Madigan Proposes Cutting Ill. Corporate Income TaxSPRINGFIELD, Ill. (AP) - House Speaker Michael Madigan is proposing cutting Illinois' corporate income tax rate in half in an effort to improve the state's business climate.
The powerful Chicago Democrat introduced legislation Thursday that would cut the rate from 7 percent to 3.5 percent, effective Jan. 1, 2014.
In a news release, Madigan says he hopes the cut "will encourage CEOs to grow their work forces with good paying jobs."
A spokeswoman says Illinois small businesses won't be affected by Madigan's proposal to cut the corporate income tax rate.
Kim Clarke Maisch is Illinois director of the National Federation of Independent Business. She says 75 percent of the state's business operations pay personal income taxes.
Maisch says Thursday's proposal is a step in the right direction but "the real job-creators are small business owners." Lowering the personal tax rate would help them most.
Democratic lawmakers in 2011 approved a temporary tax hike as a way to address Illinois' fiscal crisis. It raised the corporate income tax from 4.8 percent to 7 percent. The increase is scheduled to be rolled back to 5.25 percent on Jan. 1.
Republicans have criticized Democrats for creating an unfriendly business environment, saying increased taxes have contributed to Illinois' high unemployment rate.
See other LocalNews news:South Central Receives One of 12 Federal Literacy Grants
Alleged Buchheit Burglar Indicted by Federal Grand Jury
Centralia HS Alumni Association Opens New Capital Funds Donation Initiative
Mark Decker Drops Out of Salem Mayoral Race, Three Candidates Remain
Centralia High School Approves Low Tax Levy