Madigan: Cut Taxes for Corporations
One of the most powerful Democrats in Illinois is calling for a drastic reduction in the state's corporate income tax.
House Speaker Michael Madigan (D-Chicago) would cut Illinois' corporate tax rate from 7% to 3.5%.
The Speaker pushed for the 7% rate three years ago when Illinois also raised the personal income tax. But Madigan spokesman Steve Brown said the national economy is now stronger.
“So it's time to look for what states can do to help ease the unemployment issue, get people in better-paying jobs,” said Brown.
He also said the Speaker's office hasn't considered how much this would cost the state in tax revenue. Rather, the focus is on saving money for businesses.
“We'd expect reinvestment, perhaps better wages for workers, perhaps new workers being hired and new companies locating here,” said Brown.
The proposed tax cut comes less than a year before Illinois' income tax is set to drop. Madigan's additional cut would leave an even bigger hole in the ailing state budget.