SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Wisconsin tax expert: Proposal may not do much

Tuesday, Dec 11, 2012

* Senate President John Cullerton has often pointed to Wisconsin when he talks up his proposal to require publicly traded corporations to disclose their Illinois income tax payments. But at least one Wisconsin taxpayer group doesn’t think much of the idea

Taxpayer advocates in Wisconsin, which has its own tax-disclosure law, say corporations are generally structured in ways too complicated and too widely scattered to force them to produce a simple, accurate bottom-line figure on the revenue they generate in any given state. Skeptical economists in Illinois agree. […]

Tod Berry, president of the nonpartisan Wisconsin Taxpayers Alliance, said the information is likely to provide the public with, at best, an incomplete portrait.

“Based on Wisconsin’s experience with a different law but in the same general vein,” Berry said, “I would say that the value of this is somewhat limited and the resulting information is probably somewhat suspect just because of the reality and dynamics of a business organization.” […]

Berry points out that many corporations consist of a number of separate subsidiaries, many paying their own taxes. And many companies legally conduct at least a portion of their business in states that have no corporate tax, such as Delaware, by incorporating there rather than in the states where they’re actually based.

“Corporate structure makes this a lot more problematic than it may seem at first,” Berry said.

Judging the effectiveness of Illinois’ corporate subsidies is a nice idea, University of Illinois economist Fred Giertz added, “but this isn’t going to allow them (to do that).”

In case you’re wondering, the Wisconsin group doesn’t appear to be one of those knee-jerk “all taxes are horrible” outfits.

* Related…

* State to organize tax court

* Experts: Recession worst ‘fiscal cliff’ outcome for Illinois

* Quinn: Pension problem is Illinois’ ‘fiscal cliff’

* Erickson: Quinn wins prison battle as reps leave

* Editorial: What we learned from the veto session

* Finke: Hang on, January’s coming

- Posted by Rich Miller        


12 Comments
  1. - Horace - Tuesday, Dec 11, 12 @ 10:13 am:

    1. Figure out how much money the state needs to operate for a given year.

    2. Break that number down into how much should come from individuals, and how much from businesses.

    3. Take the part that is designated for businesses, and assign each and every business doing business in Illinois a dollar amount owed in taxes based on how much business Springfield deems they are doing in the state, or how much the business is worth.

    Pretty easy, yo.


  2. - M O'Malley - Tuesday, Dec 11, 12 @ 10:14 am:

    If corporations can’t figure out how much taxes they paid to a state they need better accountants, or the states need to redo their business organization laws. Really, a CEO doesn’t know how much their organization as a whole pays in state taxes?


  3. - John Parnell - Tuesday, Dec 11, 12 @ 10:18 am:

    This is a great idea. Too many business pretend they pay state taxes, but don’t pay any. While they are at it, the secret trust holdings in businesses should be reported to. Investments under 7 1/2 % of the ownership doesn’t have to be revealed. Illinois is the only state which allows this secret land trust.


  4. - Ken_in_Aurora - Tuesday, Dec 11, 12 @ 10:43 am:

    The Southern: “Let’s call this one lesson’s from the veto session, shall we?”

    My inner proofreader just fainted.


  5. - wordslinger - Tuesday, Dec 11, 12 @ 11:07 am:

    It’s silly to believe that corporations can’t provide state-by-state information. Can’t they just hire “Bob” from Accountemps?

    How about just a postcard then, drawn directly from their already-required Annual Reports.

    Annual Revenues
    Net Profit/Loss
    International Tax Liability
    Federal Tax Liability
    State and Local Tax Liability

    It would take an incompetent intern 10 minutes to provide that information.


  6. - walkinfool - Tuesday, Dec 11, 12 @ 11:22 am:

    They already calculate and provide the number to the state via tax returns. There is no extra work or cost required by the company — unlike what alarmists will spout. The problem is that those returns are confidential. The bill simply makes one small part of what has already been submitted to the state public.


  7. - thechampaignlife - Tuesday, Dec 11, 12 @ 11:32 am:

    Generic business taxes (as opposed to specific ones designed to encourage/discourage specific behavior) should exclude income generated from within Illinois as well as the wages paid to Illinois residents. That income comes from residents who already paid income and sales tax on it so we should be collecting the full amount at the source. We also should encourage jobs by excluding wages paid. Again, the money paid in wages will be taxed by income and sales taxes so just collect it at the source. What we want to capture is income that won’t be captured any other way because it went to jobs out of state, income/sales tax dollars by out of state consumers, or dividends paid to out of state shareholders. A net worth tax on businesses would also be useful to prevent them from hoarding cash which exceeds some prescribed level (e.g. total income for the past year).


  8. - Caveman - Tuesday, Dec 11, 12 @ 12:06 pm:

    It is ridiculous to believe that any corporation can be taxed. New taxes will just be passed on to the unaware consumer which might just be you.

    Also, the effect of the legislation is irrelevant. What matters is that it appears that something was done to get at that big bad corporation. Remember it is appearances, not reality that counts!


  9. - wordslinger - Tuesday, Dec 11, 12 @ 12:17 pm:

    Caveman, that’s a fantastically simple-minded argument.

    As a consumer, I have a choice as to whether I purchase something or not.

    For example, a corporate citizen such as CAT makes use of very expensive government services such as roads, airports, regulated rail, police, fire, courts, etc., as well as a publicly educated workforce to draw upon.

    I’m not in the market for a bulldozer anytime soon.

    You could take your argument and say that no business should ever be taxed because they pass on the cost in prices. And that no worker should ever be taxed because they pass on the cost in the price of their labor.

    Who’s left to pay for civilization?


  10. - Caveman - Tuesday, Dec 11, 12 @ 1:15 pm:

    Me thinks someone is slinging too many words.

    You cannot equate the worker with a corporation, unless the worker is self-employed and sets his own rates. He will pass along his new taxes until he prices himself out of business. Or he will suffer the loss himself. But the worker cannot just raise his cost of labor. Nor can he avoid the tax.

    Don’t just throw out the truth because it is simple. Its when things are made complex that we lose sight of answers.


  11. - the Other Anonymous - Tuesday, Dec 11, 12 @ 1:26 pm:

    I support having corporate tax returns — at a minimum for publicly held corporations — become publicly available, but at the federal level more so than the state. The better rationale for requiring this information is that tax returns often show a different financial picture than annual reports do. This has to do with the differences between accounting rules and tax rules. As a matter of better disclosure under securities laws, federal corporate returns should be disclosed.

    Having said that, I really don’t see much value in disclosing state tax returns to determine which corporation pays its “fair share.” Now, keep in mind that I think the current culture of large corporations in this country is hurting the economy and ordinary people, and that I think corporations are undertaxed. I have no love for corporations because the people that run them put short term profit over everything else, including the long term viability of the company.

    But it’s just that I see too many ways that the information would be manipulated, and too few ways that the information would actually become useful (other than as public relations fodder). We know corporations exploit tax loopholes on the state (and federal) level, and we know how those loopholes are exploited. Plug them or don’t; disclosure won’t help.


  12. - wordslinger - Tuesday, Dec 11, 12 @ 1:54 pm:

    –He will pass along his new taxes until he prices himself out of business. Or he will suffer the loss himself. But the worker cannot just raise his cost of labor. Nor can he avoid the tax.–

    Why would that same logic, such as it is, not apply to corporations or businesses?


Sorry, comments for this post are now closed.


* AFSCME to announce strike authorization vote results tomorrow morning
* HGOPs fight back against Dem messaging on Rauner budget
* The appearance of access
* Today's number: $12,401,195,168.60
* It's just a bill
* Question of the day
* STI death rates on the rise here, but we're way down the list
* Local reaction to new immigration order
* *** LIVE *** House session coverage
* Is a sales tax on food really regressive?
* *** UPDATED x1 *** 14 of 16 CPS Latino Advisory Committee members resign in protest
* Not surprisingly, local governments hate permanent property tax freeze idea
* *** UPDATED x1 *** SIU's Dunn: "We need to acknowledge that FY16 is now lost"
* Mystery solved on Rauner's whereabouts
* Would term limits make much of a difference?
* Study looks at how race of prez delegates may influence GOP primary voters here
* Kennedy fundraises off of proposed budget cuts
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

...............
<


Loading


* Dan Brady: Current year spending plan before FY.....
* STATE AFFAIRS: Fiscal follies continue as Illin.....
* NFLPA Tells Free Agents to Avoid Bears - The Ka.....
* State pharmacy lobby fights stricter regulation..
* Bernard Schoenburg: Duckworth in weekly address.....
* Sneed: Gov and family spend his birthday skiing.....
* Chris Kennedy joins race for Illinois governor .....
* Rauner assures gathering that he will persist w.....
* Sneed: Gov and family spend his birthday skiing.....


* Hastert victim again argues for remainder of hush money
* Immigrants fearing deportation under Trump change routines
* Republicans who won after rowdy town halls now avoiding them
* Not-for-profit owner pleads guilty to bankruptcy fraud
* Not-for-profit owner pleads guilty to bankruptcy fraud
* Experts: Science behind 'abortion reversal' is flawed
* Immigrants change up their routines, brace for arrest
* Illinois education board vote settles 2008 funding lawsuit
* Hoopeston dealer gets life for cocaine and meth distribution
* Central Illinois woman gets 3-year term for baby's death

* Hastert victim again argues for remainder of hush money
* Senate urged to leave state's PE requirements alone
* AFSCME will announce results of strike-authorization vote Thursday
* Luciano: State lawmakers fiddling while Illinois burns
* Illinois education board vote settles 2008 funding lawsuit
* Municipal League opposed to permanent property tax freeze
* Illinois State University seeks public input on its future
* AFSCME strike authorization vote outcome to be revealed this week
* Cheri Bustos won't run for Illinois governor
* Illinois bill would rein in pro athletes' worker comp claims

* How Illinois lawmakers have gamed their pensions
* These legislators collect paychecks from Washington—and pensions from Illinois
* Many Fed officials see rate hike 'fairly soon'


* Police: Man gunned down in Brainerd
* Police: Man fatally shot in Morgan Park, person questioned
* DePaul snaps 10-game skid with 67-65 win over Georgetown
* Editorial: Reality check for Trump’s deportation plan is up to us
* Police: Man fatally shot in Altgeld Gardens
* Boy grazed by bullet in Little Village, refuses treatment
* Sneed: Gov and family spend his birthday skiing in Utah
* Trade talk gets louder for Bulls, just not for Jimmy Butler
* How will new transgender guidelines affect suburban schools?
* Immigration lawyers echo CPS advice, critics question motives


* Buzzer-beater lifts Syracuse past No. 10 Duke; No. 3 Kansas clinches share of Big 12 title
* At least 4 dead, 5 wounded in Chicago shootings
* All's quiet on Butler trade front with deadline at 2 p.m. Thursday
* Transgender wrestler's state title bid spotlights Texas policy
* What you need to know about Trump's new immigration rules
* Wade Davis' starting experience a big help to him as a closer
* Kris Bryant believes baseball's fine just the way it is
* Jackie Evancho, who sang at inauguration, wants Trump to meet with her and transgender sister
* Trump administration lifts federal transgender bathroom guidelines
* Dennis Hastert victim again argues for rest of hush money in court filing


» 16 Latino Leaders Resign From Chicago Public Schools Advisory Panel
» Teachers At Chicago Charter School Vote To Authorize A Strike
» City Council Delays Vote On Street Performing Ordinance
» Retired Generals Oppose Grand Bargain's Lower Phys Ed Standards
» Emanuel Reworks Plan For $15M Tax Rebate Money
» Immigrants Change Up Their Routines, Brace For Arrest
» Illinois Budget Impasse Jeopardizes Hundreds Of Student Jobs At Northeastern Illinois University
» State Board Of Education To Adjust How It Distributes Money
» New Immigration Enforcement Policies Worry Some Chicago Attorneys
» Top Cop Defends His Promotion Of Commander With 90 Complaints


* Bernard Schoenburg: Duckworth in weekly address: Trump record 'abysmal'
* Our View: TIFs can't become the go-to bailout fund
* Hastert victim again argues for remainder of hush money
* Senate urged to leave state's PE requirements alone
* AFSCME will announce results of strike-authorization vote Thursday
* Luciano: State lawmakers fiddling while Illinois burns
* Illinois education board vote settles 2008 funding lawsuit
* Municipal League opposed to permanent property tax freeze
* E.J. Dionne: The death of a hero
* Michael Gerson: America’s sacred fire must not be doused


* Alton City Council approves TIF money for old post office work
* 'White-knuckle drive'
* Bettendorf proposed lowering property tax levy by 5 cents
* Trump administration lifts transgender student bathroom guidance
* Murphysboro police searching for juvenile who ran from officer
* If you see a Facebook post about a Cheesecake Factory coming to Godfrey, don’t click on it
* Brighton Township residents fear being railroaded in crossing deal
* Eldorado man sentenced for sexual abuse
* The Telegraph’s ‘Fun 5’ events this weekend
* Sen. Dick Durbin releases statement on new policy for transgendered people


* Silver Alert issued for man last seen in Glendale Heights
* Images: Stevenson vs. Warren boys basketball
* Chicago Bulls return to work as trade deadline looms
* Trial begins in murder of Bartlett man missing since 2014
* Harvey-Blaszczyk pairing lived up to expectations

* Rep. Hultgren visits Aurora Textiles plant...
* Hultgren guides STEM scholars through pres...
* US Congressman tours new Aurora Specialty ...
* Letter: Same insurance as Congress? - Kend...
* Majority of IL Congressional Delegation Op...
* GOP congressman appears to distance himsel...
* US Representative Randy Hultgren visits ne...
* Hultgren to participate in veterans forum ...
* Hultgren criticizes immigration ban, Roska...
* Hultgren will be at veterans' forum March ...

* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......
* Durbin prompts medical, dental schools to ......

* Bernard Schoenburg: Duckworth in weekly ad......
* Senator Duckworth tours the Stateline - WIFR...

* Ammendola appointed to countywide McGinnis vacancy
* ThemPeople draw from Chicago’s close-knit hip-hop scene for two new tracks inspired by TV
* Nintendo’s new console Switch works best when it takes the video out of video games
* Federal investigation shows Pakistani bros secretly took $100k from Iraqi source
* Hinz: Chicago's leaders are to blame for Seaway Bank's failure
* Forty-fives go mobile on the gig poster of the week
* The OnEdge experimental performance series questions traditional theatrical norms
* Retired military leaders express concern over effort to lower Illinois PE requirements
* Basketball Thursday Night - Cops And Community
* New Trier race seminar to continue as planned, school board prez says


* Governor Addresses State Board of Education to Emphasize Importance of Strong Accountability Standards
* Stars and Legends to Perform at 2017 Illinois State Fair - First Round of Grandstand Headliners Announced for Springfield Fair
* Earthquake Education Kiosk Unveiled at University Mall in Carbondale - IEMA, Central U.S. Earthquake Consortium project will help southern Illinois residents reduce damage, injuries from earthquakes
* Governor Takes Bill Action
* 2017 Budget Address

  
* LG Display hyped about iPhone 7s LCD orders
* Another evleaks scoop on Galaxy S8+ specs
* LTE-U to launch this spring on the T-Mobile network
* Leaked materials show Samsung Galaxy S8+ specs
* [Deal] T-Mobile is running an unbelievable sale on the Samsung Galaxy S7 and S7 Edge, LG V20
* Evan Blass shows Verizon’s Moto G5 Plus launching soon
* Packing photos and videos into one Instagram post is now possible

* Holland brings loose, fun personality to White Sox clubhouse
* Holy Holland! Pitcher brings fun to White Sox clubhouse
* Frazier to miss several days of camp with sore side
* Geo Soto, Gio Soto share bond beyond name
* Giolito feels work from offseason paying off early in camp
* White Sox earn praise for reshaping club
* Giolito feels work from offseason paying off early in camp


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

Archives
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
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

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




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