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.
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        


17 Comments
  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:

    CAT


  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.

    http://economix.blogs.nytimes.com/2013/11/26/effective-corporate-tax-rates/


Sorry, comments for this post are now closed.


* Chicago Teacher Pension Fund explains borrowing plan
* House comes up short on temp budget
* Emanuel announces more school cuts, possible tax hikes
* Rauner, Teamsters agree to new contract
* Chicago-style accounting
* Question of the day
* Always read the fine print
* *** UPDATED x1 *** An independent mind
* *** UPDATED x1 *** Rauner uses amendatory veto to strike legislative pay raises from BIMP bill
* Um... Huh?
* When "fundamentally wrong" becomes "greater flexibility"
* Ounce joins budget coalition statement
* Nuding urges thumbs down on one-month budget
* *** LIVE *** Overtime session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

          
        * Android top in the US but not Europe; Galaxy S6 sales boost Samsung
        * Facebook quietly redesigns site logo with new font
        * Google Drive now works with custom maps from My Maps
        * Tegra X1 Chromebook might be happening, codenamed “Smaug”
        * Early adopters of the LG G4 can also receive a free leather back panel
        * YouTube brings 60fps support to its mobile Android app
        * Dubai Emirates lounges now offering Qi charging stations

        * It's time: Team USA challenges Team Japan to giant robot duel
        * DotA 2’s The International Prize Pool Hits $15 Million
        * Xiaomi Confirms 34.7 Million Smartphones Sold In First Half Of 2015
        * Batman: Arkham Knight’s PC Issues Were Known For Months
        * Windows 8.1 Finally Overtakes Windows XP On The Desktop
        * Garmin Varia Wants To Help Keep Cyclists Safe
        * BMW Open To Idea Of Working With Apple On Car Project

        * Players value Double Duty Classic experience
        * Abreu more patient as pitchers adjust
        * Sale could face Buehrle if Sox shuffle rotation
        * Chicago panel offers lessons for on and off field
        * White Sox lookback, Part 2: WS Game 1
        * Jennings returns; White Sox option Guerra
        * After the glory: Paulie relishes second act

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


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

        Archives
        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


        * Illinois House defeats 1-Month Budget, Battle C.....
        * Illinois House defeats 1-month budget, battle c.....
        * Parents, service providers at risk without Illi.....
        * Illinois Democrats seek temporary budget to kee.....
        * House Defeats 1-Month Budget; Same Bill Coming .....
        * House Defeats 1-Month Budget; Battle Continues .....
        * Rauner vetoes infrastructure funds for WSRC - R.....
        * Illinois shutdown looms: What it means - Chicag.....
        * No IL budget means partial gov't shutdown - WTH.....
        * Dems promise to try again after one-month budge.....


        * Champaign man who admitted killing U of I student sentenced
        * Mayor: Chicago school cuts include layoffs, less maintenance
        * Illinois House defeats 1-month budget, battle continues
        * 2 red panda cubs born at Chicago's Lincoln Park Zoo
        * U of Illinois president puts raise talk off over budget
        * Emanuel won't detail what he knew on Clinton emails
        * Ex-Illinois women's basketball players sue school, coach
        * Illinois rainfall of 9.53 inches set June record
        * Property tax freeze, Chicago pension relief advance
        * Budget impasse shuts down program for troubled youths

        * Former Illinois treasurer employees under Dan Rutherford sue over firings
        * Lawmakers point fingers over budget impasse; temporary budget in limbo
        * Illinois medical marijuana patients now number 2,600
        * Budget impasse shuts down Lincoln's Challenge program for troubled youths
        * Illinois House defeats 1-month budget; same bill coming from Senate
        * Rauner vetoes pay raises for state lawmakers
        * Illinois Senate advances plan to increase school funding
        * Illinois Senate committee advances plan to increase school funding
        * Democrats push 1-month budget; Rauner, GOP likely to oppose
        * Rauner budget chief: Democrats' spending plan 'unconstitutional'

        * McDonald's localizes menus with pulled pork, bacon McMuffins
        * House spikes emergency budget
        * Justice Department probes airline price collusion
        * Who likes a sales tax hike? Not too many
        * U of C, Little Company hospitals team up on pediatric center


          * Man who admitted killing U. of I. student from Chicago sentenced
          * College of DuPage turns over Breuder expenses in response to Tribune lawsuit
          * CPS set for $200 million in cuts; mayor floats property tax plan
          * Woman tells of failed tries before deadly Indianapolis house explosion
          * City extends taxing power to online movies, music, more
          * Former Illinois treasurer employees sue over firings
          * Rauner and Democratic lawmakers show no signs of progress
          * Alleged 'squatters' get boot, charges filed
          * Preckwinkle defends quick tax hike push
          * Lawyer for woman accused of animal neglect: Rescued dogs weren't hers


          * After pension payment, Chicago Public Schools to make $200M in cuts
          * CPS, Emanuel warn of deep cuts, layoffs to school district
          * After marriage equality, what's next for the LGBT movement?
          * The night Chicago politicians spent punching each other in the face
          * The legacy of Willie Dixon on his 100th birthday
          * Supreme Court rules all states must license and recognize same-sex marriages
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions
          * Democratic lawmaker 'mad as hell' over Rauner's veto of state budget
          * At eleventh hour, CPS makes huge pension payment
          * Contract talks break down between Chicago teachers and city


          * Former Illinois treasurer employees under Dan Rutherford sue over firings
          * Lawmakers point fingers over budget impasse; temporary budget in limbo
          * Illinois medical marijuana patients now number 2,600
          * Budget impasse shuts down Lincoln's Challenge program for troubled youths
          * Rauner vetoes pay raises for state lawmakers
          * Illinois Senate advances plan to increase school funding
          * Illinois Senate committee advances plan to increase school funding
          * Our Opinion: Rauner correct to OK school payments
          * Michael Gerson: Religious and gay rights must coexist
          * State lawmakers enter new fiscal year preparing to vote on temporary 'essential services' budget


          * Reginald Scott Sentencing
          * Best of teams: No. 38, Penn State
          * Best of Illini: No. 38, Kenny Nelson
          * Illinois budget stalemate already taking toll
          * Sports Talk 07-01-15
          * Group pedals, pounds nails
          * The 7 Illini who filed suit
          * Updated: Budget impasse shuts down Lincoln's Challenge
          * Flooding situation improving at Starved Rock
          * Family recounts suffering, loss


          * Aurora man charged with terrorist support skips hearing
          * Anisimov excited to join Hawks; Detroit signs Richards
          * You can be among first to get new Harper Lee book
          * California cities show biggest water savings yet in drought
          * Lisle's Eyes to the Skies carnival kicks off fest

          * Friday City Trash Pick-Up Is On Thursday This Week
          * Chicago's Archbishop Comments On Supreme Court Decisions
          * Cantina De La Granja Slated For Late July Opening
          * Emanuel Provides Details On CPS Cuts, Possible Property Tax Hike
          * "Dispensary 33" Coming Soon to 5001 N. Clark
          * Durbin celebrates at Gay Pride Parade 2015
          * Illinois Senate Passes Temporary Budget
          * Illinois Senate Passes Temporary Budget (UPDATED)
          * Cullerton Introduces New Property Tax Freeze Bill
          * Cullerton Introduces New Property Tax Freeze Bill (UPDATED)


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report

              * Senator slams for-profit college for 'dece......
              * Durbin pushes for greater access to heroin......

              * Kirk supports Granite City stroke survivor......




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