On Thursday, Illinois House Speaker Michael Madigan introduced a proposal to cut the state's corporate income tax. House Bill 4479 would reduce the state's tax rate on corporate profits to 3.5 percent. The current rate is 7 percent which is scheduled to be reduced to 5.25 percent when the income tax increase approved in 2011 expires at the endof the year.
The Chamber is supportive of the idea to cut corporate taxes as a way to make Illinois more competitive with surrounding states. Under the Speaker's proposal, Illinois effective rate when combined with the personal property replacement tax would be 6 percent, giving Illinois the lowest corporate tax rate in the region lower than Indiana's 8 percent, Wisconsin's 7.9 percent and Missouri's 6.25 percent.
The Chamber looks forward to working with the Illinois General Assembly during the spring session to pass changes to the state's tax and business incentive policies to create a business environment that will foster growth and job creation.
Click here to view a copy of the bill.