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Quinn Proposes Higher Taxes for Businesses
Even in a rocky economic recovery, companies that make things in Illinois have been a steady place for a job.
More than 600,000 Illinoisans work in manufacturing and nearly 40,000 new jobs have been added in the last two years.
Now, the manufacturing industry may be one of the hardest hit by a proposal from the governor to suspend corporate tax loopholes.
During his budget address Wednesday, Gov. Pat Quinn said, "Why should we give costly, ineffective loopholes to some of the biggest and most profitable corporations on earth, when we have bills to pay?"
Quinn said three loopholes cost the state $445 million a year. He wants to suspend loopholes within foreign dividends and separate from the federal production activities loophole. He also wants to suspend the non-combination rule, which allows big corporations to shift their income to locations outside Illinois.
"The more corporate loopholes we suspend, the faster we can pay down our bills," Quinn said.
Mark Denzler, Vice President of the Illinois Manufacturers Association, said the governor's proposal to raise taxes on employers is the wrong answer.
"The governor and the General Assembly raised income taxes two years ago and that generated $15 billion," Denzler said. "They pledged to pay old debt and fix the pension system, and it's gotten worse."
Opponents argue this tax proposal will further hurt businesses' bottom lines and will lead to more Illinoisans out of work.
Lawmakers will consider and vote on Quinn's proposals. As for suspending corporate tax loopholes, Quinn wants to see legislation enacted to do that within 12 weeks.