The governor says state lawmakers must be careful about repealing the increase in the corporate income tax. The tax went up this year from 4.8 percent to 7 percent, and now groups of lawmakers from both parties want to knock it back down. Gov. Pat Quinn says the impact on the state budget would be $1 billion – money he says the state needs to pay for schools, pensions and to pay its backlog of bills.
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Quinn also says a measure to cut corporate income taxes would leave individual taxpayers out in the cold. “We have 13 million citizens. They’re hard-working people. They’re very productive workers and we just can’t have it all one way. We’ve gotta make sure everything is balanced for everyday people who are the heart and soul of our economy,” he said. Quinn, who was instrumental in getting the tax increase enacted in the first place, says he is willing to discuss tax reforms. The Republican proposal, pushed by House Minority Leader Tom Cross (R-Oswego), would end the corporate tax increase in 2014, instead of the current sunset of 2024. A Democratic proposal, spearheaded by State Rep. Jerry Costello II (D-Smithton), would repeal the tax increase on Jan. 1, 2012.