Michael Madigan is once again playing a masterful political game during an election year. This time he is suggesting a 50% cut in corporate taxes. Yes, you read that correctly, Madigan is asking for a tax decrease. Read on and you will see that Madigan is not really becoming a tea party member, but just plays one in an election year.
So what does this tax increase really do? Here is an excerpt from Dan Duffy’s explanation:
COGFA data shows that out of all companies in Illinois set up/designated to pay “Corporate taxes,” 70% do not pay ANY taxes at all. (Think companies like GE who make billions and do not pay any taxes.) So Democrat King Madigan has now partnered with the huge corporate behemoths that have high priced lobbyists, attorneys and accountants.
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Meanwhile, small business owners who provide 75% of ALL the jobs in Illinois and are set up as “S Corps” – who pay their company taxes through their Personal Tax returns – continued to get screwed in Illinois…along with every individual in this state who pays their taxes. They will continue to leave this state.
Madigan is not giving away anything — he is buying an election with corporate sponsors. This is how he has stayed in office and single-handedly ruled a state for 40 years.
Dennis Byrne of the Chicago Tribune puts explains it this way:
Specifically, Madigan’s House Bill 4479 would shave the corporate income tax rate to 3.5 percent from the current 7 percent. To add icing to the cake, he would make the cut retroactive to Jan. 1.
But he would leave whole the 2.5 percent personal property replacement tax that corporations now pay, making the current effective corporate rate 9.5 percent. So, even with his tax cut, corporations still would be paying 6 percent of their income to the state. That, in reality, would cut the corporate burden by about a third instead of a half.
As you can see, these are just accounting tricks and political maneuvering to help Democrats and Pat Quinn in the upcoming elections. The ultimate game is still to unfold on tax increases or making the current temporary tax permanent. Remember to keep your eye on the ball carefully, this is nothing more than another Madigan shell game.
About Lennie Jarratt
The issue is cutting all the taxes not only Corporate taxes. The 50% over staffing and compensation levels plus millionaire Pension Scam of the Public Sector clearly indicates that there is a need for major restructuring and reform. The taxes should be cut not only on Income Tax but also on the Property Taxes and numerous other fees, licenses and sales taxes. It is time to restore Capitalism and downsize these fraud riddled and corrupt Public Sector operations that do nothing but serve its members while raping and robbing the taxpayers. Add to this that these Public Sector operations commit numerous crimes such as legislating unconstitutional laws one wonders how much longer the taxpayers will tolerate this level of tyranny.