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.


* Reader comments closed for the weekend
* SUBSCRIBERS ONLY - Next week's pressers
* Today's long story
* Rauner approval rating: 40-36
* AP and Chicago Tribune - Study: Exelon subsidy would cost $1.6B over 5 years
* Question of the day
* Illinois Credit Unions – A Smarter Choice
* Advertisers behaving badly
* Your daily "right to work" roundup
* *** UPDATED x1 *** It's just a bill...
* Ford plant reaches 100,000 cop car milestone
* House approves marijuana tickets
* *** LIVE *** Session coverage
* More cuts announced
* 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

          
        * IFA GPC 2015 wrap-up: from healing wearables to virtual kitchens
        * Hello?! Nokia Releases Official Statement Denying Reports It Will Return To Mobile Handsets
        * Our 5 favourite new Windows Phone apps of the week
        * Huawei P8 Lite now available to pre-order through independent retailer in Germany
        * Do we need new designs and form factors?
        * Verizon’s HTC One (M8) bug crashing apps left and right
        * Verizon to sell LG’s Watch Urbane for $349 from April 28th

        * People Want the Apple Watch to Have Tacos. Because Tacos.
        * Make Your Home More Secure by "Casing Your Joint"
        * Re/code on TV: Mossberg, Swisher Talk Apple Watch and a Microsoft Revival
        * Build Your Own LED Light Panel with a Brownie Pan
        * Silent Hills Teaser P.T. Being Yanked From PlayStation Store
        * Leaked Windows 10 For Phones Build Shows Live Tile Tweaks
        * Destiny: Iron Banner Returning On April 28th

        * White Sox turn to Noesi to open series in Baltimore
        * Sox grab lead with five-run sixth, then hold off Royals
        * Melky's leap at wall helps White Sox edge Royals
        * Robertson makes rare quasi-start in suspended win
        * Sox walk off on Garcia's single in suspended game
        * Abreu receives his 2014 Rookie of the Year GIBBY
        * Sox walk off on Garcia's single in suspended game

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


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

        Archives
        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 Republicans target political hiring; D.....
        * Springfield can be speedy when it wants to..
        * Illinois GOP targets political hiring; Democrat.....
        * State budget cuts to hit students, sickle cell .....
        * Chuck Sweeny: Gov. Bruce Rauner's Turnaround Ag.....


        * Goodell: Emanuel delivered in bringing NFL draft to Chicago
        * Illinois lawmakers consider ban on crib bumper pads
        * Chicago mother of earthquake survivor worries of his return
        * Swansea school district settles civil rights complaint
        * ISP investigates East St. Louis Housing Authority shooting
        * Illinois GOP targets political hiring; Democrats wary
        * U of Illinois spends $30K for Biden speech on sex assault
        * 1 firefighter injured in suburban warehouse fire
        * 'To Kill a Mockingbird' play to go on under Harper Lee group
        * 2 sentences reduced in St. Clair courthouse drug scandal

        * Illinois GOP targets political hiring; Democrats wary
        * Crib bumper bills bump heads in General Assembly
        * New state school superintendent says funding fix could take years
        * Statehouse Insider: Rauner's story of unions stifling innovation "sounds like pure fiction," union says
        * New schools chief says funding fix could take years
        * State budget fix includes $106M in Medicaid cuts
        * House passes bill to create high-speed rail oversight panel
        * Bill would allow students to opt out of state tests
        * Illinois House OKs time limit on storing license plate data
        * House passes bill to create high speed rail oversight panel

        * The opportunity in boomers and their aching backs
        * Here's how Method's new Chicago factory went green—and how much it cost
        * Up on the roof, it's green as can be
        * Getting to Platinum LEED requires lead time
        * Letters to the editor


          * West, South Side shootings leave 1 dead, 5 wounded
          * Naperville woman critical after falling 25 feet in Starved Rock
          * No bail for 2 men charged with shooting at off-duty police officer
          * OPRF debuts Meghan Trainor parody video, 'All About That Pride'
          * Franklin Park man killed while bicycling on Mannheim
          * Boys hospitalized after being struck by vehicle in Humboldt Park
          * Lockport man dies in crash
          * Police: Dog that 'came at' officers fatally shot
          * Missing U of Colorado student from Western Springs located
          * Burglars try, fail to break into Mag Mile store


          * Illinois prisons chief says union contracts causing problems
          * Sheriff Dart to investigate unlicensed rehab centers
          * Rauner's first 100 days: The fight between unions and Rauner
          * Large provider of Chicago mental health services, C4, is closing
          * After detective’s acquittal in fatal shooting, prosecutors face criticism
          * Mayor Emanuel taps CTA director to be chief of staff
          * Portage Park church mourns 'favorite son' Cardinal George
          * Lawmakers fast-track bill on Obama library, Lucas museum
          * Emanuel announces more FAA meetings on O'Hare noise
          * Cook County prosecutor to try new approach to drug crimes


          * Illinois GOP targets political hiring; Democrats wary
          * Crib bumper bills bump heads in General Assembly
          * New state school superintendent says funding fix could take years
          * Bernard Schoenburg: Downstate representation gone from Illinois Commerce Commission
          * Statehouse Insider: Rauner's story of unions stifling innovation "sounds like pure fiction," union says
          * Statehouse Insider: Rauner's story of unions stifling innovation "sounds like pure fiction," union says
          * Our Opinion: The promise and the perils of YouTube
          * Andy Shaw: Preserve police conduct records to better serve and protect
          * Angie Muhs: Reader panel will help connect Springfield to its newspaper
          * Deckle McLean: Independent voters the new political wild card


          * Upcoming Services
          * Swansea school district settles civil rights complaint
          * Kicking the can farther away
          * Q-C Food Forest group needs volunteers for planting
          * Q-C women are project engineers on Genesis building job
          * Hannah’s Playground closer to becoming a reality
          * Chicago mother of earthquake survivor worries of his return
          * Boil order issued
          * Collinsville woman dies in house fire Sunday
          * Two men arrested following armed robbery in Rantoul


          * Six reasons the Blackhawks beat the Predators
          * Round Lake Beach police rally to help fellow officer
          * Bulls know there's no room for turnovers
          * White Sox pocket pair of wins over Royals
          * Six reasons why the Blackhawks beat the Predators

          * IVCC's Mr. Phillips goes to Washington
          * Pallone Honored for Efforts to Address Hea...
          * OUR VIEW: Repair formula for FEMA distribu...
          * VA opens claims office at Scott
          * Riopell: Aaron Schock's loss is Bob Dold's...
          * Waterford Racing Club one-two at local league
          * Another Aaron Schock staffer is served a g...
          * Transparency called for in ISU sexual misc...
          * Davis: Improvement needed in Springfield V...
          * Students stress importance of 4-H to Congress

          * Word on the Street: Aside from plushness, ......
          * Northbrook Boy Continues Quest for Diabete......

          * 37 US Senators call on EPA to stand tough ......
          * Battle Buddies share persistence...

          * Opt out courage, threats and cowardice.
          * Union democracy by push polls.
          * Broadway is Open!
          * We almost beat Representative Christian Mitchell last year and he won’t let it go. Wait until we beat him next time.
          * Raunigan.
          * Sunday posts, pics and tweets.
          * Chiraq
          * I got a nice note from my colleague Curtis House. “You can’t represent sitting on your assets.”
          * Here are the undecideds on the opt out HB 306. Make the call.
          * My afternoon at the Network for Public Education Chicago conference.


          * IDPH Moves to Eliminate Meningococcal Meningitis - New Vaccination Requirements for Adolescents
          * YOUR ACTIONS MATTER! kicks off statewide as preparations begin for new server training law
          * Emergency Management Officials Launch Weather Alert Radio Contest - ‘Weather Alert Radios Save Lives’ contest promotes awareness; 100 radios to be awarded
          * IDOT Launches Statewide Listening Tour to Discuss Illinois Infrastructure Needs, Priorities
          * Illinois Student Assistance Commission Encourages Families To Learn About Personal Finance During Money Smart Week Event





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