Some ADM context
Tuesday, Oct 1, 2013
* The House Revenue Committee is meeting today to talk about various corporate tax breaks. Watch it live.
ADM’s fiscal officer was asked why the company didn’t just use existing tax law to underwrite its move to Chicago. ADM has dropped its request for a cut to its public utility taxes, but does want an EDGE credit. His response…
The EDGE credit allows corporations which are creating some jobs to essentially pocket the state income taxes they withhold from their employees’ paychecks. Why? Because so many corporations don’t pay much, if any, state income taxes here.
The company officer estimated that the EDGE credit it is seeking for its Chicago move (200 employees, including 100 new workers) is about $1.2 million a year. The company’s annual earnings, the officer said, average between $1-2 billion a year.
So, ADM, one of the the largest companies in the state, is paying less than $1.2 million in state income taxes in at least some years.
And that’s why the company’s guy dodged Rep. Dave McSweeney’s question about whether ADM would help him support lower tax rates in general. The simple fact is they don’t pay a lot of income taxes here. Lower overall rates just won’t matter.