Manufacturing companies wouldn't have to pay state income tax on their profits under a new bill in the General Assembly.
The legislation would allow manufacturers to deduct whatever net income they make in Illinois from their tax liability, essentially exempting their profits from the 5.25 percent corporate tax rate. State Rep. David McSweeney (R-Barrington Hills) says it's an effort to reverse the loss of manufacturing jobs in the state over the past 15 years. He isn't sure of the full impact his bill will have on overall tax revenue, but believes at least some of the money will be made up through economic growth.
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"I think you'll need to find cuts, number one," McSweeney said. "Number two is we also need to see the impact of the revenue benefit from creating additional jobs and economic opportunity. Depending on where the revenue numbers come out, I would look at amending the bill to potentially phase in the reduction to zero over time."
McSweeney says he's asked for a revenue analysis of the bill from the Commission on Government Forecasting and Accountability.
The bill doesn't come with any requirements to create or maintain jobs, as had been included in other tax deals, such as EDGE credits. McSweeney believes those efforts haven't worked.
"What I'm sick and tired of...is the special deals the politicians give out, these EDGE credits that are allegedly promising job creation. There have been studies that have shown these are just special deals for insiders awarded by politicians in Springfield," McSweeney said.
McSweeney believes there will be Democrats who support the bill. So far, only Republicans have signed on as co-sponsors: State Reps. Dwight Kay (R-Glen Carbon), Joe Sosnowski (R-Rockford), Reggie Phillips (R-Charleston), and Jeanne Ives (R-Wheaton).