CAPITOL ROUNDUP: Business Community Calls Governor's Tax Plan a Bad Idea

Date: March 20, 2019

Whether one chooses to refer to Gov. J.B. Pritzker‘s tax proposal as “graduated” or “progressive”, the business community is calling it a bad idea.

The plan is one that could open up the state’s constitution and replace the flat income tax rate with one that will raise the top rate to 7.85% on top earners, business pass-throughs and corporations. One of Illinois’ sole tax advantages is the flat rate that is predictable and very hard to raise.

Should Illinois change its tax system to a progressive one, future General Assemblies will find it easier to alter the rate structure as shown in Connecticut’s switch in the early 1990s. They have steadily increased brackets and rates ever since.

NFIB will be engaged in the on-going debate, and members should expect to receive Take Action notices in the near future.

Action at the Capitol

It appears the labor unions and trial lawyers are having their way with the General Assembly. With Democratic super-majorities in both houses and an advocate in the governor’s mansion, they are making hay early as demonstrated by the fast passage of the minimum wage hike and the following bill action.

HB 834, a bill that prohibits employers from asking potential employees about their past wage and salaries (includes sever employer penalties) passed the House 86-28 and heads to the Senate where it will likely pass. NFIB opposes it.

HB 252, a bill that changes the Illinois Human Rights Act workplace laws to apply to all employers, not just those with 10 or more workers, passed the House 74-44 and is now in the Senate. NFIB opposes it.

SB 1596, a bill that expands civil liability on business by going around the workers’ compensation system on asbestos (and potentially other long-term work-related illnesses) cases that date back beyond the 25 years repose for workers’ comp cases passed both houses and goes to the governor for signature. NFIB opposed this.

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