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* Press release…
State Representative David McSweeney (R-Barrington Hills) hopes to help create manufacturing jobs in Illinois by exempting manufacturers from the state’s income tax.
“We need to have a strong manufacturing base to have a strong Illinois economy,” McSweeney said. “We continue to lag in job creation and manufacturing companies are generally not considering Illinois as a top tier choice for expanding. Eliminating the income tax on manufacturers will create a strong incentive for manufacturing companies to consider locating to Illinois and it will encourage existing Illinois manufacturers to stay in Illinois and even expand their operations here.”
House Bill 4381 would allow existing and new manufacturing operations (corporations as well as LLCs and LPs) to fully deduct their net income, which essentially would exempt them from the state’s income tax. For a manufacturer with $10 million of Illinois net income, HB 4381 would reduce that manufacturer’s tax liability by $525,000 ($10 million x 5.25% corporate tax rate).
While manufacturing jobs have increased in other states, Illinois continues to shed manufacturing jobs. From 2001-2015, Illinois manufacturing jobs have decreased by 38.9%.
“We have to get the Illinois economy moving again and reviving the manufacturing sector is an important step we need to take,” McSweeney said. “The current policies are not working. Raising taxes has only served to drive middle class jobs away from Illinois. Let’s lower taxes and create incentives for manufacturers to invest in Illinois.”
Representative McSweeney has asked the Commission on Government Forecasting and Accountability (COGFA) to review the full revenue impact of HB 4381. McSweeney said, “The best way to create new revenues for the state is to create new jobs and thus new taxpayers. I’m confident that my proposal will create new jobs.”
HB 4381 has been filed and is awaiting assignment to a legislative committee.
Your thoughts on this idea?
posted by Rich Miller
Wednesday, Jan 6, 16 @ 9:12 am
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Doesn’t taxing income encourage manufacturers to reinvest the income in the business rather than taking it as profit? If it isn’t taxed, is the incentive to reinvest reduced?
Comment by NoGifts Wednesday, Jan 6, 16 @ 9:15 am
I’d support this legislation for companies that have their headquarters in Illinois. (John Deere and Caterpillar for example). Both these companies have had large layoffs in Illinois the past several years. I’m not sure about companies with headquarters out of state. It’s unlikely they will re-invest their profits in Illinois.
Comment by Almost the Weekend Wednesday, Jan 6, 16 @ 9:20 am
Gosh I hope t actions create those $10 an hour jobs. At 18% over the minimum wage those would be great paying jobs. Manufacturers get enough corporate welfare. Sheesh
Comment by Triple fat Wednesday, Jan 6, 16 @ 9:24 am
To all those people who decry those lower class citizens on welfare assistance who pay no taxes and have “no skin in the game”, what would the skin in the game be for a manufacturing plant if this bill passes? I mean its not as if taxpayers paid for the roads, railways and ports to get their product to market. Or its not as if taxpayers didn’t educate their workers. Or subsidize their healthcare and income if their wages aren’t enough.
Im all for being competitive with other states. But businesses need to pay their fair share of the public benefits. Or start paying for roads, bridges and schools themselves. How many of these manufacturers pay state income tax anyway?
Comment by Abe the Babe Wednesday, Jan 6, 16 @ 9:24 am
So, who will be on the hook for the loss of tax revenues?
Comment by Trolling Troll Wednesday, Jan 6, 16 @ 9:25 am
And let’s just do it without any kind of guarantee that it will create jobs. I mean the manufactures shouldn’t have to suffer any tax consequence if they don’t create any ‘well paying’ jobs. Let’s just give it to ‘em because… Because the Beast must be fed!
Comment by Triple fat Wednesday, Jan 6, 16 @ 9:28 am
Aren’t profits on sales made out of of state already untaxed? How much of manufacturing output is sold in-state?
Where did McSweeny get a loss of nearly 40% of manufacturing jobs in four years?
Here are some actual facts from the National Association of Manufacturers.
http://www.nam.org/Data-and-Reports/State-Manufacturing-Data/2014-State-Manufacturing-Data/Manufacturing-Facts–Illinois/
Comment by wordslinger Wednesday, Jan 6, 16 @ 9:28 am
Is there another state with a similar “structure” that Rep. McSweeney can point to and that state’s “success” in attracting manufacturing and the jobs these manufacturers created?
I know Rep. McSweeney is a smart guy, so can he show some ROI that another state reaped from a program like this?
Comment by Oswego Willy Wednesday, Jan 6, 16 @ 9:31 am
Sounds like a great way to get our fiscal house in order! Who needs revenues? It worked for Dorothy in Kansas!
Comment by Johnny Pyle Driver Wednesday, Jan 6, 16 @ 9:32 am
In a vacuum, this idea would have some merit. But, when you consider the myriad tax breaks that businesses already enjoy (ostensibly to stimulate growth that doesn’t necessarily materialize), consider the alarming maldistribution of wealth, and consider the enormous revenue shortfall, this is bad policy. Also, there’s only so much the state can do to actually stimulate growth. Much of the decline in manufacturing (over the last 30 years) is attributable to automation, and simple lack of demand globally.
Comment by out of touch Wednesday, Jan 6, 16 @ 9:34 am
Illinois’ “single sales factor” corporate tax make it hard to figure what the impact of this proposal would be. For companies like Cat and John Deere, whose income is largely derived from sales outside the state, this probably won’t have much of an affect because they’re not pay state taxes on that income right now.
Comment by RTH Wednesday, Jan 6, 16 @ 9:36 am
I think the best thing we could do for manufacturing businesses (and all businesses) would be to reform the workers compensation system.
I don’t hate this proposal as much since manufacturing brings money into the State and we are lagging in an extreme way, maybe we should take substantive efforts to try to attract and grow our existing base.
If nothing else it is an attempt to grow our economy and the Democrats aren’t even trying anymore, at least someone is making proposals.
Comment by Ahoy! Wednesday, Jan 6, 16 @ 9:36 am
Great Idea! Also no personal income tax, as it discourages work and encourages people to leave the state. And we should definitely lower the sales tax, as it discourages commerce. What could possibly go wrong?
Comment by UIC Guy Wednesday, Jan 6, 16 @ 9:36 am
Corporate welfare plain and simple. There are ways to incentivize manufacturing through enterprise zones or targeted EDGE tax credits. Just giving all manufacturing an exemption is to rob the state of a lot of needed income. Look I totally get that we need to attract, maintain and grow our manufacturing sector. But this is simply adding to corporate profits on the mere HOPE that it will increase the sector. COGFA will have a field day with this. They know the numbers aren’t going to square. It’s voodoo economics, it’s the ridiculous Laffer curve in action which has been recently proven to be a disaster for states. All I have to say is KANSAS. In Kansas the “free market” no tax folks got their way 100%. Everything they wanted to do they got too economically. Look at where Kansas is now. Bottom line is that it’s simply a wealth transfer to the owner/investor class. Corporate welfare. Let’s spend our time trying to figure out how to do specialized manufacturing zones that get very targeted specific benefits that don’t drain the coffers. Again, increase the lifeblood of economy by increasing wages and benefits.
Comment by Honeybear Wednesday, Jan 6, 16 @ 9:37 am
The original prohibition against Special Legislation in the 1870 Illinois Constitution read:
“§ 23. The general assembly shall have no power to release or extinguish, in whole or in part, the indebtedness, liability, or obligation of any corporation or individual to this State or to any municipal corporation therein.”
It now reads: “The General Assembly shall pass no special or local law when a general law is or can be made applicable. Whether a general law is or can be made applicable shall be a matter for judicial determination.”
Sorry Mr. McSweeney, but it won’t pass Constitutional muster.
Comment by Springfieldish Wednesday, Jan 6, 16 @ 9:39 am
Word- you link may have been broken…
http://www.nam.org/Data-and-Reports/State-Manufacturing-Data/2014-State-Manufacturing-Data/Manufacturing-Facts–Illinois/
****
Maybe the superstars had their charts upside down??? /s
Comment by Anon221 Wednesday, Jan 6, 16 @ 9:39 am
Considering our current fiscal condition - this strikes me as dangerously out of touch. If it’s only pandering to the manufacturing community and the money behind it. Then that would be even worse from an ethical and moral standpoint.
Comment by Lincoln Lad Wednesday, Jan 6, 16 @ 9:41 am
Nope- when I checked the link in a .doc, it worked OK, but not in the posting. Go to Data and Reports, scroll down, and click on Illinois. Thank you wordslinger for the link!!! Looks like we’re already healthier than IN or MI.
Comment by Anon221 Wednesday, Jan 6, 16 @ 9:43 am
Taxable income is apportioned according to where sales are made. They do not collect sales tax on sales shipped out of state. The are exempt from paying sales tax on equipment deemed part of the manufacturing process. Up until recently they had a little thing known as Manufactuerers Purchase credit- where they got to take credits for the tax they would have paid on their tax free purchases. Free Money don’t you think. Take a look at all the grants they receive from the State, where taxpayers pay for their equipment. ENOUGH!!!
Comment by Triple fat Wednesday, Jan 6, 16 @ 9:44 am
This is about as R-Barrington Hills as it gets.
Comment by LizPhairTax Wednesday, Jan 6, 16 @ 9:45 am
http://www.cbpp.org/research/lessons-for-other-states-from-kansas-massive-tax-cuts
Comment by Trolling Troll Wednesday, Jan 6, 16 @ 9:45 am
I don’t think McSweeny has done his homework here.
His example of all of a manufacturer’s net income being taxed at the 5.25% rate doesn’t pass the eyeball test. What manufacturer sells all their output in-state?
Plus, for crying out loud, if you’re going to call for a tax cut, put a dollar figure on it if you want to be taken seriously.
Comment by wordslinger Wednesday, Jan 6, 16 @ 9:51 am
As others have alluded to, the single sales factor renders this proposal largely meaningless other than a nice press release for McSweeney. In Illinois, we collect corporate income tax based off of where sales are located, it has nothing to do with a companies presence here in Illinois. Not number of plants or amount of land, not the number of employees, just sales.
If a manufacturer is in Illinois, and exports 100% of their products to other states, they have zero corporate income tax liability. And for companies that do have their production here, there have historically been a number of other credits they can receive, whether it was the MPC, the MM&E or the much beleaguered EDGE credit.
What this proposal does is give massive tax cuts to manufacturers who are out of state but have a disproportionate amount of their sales in the State of Illinois. This will do nothing to create jobs in the State, but will blow a hole in the budget, and pad the bottom lines for a bunch of out of state operations. But again, nice press release.
Comment by Juice Wednesday, Jan 6, 16 @ 9:55 am
This is mostly a fluff bill, with little financial impact other than to claim a “better business environment.”
Maybe claiming a “better business environment” is worthwhile on its face, regardless of substance. Part of economics is, after all, shared group attitudes. It certainly plays well in political campaigns.
The giant manufacturers in Illinois actually pay very little in state income taxes now, and the same would go for those big companies McS. says he is trying to attract.
On the other hand, anything which helps the smaller companies to start, stay and grow is worthwhile. But many in those phases of the growth cycle are investing back into the company and booking little in taxable income, or are Sub S or other legal entities which count income as personal.
Comment by walker Wednesday, Jan 6, 16 @ 9:57 am
Let’s get creative with this. Eliminate all corporate loopholes and special breaks and replace them with a plan that any company, large or small, that creates 5% or 10% more hard, documented full time jobs gets a 0% tax rate for the tax year the jobs were created in. THAT would be an incentive.
Note: I have no idea how the numbers would break out but it would be guaranteed to put people to work in the state.
Comment by RNUG Wednesday, Jan 6, 16 @ 9:58 am
@wordslinger - press release references 2001-2015. See numbers as reported in Crains.http://www.chicagobusiness.com/article/20151128/ISSUE05/311289998/states-job-woes-start-on-the-factory-floor?X-IgnoreUserAgent=1
Comment by thetruthisoutthere Wednesday, Jan 6, 16 @ 9:58 am
Speaking of manufacturing growth, did we miss over the holidays Gov. Rauner’s proclamation thanking the UAW for using their contract negotiations to leverage $1 billion in new investment in the Chicago Ford plants?
Must have missed it. What governor wouldn’t welcome $1 billion in new auto plant investment?
Maybe the camel ate it in Morocco.
Comment by wordslinger Wednesday, Jan 6, 16 @ 10:00 am
I just searched keywords in the bill, did not read all 96 pages, if I am missing something someone please correct me.
1. God bless the good work of the people at LRB. I believe Heather Harding is the one who drafted this. They take dense, not-well-thought out concepts and gestate them into actual legislation.
2. NOTHING in there about wages or benefits. You’re going to cut that sweet of a deal for manufacturers and throw in nothing to guarantee the quality of the jobs that are the supposed benefit?
A job that keeps you poor is just as bad as no job at all.
I’m all for manufacturer-employee-state win-win-win scenarios. This seems like a win-lose-lose.
Does anybody see it different?
Denzler with a strong early play for the Golden Horseshoe.
Comment by LizPhairTax Wednesday, Jan 6, 16 @ 10:04 am
Fake State Rep: “For my campaign supporters, anything. Anything for my campaign supporters; even exempting them from taxes everyone else must pay. For dem reglar folks, who don’t actively support my campaign fer re-election, have the Department of Revenue apply the full weight of the law, and nothing but the law.”
Btw, thank you for the Manufacturing data. So Illinois is only second to California in manufacturing. Wow, just about died laughing when I fell out of my chair. From reading the IPI, I thought CAT had closed up and put out a sign: “moved to the Philippines” or something. We all know how very little regulation or taxes there are in California. No EPA, no Department of Mines and Minerals, No department of Education. Yes, we all know about Libertarian rabid anti-government Zealot, Nancy Pelosi the Speaker of the House was from no government regulation no tax California. Big time Annie Rand freak. /snark
Comment by Beaner Wednesday, Jan 6, 16 @ 10:05 am
Have any other states tried this? If it is such a good idea, why aren’t most other states doing this?
“Profits” should only be exempt if they are reinvested back into improving a company’s Illinois facilities - or hiring Illinois workers. Otherwise such profits may end up: 1) giving management bonuses. 2) raising dividends for stock holders. 3) go into investing in plants in other states or countries.
Comment by Joe M Wednesday, Jan 6, 16 @ 10:06 am
As a 25 year veteran of a company that as of the end of February will have moved 250 manufacturing jobs from Illinois to Mexico,
(I’m in Engineering, so my job is OK-for now)
I ask myself “would Rep McSweeney’s bill have made an iota of difference on the fate of my coworkers and friends-several with 40+ years at the job-and the answer is that it would have made absolutely no difference-zero, bupkiss!! This is nothing more than a ‘feel good’ conservative puff piece of legislation. In the real world it is totally meaningless. Large corporations have found every loophole there is to avoid paying taxes, so the net result would be going from paying $0 in taxes to paying $0 in taxes.
In all my reflection over this, it is easy to blame corporations, foreigners, and a whole host of other parties, but when push comes to shove, the real criminals in all of it are us. We the people who demand that our 401k’s, retirement funds, pension funds and other investments continuously increase in value. That pressure forces CEOs and managers to do whatever is necessary to keep the stock price going up-including moving jobs to foreign lands.
Thanks for listening
train111
Comment by train111 Wednesday, Jan 6, 16 @ 10:11 am
COGFA will give a fair estimate, if there’s one to be had.
Comment by walker Wednesday, Jan 6, 16 @ 10:17 am
“House Bill 4381 would allow existing and new manufacturing operations (corporations as well as LLCs and LPs) to fully deduct their net income, which essentially would exempt them from the state’s income tax”
Big businesses don’t pay taxes in IL now! How does NOT taxing their profits benefit IL roads, schools, police, etc.?
Comment by Mama Wednesday, Jan 6, 16 @ 10:26 am
Addressing this issue in any meaningful way pretty much makes the service tax the elephant in the room.
Comment by The Captain Wednesday, Jan 6, 16 @ 10:29 am
Why not lower the corporate tax all together? I understand the logic of the argument that lowering the cost of doing business will improve the likelihood of some one to conduct business. Perhaps saying “manufacturing” can garner some support from dems?
Comment by NixonHead Wednesday, Jan 6, 16 @ 10:35 am
Bills that shrink state revenues should, at a minimum, include budget reductions to offset the loss in revenue.
Comment by Dozer Wednesday, Jan 6, 16 @ 10:40 am
Why in the world would we take away revenue right now? Even if you believe that this action would result in more people paying income taxes (or more in income taxes due to higher pay), that wouldn’t happen for years. And I’m not even sure I believe that this would result in more revenues down the road.
Bottom line, this is not the time to be doing this. You do not take away revenue sources when you can’t even keep going with the revenue you have right now. Dumb idea right now.
Comment by Demoralized Wednesday, Jan 6, 16 @ 10:42 am
I like the idea. Clearly what we are doing now is not working. We compete with other states for jobs. Maybe this would help. In local government we offer tax incentives to manufacturers such as the 6b in Cook County. This is no different. We should, however, do this on a temporary basis and then sunset it. At this point we can decide if the idea works or not.
Comment by Old Lobbyist Wednesday, Jan 6, 16 @ 10:47 am
Please, please STOP saying you’re going to “grow the economy” with business incentives. America has a healthy ecenomy when
Comment by cailleach Wednesday, Jan 6, 16 @ 10:59 am
= bupkiss!!=
I am not sure if that is the right way to spell the term but I love it anyway! Sinfully under used in my opinion and that should be our new state motto because it sums up our legislative and executive branches pretty well as much as it sums up this legislation. Taxes are not driving industry away, plain and simple.
Comment by JS Mill Wednesday, Jan 6, 16 @ 11:01 am
Sorry, wasn’t ready to post yet. America has a healthy economy when “the People” have money to spend. Growing wages grows the economy.
Comment by cailleach Wednesday, Jan 6, 16 @ 11:02 am
Illinois should flat out get rid of the corporate tax and increase the personal income tax to cover the shortfall.
Comment by Tone Wednesday, Jan 6, 16 @ 11:02 am
Bruce,
Where are the offsets to your Free Government Socialist Entitlements for the Top 1%?
Perhaps its time to end Wealthy Welfare and for the good of society!
Jack
Comment by Jack Stephens Wednesday, Jan 6, 16 @ 11:03 am
“- cailleach - Wednesday, Jan 6, 16 @ 10:59 am:
Please, please STOP saying you’re going to “grow the economy” with business incentives. America has a healthy ecenomy when”
But Illinois doesn’t have a healthy economy. Without Chicago, the state would be like Mississippi.
Comment by Tone Wednesday, Jan 6, 16 @ 11:04 am
–I like the idea. Clearly what we are doing now is not working. We compete with other states for jobs. Maybe this would help.–
The Raunerbot default. Lazy dorm-room thinking supported by more of the same.
What do manufacturers pay in state income tax now? Do you have any idea, at all?
They don’t pay on out of state sales. They don’t collect out of state sales taxes. They get EDGE credits, and on and on and on.
What’s the ROI on this proposal? Any data behind it, at all?
Comment by Anonymous Wednesday, Jan 6, 16 @ 11:21 am
Rather than tinker with tax rates, enterprise zones, EDGE tax credits, TIFs, we really need to constantly work on property taxes on manufacturing facilities. During the economic downturn we just went through, many companies didn’t make a dime, therefor no need to worry about income tax. What is always looming is the propert tax bill that needs to be paid regardless of profits. Let’s lower this burden by adding some taxes in the AG industry. Sales tax, moderate rates on productive acreage, fuel. Spread the pain so that it just doesn’t fall on manufacturing and small retail. I know this is impossible due to the bipartisan lobbying by the powerful Ag lobby, but open the dialogue.and please, don’t tell me about driving the cost of food up or hurting the ” family” farm. That is all nonsense.
Comment by Blue dog dem Wednesday, Jan 6, 16 @ 11:22 am
Ahoy@9:36. Amen. But Madigan is owned by trial lawyers and misguided Union bosses, so I have surrendered on this issue.
Comment by Blue dog dem Wednesday, Jan 6, 16 @ 11:27 am
Illinois is losing people and job growth is near 0. If it were not for the existence of the City of Chicago, the State would be losing jobs as well. The State is a full 2 years away from peak employment at current growth rates. Chicago is near peak employment. The US hit peak employment a few years ago.
When will people wake up and realize that things need to change?
Comment by Tone Wednesday, Jan 6, 16 @ 11:34 am
Anyone out there think that pensions should be taxed and this proposal passed into law?
Comment by Federalist Wednesday, Jan 6, 16 @ 11:35 am
== Anyone out there think that pensions should be taxed and this proposal passed into law? ==
Although it will him me personally, I’m OK with taxing retirement income. As I’ve said before, it would need to be a tax on ALL retirement income categories: pensions, IRAs and Social Security. If you wanted to try to protect / shelter the low income SS only retiree, then set a specific exemption dollar level that applied regardless of income source.
I think it would be iffy, legally, to just tax pensions while exempting SS payments because of the combination of the pension protection clause and the legal denial of some government workers (primarily teachers) to participate in SS. Some of them, even if they also worked jobs with SS taxed earnings, often can not collect SS (or receive reduced payments) due to one or more SS / government pension offset rules. Even in the case of a surviving spouse, some of those offset rules apply. That group of ‘non-coordinated’ government workers, at least, would have what appears to be a legitimate selective taxation or “diminishment” claim.
Comment by RNUG Wednesday, Jan 6, 16 @ 12:03 pm
== The State is a full 2 years away from peak employment at current growth rates. ==
Traditionally, the State of Illinois has lagged the national recession onset / recovery pattern by 18 to 24 months.
Comment by RNUG Wednesday, Jan 6, 16 @ 12:06 pm
-But Illinois doesn’t have a healthy economy. Without Chicago, the state would be like Mississippi.-
Very simply incorrect. Yes, Chicago is the driver but there are many sectors and cluster that could be enhanced to take a bigger role in our states economy.
Comment by Honeybear Wednesday, Jan 6, 16 @ 12:08 pm
I think they need to explore healthcare enterprise zones, especially for areas in Southern Illinois which are losing healthcare facilities at an alarming rate.
Comment by Honeybear Wednesday, Jan 6, 16 @ 12:10 pm
==- RNUG - Wednesday, Jan 6, 16 @ 9:58 am: ==
I like you plan. Add auditing their books (to make sure they actually added jobs) to your plan & will be perfect plan!
Comment by Mama Wednesday, Jan 6, 16 @ 12:19 pm
Tone,
Biggest “industry” south of I-80 are prisons. They seem to be doing well.
Bruce doesnt seem to be obsessed with breaking up those unions.
Not sure what your talking about.
Comment by Jack Stephens Wednesday, Jan 6, 16 @ 12:23 pm
Perhaps the new cannabis manufacturing industry in Illinois would benefit from this…since they have been set up to fail in the first place.
Comment by flea Wednesday, Jan 6, 16 @ 12:45 pm
Sounds more like he’s doing a favor for a particular buddy of his, and this is just the public excuse.
The more usual way to try and goose business activity and, hopefully, employment, is to allow for faster depreciation of capital investment in he business.
Frankly, tho, this pursuit of manufacturing is anachronistic and probably doomed. In this era of globalized markets and intense competition, the “good-paying manufacturing jobs” of the 1950s and 1960s aren’t coming back. Look at the Clybourn Planned Manufacturing District in Chicago.
And, as others have said before me, using tax breaks to goose development opens the question of how do you replace the lost revenue. Even if you think the new development will eventually “pay for itself,” there is a lag of several years. That’s how Kansas really screwed itself up a few years ago.
Comment by Harry Wednesday, Jan 6, 16 @ 1:04 pm
This proposal is a simplistic response to a complex problem. Why should manufacturers that pay their employees low wages with government subsidizing health care, housing, etc get a break? Why should manufacturers that shed jobs through automation get a break?
This is the quality of policy we see today. Cut taxes somewhere and hope for the best. The only guaranteed thing the repeated tax cuts since the Reagan years have produced is deficits.
Let’s keep cutting taxes and hope for a different result.
Comment by Sir Reel Wednesday, Jan 6, 16 @ 1:04 pm
==When will people wake up and realize that things need to change?==
And that change for you is getting rid of corporate taxes and increasing personal income taxes to make up the difference? That’s good change for you? Forgive me if I think you’re nuts.
And speaking of change, one of the reasons we are at the stalemate we are at now is because the Governor and his supporters insist on HIS change. Why does opposing the Governor’s specific changes mean to some people that one opposes change? I think there needs to be change. I don’t think some of the Governor’s proposals are what we need.
Comment by Demoralized Wednesday, Jan 6, 16 @ 1:49 pm
==When will people wake up and realize that things need to change?==
I think people realize that. But that change does not have to be the changes proposed by the Governor.
Comment by Demoralized Wednesday, Jan 6, 16 @ 2:02 pm
We have enough redistribution upward. No to this proposal
Comment by Just a Citizen Wednesday, Jan 6, 16 @ 2:12 pm
its a framework, but is a bad idea without some extras. the tax break needs to be tied to having median salaries above 30k a year, give or take. if a company brings good paying jobs the state benefits from the inc, spending and sales tax on the employees. However it if mostly minimium wage jobs the. it drains the economy. instead of gaining income tax and spenders, we gain people in need of food and healthcare which costs us more money.
I am all for giving income tax breaks to companies with good paying jobs. but it is a costly mistake to incentivize adding more poverty level people to the popultion.
Comment by Ghost Wednesday, Jan 6, 16 @ 2:22 pm
I think a bill like this is more fair than EDGE credits. This goes to everyone.
Comment by Stan Wednesday, Jan 6, 16 @ 3:50 pm
why tax business…..just tax the employees and owners
Comment by scott aster Wednesday, Jan 6, 16 @ 4:01 pm
But…if Illinois exempts manufacturers from the state’s income tax then they would not be able to take advantage of the EDGE program and keep their employees’ state income taxes./s
Comment by Enviro Wednesday, Jan 6, 16 @ 10:57 pm
Oh wait, this bill would exempt manufacturers from the IL state income tax and still allow the manufacturers to take advantage of the EDGE program and keep their employees’ state income taxes. /s
Comment by Enviro Wednesday, Jan 6, 16 @ 11:00 pm