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.


* SUBSCRIBERS ONLY - Cable TV buys
* Reader comments closed for the weekend
* Rauner vetoes several social service bills
* Ok, that's enough
* I truly hate this US Senate race
* Rauner signs life insurance bill
* Question of the day
* State bond sale goes well, but still paid a higher price
* *** UPDATED x1 *** Picking on the little guys
* We've been a sorry state for a long time
* Munger and Mendoza face off in hostile debate
* I'm still befuddled by this move
* *** UPDATED x5 - Motion approved - Noven to withdraw - $421 million budget hit - One appointee appears to be ineligible - The plot thickens as three new board members appointed *** Controversy expected at TRS hearing today
* React to remap reform ruling
* Divided court kicks remap reform off ballot
* 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

  
* AT&T Galaxy S5 gets Marshmallow with S5 Active at nearly 11 months from Nexus image dump
* Spotify denies burying results for artists taking Apple Music exclusives
* Walter Duncan of Quick Key has some fascinating fixes for our edtech problems
* The flagship is dead, long live the new flagship
* Lenovo Yoga Tab 3 Plus 10 expected at IFA 2016
* Eighth beta for Apple software out for devs, seventh iOS 10 beta for public
* China’s Galaxy Note 7, the same as everyone else’s — 4GB RAM, 64GB storage

* Gonzalez on track for rehab assignment
* Sale, Quintana posting Cy Young-worthy numbers
* Sox topple Seattle on Quintana's gem, 4 HRs
* Sox topple Seattle on Quintana's gem, 4 HRs
* Sox offense unloads as everyone chips in
* Sox topple Seattle on Quintana's gem, 4 HRs
* Rodon, Walker duel to wrap Sox homestand

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


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

Archives
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
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


* Chicago Schools Budget Uses Pension Overhaul to.....
* College Illinois! appears headed for a future b.....
* Fact check: All Kids health care spending on un.....
* Bill Daley wants an Illinois constitutional con.....
* Tom Kacich: 13th Congressional District a breat.....
* Union money contaminates Springfield..
* Judge Rules on Internet Infrastructure – Alton .....
* Editorial: We must not surrender to Illinois ‘t.....
* Governor Bruce Rauner Stops at IL State Fairgro.....
* Governor Bruce Rauner Stops at IL State Fairgro.....


* 2 Chicago men charged in shooting of NBA star Wade's cousin
* Enrollment up at other Missouri universities as MU drops
* Ohio chief justice on court impacts, roles in drug epidemic
* Studies: Illinois' fixed-tuition law drives up others' costs
* Studies: Illinois' fixed-tuition law drives up others' costs
* University of Illinois game time texting system rarely used
* Northwest Indiana airports fight aviation downturn
* EXCHANGE: Labrador ready to help victims of child abuse
* EXCHANGE: Presidential museum gets rare Lincoln biography
* Elections board appeals ruling on independent candidate

* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Progress on U.S. 67 sputters due to lack of funds
* New law makes insurance companies find, pay beneficiaries
* Decatur woman can petition to become nurse under new law
* Illinois redistricting referendum won't appear on ballot
* Comptroller hopefuls argue independence from Madigan, Rauner
* Springfield-area jobless rate remains lowest in Illinois
* Illinois 'Obamacare' health insurance rates up significantly
* Rauner's office warns teachers' pension change could be 'devastating'

* What do you get for $2,000 in rent?
* Cubs stars growing too big for Chicago market
* Warehouses are sexy all of a sudden. Here's why.
* How Macy's retreat is affecting this REIT's fortunes
* What's not to like about Obamacare? Plenty in Illinois


* Monday letters: Revise police union contract for good of all
* Bears cut 10, including eight offensive players
* 64-year-old woman reported missing from Chatham
* For the dull White Sox, Zero Interest Park is more like it
* Families hold prayer vigil for shooting victim Nykea Aldridge
* Steinberg: The South Side is best, at least doughnut-wise
* Kapos: CEO hopes fans warm to Guaranteed Rate’s name
* Man shot, critically wounded in South Loop
* Man shot in Park Manor
* Two men charged with fatally shooting Nykea Aldridge


* Brothers held without bail in fatal shooting of Dwyane Wade's cousin
* Bears cut 10 ahead of Tuesday's roster deadline
* LINDA C. BLACK HOROSCOPES for 8/28/16
* Turkish president vows to 'destroy terrorists'
* Sen. Joni Ernst tries to rise with Donald Trump by her side
* It was a union for the ages, until it wasn't. Is Europe lost?
* After vowing to give back, Dwyane Wade loses cousin to gun violence
* Officials present plan to redevelop Waukegan's South Side
* Billionaire who donated to Clinton Foundation was denied entry into U.S. last year
* Trump stand-ins struggle to speak for and defend nominee


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* Angie Muhs: The ups and downs of online comments
* Bernard Schoenburg: Davis, GOP quick to attack independent Gill
* Statehouse Insider: Do we hafta put all of that money into pensions?
* Their View: Fair maps shouldn't be victims of partisanship
* Raising awareness to end domestic violence
* Mom's legacy lives on through fund
* Despite budget warnings from Rauner, TRS board votes to lower investment estimates
* Progress on U.S. 67 sputters due to lack of funds
* New law makes insurance companies find, pay beneficiaries
* Charles Krauthammer: The bribery standard


* Motorcycle accident kills two in De Soto
* Daily Digest 8/28/16
* Divorces
* PFOP: Bloomington painter wowed, swindled Chicago’s high society
* Communities work to provide a playground for children
* New wave: Normal Township senior center exceeds expectations
* UI Library system has so much more to check out than books
* Rob Kanter/Environmental Almanac: Our residence has gone solar
* Art Beat: Powerful exhibitions
* Ted Kooser: An American Life in Poetry, Aug. 28, 2016


* Giants receiver Victor Cruz plays for first time since 2014
* With Broncos, Patriots flawed, no clear favorite in AFC
* A guide to Florida's primary election
* 2 Chicago men charged in shooting of NBA star Wade's cousin
* Zardes to miss US World Cup qualifiers after MLS injury

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Des Plaines Gets $11.4 Million To Purchase......

* Kirk wants to widend locks, dams on Illino......
* Duckworth outlines principles for immigrat......

* GoFundMe Set Up For Funeral Of Man Murdered In Gang Crossfire
* Kinney serves as liaison to United Kingdom
* Using international experience to help Illinois REALTORS®
* Illinois home prices increase in July; Sales lower amid tight inventory
* CAR dedicates memorial to Maner, the association’s first African-American president
* QCARA members brush up on their painting skills at Habitat for Humanity project
* Illinois REALTORS® named to key NAR committee posts
* CAR Global Council panel discussion encourages understanding of different cultures
* NAR offers video about Aug. 29 drone rule changes
* NAR foundation will donate up to $350K in Louisiana flood assistance


* Statement on Redistricting Referendum
* Rauner Administration Takes Action to Help Illinoisans Find Lost Life Insurance Money
* Illinois Residents Encouraged to Register for ‘The Great ShakeOut’ Earthquake Drill - 'Drop, Cover and Hold On’ Drill Set for October 20
* Governor Takes Bill Action
* Illinois Seeking Flexibility to Improve Delivery of Behavioral Health Care




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