Pat Quinn doles out over $230 million in tax breaks to big business, putting more burden on individual Illinois taxpayers
This week sees the Chicago Mercantile Exchange and Chicago Board of Trade seeking to move their operations out of state to New Jersey, Indiana or another state in an effort to save an estimated $50 million in taxes a year.
Remember, in January, Illinois raised the corporate tax income from 4.8% to 7%. Illinois corporations also pay 2.5% in additional taxes in income called the personal property replacement tax. Taken together, the two rates are 9.5% which is the third highest rate on the United States.
As our state's big businesses threatened to leave, Governor Quinn talks big, but ultimately backs down. Thru May 2011, he has handed out an estimated $230 million in tax breaks, called "financial incentive packages" to these big businesses.
Yesterday, Governor Quinn again spoke big about the most recent threat to leave saying "the taxpayers of Illinois aren't going to subsidize private companies unless they give something back to the people of Illinois."
As today's Tribune editorial page points out our governor has forgotten: these large companies provide jobs. They already provide millions of dollars in tax revenue. What governor Quinn has forgotten is that companies--good companies--make smart business decisions. When it costs less to do business in Indiana, Wisconsin, or New Jersey, smart large companies will move across state lines. These large companies moving out of state--or getting the tax breaks that Quinn has doled out--puts more of the tax burden on Illinois individuals and small businesses, which during a time of continued economic downturn, could really use a break.
As seen by giving out roughly a quarter billion in financial aid to businesses, Governor Quinn gets the importance of keeping large Illinois companies in Illinois. But what about keeping small businesses in Illinois? What about the individual? We are all getting squeezed by this governor to pay more in taxes and we have not been provided "financial incentive packages." I know my family could certainly use one.
I don't see paying more in taxes as "patriotic" as some Democrats have told us; that notion is ridiculous. However, I would happily pay more in taxes if I thought the money was being used effectively. Unfortunately, you don't see the words "Pat Quinn," "taxes" and "effectively" in the same sentence often, if at all. Quinn's economic stunts in Springfield over the last six months show that he just doesn't get it.
How do we get out of this mess? Ultimately, we don't for another three and a half years. We can hope that in Chicago, Mayor Emanuel can persuade Chicago companies to stay headquartered in Chicago. It appears Mayor Emanuel gets it. After speaking with Chicago Mercantile Exchange executive chairman Terrence Duffy yesterday, Emanuel said "I know their frustration."
Hopefully, Emanuel can understand mine as well--and provide that insight to Pat Quinn.
10 Jun, 2011--
Source: http://www.chicagonow.com/blogs/your-doubting-thomas/2011/06/pat-quinn-doles-out-over-230-million-in-tax-breaks-to-big-business-putting-more-burden-on-individual-illinoisans.html
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