IL House-Senate Panel to Study Tax Climate for Businesses
The way Illinois taxes businesses has developed a bad reputation. A growing number of companies cite it as a hindrance. Now, though, the leaders of the state Senate and House are making an overhaul of the tax structure a priority.
Caterpillar CEO Doug Oberhelman sent a letter to Governor Pat Quinn in March outlining how Illinois lawmakers' actions were making it harder for him to withstand the heavy courtship of other states wanting the Peoria-based equipment-maker to relocate.
The letter set off a frenzy because Caterpillar's moving would be a major loss to Illinois. Oberhelman later refined his point and says the company has no plans to leave.
Nonetheless ... the focus was drawn to Illinois' business climate. Since then, there has been a drumbeat of headlines about this year's tax hike, and about subsequent tax breaks given to corporations like Motorola and Navistar to entice them to stay, which is why the House Speaker and Senate President formed a joint committee to consider overhauling the business tax structure.
Democratic Representative John Bradley of Marion will be a co-chair. "The idea being here that we're going to try to make Illinois keep up with the times and be handling the corporate tax structure that is efficient, fair, balanced and competitive manner," Bradley said.
Hearings will be held this summer, but times and locations haven't yet been set.