SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Today’s numbers

Thursday, Apr 17, 2014

Posted by Barton Lorimor (@bartonlorimor)

* A new report by the Public Interest Research Group says businesses that pay taxes in other countries through shell companies costs individual Illinois taxpayers $1,396 a year. For small businesses, that number is $4,588. From the coverage…

Every year, corporations and wealthy individuals avoid paying an estimated $184 billion in state and federal income taxes by using complicated accounting tricks to shift their profits to offshore tax havens. Of that $184 billion, $110 billion is avoided specifically by corporations.

“This is yet another example of why tax reform needs to be more than just campaign rhetoric,” said U.S. Rep. Dan Lipinski, D-Ill., a co-sponsor of H.R. 1554. “Hard-working middle-class Americans and the small businesses that are the future of this nation should not be forced to carry the tax burden sidestepped by others through the use of offshore accounts. I applaud Illinois PIRG for their exemplary work on this issue.”

Illinois can also take measures to reclaim some of the revenue lost to tax havens. Illinois PIRG found that by passing a simple, proven reform already on the books in other states, Illinois could save $108.3 million annually.

“The Illinois number is striking,” said Illinois state Rep. Greg Harris, D-Chicago. “If big corporations only paid their fair share for one year, the state’s operating budget problems could disappear overnight, elementary, secondary and higher education would be fully funded, MAP grant scholarships doubled, home and health services for senior citizens and people with disabilities fully restored, after-school and anti-gang programs tripled, and every overdue bill paid. So many of the troubles that face our state and communities would be wiped out in an instant if these loopholes were closed.”

A full copy of the report is here.

- Posted by Barton Lorimor        

  1. - PublicServant - Thursday, Apr 17, 14 @ 7:05 am:

    ===Illinois PIRG found that by passing a simple, proven reform already on the books in other states, Illinois could save $108.3 annually.===

    Has Rep. Harris introduced a bill yet? I’d like to track its progress…

  2. - PublicServant - Thursday, Apr 17, 14 @ 7:07 am:

    Or does it have to be done on the federal level? If so, I’m sure Boehner and the house republicans will pass it post haste…cough, cough.

  3. - x ace - Thursday, Apr 17, 14 @ 8:12 am:


  4. - Grandson of Man - Thursday, Apr 17, 14 @ 8:26 am:

    I don’t see any tax reform of this type coming anytime soon, at least on the national level. There are too many poor and middle class people who are the political foot soldiers for corporations and wealthy individuals who shield their money in tax shelters. These people slam poor folks who get government assistance–many of whom work–rather than criticize and vote against politicians who fight so that the super-wealthy get every government break available.

  5. - Dan Johnson - Thursday, Apr 17, 14 @ 8:40 am:

    I know this is a lazy comment, but Barton could you explain what the reform is that IL can pass and fix the typo from Rep Harris’ quote that IL could save 108 (missing number… Million? Thousand?). I can read the report as well but…you’re the postmaster.

  6. - Anonymous - Thursday, Apr 17, 14 @ 9:07 am:

    The legislature is made of up foxes guarding the henhouse. They are not likely to end the gravy train they get in the way of “extras” from the big boys so we all get to have a harder financial life taking care of and protecting the elite interests. What else is new?

  7. - Walker - Thursday, Apr 17, 14 @ 9:25 am:

    Hate to say it, but PIRG’s reputation for accurate numbers is about as weak as IPI’s.

    This is a big issue, however, and we seem to be afraid to tackle it sensibly.

    The opponents of fixing it will continue the refrain of “everyone will leave the state”, while at the same time saying we can have lower tax rates since “we will close the tax loopholes.”

    Rather than driving everyone crazy with arguments about location, jurisdiction, and where profits are actually made — let’s do something simple like requiring a modest minimum tax paid by every concern over a certain size, operating in Illinois, regardless of where they claim they should be paying, (or not paying)?

    To continue to have extremely successful businesses in Illinois paying us no state tax at all, does rob all of us taxpayers as a group.

  8. - Proud - Thursday, Apr 17, 14 @ 9:32 am:

    Remember the age old “Golden Rule— Ye who has the gold, makes the rules!” We in the US have deluded ourselves that we are different! We romanticize our revolution that was really over the wealthy not wanting to pay taxes to the King of England!

  9. - wordslinger - Thursday, Apr 17, 14 @ 9:45 am:

    It’s amazing how many people by the con that big business and the super-wealthy are over-taxed.

    Pick up an annual report from any publicly traded Fortune 500 company and you’ll see it ain’t so.

  10. - liandro - Thursday, Apr 17, 14 @ 10:38 am:

    Tax reform is long, long overdue. Both sides have a lot of donors, er, I mean “reasons”, that pressure them to privately protect the status quo. They can publicly decry this or that specific problem, but I am not holding my breath for real reforms. To easy to blame the other party and sit on your hands.

  11. - Union Man - Thursday, Apr 17, 14 @ 11:10 am:

    If only!!

  12. - Amuzing Myself - Thursday, Apr 17, 14 @ 11:40 am:

    $108 Million is a far cry from “wiping out” all of Illinois’ budget problems. That quote actually made me laugh.

  13. - Formerly Known As... - Thursday, Apr 17, 14 @ 11:56 am:

    === said Illinois state Rep. Greg Harris, D-Chicago. “If big corporations only paid their fair share for one year, ===

    “If legislators only did their job for one year and passed this reform after so many other states already have…”

    Fixed that for you, Representative.

  14. - Formerly Known As... - Thursday, Apr 17, 14 @ 12:09 pm:

    Although @walker does make a good point concerning PIRG’s reliability when it comes to reputable numbers and projections.

    Then again, look at how revenue projections for Illinois’ “pole tax” on strip clubs compare to the recently released numbers. Or how Alderman Danny Solis’ revenue projections from decriminalizing and ticketing small quantities of marijuana compare to the real numbers.

    It appears quite a few people have problems making accurate projections when it comes to policies they are in favor of.

  15. - lovecraft - Thursday, Apr 17, 14 @ 1:47 pm:

    In the oligarchy this country has become businesses and the richest will never pay their fair share. Instead, the middles class will slowly be bled to death, ushering in a new Gilded Age.

  16. - Lycurgus - Thursday, Apr 17, 14 @ 4:02 pm:

    If the feds would reduce the US corporate income tax rate (35%) to something that is globally competitive, this would be a non-issue. But hey, a lot of people like beating the populist fat cat big corporate tax avoidance drum, so why do the hard responsible work of fixing what’s really broken.

  17. - wordslinger - Thursday, Apr 17, 14 @ 4:19 pm:

    –If the feds would reduce the US corporate income tax rate (35%) to something that is globally competitive, this would be a non-issue–

    C’mon, man. You think anyone’s paying the full freight? What are all those lobbyists doing, then?

    After write-offs and credits, the effective U.S. corporate income tax rate is 13%, 17% when you add state and local taxes, according to the GAO.

Sorry, comments for this post are now closed.

* Reader comments closed for the weekend
* Sign of the times?
* Question of the day
* Exelon Just Received A $1.7 Billion Rate Increase Through The Market-Based Capacity Auction
* Today's number: 60
* No imminent power shut-offs
* Chamber all-in on impasse
* COGFA: State receipts down almost a billion dollars in first quarter
* Two racetracks will likely close
* "How many babies have to die?"
* Report: "A billion-dollar giveaway rife with failure"
* Frerichs warns of impasse consequences
* Quinn touring the state
* Yesterday's blog posts

Visit our advertisers...







Search This Blog...

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

Search the 98th General Assembly By Keyword

    * iPhone 6s, Samsung Gear S2, Nexus 6P comments & more – Pocketnow Daily Recap
    * Jetpack Joyride brings you Back to the Future theme for October
    * Viber: “heart” messages, more characters, forward public chats
    * Samsung Galaxy Active Neo coming to Japan
    * Top 5 Android games of September 2015
    * Escape from the dark in Dim Light, now out on Android
    * Bounce the ball around shapes in Geometry Bounce

    * Garcia gives White Sox walk-off win vs. Tigers
    * White Sox relish in walk-off as season nears end
    * Alexei takes in possible final games with Sox
    * White Sox 4, Tigers 3: Comeback jeopardizes draft pick
    * Montas takes hill for Sox 2015 finale
    * Garcia gives White Sox walk-off win vs. Tigers
    * Mark Buehrle to retire


    Main Menu
    Pundit rankings
    Subscriber Content
    Blagojevich Trial
    Updated Posts

    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


    RSS Feed 2.0
    Comments RSS 2.0


    * Number of Chicago heroin overdoses hits 74 in 3 days
    * Car crashes into northern Illinois church, injuring 6
    * University of Illinois opens center for wounded veterans
    * Opponents upset Chief Illiniwek merchandise available online
    * Chicago man charged in 20-month-old's death acquitted
    * Health officials in Lake County encourage flu shots
    * Alleged improprieties force out 2 parole board members
    * Suburban officer accused of using excessive force sentenced
    * Illinois tax break deals yield uncertain results for state
    * Rauner: Illinois budget standoff 'could go on for a while'

    * Legal marijuana stirs hope in southern Illinois town
    * Statehouse Insider: We have a problem. Is anyone there?
    * AP Exclusive: Legal marijuana stirs hope in southern Illinois town
    * Gov. Rauner: Illinois budget standoff 'could go on for a while'
    * State revenues down by nearly $1 billion in first quarter
    * Former Gov. Quinn makes speech in Champaign, says he has no plans to run for office
    * Supporters of sexual assault, domestic violence programs warn of cuts due to budget impasse
    * University presidents urge end to Illinois budget stalemate
    * Illinois attorney general seeks details from Volkswagen
    * Home day care workers seek repayment of union dues

    * Property tax hike adds up to 'a lot of hot dogs'
    * This tech company is 'ugly and boring'—and booming
    * South Side hospital may reverse years of losses
    * Big boys to change Chicago's skyline
    * Big blunders by Rauner, Madigan leading to Springfield stalemate

    * 6 wounded in shootings since Saturday morning
    * 2 shot, including 15-year-old boy, since Friday night
    * 2 teen boys suspected in Logan Square armed robberies of cellphones
    * Flags tell winning story at Wrigley this season
    * 74 overdoses in 72 hours: Laced heroin may be to blame
    * Famous Naperville Halloween house goes dark
    * Motorist rescues 2 women being mauled by pack of dogs in Indiana
    * Man exposes himself, touches woman on Green Line platform
    * Woman charged with reckless homicide in I-294 death of off-duty officer
    * Wisconsin airman among 11 dead in Afghanistan plane crash

    * Legal marijuana stirs hope in southern Illinois town
    * Bernard Schoenburg: An added loss for workers at Illinois State Museum
    * Angie Muhs: Comics, the 'Power of the Press' and more
    * Bernard Schoenburg: An added loss for workers at Illinois State Museum
    * Statehouse Insider: We have a problem. Is anyone there?
    * Statehouse Insider: We have a problem. Is anyone there?
    * Jim Bordeaux-White: Help give lung cancer patients hope for a cure
    * Charles Krauthammer: Obama's Syria debacle
    * Gov. Rauner: Illinois budget standoff 'could go on for a while'
    * State revenues down by nearly $1 billion in first quarter

    * Look back: Highlights from Melissa Merli on the week that was
    * Tom Kacich: Could Springfield atmosphere affect selection of auditor general?
    * Look ahead: Top picks from Melissa Merli for the week to come
    * Ask 'Mimi,' Oct. 4, 2015
    * 'Ungifted' is nothing short of genius
    * Mike Pemberton/Voices: Newspaper, coffee and the way of the world in a hotel lobby
    * C-U haiku, Oct. 4, 2015
    * Esther Cepeda: Spare the talk of an 'Asian invasion'
    * John Frayne: Gunns mixed it up in an intimate setting
    * Ted Kooser: An American Life in Poetry, Oct. 4, 2015

    * Federal court: Intent matters in migratory-bird deaths
    * The Latest: Dolphins cornerback Grimes hurts right knee
    * 5 things to know about the Nobel Prizes
    * The Latest: Hurricane Joaquin menacing Bermuda
    * Images: An Hour in Schaumburg

    * 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

    * Senators Introduce Landmark Bipartisan Sen......

    * Committee Passage of Measure to Support Ju......
    * Chez Family Foundation Center for Wounded ......

    * Hebru Brantley Mural Completed On Broadway
    * East St. Louis teachers walk out.
    * Sunday posts, pics and tweets.
    * Meet Uptown's "Gangsters and Ghosts" On October 29th
    * You’re Invited – Illinois REbarcamp Powered by YPN!
    * Next 10 general admission registrants for Vertex 15 Conference get extras
    * Chicago chapter of NAREB collaborates to serve consumers
    * 6 things you need to remember about TRID before Oct. 3
    * Watch for Illinois REALTOR® story about Kinney scholarships
    * NAR honors Goodwin and four other Good Neighbor winners

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