The mayor’s Chicago budget plan includes a $76.5 million property tax hike despite $3.5 billion in federal aid and funds permanent programs with temporary revenues but includes no push to fix pensions.View Report
This Small Business Saturday, Illinois has more entrepreneurs than before the COVID-19 pandemic. But the recovery has been uneven as some types of small businesses struggle and many jobs are missing as Illinois lags the national rebound.
Two groups most hurt by pandemic closures, women and Black Illinoisans, have been the quickest to turn to owning small businesses as a way to recover from the COVID-19 economic downturn.
While phasing in the tax impact of sharp increases in assessed value could help Cook County’s commercial property owners adjust, holding down property taxes requires reducing spending through public pension reform in Illinois.
State lawmakers passed a bill allowing local governments to waive licensing fees and registration costs for businesses harmed by the COVID-19 pandemic, but it won’t spare them from state taxes.
Combine the corporate tax rate President Joe Biden wants to fund his infrastructure plan with Illinois’ tax, and the resulting rate would be 35.4% – fifth highest in the nation and second in the Midwest.
More small businesses have closed in Illinois than in any other Midwestern state, except Michigan. Taxing them more as they struggle is the wrong move.
COVID-19 prompted $7.5 billion in federal relief, but state revenues were up during the past 8 months. Delayed tax due dates were partly responsible, but revenue even grew where it should have declined. So why should small businesses have to come up with $2 billion more?
The pandemic has affected everyone, but the economic fallout has been especially devastating for specific groups. In addition to retailers, restaurant owners and other small business owners, women, working mothers and Black Illinoisans suffered the worst in terms of job losses.
Small businesses got federal tax relief to handle the COVID-19 economic downturn. Now Springfield is trying to take away the same break on state taxes, costing the state’s main job creators $1 billion with hundreds of thousands of Illinoisans still out of work.
Federal tax relief was championed so small businesses could better deal with COVID-19 economic impacts. Gov. J.B. Pritzker wants to undo that relief to keep $1 billion in state taxes from Illinois small businesses.