- Published: 30 March 2017
With ongoing negotiations to end Illinois’s historic budget impasse, State Senator John Mulroe has introduced a plan to examine the billions of dollars that the state gives away in tax credits every year.
“Before increasing taxes and burdening the middle class, we must have an honest assessment of our budget priorities and examine every dollar the state is spending,” Mulroe said. “While many of the state’s tax credits benefit important components of our economy, we are facing a fiscal crisis and have to ensure that we create the best deal possible for taxpayers. Every dollar counts.”
Senate Bill 472 eliminates a number of tax exemptions that currently go to large corporations. These tax credits result in nearly $2 billion in lost revenue for the state of Illinois. Mulroe’s plan also caps deductions and credits for Illinoisans who file joint returns with income over $500,000 and ensures that everyone pays their fair share.
“Due to the pressure that the governor’s $5 billion budget gap has placed on the state, we need to take a fresh look at state spending, including tax credits,” Mulroe said. “If certain tax credits are not meeting their intended goals, then taxpayers shouldn’t be forced to subsidize corporate welfare at a time when social service agencies are closing left and right.”
Mulroe is hoping that by introducing this plan he will spark a robust conversation with his Senate colleagues on how to end the impasse and balance the needs of working families and taxpayers with economic development.
“Through my experience as a CPA, I believe that we must have a modern tax code that reduces the burden on the working class and acknowledges how business is conducted in this day and age with technology advancements that have made it easier to operate a business.”