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* Senate President Don Harmon…
I want to compliment Leader Curran on the amicable nature of our ongoing discussions. We’ve had encouraging talks with our Republican colleagues on how to work together toward shared goals that further the state’s economic success and stability. I look forward to reviewing their proposals and seeing where we can find common ground.
* SJ-R…
Minority Senate Leader John Curran and fellow Senate Republicans argued the state’s fiscal standing should be used to help businesses through legislation being pushed by its caucus and lowering taxes.
The virtually-held press conference centered on a handful of bills Republicans believe will keep businesses from leaving Illinois. Most of them, however, have been referred to the Senate Assignments Committee which likely means voting action will not happen before the end of the spring session on May 19.
While Democrats have argued that its policies are helping business and labor interests, state Sen. Don DeWitte, R-St. Charles, says departures of companies such as Caterpillar and Boeing show the state is not being a welcoming environment to employers.
“We don’t just want businesses to locate here in Illinois, we should be incentivizing the ones that are already here to grow and thrive,” he said.
* Crain’s…
Clearly the biggest ask is to kill the state’s estate tax, which through the three quarters of this fiscal year had pulled in more than $400 million. Getting that through a body in which Democrats have super-majorities in both chambers will be very difficult, legislative sources said.
Possibly with better chances are bills that would remove a $100,000-a-year deduction cap on business loss carryforwards on Dec. 31, a year earlier than now planned; extend and enhance R&D credits, repeal the franchise tax, and implement new credits for headquarters locations and employment. The headquarters credit would net any company that qualifies, including small businesses, $100 for each year it was based in the state. The employment credit would create a new credit of $100 per worker.
Curran said Democrats have been receptive in private talks, but only to a point.
“We have begun conversations,” Curran said. “Generally, there’s been some willingness to do things for business” but no specific commitments.
* Full SGOP press release…
As Illinois’ unfriendly business climate has pushed large companies to leave the state or significantly reduce their corporate presence, members of the Senate Republican Caucus shared a package of business advocacy initiatives to help Illinois better compete, create jobs, and boost its economy.
“Illinois is rich with potential, an educated workforce, and a long history of innovation,” said Senate Republican Leader John Curran (R-Downers Grover). “Unfortunately, in 2021, in response to the defeat of the Progressive Income Tax Amendment, the Governor and the Democratic Majority passed a series of tax increases on Illinois businesses that continue to hold our job creators and job seekers back. Today we are here to advocate for policy solutions to help Illinois attract and retain businesses and investment in our communities.”
Leader Curran discussed Senate Bill 1810, which removes the $100,000 cap on the Net Operating Loss deductions on December 31, 2023, to help businesses invest and grow their organizations without revenue loss to the state.
Senator Win Stoller (R-Peoria), a business owner himself, introduced Senate Bill 1406 that makes good on the repeal of the franchise tax that the Governor and Democratic Majority stopped in 2021. The franchise tax includes three different taxes on money used to build a business as opposed to revenue or even net worth. Illinois is in the minority of states that impose such a tax.
“Our focus must be on enacting policies that attract and keep businesses in Illinois rather than discourage growth,” said Stoller. “Getting rid of the franchise tax removes a barrier that punishes employers for building their businesses in Illinois.”
Another measure that aims to attract and retain businesses in Illinois is Senate Bill 2140, proposed by Senator Andrew Chesney (R-Freeport), which would reduce the filing fee for limited liability corporations by 50 percent. Chesney also cosponsored Senate Bill 140 that eliminates the Estate Tax for persons dying on or after the effective date, or for transfers made on or after the effective date.
“Illinois can and must do more to let businesses know that we value them and appreciate their decisions to locate and operate in the State of Illinois. Unfortunately, the policies coming out of Springfield convey just the opposite. We make our business owners jump through an inordinate number of hoops and we wrap them up in red tape,” said Chesney. “Rather than stifling the state’s job creators, let’s help them grow.”
The goal of Senate Bill 2075, proposed by Senator Seth Lewis (R-Bartlett), is to support and retain the state’s legacy businesses. Lewis’ legislation would create a legacy tax credit for companies headquartered in Illinois, along with employee tax credits.
“We all live here because we either love Illinois, believe in its potential, or both. Our state has so much to offer. It is located in the heart of the nation, and it is a major transportation hub with state-of-the-art institutions and an educated citizenry that wants to work in a rewarding career. There is no reason why we cannot be a leader in the Midwest and nation for job creation and stability,” said Lewis. “This bill is one example of how we can make Illinois a place where people want to live, not leave.”
Senator Don DeWitte (R-St. Charles) has introduced several pieces of legislation poised to support job creators and spur innovation. His bills include Senate Bill 163, a tax credit to fund research and development, and Senate Bill 2084, which creates the Illinois Innovation Tax Credit.
“Rather than putting laws in place that push our job creators to take their business and jobs to other, more business-friendly states, we need to support them. We don’t just want businesses to locate in Illinois; we should incentivize them to grow and thrive here,” said DeWitte. “By unleashing the entrepreneurial spirit through R & D tax credits, we are encouraging individuals and corporations with great ideas to act, launch, and expand businesses right here in Illinois.”
posted by Rich Miller
Tuesday, Apr 18, 23 @ 10:29 am
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Their continued insistence about the estate tax is dumb as rocks.
But other stuff like carried losses, franchise taxes, licensing fees, all seem like worthy discussions to me.
Comment by Nick Tuesday, Apr 18, 23 @ 10:36 am
I have no problem with, I even am encouraged by, bipartisanship.
If the SGOP works in a bipartisan manner here, gets over a half a loaf, seen as part of the solution…
… will there be SGOP votes on a budget created with these bills being the law and the state building and functioning within all of this?
‘Cause, if I’m being frank, the SGOP getting good wins for themselves and the state and then plum being absent in the “green” column on budget and funding votes… why even hear them out, if these type of wins continue to be one-way streets, and the GOP, the GOP Caucuses… what exactly are you showing businesses if you continually vote against funding a state now you see is more “helpful”?
Comment by Oswego Willy Tuesday, Apr 18, 23 @ 10:42 am
The State should definately get rid of the estate tax, not on principle, because the estate tax is a good tax, but because it should be handled and is handled by the Feds. Having a state estate tax puts the state at a disadvantage and contributes to businesses (especially small businesses) and people moving and/or establishing residency elsewhere. Why tout illinois is a good place for retirees, because we have no retirement tax, when those retirees have to set up domicile in a non-estate tax state (like florida or arizona) so that they can pass on some money to their kids and not get taxed on it.
Comment by Merica Tuesday, Apr 18, 23 @ 10:44 am
==Chesney also cosponsored Senate Bill 140 that eliminates the Estate Tax==
Is Andrew going to be inheriting $4+ million sometime soon?
Comment by Jocko Tuesday, Apr 18, 23 @ 10:46 am
Maybe the ILGOP should start presenting their ideas in a positive light? Instead of harping on how bad everything is today, maybe propose how great things will be if we lower the business tax from 9.5% to 9%.
The focus on the Estate Tax is odd, it impacts almost nobody. Something like the business tax rate seems reasonable. It is high relative to peers and people can understand the potential benefits of lowering it.
Comment by supplied_demand Tuesday, Apr 18, 23 @ 10:49 am
“Clearly the biggest ask is to kill the state’s estate tax”
Give more to the richest, part infinity from the GOP. Isn’t cutting the federal estate tax by half enough? Cut taxes for the wealthiest and indulge the base in its fears and hatreds, so it can keep voting for massive tax giveaways to mega donors.
Comment by Grandson of Man Tuesday, Apr 18, 23 @ 10:51 am
“Senate Republicans argued the state’s fiscal standing should be used to help businesses through legislation being pushed by its caucus and lowering taxes.”
Where does the SGOP think the state’s improved fiscal standing comes from? They haven’t voted for budgets in years and now they’re proposing spending with no plan to pay for it. Which priorities are they willing to cut to make up for this revenue shortfall as we head toward a recession? They’re once again proving they are not the party of fiscal responsibility.
Comment by Ummmm Tuesday, Apr 18, 23 @ 11:09 am
Ah the estate tax. The farm community loves to rail against it. And you can understand why.
Farmland is always under valued when it comes to property tax, there are tons of other tax deductions and dodges that they can use on business income. So one of the last things that can get them is an estate tax on land holdings. But it’s one of the the few ways for an asset that increases in value with little work being done on the part of the investor to recoup any of the unrealized taxes on the value of an item.
I’d say if the farm lobby wants the estate tax gone, then let them pay property tax at a much more realistic rate on farm land that can net as much as $800 an acre in revenue each season.
Comment by Cool Papa Bell Tuesday, Apr 18, 23 @ 11:12 am
Nobody is affected by the estate tax?
Why do so many wealthy older people change their state of residence to Florida or any of the other 38 states that do not impose an estate tax?
Even California does not impose an estate or inheritance tax.
https://taxfoundation.org/state-estate-tax-inheritance-tax-2022/
Comment by Lucky Pierre Tuesday, Apr 18, 23 @ 11:12 am
Don’t know where you farm Cool Papa, but in Illinois in 2023 the projected average profit/acre is $199 for beans, $276 for corn. So you might want to adjust your thinking accordingly.
Comment by Captain Obvious Tuesday, Apr 18, 23 @ 11:29 am
=Nobody is affected by the estate tax?=
Nobody that stands inherit less than $4,000,000.
Comment by Cool Papa Bell Tuesday, Apr 18, 23 @ 11:32 am
== Why tout illinois is a good place for retirees, because we have no retirement tax, when those retirees have to set up domicile in a non-estate tax state (like florida or arizona) so that they can pass on some money to their kids and not get taxed on it. ==
Yes, won’t someone think of these poor descendants who stand to receive a share of a *checks notes* more than $4 million estate payout. Those marginal tax rates over $4 million really make or break the bank for what is literally free money with no inheritance tax being paid to Illinois by the beneficiaries.
People can move to Florida or Arizona all they want, but the farmland (that they’ve been dodging paying fair property taxes on for years) is most likely what is pushing them over the line into estate tax territory. Unsurprisingly, farmland doesn’t move with them and is still taxed in Illinois as part of the estate.
So if you’re a normal person who isn’t walking around with mountains of cash in their account, the estate tax isn’t something any of us should be crying a whole lot about.
Comment by Leap Day William Tuesday, Apr 18, 23 @ 11:47 am
I knew Curran was a do-er. He’ll get stuff done. I wish the Congress people in DC could be as bipartisan as the Illinois Senate. Never thought I’d ever say that.
Comment by Duke of DuPage Tuesday, Apr 18, 23 @ 12:04 pm
Tax cuts should be paid for with spending cuts. Increased revenues? Pay down the pension debt, please.
Comment by Anyone Remember Tuesday, Apr 18, 23 @ 12:07 pm
Living among the farming community, I think we should be careful about how we imagine farm families.
If you divide $4M by $8,000 an acre, then that suggests about 500 acres can be passed on without penalty, within a farm family. Many farm families today require about 2,000 acres or more in order to maintain the upkeep of their equipment, out buildings, silos, etc. Family farms today are forever changed, as we enter the third generation since the “Farm Aid” crisis of the mid-1980s. I think we want to be careful when discussing farm families, especially in terms of assumptions.
However.
One of the big burdens that farm families today face, and that is driving the price of land regardless of yield, is corporate farming. A lot of farm land today in Illinois is owned by absentee corporations that buy land, by inputs, and buy labor.
I think regulating corporate farms so as to produce more state revenue could be an offset that helps family farms survive and pass on their lands, equipment, outbuildings, etc.
Comment by H-W Tuesday, Apr 18, 23 @ 12:27 pm
@CapO = High commodity prices and high yields made 2021 a stellar year for Illinois corn and soybean growers, with the average net income for grain farmers enrolled in Illinois Farm Bureau Farm Management projected to be $325,000.
“That would be a record level,” said ag economist Gary Schnitkey at the Farm Income Outlook for 2022 webinar as part of the University of Illinois’ annual Economic Summit Dec. 1.
And these calculations don’t include the federal assistance programs that helped improve the bottom line for farmers in 2020.=
To your point I was talking more about farmers who own the land they farm and don’t have associated land costs/ cash rent. But trust me plenty of farmers were crushing $800-$900 per acre profit over the past few years.
@HW - The midlevel farm ground now in Illinois is going for way more than $12,000 an acre. Lots of acres in C-IL sold for $17,000 or more this fall/winter.
Corporate farming is not happening the way you describe it. Absentee corporations are NOT buying land only then to buy inputs and labor. Now farm families are “big” business and they farm 12,000 acres with a few family members and a half dozen hired men - where that used to be 24 families farming 500 acres each.
If I had 500 acres paid for family land. I could easily support a family of four - certainly if a spouse worked “in town”.
Comment by Cool Papa Bell Tuesday, Apr 18, 23 @ 2:47 pm
If discussion of reforms to the biometric privacy act isn’t among the list of needed reforms, what even are the SGOPs doing?
What is a pittance of tax relief compared to the threat of being sued into oblivion for next to nothing?
Fix that law. Make it clear that law isn’t designed to further a racket for trial lawyers. It would be an easy win for the governor to sell to persuade skeptical business leaders that Illinois isn’t actually anti-business.
Comment by JB13 Tuesday, Apr 18, 23 @ 4:24 pm
BIPA is about doing the right thing. The written notifications and consent provisions should be left intact. If a private entity is reckless and is unaware of BIPA the consequences and penalties are great. However, IDFPR licensed locksmiths, fingerprint vendors, security companies who are compliant with the law, who believe in and are true stewards/SMEs of BIPA, are being hauled into court to defend against expensive, frivolous lawsuits.
Did the 2008 legislature and ACLU intend to destroy licensed, small business vendors vertically integrated in our state? I don’t think so. The IDFPR exemption in BIPA does not have sharp teeth to protect against frivolous lawsuits as that of the banking exemption or government agency exemption. The IDFPR locksmith act does not provide the level of relief that BIPA allows. Nothing currently can be construed to conflict. It is a circular flaw and needs to be tweaked.
Comment by lloyd Thursday, Apr 20, 23 @ 2:12 pm