Income tax hike could hurt businesses
SPRINGFIELD, Ill. (WRSP) —
For the first time since 2015, Illinois could have a balanced budget as early as Thursday, but it comes with a $5 billion tax hike that could hurt existing businesses
"They're putting the burden on the backs of everybody that pays taxes and they're raising them all the time,” said owner John Fulgenzi, who is also the Ward 4 Alderman. “It's not a good thing.”
This proposed bill would increase income taxes for businesses to 7 percent which puts Illinois on the higher end of corporate businesses taxes. Coupling that with a high property and sales tax, Illinois will be one of the highest taxed states in the U.S.
"This is like saying somebody has a budget and they're robbing the piggy bank," said Ron McNeil, dean of Business at the University of Illinois in Springfield. "It's somebody else's piggy bank. It's your piggy bank and it's my piggy bank."
With those numbers, it could also discourage businesses to move to Illinois or even force some businesses to relocate.
"Many of them are closing their doors, many of them are leaving the state and moving to Indiana and other states," said Governor Bruce Rauner. "Raising taxes without fundamentally changing our system, so we have a better future will be a disaster."
Caterpillar is one major corporation that talked about relocating their headquarters. We reached out to Caterpillar to discuss the specifics of the proposed budget, but they did not provide a comment.
Despite the tax increase, Mayor Jim Langfelder says just the certainty of having a budget will be enough to benefit Springfield.
"Having that certainty will definitely help the economic growth of Springfield through sales tax or anything else," said Langfelder.