Business
1:20 pm
Thu January 30, 2014

Cut The Corporate Income Tax? Illinois House's Top Democrat Says Yes

The Illinois House Speaker is calling for a cut in the state’s corporate income tax rate. 

Credit Simon Cunningham, licensed under CC BY 2.0 / lendingmemo.com

Speaker Michael Madigan is supporting a measure that would cut the corporate income tax rate in half. His bill calls for lowering the corporate tax from 7 percent to 3-point-5 percent on profits. In a statement, the Chicago Democrat says he hopes the bill will encourage CEOs to grow their work forces.

The Speaker pushed for the 7 percent rate three years ago when Illinois also raised the personal income tax. Madigan spokesman Steve Brown says the national economy is stronger, so it’s time for states to do what they can to help ease unemployment and get people into better-paying jobs. Brown says the speaker's office hasn't considered how much this would cost the state in tax revenue. Rather, he says, the focus is on saving money for businesses.

"We'd expect reinvestment, perhaps better wages for workers, perhaps new workers being hired and new companies locating here."

Todd Maisch is with the Illinois Chamber of Commerce. He says the tax mostly affects large businesses in the state.

“What’s almost as important, if not moreso, is the change in the tone in the debate about taxes at the Statehouse.”

Madigan’s support for cutting the tax comes as most of the Republican candidates for governor have been calling for lowering both the corporate and personal income tax rates.

Democratic Governor Pat Quinn has not said where he stands on the issue.