Gov. Quinn goes after tax loopholes
The perennial game of tug-of-war over state taxes has begun. Governor Pat Quinn wants legislators to close what he calls "corporate tax loopholes."
The Governor's office says Illinois could save $445 million by closing three so-called loopholes. One such tax policy lets a company take a deduction for manufacturing in other states. Another affects how multi-state businesses file their tax returns, and a third prevents Illinois from collecting taxes on multinational corporations' foreign dividends.
"We see it as a tax increase. A simple tax increase," says Connie Beard of the Illinois Chamber of Commerce. "$445 million more from Illinois businesses that could be used for capital investment, it could be used for jobs, any number of things to improve the job climate in Illinois."
But the Quinn administration says that $445 million could help Illinois pay down a towering backlog of debts that has forced non-profits to wait for money owed by the state. Kate Armstrong's with Through a Child's Eyes, which helps young kids at risk, and says the delay.
"On one occasion caused us to actually close our program mid-year and lay off our entire staff," Armstrong says.
Legislators listened to both sides, but didn't take action at a hearing in Chicago. More debate's expected.