The Illinois House speaker introduced a bill today (Thursday) to cut the state’s corporate income tax.
The overall rate is now 9½ percent. That comprises the income tax of 7 percent and the Personal Property Replacement Tax, an income-based tax that businesses pay, of 2½ percent. The speaker’s measure would cut the income tax portion in half, to 3½ percent, leaving the overall rate at 6 percent.
State Rep. Keith Farnham (D-Elgin) says an across-the-board tax cut is better than making special deals with individual firms. “When we’re choosing individual companies, and they’re coming to us, we’re giving breaks to them, but what about the (existing) company that has 60 employees, 50 employees? They need to be treated equally,” he said.
State Sen. Sue Rezin (R-Morris) says she likes the idea of a tax cut, but she thinks the speaker has something up his sleeve. “We are being set up for a progressive (personal) tax, which is being advocated by our friends across the aisle,” she said. She and other Republicans in Springfield are against a progressive personal income tax.
The tax cut would not affect small businesses that pay tax at the individual rate.