I first heard about this from a Republican State legislator, and S-Corp Stakeholder/Owner, on the radio. What he said is Democrats raised the corporate tax and personal income tax on all the small and med business in IL and actually LOWERED the large business. He talked specifically about Motorola. Motorola was one of the HEADLINE companies saying they were planning on leaving if the tax was raised. So what did Quinn do, gave them a backdoor deal worth $100 mil (basically gave them a State Corp tax cut to 0%). Same thing happen with Caterpillar. When Caterpillar announce it was leaving Illinois, Quinn personally made a call to keep them. He did the same thing, basically cut their corporate tax rate to 0%). The funny thing is these companies aren't hiring and still shipping many jobs overseas.
Which companies aren't get these back door deals? The S-Corps, LLC, LP (all which are hit with the personal income tax) and the small C-Corps. These are the companies that are hiring. These are the companies that will bring jobs to IL. Yet Quinn doesn't care about them, even though the Democrats supposedly work for the little man!
Why doesn't he care about them:
(1) When companies the size Caterpillar even threatens to leave, they make the head of the wall street journal, but when a company with 100-200 employees actually does leave, it doesn't even make the local papers.
(2) Relocation costs deter small businesses more than large ones. Large ones can write it off against profits for lower Federal taxes and break even. Smaller Corps usually don't have profits high enough, so they end up in the red.
(3) Small corps don't have lobbist. Larges corps do.
(4) Large Corps make huge campaign contributions, small corps make small ones!
The sheep that Democrats fool, think they are sticking it to the large corps. That Quinn and the Democrats are making them pay their fair share. When in fact they lower the taxes on the headline making corps and raise it on everyone else!
Which companies aren't get these back door deals? The S-Corps, LLC, LP (all which are hit with the personal income tax) and the small C-Corps. These are the companies that are hiring. These are the companies that will bring jobs to IL. Yet Quinn doesn't care about them, even though the Democrats supposedly work for the little man!
Why doesn't he care about them:
(1) When companies the size Caterpillar even threatens to leave, they make the head of the wall street journal, but when a company with 100-200 employees actually does leave, it doesn't even make the local papers.
(2) Relocation costs deter small businesses more than large ones. Large ones can write it off against profits for lower Federal taxes and break even. Smaller Corps usually don't have profits high enough, so they end up in the red.
(3) Small corps don't have lobbist. Larges corps do.
(4) Large Corps make huge campaign contributions, small corps make small ones!
The sheep that Democrats fool, think they are sticking it to the large corps. That Quinn and the Democrats are making them pay their fair share. When in fact they lower the taxes on the headline making corps and raise it on everyone else!
The wrong way to support Illinois businesses - Chicago Tribune
Recently, Gov. Pat Quinn has been offering some of Illinois' largest corporations incentive packages to keep them from relocating. Motorola was given $100 million in tax breaks; Navistar pocketed $65 million; Chrysler received a $62 million investment package; all in all nearly $500 million in incentives have been given to at least 80 large private corporations in the last two years.
Even The Wall Street Journal recently editorialized on Illinois' high corporate tax rates and special tax breaks that Quinn has doled out with little transparency or accountability. The editorial reminded us that handing out favors one business at a time is "politically corrupting and an ineffective economic development strategy."
I hear local business owners complain about burdensome regulation, ever-increasing taxes and other issues like workers' compensation but none of those businesses is getting taxpayer subsidies to lessen the blow of the tax hike. Some employ several hundred people, others just a few, but none receives the red carpet treatment these huge multinationals get from the governor's office.
Small and medium-size businesses are vital to Illinois' economic recovery and are the vehicles that support entrepreneurship and innovation. Why should a local business have to pay a tax that a massive corporation is essentially exempted from? I am not criticizing the corporations that call Illinois home, rather the fundamental unfairness of deeming our smaller firms unworthy of similar tax relief. Instead of rushing to provide special deals for our largest corporations, we need to focus on supporting all our struggling businesses by lessening the regulatory and tax burden across the board. The easiest way to attract business is to lower taxes.
The state owes millions of dollars to small businesses that have not received their tax refunds in the past few years. All the while, these companies must continue to pay taxes, even though they have not received what is owed them. We need to pass Senate Bill 1741 that would allow those businesses to write off money they are owed from their future tax liability.