'Millionaire tax' could push Illinois corporate income tax to highest in U.S.
Proposed legislation would raise taxes on businesses with over $1 million in profits
Legislation pending in the Illinois General Assembly would raise taxes on businesses with more than $1 million in profits, which could make the state's corporate income tax the highest in the nation.
House Bill 3930, introduced by Rep. Will Guzzardi (D-Chicago), would increase the corporate income tax rate from 7% to 9.5% for businesses with profits exceeding $1 million. The bill would also create a new 3% surtax on businesses with profits over $10 million.
The bill is designed to raise revenue to fund education and other state programs. However, business groups are opposed to the legislation, arguing that it would hurt the state's economy and make it less competitive with other states.
Bill would raise taxes on businesses with over $1 million in profits
If passed, the bill would make Illinois' corporate income tax the highest in the nation. The current highest rate is 9.5% in Iowa.
The bill would also create a new 3% surtax on businesses with profits over $10 million. This would bring the total tax rate for these businesses to 12.5%.
The bill is designed to raise revenue to fund education and other state programs. However, business groups are opposed to the legislation, arguing that it would hurt the state's economy and make it less competitive with other states.
Business groups oppose the legislation
Business groups argue that the bill would hurt the state's economy by making it more expensive for businesses to operate in Illinois. They also argue that the bill would make Illinois less competitive with other states, which could lead to businesses leaving the state.
The Illinois Chamber of Commerce, the state's largest business group, has come out against the bill. The chamber argues that the bill would raise taxes on businesses by $1 billion per year and would cost the state 20,000 jobs.
The National Federation of Independent Business (NFIB) has also come out against the bill. The NFIB represents small businesses in Illinois. The NFIB argues that the bill would hurt small businesses by increasing their tax burden.
Bill is designed to raise revenue for education and other state programs
The bill is designed to raise revenue to fund education and other state programs. The bill is expected to raise $1 billion in new revenue per year.
The money raised by the bill would be used to fund education, healthcare, and other state programs. The bill would also provide tax relief for low- and middle-income families.
Supporters of the bill argue that it is necessary to raise revenue to fund essential state programs. They also argue that the bill is fair because it would only raise taxes on businesses with over $1 million in profits.
