related…

* State to organize tax court

* Experts: Recession worst ‘fiscal cliff’ outcome for Illinois

* Quinn: Pension problem is Illinois’ ‘fiscal cliff’

* Erickson: Quinn wins prison battle as reps leave

* Editorial: What we learned from the veto session

* Finke: Hang on, January’s coming

- Posted by Rich Miller        


12 Comments
  1. - Horace - Tuesday, Dec 11, 12 @ 10:13 am:

    1. Figure out how much money the state needs to operate for a given year.

    2. Break that number down into how much should come from individuals, and how much from businesses.

    3. Take the part that is designated for businesses, and assign each and every business doing business in Illinois a dollar amount owed in taxes based on how much business Springfield deems they are doing in the state, or how much the business is worth.

    Pretty easy, yo.


  2. - M O'Malley - Tuesday, Dec 11, 12 @ 10:14 am:

    If corporations can’t figure out how much taxes they paid to a state they need better accountants, or the states need to redo their business organization laws. Really, a CEO doesn’t know how much their organization as a whole pays in state taxes?


  3. - John Parnell - Tuesday, Dec 11, 12 @ 10:18 am:

    This is a great idea. Too many business pretend they pay state taxes, but don’t pay any. While they are at it, the secret trust holdings in businesses should be reported to. Investments under 7 1/2 % of the ownership doesn’t have to be revealed. Illinois is the only state which allows this secret land trust.


  4. - Ken_in_Aurora - Tuesday, Dec 11, 12 @ 10:43 am:

    The Southern: “Let’s call this one lesson’s from the veto session, shall we?”

    My inner proofreader just fainted.


  5. - wordslinger - Tuesday, Dec 11, 12 @ 11:07 am:

    It’s silly to believe that corporations can’t provide state-by-state information. Can’t they just hire “Bob” from Accountemps?

    How about just a postcard then, drawn directly from their already-required Annual Reports.

    Annual Revenues
    Net Profit/Loss
    International Tax Liability
    Federal Tax Liability
    State and Local Tax Liability

    It would take an incompetent intern 10 minutes to provide that information.


  6. - walkinfool - Tuesday, Dec 11, 12 @ 11:22 am:

    They already calculate and provide the number to the state via tax returns. There is no extra work or cost required by the company — unlike what alarmists will spout. The problem is that those returns are confidential. The bill simply makes one small part of what has already been submitted to the state public.


  7. - thechampaignlife - Tuesday, Dec 11, 12 @ 11:32 am:

    Generic business taxes (as opposed to specific ones designed to encourage/discourage specific behavior) should exclude income generated from within Illinois as well as the wages paid to Illinois residents. That income comes from residents who already paid income and sales tax on it so we should be collecting the full amount at the source. We also should encourage jobs by excluding wages paid. Again, the money paid in wages will be taxed by income and sales taxes so just collect it at the source. What we want to capture is income that won’t be captured any other way because it went to jobs out of state, income/sales tax dollars by out of state consumers, or dividends paid to out of state shareholders. A net worth tax on businesses would also be useful to prevent them from hoarding cash which exceeds some prescribed level (e.g. total income for the past year).


  8. - Caveman - Tuesday, Dec 11, 12 @ 12:06 pm:

    It is ridiculous to believe that any corporation can be taxed. New taxes will just be passed on to the unaware consumer which might just be you.

    Also, the effect of the legislation is irrelevant. What matters is that it appears that something was done to get at that big bad corporation. Remember it is appearances, not reality that counts!


  9. - wordslinger - Tuesday, Dec 11, 12 @ 12:17 pm:

    Caveman, that’s a fantastically simple-minded argument.

    As a consumer, I have a choice as to whether I purchase something or not.

    For example, a corporate citizen such as CAT makes use of very expensive government services such as roads, airports, regulated rail, police, fire, courts, etc., as well as a publicly educated workforce to draw upon.

    I’m not in the market for a bulldozer anytime soon.

    You could take your argument and say that no business should ever be taxed because they pass on the cost in prices. And that no worker should ever be taxed because they pass on the cost in the price of their labor.

    Who’s left to pay for civilization?


  10. - Caveman - Tuesday, Dec 11, 12 @ 1:15 pm:

    Me thinks someone is slinging too many words.

    You cannot equate the worker with a corporation, unless the worker is self-employed and sets his own rates. He will pass along his new taxes until he prices himself out of business. Or he will suffer the loss himself. But the worker cannot just raise his cost of labor. Nor can he avoid the tax.

    Don’t just throw out the truth because it is simple. Its when things are made complex that we lose sight of answers.


  11. - the Other Anonymous - Tuesday, Dec 11, 12 @ 1:26 pm:

    I support having corporate tax returns — at a minimum for publicly held corporations — become publicly available, but at the federal level more so than the state. The better rationale for requiring this information is that tax returns often show a different financial picture than annual reports do. This has to do with the differences between accounting rules and tax rules. As a matter of better disclosure under securities laws, federal corporate returns should be disclosed.

    Having said that, I really don’t see much value in disclosing state tax returns to determine which corporation pays its “fair share.” Now, keep in mind that I think the current culture of large corporations in this country is hurting the economy and ordinary people, and that I think corporations are undertaxed. I have no love for corporations because the people that run them put short term profit over everything else, including the long term viability of the company.

    But it’s just that I see too many ways that the information would be manipulated, and too few ways that the information would actually become useful (other than as public relations fodder). We know corporations exploit tax loopholes on the state (and federal) level, and we know how those loopholes are exploited. Plug them or don’t; disclosure won’t help.


  12. - wordslinger - Tuesday, Dec 11, 12 @ 1:54 pm:

    –He will pass along his new taxes until he prices himself out of business. Or he will suffer the loss himself. But the worker cannot just raise his cost of labor. Nor can he avoid the tax.–

    Why would that same logic, such as it is, not apply to corporations or businesses?


Sorry, comments for this post are now closed.


* IFT endorses Quinn
* Right and wrong
* Question of the day
* Department of Insurance says insurers can't discriminate "based on gender identity"
* Today's quotable
* Rauner group files appeal in term limits case
* Inversion politics
* $300,000 a week in July
* About those new polls
* Today's number: 59 percent
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Different ways to navigate the Nokia X2
        * Verizon releases Kyocera Brigadier with Sapphire Shield
        * Verizon LG G Vista available online
        * LG G Vista arrives with Verizon Wireless
        * iWatch launch dates, Sony Xperia Z3 compact, HTC event & more – Pocketnow Daily
        * The One-Horse Race: 85% Of The 300M Smartphones Shipped In Q2 Were Android
        * ZAGG Rugged Folio for iPad mini review (Video)

        * How to Use Google Analytics to Run a Social Media Split Test
        * New Maze Runner Movie Trailer Reveals More Of The Mystery (video)
        * KDDI HTC J Butterfly Announced In Japan
        * Modbook Pro X Transforms Your MacBook Pro Into A OS X Tablet (video)
        * Maingear Spark Quad Core Mini PC Launches For $699 (video)
        * Opportunity Rover Breaks Extra Terrestrial Distance Record
        * LG G Vista Lands On Verizon Wireless

        * Personal stats nice, but Abreu wants to win
        * First inning dooms Noesi, White Sox in Detroit
        * Tigers 7, White Sox 2: Detroit mauls Hector Noesi
        * White Sox try to lock up series win with Danks
        * Nate Jones undergoes Tommy John surgery
        * First inning dooms Noesi, White Sox in Detroit
        * Personal stats nice, but Abreu wants to win


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * TetherGuard Makes a Splash at the Play It Again.....
        * Governor candidates assess overseas tax breaks .....
        * College of DuPage Gone Wild ! - Edgar County Wa.....
        * Quinn rips Rauner for supporting "unpatriotic" .....


        * Ore. authorities search for missing man
        * Notorious Chicago officers top misconduct list
        * Quinn: Workers' compensation rate to fall in 2015
        * Governor candidates assess overseas tax breaks
        * Chicago mayor proposes hike in hourly minimum wage
        * Quinn signs epinephrine law for Illinois schools
        * Charges upgraded to murder after Palatine fight
        * Body of missing Chicago man found in Lake Michigan
        * Man seeks withdrawal of plea in fatal stabbing
        * Police search for trucker after fatal I-70 wreck

        * Teen collapses at Quinn campaign event
        * Quinn: Workers' compensation rate to fall in 2015
        * 'Headlines' in Rauner campaign ad don't match up
        * Quinn signs epinephrine law for Illinois schools
        * Governor candidates differ on overseas tax breaks
        * Quinn: State will 'prevail' in Shakman lawsuit
        * Illinois Medicaid restricts use of hepatitis drug
        * Quinn OKs ballot question on tax hike for incomes over $1M
        * Lawsuit against Quinn back in court in October
        * Illinois to ask voters about taxing millionaires

        * Emanuel proposes hike in hourly minimum wage
        * Quinn: Illinois workers' comp rates to fall 5.5 percent in 2015
        * Allstate's second-quarter profit rises 41% on sales gains
        * Japanese firm Nippon Sharyo expands Illinois rail car plant
        * Boeing to build largest Dreamliner in South Carolina plant


        * One killed in multi-vehicle crash in Edgewater involving CTA bus
        * Police questioning person for fatal Edgewater crash involving CTA bus
        * Cop killer removed as baseball coach, but league official says past was no secret
        * Cop killer removed as baseball coach, league's board quits over uproar
        * Secretive  aldermen pull down blinds
        * Deadlocked committee delays vote on City Council budget analyst
        * Man gets 20-year sentence in Wicker Park choking, stabbing case
        * Convicted killer’s hearing for new trial pushed back to Friday
        * VA manipulated vets’ appointment data in Chicago, elsewhere, audit finds
        * Man dead, off-duty police officer wounded in Bucktown shooting


        * 6 wounded in South Side shootings
        * Cops in SOS unit amassed citizen complaints
        * Alderman pushes watchdog restrictions week after being probed
        * Person in custody after Edgewater Beach accident leaves 1 dead, 3 injured
        * Man gets 20 years in '12 attack of Wicker Park flower shop employee
        * Gutierrez is Texas-bound to see how immigrant minors are being treated
        * As CHA socks away millions, HUD calls on agency to expand vouchers
        * As CHA socks away millions, HUD calls on agency to expand vouchers
        * Evanston bans plastic bags in bigger stores starting next year
        * New law lets more school workers use emergency injection on students


        * CPD leaves commander in post despite assault allegation, DNA match
        * Business, Labor Leaders Urge Quinn Administration To Finish Fracking Rules
        * Inspector General Discloses Political Hiring Investigation
        * Listen to State Week - July 25, 2014
        * State Police Cancels New Trooper Training, Citing Budget
        * Clout On The Business Side of Medical Marijuana
        * Inspector General Finds Old Metra Practice Could Lead To Fatigued Conductors
        * State Fair Officials Fined For Violating Gift Ban...For Beer Tickets
        * Governor Approves 'Millionaire's Tax' As Advisory Referendum
        * Authorities Investigating Downtown Bomb


        * Our Opinion: Dangerous pedestrian crossing getting the attention it deserves
        * The GOP as the party of reform
        * John Cooney: Lawsuit abuse is a myth spun by big business
        * Quinn: Workers' compensation rate to fall in 2015
        * Quinn signs epinephrine law for Illinois schools
        * Travis Akin: Lawsuit reform could improve Illinois’ business climate
        * George Will: A middle course on foreign policy
        * Eugene Robinson: Absent on immigration reform
        * Governor candidates differ on overseas tax breaks
        * Quinn: State will 'prevail' in Shakman lawsuit


        * Making kachina dolls
        * Voice of the Reader: Generosity built roof
        * Patsy Bankson
        * Margaret Morgan
        * Debra Taylor
        * Bonita Davis
        * David Christensen
        * Marilyn Bundren
        * Dale Aden
        * Roy Goolsby


        * Some good (shutout), some bad (another tie)
        * Cubs keep dealing, acquire lefty Doubront from Boston
        * No trades yet, but plenty of White Sox news
        * Cougars drop fifth straight
        * Arlington Heights pub offers up ‘Pint with Peggy' night

        * Rep. Lipinski Issues Statement on Presiden...
        * Rep. Lipinski Helps Pass VA Reform Bill - ...
        * Congressman Dan Lipinski to host 3 events ...
        * House passes Lipinski bill for Herbie John...
        * Renaming of Mount Greenwood post office in...
        * Rep. Lipinski's Bill Improving Internation...
        * Rep. Lipinski Announces $206428 Grant for ...
        * Rep. Lipinski's Bill Renaming Mount Greenw...
        * Rep. Lipinski Issues Statement on Presiden...
        * Rep. Lipinski Helps Pass VA Reform Bill - ...

        * Governor candidates assess overseas tax br......
        * Governor candidates assess overseas tax br......
        * Senator, FutureGen CEO talk project...
        * Think companies can flee the U.S. risk-fre......
        * Congressional Democrats Introduce Bill to ......

        * Manchin, Bipartisan Group of Senators Intr......
        * Colonies court hearing to go into sixth day...
        * Kirk pushes Obama for stiffer sanctions on......

        * E-15 Fuel Proposal Runs Out Of Gas In Committee
        * The Gas Guzzler
        * Ten minute drawing. What’s that noise?
        * No ten minute drawings for the next few days.
        * U.S. Economy Grew At Strong 4 Percent Rate In Spring
        * Chicago City Council Roundup: Minimum Wage Bump, Phone Tax Hike & New Moratorium
        * Terror Threats At Chemical Plants Underestimated
        * Chgo Lawmakers Poised To Reduce IG's Purview Over Campaign Finance Probes
        * Chicago SRO Press Conference At City Hall
        * Anti-War Activists State 'Die-In' Against Boeing At City Hall


        * Pat Quinn: Patronage Will Prevail
        * Governor Quinn and Company Officials Open Nippon Sharyo Expansion in Rochelle - Passenger Rail Car Manufacturing Plant Expansion Creating 90 New Jobs
        * Governor Quinn Signs Legislation to Expand Life-Saving Measures in Illinois Schools - Expands Epinephrine Law to Protect Illinois’ Students in Life-Threatening Emergencies
        * Governor Quinn Announces Historic Workers’ Compensation Rate Reductions - Savings from 2011 Reforms Expected to Save $450 Million for Businesses Across Illinois
        * Pat Quinn’s Reality Check




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller