January 8th, 2021
To Export Jobs, Raise the Illinois Corporate Income Tax
The Illinois corporate income tax rate is not 4.8% as some politicians and media writers have erroneously reported, but actually 7.3%. While the base rate is 4.8%, a constitutional amendment passed in 1980 added another 2.5%. This additional tax was named the “personal property replacement tax,” but no matter what they call it, it’s still a corporate income tax.
“Governor Pat Quinn (D) is now saying that he wants to raise the state personal income tax rate 33%, from 3% to 4%,” said Jim Tobin, President of National Taxpayers United of Illinois (NTUI). “Additionally, he wants to raise the state corporate income tax from 7.3% to 8.3%, making it one of the highest corporate income tax rates in the country.”
According to The Tax Foundation, increasing the corporate income tax rate to 8.3% would rank Illinois 36th among the 50 states in corporate tax rate competitiveness.
Tobin continued, “Hiking this tax will force businesses to move to nearby states with lower rates, like Wisconsin (7.9%) and Missouri (6.25%), or even to states with no corporate income tax like Nevada and Texas.”
“The people of our state are struggling with double-digit unemployment. Anyone who supports job growth in Illinois should be working to reduce personal and corporate income tax rates. Raising taxes will only push businesses and jobs out of Illinois.”