It’s just a bill
Thursday, Mar 23, 2017 - Posted by Rich Miller
* Some folks are calling HB 3393 the “Rauner tax” for obvious reasons…
Amends the Illinois Income Tax. Imposes a privilege tax at a rate of 20% on partnerships and S corporations engaged in the business of conducting investment management services, until such time as a federal law with an identical effect has been enacted. Provides for the determination of the tax due, defines “investment management services”. Effective immediately, but this Act does not take effect at all unless the states of Connecticut, New Jersey, and New York enact laws having an effect identical to this Act.
An amendment to the bill narrows the tax to “fees earned from the investment strategy of the investment manager and not from the investment itself.”
The bill cleared committee as amended today on a partisan roll call.
* Probably a good idea, but not sure if it should be a state mandate…
A bill that would require motorists to leave their headlights on at all times while driving narrowly passed an Illinois House committee Wednesday.
House Bill 2448 was approved by the Transportation Committee in a contested 5-4 vote and now moves to the full House.
The main sponsor, Rep. Robert Pritchard, R-Hinckley, said the requirement is a good idea because of safety concerns in low-visibility areas.
“This is an issue where too many people are already violating the law that says you’re supposed to have your headlights on when visibility is limited,” Pritchard said. “People are violating that. You can see that every day when you’re driving on the open road. So that was the genesis for which I bring forward this idea, that if you are visible, other people can avoid you.”
* Unintended consequences…
An effort to reduce some court fees that advocates say hurt low-income Illinoisans cleared its first hurdle Wednesday.
The bill in Springfield also would create a waiver system for people who can’t afford the fees and standardize what advocates say is a patchwork system.
The proposal is a response to findings by a bipartisan task force that pointed to a wide variation in fees for the same crimes in different Illinois counties. It also said growing fees put more pressure on low-income residents. […]
Kelly Smeltzer, general counsel for the Cook County Circuit Court clerk, said Cook County could lose more than $30 million under the proposed changes. Smeltzer said this would cause a reduction in services.
Maria Moon, a campaign coordinator for Cabrini Green Legal Aid, said she’s not against supporting government services but contends the current system is hurting low-income residents.
- ChrisB - Thursday, Mar 23, 17 @ 12:16 pm:
It’s almost like the legislators don’t understand the tax difference between an S-Corp and regular corporation and are proposing this bill out of spite.
Want to be branded as anti-innovation and anti-small business next election? This might be the fastest way to do so.
- David - Thursday, Mar 23, 17 @ 12:33 pm:
It is not focused on small business or is focused on investment vehicles. 70 % of all partnership income is from such entities. In Illinois there are 101 000 such enitities with 21 billion going to people making over 200 000 ….an average of 206 000.The 280 000 average less than 20 000 per year. This is no small business tax
- Groucho - Thursday, Mar 23, 17 @ 12:43 pm:
Statistics show that cars with headlights on during the have less accidents. That’s why most new cars have daylights.
- A Jack - Thursday, Mar 23, 17 @ 12:45 pm:
Interesting that the carried interest tax law will only take effect after three eastern states also pass the same tax and the Federal government hasn’t closed that loophole yet.
And yes, it could be considered a Rauner tax since the intent is to close the loophole that allows private equity to be taxed at half the rate that a regular taxpayer would pay at that income level. It’s not a millionaire tax, unless the millionaire gets income from private equity.
I think the GA should explain this bill better to the public, so when Rauner vetoes it, they know why.
- A Jack - Thursday, Mar 23, 17 @ 12:50 pm:
As far as losing elections go, Trump campaigned on closing the carried interest loophole and apparently won. That is why the federal provision is in there. If the Feds close the loophole and state tax is based on federal taxable income, then the law becomes unnecessary.
- Ron Burgundy - Thursday, Mar 23, 17 @ 12:58 pm:
–Kelly Smeltzer, general counsel for the Cook County Circuit Court clerk, said Cook County could lose more than $30 million under the proposed changes. Smeltzer said this would cause a reduction in services.–
I’m interested in hearing what services that clerk’s office thinks they are providing right now…
- Anon - Thursday, Mar 23, 17 @ 1:02 pm:
“Statistics show that cars with headlights on during the have less accidents”
The statistics are for NIGHT driving only (People driving without headlights at night). There is no statistical benefit for headlights on during daylight.
Furthermore, wouldnt it be safer if we all had police lights and sirens!!! Stupid law
- James Knell - Thursday, Mar 23, 17 @ 1:04 pm:
I’ve wondered about this kind of partnerships and S corporations. I’m not interested in devoting my life to supporting oligarchs, be they Russian or American. That goes especially for the one’s who get into politics to force average people to sacrifice even more for them.
- Johnny Tractor - Thursday, Mar 23, 17 @ 1:30 pm:
Re: court fees, I like. I’m bothered by unequal access to our judicial system, and the systematic pounding of fees on top of fees because we’re indifferent to whether it’s just get our pound of flesh out of the guilty through fees, in addition to the punishment meted out through sentencing. I think the reaction of the Circuit Clerk’s office is telling - more concern about funding their office than fairness for low income citizens.
Then again, I’m one of those “let nine guilty go free rather than wrongly convict one innocent” people who also believes the asset seizure before trial laws are inappropriate, so what do you expect …
- The Tax Stats - Thursday, Mar 23, 17 @ 4:19 pm:
https://www.irs.gov/uac/soi-tax-stats-individual-income-tax-statistics-2014-zip-code-data-soi
Look up Illinois . Look at the s corp and partnership income