Business Groups Slam State Lawmakers Over Corporate Tax Hike

CHICAGO (CBS) — Business groups complained to Illinois lawmakers Tuesday about taxes, in the first of four hearings to examine the state’s tax structure after personal and corporate income taxes were raised earlier this year.

As WBBM Newsradio 780’s Dave Marsett reports, State Senate President John Cullerton (D-Chicago) and House Speaker Michael Madigan (D-Chicago), called for the hearings.

LISTEN: Newsradio 780’s Dave Marsett reports

The move came after threats to leave the state over the tax hike from several major companies, including Peoria-based heavy equipment Caterpillar, Chicago Mercantile Exchange and Chicago Board of Trade, and retail giant Sears.

“Certainly the recent tax increase eliminated what we would view as a competitive advantage Illinois enjoyed,” said Mark Denzler, vice president and chief operating officer for the Illinois Manufacturers’ Association, during testimony at the four-hour hearing.

The corporate rate went up from 4.8 to 7 percent earlier this year.

At the hearing Tuesday, state Sen. Matt Murphy (R-Palatine) argued against the panel becoming a political show. He said there must be a reduction in taxpayer liability for businesses and individuals.

“There is a palpable fear and growing anger about the jobs situation in this state and nationally,” Murphy said. “And I would caution to the extent that this is some sort of an exercise politically to put a check in a box next to tax reform. And we’re going to kind of nibble at the margins and just say, `Hey, we did tax reform’ and go run on that next November.

“I would caution … to tread lightly because people are in no mood at this point and time for gimmicks,” he said.

The hearing Tuesday was held in Chicago, and lasted four hours. Other hearings are planned for Rockford, Springfield and Marion.

  • Citizen of Chicago

    All these business will threaten to leave and take what jobs are left here after they outsourced them over the years to forgin countries if they don’t get tax breaks and other concessions. Just look at the big picture if they keep cutting jobs here and cutting the workers pay and benefits their will be no more middle class and taxpayers in Illinois but the corrupt politicans and their friends so who will pay taxes then? We need to stop free entitlements and welfare benefits for people who don’t want to work. cut all the public education free meals even the newspapers said they the students won’t eat the food but we keep paying for it and these contracts to the store front reverands for what do we pay them?

    • GM

      I agree except there are people working who don’t pay taxes and get money back because of the earned income tax credit. Many of these people and their kids also receive public aid on the backs of people who have to pay taxes.

  • Roberta Waker

    Maybe everyone that can move out of Illinois should. Then the ILLEGALS and corporations can support what’s left of the state. Any state that has a majority of ILLEGALS is going bankrupt because these freeloaders are costing us billions. Get control of our borders, stop giving freebies to ILLEGALS and maybe, you won’t have to tax us to death..

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