The corporate tax reforms under President Donald Trump’s proposed tax plan could strengthen Illinois’ position as a home for businesses, but the state’s uncompetitive income, property and death tax policies would put its residents at an even greater disadvantage with respect to other states if the president’s plan passes.
In exchange for more than $112 million in tax breaks, Amazon promised to expand its Illinois operations and hire 7,200 new employees in Aurora, Monee and Joliet.
Under a 2015 agreement between the Department of Commerce and Economic Opportunity and The Advisory Board Co., the state gave a tax credit worth millions of dollars in exchange for 55 jobs.
The car manufacturer is promising to bring more than 1,000 jobs to Normal, Ill., after being offered $49.5 million in state tax credits and more in local tax credits and abatements.
The expiration of the state’s EDGE program – which has given large companies more than $1 billion in tax credits the last 15 years – is good news for taxpayers and should encourage lawmakers to pass real reforms.
News that Wrigley has started producing Skittles in Illinois has many excited – until they learn just how much Illinois gave in tax incentives to lure 75 new jobs.
There’s a reason new facilities aren’t being built in Illinois: In too many cases a business investment in Illinois doesn’t make financial sense unless Illinois taxpayers are paying for a chunk of the project. This system isn’t good for businesses, or for workers and unions that are losing jobs. Until Illinois makes the broad tax and regulatory reforms needed to compete for blue-collar jobs, businesses are going to keep expanding elsewhere or asking for tax breaks to come here.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.