LIVE session coverage...
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Texas, schmexas

Friday, May 10, 2013

* A new study by the Anderson Economic Group ranks Illinois 20th nationally in its business tax burden, “defined as the share of pretax operating margin that a firm has to pay out in combined state and local taxes,” according to Greg Hinz

By that standard, businesses in Illinois paid 9.6 percent of their pretax profit in state and local taxes in calendar 2011, more than the average of 8 percent paid by the 10 lowest tax states but less than the average 14 percent by the 10 highest states.

The actual range among the states was from 5.1 percent in Delaware to 25.2 percent in Alaska, where the number is skewed by that state’s dependence on taxes levied on natural resources like petroleum, which tend to be high.

Perhaps more significant, Illinois ranks relatively well among other Midwestern states, even after jacking up its income tax at the beginning of 2011. Iowa is lower at 8.5 percent, and Missouri just below at 9.2 percent. But higher are Minnesota (10 percent), Indiana (10.6 percent), Ohio (11.1 percent), Gov. Scott Walker’s Wisconsin (11.3 percent) and Michigan (13.3 percent).

Down in Texas, whose Gov. Rick Perry recently came up here ona rather bellicose corporate raiding mission, the total tax burden is a little lower than ours. But at 9.2 percent — compared with 9.6 percent in Illinois — the difference is what a good Texan might call a lil’ itty-bitty.

Wanna bet that the Tribune editorial board, Bruce Rauner, Ty Fahner, the Illinois Policy Institute and the other folks screaming about how Illinois is about to die a self-inflicted tax death completely ignore this study?

* But that’s not to say we don’t have some very real problems here. For example

For every hundred dollars in payroll, Texas employers pay 39 cents for workers’ compensation insurance; their Illinois counterparts pay $1.10.

Few big companies actually pay the full tax rate, but workers’ comp is another story. It has to be addressed… again.

- Posted by Rich Miller        


10 Comments
  1. - Geneva Guy - Friday, May 10, 13 @ 3:01 pm:

    Relative to work comp, since the Act was amended two years ago, the Appellate Court has hammered business, even when the Commission has tried to do the right thing. Perhaps a reform package which specifically flips these rogue AC decisions might help as well.

    Changing the rules is fine, but the guys calling balls and strikes have to do their part too.


  2. - John Galt - Friday, May 10, 13 @ 3:03 pm:

    That study has an awfully narrow definition when it comes to the real-world impact on a lot of these public policies.

    As Rich correctly points out, there are other issues at play that make this place toxic for job creation. Workman’s comp is one of them, but you’ve also got property taxes, higher energy costs/taxes, labor laws, a relatively high minimum wage compared to our neighbors, loads of administrative red tape, high pension burdens, etc. Plus there’s just the perception of corruption that prevents people from considering the state. Yes, the state has the EDGE tax program to attract certain large or expanding businesses. But all that does is shift the tax burdens to the small & medium sized companies that actually employ the lion’s share of citizens out there.

    But it really is an aggregate problem. Perhaps that’s why some of these issues seem so intractable. When we try to narrow our focus to *just one* thing, those who want to defend the status quo on that one item have a plausible argument they shouldn’t be the ones to be singled out. It really is a situation where a dozen or so factors are moderately bad for job creation, which synergize to make for a lousy overall environment.


  3. - Ghost - Friday, May 10, 13 @ 3:08 pm:

    The problem with our taxes has been that we have all these specilized tax breaks. As a result we do not collect the minimium taxes we want, so we raise the overall rate to try and overcome the deductions. The problem is it slams a business that does not qualify for most or any breaks hard.

    We would be better served to eliminate the deductions and set a low tax rate, but a rate withou deductions or exceptions.


  4. - Keep Calm and Carry On - Friday, May 10, 13 @ 3:08 pm:

    I wonder how many of those corporations actually paid those taxes?

    How many are on corporate welfare in comparison to those paying full freight?

    My guess is that a minority paid the majority of those taxes. And it’s not the large companies paying.


  5. - dazed & confused - Friday, May 10, 13 @ 3:28 pm:

    AMEN on Workers’ Compensation.

    Secondly, every company in Illinois pays taxes including large employers. They pay income, sales, property, payroll, and other taxes.


  6. - Chi - Friday, May 10, 13 @ 3:29 pm:

    From today’s New York Times:

    (Texas)”is the only state that does not require companies to contribute to workers’ compensation coverage.”

    That is not a good thing for Texans. And makes any comparison between Illinois and Texas work comp rates worthless.

    The story also includes some good stats on what our regulation gets us. Again, it’s not good to be a Texan:

    http://www.nytimes.com/2013/05/10/us/after-plant-explosion-texas-remains-wary-of-regulation.html?pagewanted=all&_r=0


  7. - wordslinger - Friday, May 10, 13 @ 3:42 pm:

    –Few big companies actually pay the full tax rate, but workers’ comp is another story. It has to be addressed… again–

    True, and a tough nut to crack. Lot of chefs in the kitchen — workers, industry, docs and lawyers.

    You get that crew together on anything, and we should set you up a table in Geneva to work it out with the Palestinians and Israelis.

    I love the Texas story, but I think it’s completely misunderstood.

    Before they struck oil in the East Field around 1900, their economy ran on timber, cotton and beef.

    Oil changed everything. Until OPEC, the Texas Railroad Commission set the world price by regulating who could drill where and how much. They still do that.

    They’ve been the nation’s gas pump for more than 100 years. They’ve had an unlimited supply of cheap labor from Mexico. Lyndon Johnson and Sam Rayburn primed the pump to make sure they got a heaping-helping of the military/industrial complex.

    Yet looking at how the Average Joe makes it there, I don’t think they got enough out of those advantages. Lousy schools, most with health insurance, etc.

    Yankees would have done a lot better with that oil.


  8. - Bluefish - Friday, May 10, 13 @ 3:45 pm:

    Unfortunately, the General Assembly seems intent to go the opposite way on workers comp. See Sen. Mulroe’s amendment to HB 3390.


  9. - Anyone Remember? - Friday, May 10, 13 @ 3:50 pm:

    How much of Illinois’ “high” worker compensation costs is related to the higher cost of living, medical and otherwise, in the Greater Chicagoland area?


  10. - abc123 - Monday, May 13, 13 @ 8:26 am:

    The study does not measure tax bills Springfield stuck in the drawer to be sent later, especially unfunded pension liabilities. Nor does it include overall tax burden which people, not corporations, pay. You are detached from the business world and economic reality if you think Illinois has not slipped into an uncompetitive position.


Sorry, comments for this post are now closed.


* Good morning!
* 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

          
        * Express yourself: But why does it always have to be about Apple?
        * Our 5 favourite new Windows Phone apps of the week
        * ASUS reportedly to unveil selfie-serving new Zenphone at Computex
        * Create atoms but don’t destroy the universe in new Android game Atomas
        * Google Android M multi-window, 2K Sony Xperias, iPhone SMS fix & more – Pocketnow Daily
        * Tactile is another addictive interactive puzzle game
        * Train wizards and sorcerers in Schools of Magic Android game

        * Twitter Audience Insights: This Week in Social Media
        * Lenovo A6000 Plus Review – A rock solid entry level phone
        * iiyama’s New Windows 8.1 Tablet With Intel Atom Processor
        * Get Mouse Computer’s Latest 11.6-Inch Notebook With 128GB SSD
        * Stay Safe On The Road With Novatek’s New Full HD Mini Car DVR
        * 'Minecraft' creators to compete in the first annual 'Builder Bowl'
        * Cricket Wireless Releases ZTE Overture 2 4G LTE-Enabled Android 5.0 Smartphone

        * White Sox to rely on Webb out of bullpen
        * Rodon subdues Astros with renewed focus
        * Soto ends deadlock in 11th to complete rally
        * Soto ends deadlock in 11th to complete rally
        * White Sox aim for series win behind Quintana
        * Abreu likely out Saturday with finger injury
        * White Sox 6, Astros 3 (11 innings): Backup plans come to the forefront

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


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

        Archives
        May 2015
        April 2015
        March 2015
        February 2015
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        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


        * Impasse at Capitol sets up Rauner vs. Madigan s.....
        * Sunset Concerts return in Carbondale..
        * Former US House Speaker Dennis Hastert accused .....
        * Illinois lawmakers send bill banning ex-gay the.....


        * AP source: Hastert paid to keep old sex abuse claims secret
        * House records show Schock reimbursed US $122,590
        * House records show Schock reimbursed US $122,590
        * Legislature advances plan to help Chicago fund pensions
        * Gay conversion therapy ban heads to Illinois governor's desk
        * Latest on Hastert: Boehner 'shocked' by reports
        * Impasse between Rauner, Democrats continues over budget
        * Settlement clears way for Kokomo baseball home opener
        * Union legislation would prohibit strike or Rauner lockout
        * 1st positive test for West Nile virus in Illinois in 2015

        * Rauner won't call special session to reach budget agreement, wants action by Sunday
        * House passes bill separating Lincoln museum from Historic Preservation
        * Legislation to prohibit union strike, Rauner lockout gets House approval
        * Rauner won't call special session to reach budget agreement
        * Conversion therapy ban heads to Rauner's desk
        * Legislation to prohibit union strike or Rauner lockout gets House approval
        * House passes bill separating ALPLM from Historic Preservation
        * House OKs plan to make Lincoln Library and Museum its own state agency
        * Illinois Capitol statue of Dennis Hastert on hold
        * Legislative leaders say Rauner's Turnaround Agenda still on table

        * Emanuel finally unveils plan to fund police, fire pensions
        * Buyer linked to George Lucas buys condo for $18.8 million
        * Everything you need to know about the Hastert indictment
        * For Desiree Rogers, the campaign to fight cancer is personal
        * Happy 90th birthday, Lester Crown


          * 2 dead, 13 hurt in city shootings
          * Former Speaker Hastert's federal pension not in danger
          * Emanuel's police, fire pension plan clears first hurdle at Capitol
          * Cops: Relative of mother, son found dead in SW Side home being questioned
          * Woman found not guilty by reason of insanity in screwdriver attack
          * Man killed in rollover crash in Lake County
          * Ex-Bull Brunson not guilty of sex abuse charges
          * This season's first positive test for West Nile detected in St. Clair County
          * Blame game, political jockeying as overtime looms for Rauner, Madigan
          * New Cook County court aims to treat prostitutes more like victims


          * Bears release Ray McDonald after domestic violence arrest in California
          * Ex-US House speaker's indictment offers few clues about case
          * Chicago school board to consider charter relocations, renewals
          * Ex-US Speaker Hastert indicted on bank-related charges
          * Vets' best friend: Two veterans trekking cross-country with the dogs that 'saved their lives'
          * After pig farm raises a stink, Hoosiers debate rural-city divide
          * City planners and neighborhood residents map out Chinatown’s future
          * City planners and neighborhood residents map out Chinatown's future
          * Nebraska repeals death penalty, but U.S. isn't quite ready to abandon it
          * FIFA officials arrested on charges of bribery and corruption


          * Rauner won't call special session to reach budget agreement, wants action by Sunday
          * Kim Harber: Rural Illinoisans deserve modern tech rules
          * Charles Krauthammer: Why doctors quit
          * House passes bill separating Lincoln museum from Historic Preservation
          * Legislation to prohibit union strike, Rauner lockout gets House approval
          * Conversion therapy ban heads to Rauner's desk
          * Illinois Capitol statue of Dennis Hastert on hold
          * Esther Cepeda: How sincere is Clinton's Latino outreach?
          * Rauner agenda bills defeated in committee
          * Our Opinion: What's next, Springfield? More jobs, please


          * Heartland, ISU going tobacco-free
          * Food pantry wants to expand beyond 'temporary' quarters
          * Saturday showers likely and cooler
          * Bettendorf police arrest teen in fatal stabbing
          * Top of the morning, May 30, 2015
          * Area Calendar 5/30/15
          * East Village store reopens after fire
          * More ‘barks’ needed to keep Jacksonville in top spot
          * Monument to freedom
          * Open Line


          * Buehrle, Blue Jays rally past Twins 6-4 on Colabello homer
          * Lackey K's 9, Cardinals beat Dodgers 3-0 for 5th in row
          * Report: Hastert was trying to conceal sexual abuse of student
          * Lightning strike: Tampa Bay beats Rangers, will play for Cup
          * Images: Barrington High School graduation

          * The Straw that Broke the Federalist Camel’...
          * DANA MILBANK: Ted Cruz, charlatan
          * Democrats face contested primaries in 2016...
          * Kim Harber: Rural Illinoisans deserve mode...
          * Duckworth: Democratic 2016 Senate primary ...
          * U.S Steel to remain open in Granite City
          * Duckworth to appear at DuPage Democrats event
          * Duckworth takes aim at Kirk, calls GOP let...
          * Women are stepping up in most major 2016 S...
          * Duckworth sticks verbal shiv into opponent...

          * The Patriot Act Was Controversial Long Bef......
          * How Congress voted this week...
          * Hastert case assigned to Judge Thomas Durkin...
          * EPA's new ethanol standards cut short...

          * Hastert rose to speakership among the scan......
          * How Congress voted this week...
          * Hastert paid off former pupil, official says...

          * Women protested against Gov. Bruce Rauner's proposed budget cuts on Thursday
          * Chicago Higher Schoolers Hold Climate Action Rally
          * Report: High School Grad Rate Stagnant In Illinois
          * ACLU, Tea Party Patriots Form Alliance In Debate Over Patriot Act Provisions
          * 'Bare-Bones' Illinois Mental Health System Can't Afford Further Cuts, Advocates Say
          * Chicago High Schoolers Rally For Climate Action, Illinois Clean Jobs Bill (VIDEO)
          * A sex scandal? How will it stick! How unfortunate that it will do so
          * “The Driver’s Side” – News From The Motorist’s Perspective
          * Paper Chronicles Another Costly Parking Privatization Failure
          * Catholic Citizens for Life launches calls in opposition to SB1564


          * Honoring Illinois' Fallen - United States and Illinois flags at half-staff from Sunrise, Monday, June 1, 2015 until Sunset, Wednesday, June 3, 2015.
          * First West Nile Virus Positive Mosquito in Illinois for 2015 Reported
          * Celebrate National 529 Day with a College Illinois!® Savings Plan - Enrollment Open Through June 1st
          * State Announces Business Resource Event Coming to Aurora - ‘Make a Connection’ networking and resource program promotes economic growth of small and diverse businesses
          * Gulf War Veteran Reports for Duty as IDVA Women Vets Coordinator, Vet Business Champion




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