The Illinois House speaker introduced a bill today (Thursday) to cut the stateâ€™s corporate income tax.
The overall rate is now 9Â˝ percent. That comprises the income tax of 7 percent and the Personal Property Replacement Tax, an income-based tax that businesses pay, of 2Â˝ percent. The speakerâ€™s measure would cut the income tax portion in half, to 3Â˝ 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. â€śWhen weâ€™re choosing individual companies, and theyâ€™re coming to us, weâ€™re giving breaks to them, but what about the (existing) company that has 60 employees, 50 employees? They need to be treated equally,â€ť 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. â€śWe are being set up for a progressive (personal) tax, which is being advocated by our friends across the aisle,â€ť 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.