Corporate Tax

Illinois Finances 2021: Pritzker funds deal with suggests closing corporate tax loopholes, no revenue tax hike, because the partisan battle brews

CHICAGO (WLS) – Governor JB Pritzker outlined his budget proposal on Wednesday, which will not impose income taxes, but rather offset the budget in part by eliminating numerous gaps in corporate tax.

“I had bolder plans for our national budget than what I am going to put before you today. It would be a lie to propose otherwise. But just as all of our families had to make difficult decisions last year, the state government has made tough decisions and now has to we are adopting a balanced budget that strikes the right balance between tightening our belts and preventing further trouble for Illinoisans who are already carrying a heavy burden, “said Pritzker in his previously recorded budget address.

WATCH: Governor JB Pritzker delivers the 2021 budget address

The governor is proposing a $ 42 billion spending plan for the next fiscal year that includes spending cuts of $ 700 million for government agencies. The Department of Child and Family Services will increase the budget by 8% to hire more staff and reduce the number of cases. Funding for K-12 and higher education is also currently protected.

“At its core, our pandemic is focused on saving lives and protecting working families. We have helped tens of thousands of families keep their homes, feed them and make sure their children have a safe place every day.” The pandemic is not over yet, so this remains our guide to this budget proposal for fiscal year 2022, “said Pritzker.

After Republicans helped defeat Pritzker’s tiered income tax change in November, the governor is now proposing to close some of the corporate tax gaps he agreed in 2019 in order to get Republican support for his budget.

Overall, Pritzker plans to close $ 932 million in corporate gaps, including capping deductions for operating losses, lifting the franchise tax waiver, capping the rebate for retailers who collect sales tax, and lowering the credit for donations to scholarship funds for Private schools.

“At a time when companies across the state are reaching for straws to stay afloat after being shut down due to executive orders, Governor Pritzker is now proposing a tax hike on anyone that is just loopholes,” the MP said Jim Durkin, the House GOP Leader.

The governor expressed his frustration with the Republicans for not offering their own solutions.

WATCH: Battle brows in front of Pritzker budget address

“Two months ago I asked Republicans in the General Assembly for their proposals to close this year’s budget deficit. I was silenced. Apparently their idea of ​​bipartisanism ends when difficult decisions have to be made,” said Pritzker.

“The general funding budget that I’m presenting today for FY 2022 is $ 1.8 billion less than FY 2021. It reflects additional funding cuts of $ 400 million, a hiring freeze, flat rate Business expenses, full required pension payments and closing unaffordable corporate loopholes, “added the governor.

Democrats, with a majority in the House and Senate, called the governor’s budget a “bona fide budget” and expressed their support for closing the business gaps.

“I thought the speech was a good first step in addressing the fiscal challenges ahead,” said Senator Elgie Sims of Chicago and the southern suburbs. “It makes the most of a very difficult situation.”

To help those who lost their jobs during the pandemic, Pritzker is asking for an additional $ 60 million in funding for the Department of Employment Security to add staff and fund call centers. In addition, he is asking for an additional $ 73 million next year.

The budget also provides for continuing work on capital construction projects that are part of the six-year plan to rebuild Illinois, which will provide funding for roads and bridges, higher education facilities, and funding to further expand access to high-speed Internet.

In the meantime, the state is still waiting to see how much it could receive from the federal government in the next COVID-19 aid law.

“Let us be clear. Congressional action will help us today, but it will not solve the remaining fiscal challenges in Illinois. Therefore, any money we receive from the federal government must be wisely spent, paying back our borrowings and billing backlog All the rest must be used for investment in job creation and economic growth. More jobs, more businesses, more economic activity – means a higher standard of living, a healthier budget and a healthier state government for our citizens, “said Pritzker.

Pritzker said this budget would be challenging but was optimistic that there could be a cooperative spirit in the legislation. Democrats have super majorities in both the House and Senate.

“Compromise, hard work and a willingness to make difficult decisions are required of all of us. I am open to the negotiation process. I just have one hard and fast rule – we will not deal with it.” People who have been decimated as road kill by this pandemic. The neediest in our most desperate times deserve our help and we cannot let them fail, “said Pritzker.

Copyright © 2021 WLS-TV. All rights reserved.

Related Articles