Illinois needs updated tax laws
Despite job gains that reduced the national unemployment rate to 8.6 percent, Illinois’ rate remains at 10 percent, meaning hundreds of thousands of Illinoisans remain jobless. While government does not create jobs, it can help foster an economic climate encouraging investment by the private sector across the entire state. As the holidays approach, it’s vital that lawmakers return to the Springfield to finish the work of reforming our tax system so job creators feel confident to put people back to work.
Legislation pending in Springfield provides nearly $250 million in tax relief for businesses and individuals. The legislation reinstates the Net Operating Loss provision allowing struggling companies to offset losses that occurred during the recession. It also stimulates creativity and innovation by extending the Research and Development tax credit, a vital component for every manufacturing sector.
Farmers and other family-owned businesses will be able to take advantage of an increase in the estate tax deduction. Without this change, hundreds of small businesses could be forced to shutter their doors upon an owner’s death when the family cannot afford to pay the tax collector.
Our tax code will be updated to reflect the changing economy and help Illinois remain competitive for firms such as the CME Group. Targeted tax relief will be provided to Sears in exchange for keeping jobs and investments in Illinois.
The package contains millions of dollars in relief for thousands of Illinoisans by increasing the personal exemption and the Earned Income Tax Credit. Finally, this package mandates that any surplus money in the state treasury at the end of the fiscal year be used to pay down the state’s debt.
As 2011 ends and more than 630,000 Illinoisans remain out of work, we cannot let the perfect get in the way of the possible. We strongly encourage the governor and lawmakers to reach consensus on a tax relief package.
Mark Denzler, Illinois Manufacturers’ Association
Rob Karr, Illinois Retail Merchants Association
Bill Ward, Home Builders Association of Illinois
Don Schaefer, Mid-West Truckers Association
J. Thomas Johnson, Taxpayers Federation of Illinois