Proposed tax breaks for Chicago’s financial exchanges, which could cut state tax revenue by about $70 million year or more, won endorsement from a key Illinois Senate committee Thursday morning.
But the measure continues to encounter resistance from Republicans, who are pushing for broader tax relief for business as part of any package.
And legislative leaders say Gov. Pat Quinn indicated in a meeting Thursday morning that he is not on board.
“I don’t want to be part of a perception that we are cherry-picking who we help,” said Senate Minority Leader Christine Radogno (R-Lemont) one of four members of the Senate Executive Committee to vote present. The vote was 10 yes, four present, to recommend Senate passage.
The bill, which would reportedly cut CME Group’s state income tax burden in half, is expected to come up for a vote in the second week of veto session. CME and CBOE have repeatedly threatened to pull up stakes and move out of Illinois if they didn’t get some relief. CME claims to be the largest single corporate taxpayer in Illinois, and claims that its annual income tax burden rose by $50 million after the tax was raised in January.
*** UPDATE *** Crain’s…
(T)he price tag has risen on the bill to help CME Group Inc. and CBOE Holdings Inc., hitting the $120-million-plus mark. […]
Mr. Cullerton’s office conceded that the cost of the CME-CBOE bill to the treasury has increased.
The latest estimate is that the bill would reduce state revenues $75 million a year from the CME, and $7 million from the CBOE, Mr. Cullerton’s spokesman said, with the city of Chicago losing $5 million a year. In addition, restoring the research and development credit would cost the state $25 million to $30 million a year.
Senate Republican place the cost somewhat higher: $100 million to the state each year just from the CME.
* The Question: Do you support this income tax relief package for CME Group and CBOE to keep them from leaving Illinois? Take the poll and then explain your answer in comments, please. Thanks.