- Obama military downsizing leaves U.S. too weak to counter global threats, panel finds
- Sen. Tom Coburn vows to slow down budget-busting bills ahead of recess
- Obama fantasizes about more executive power, signs new order on federal contractors
- Clintons call Klein, Halper, Kessler ‘a Hat Trick of despicable actors’: report
- Boehner accuses Obama of ‘legacy of lawlessness’
- Pro-marijuana group claims responsibility for Brooklyn Bridge flag swap
- Young adults shun Obamacare mostly due to cost: survey
- Stabbing attack on transgender girl, 15, was ‘bias motivated,’ police say
- LGBT adults still lean overwhelmingly toward Democratic Party
- Lawmakers rattled by Syria genocide horrors, call on Obama to act
Tax-break expansion plan raises concerns, shrugs
Question of the Day
CHAMPAIGN, Ill. (AP) - Illinois House Speaker Michael Madigan is pushing to give small companies equal access to tax breaks that big corporations have, but the proposal has been met with skepticism in the state’s business community, including about what effect it actually would have.
The plan takes aim at special EDGE credits - tax breaks a small number of big companies like Sears Holding Corp. and OfficeMax have sought by going directly to the General Assembly with threats to leave the state. EDGE credits are the state’s primary means of luring or keeping companies and jobs, but they’re usually administered by the Department of Commerce and Economic Opportunity and include performance standards. Companies that have gone straight to the General Assembly want to cut their own deals with perks not available to other companies.
Madigan’s plan would make the tax credits available to businesses with fewer than 100 employees, and target credits at areas of high poverty and unemployment. But some small business owners say such credits might have little impact on their decisions, and executives are raising objections to a provision that would require them to reveal private information.
Experts say Madigan’s legislation is at least partially an exercise in election-year politics, by catering to a constituency friendlier to Democrats. Neither Madigan’s staff nor the state Department of Commerce and Economic Opportunity has estimated yet what the plan could cost.
- SPECIAL INCENTIVES:
The state’s attention turned to business tax breaks after a string of big companies tried, and sometimes succeeded, to cut their own deals with the General Assembly.
The speaker’s legislation would try to make these one-off deals less appealing to businesses, in part by requiring that they make income and tax details public.
Illinois Chamber of Commerce President Doug Whitley said he’s OK with stopping companies from cutting special deals. But he said few if any would agree to public disclosure of tax information, which also would be a “red flag” to businesses already leery of Illinois.
“I think that Illinois continues to send the signal that we are not particularly business-friendly,” he said.
Whitley said it would be better to expand tax breaks to sales taxes, among others - a move that would reach more companies.
- SMALL BUSINESS:
A recurring complaint about Illinois’ tax breaks is that small businesses don’t have equal access.
Madigan’s plan would remove a current requirement for new capital investment of $1 million. A business with fewer than 100 employees would merely have to add at least five new jobs.
But regulation and workers’ compensation are far bigger issues to the 11,000 Illinois companies that are part of the National Federation of Independent Business, said Kim Maisch, the group’s state director.
TWT Video Picks
Both parties recognize the Democrats' scam
- Inside the Ring: Israel surprised by Hamas tunnel network
- CRUZ: A tale of two hospitals: One in Israel, one in Gaza
- Chicken pox outbreak puts illegal immigrant facility on lockdown
- Obama military strategy too weak for future security, panel reports
- Report: 40% of weapons sent to Afghanistan are unaccounted for
- Israel surprised by Hamas tunnel network
- CIA admits improperly hacking Senate computers in search of Bush-era information
- Islamic militants seize Benghazi as U.S. evacuates Libya
- 'Big Bang' star Mayim Bialik helps send bulletproof vests to IDF
- 3 African leaders cancel trip to U.S. over Ebola outbreak; Obama still plans summit
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world