News

Madigan Proposes Halving Corporate Income Tax Rate

Madigan Proposes Halving Corporate Income Tax Rate

Photo: Newsradio WTAX

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.

Recent Headlines

1 day ago in Entertainment

Bill Murray tosses fans’ phones off rooftop

billmurray

The "Ghostbusters" star was unwinding at rooftop restaurant in California on Thursday when he spotted two starstruck fans trying to snap his photo.

1 day ago in Entertainment

OPENING WEEKEND: ‘Deadpool,’ ‘Zoolander 2’ to battle at the box office

15-overlay-6

Here's a look at some of the films set to open this weekend.

1 day ago in Entertainment, National

Roses and roaches: Cold-hearted Valentine’s Day ideas

valentines

With the coldest air in more than a decade forecast to grip the United States this Valentine's Day weekend, the holiday dedicated to love is flashing its frigid side.