House Speaker Mike Madigan this week proposed House Resolution 1025, a call for a graduated income tax to replace the current flat tax in Illinois. This comes less than two weeks after Republican House Leader Jim Durkin proposed a resolution opposing such a change in tax law.
NFIB opposes the graduated income tax because it would hurt small businesses that file as pass-through entities, hurting business growth and job creation. NFIB also worries about the potential for a bait-and-switch where rates across the board progressively increase over time as high-income earners leave the state.
Temporary Reprieve
The deadline passed that would allow the General Assembly to put this constitutional amendment on the November ballot. This issue, however, is top on the list of Gubernatorial candidate JB Pritzker’s and the Democratic majority’s to get done.
Good News
Third-Party Tax Audits (HB 2717). NFIB worked along-side other business groups opposing this legislation that would have allowed third-party audits of confidential business sales tax filings to find great tax liabilities. It was soundly defeated in the House by a vote of 61 – 42. Thank you to our members who were able to respond to our “Call to Action” by sending an electronic letter to their representative.
Legislation NFIB Supports
- HB 5253 (Rep. Carol Sente, Sen. Althoff) Small Business – Impact Analysis, NFIB is working with the bill sponsor and other business on language to require state agencies to issue an economic impact analysis when proposing new rules or amendments to rules that affect small businesses. This would enhance current regulatory flexibility in state law meant to protect small business. Status: Passed House in Senate Commerce and Econ committee.
- HB 5675 (Rep. Grant Wehrli) Entrepreneur-in-Residence would create a pilot program. The purpose is to strengthen coordination between the private sector and state government or issues of entrepreneurships and small business. Status: Sent back to Rules committee.
Legislation NFIB Opposes
- HB 5046 (Rep. Chris Welch) Predictive Scheduling would require employers to provide work schedules to employees at least 72 hours before the start of the first shift of the work schedule. Provides for reporting pay when an employee’s work shift is canceled or reduced within 72 of the beginning of the shift. Authorizes lawsuits against employers for violations. Status: House Labor committee. Status: This measure is scheduled for a subject matter hearing in a joint House/Senate Labor committee.
- HB 4163 (Rep. Anna Moeller, Sen. Castro) Equal Pay: Wage History: This bill is back from 2017, where it failed to pass the Senate. It would prohibit an employer from screening job applicants based on their wage or salary history as a condition of being interviewed/considered for employment. Status: Passed the House, now in Senate Labor committee.
- SB 2863 (Sen. Kwame Raoul, Rep Hoffman) passed the Senate this week 34-21-0. This bill amends the Employer’s Liability Rates Article of the Illinois Insurance Code to regulate workers’ compensation insurance rates. This bill is identical to HB 2525 which was vetoed last year by the Governor. Status: Passed Senate to House Labor committee.
- HB 4572 (Rep. Will Guzzardi, Sen Castro) Amends the Illinois Human Rights Act to redefine “employer” to include any person employing one (currently 15) or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation. Status: Passed House in Senate Labor committee
- HB 4595 (Rep. Laura Fine) State-based Workers’ Comp Insurance company. It would be started with a $10 million “loan” from the Workers’ Compensation Commission fund that comes from insurance provider fees. The sponsor does not have a business or feasibility plan nor any experience in business or the insurance industry. Status: Passed out of House Labor committee, held on House calendar order of second reading.
- SB 2213 (Sen. Dan Biss, Rep. Stratton) Illinois Workers’ Rights and Worker Safety Act provides that a State agency may establish workers’ rights and worker safety standards that are equal to or more stringent than those provided in federal law in existence as of January 1, 2017. Status: Passed Senate.
- SB 2480 (Sen. Michael Hastings) Hazardous Material Workforce seeks to limit merit-shop contractors from specific private projects at stationary sources by requiring that contractors and any subcontractors use a trained workforce to perform all onsite work within an “apprenticeable” occupation in the building and construction trades. Status: Returned to Senate Assignments committee.
- SB 2999 (Sen. Van Pelt, Rep. Conyears-Ervin) Amends the Illinois Wage Payment and Collection Act. Provides that an employer shall reimburse an employee for all necessary expenditures or losses incurred by the employee directly related to services performed for the employer. Status: Passed Senate but amended to remove NFIB opposition.
- SB3005 (Sen. Kwame Raoul) would allow any “persons” to appeal or intervene in lawsuits challenging decisions of state agencies. This means that any person, Illinois resident or not, can be listed as an interested party in a proceeding, a power currently afforded to the agencies and plaintiff party requesting the proceeding. Status: Returned to Senate Assignments committee
- SB3257 (Sen. Elgie Sims) would increase the felony retail theft threshold from the current $300 to $2,000. This legislation would allow a criminal to steal up to $2,000 of goods from a local business while only be charged with a misdemeanor. This what the professional theft rings could do with that. Status: Returned to Senate Assignments committee.
