Last Thursday was eventful in Illinois, as some of the most prominent business leaders questioned the income tax hike on corporations and individuals. The situation that is happening right now in Illinois is important for the entire USA. Which is why we are devoting some special attention to this event.
What’s The Core Issue?
The core issue of the income tax hike is the Civic Committee increased concerns. About the “deterioration of Illinois’ attractiveness” both as a place to live and work.
Their statement continues to explain that the reputation among investors is also in danger with this solution. If things continue in this manner. It is inevitable for the state to raise $10 billion a year over the next five years, just to restore itself to the initial position.
What Could Be Done?
The group has also made some propositions. As to what can be done to improve the impending doom. By cutting the state government expenses, eventually. The amount of $2 billion could be saved and used to restore the budget. The remaining $8 billion should come from tax increases, on both individual rate and the corporate rate.
However, Illinois is not down with this decision.
Corporate income taxes are already high enough, which means the companies will seek opportunities out of Illinois in case the taxes increase in the future.
The best strategy would be for everyone to become more reliable when it comes to paying their taxes. As things are today, even two-thirds of the corporations in Illinois do not pay corporate taxes. The ninety-five percent of those companies have zero taxable income. This is the room for improvement and not the tax increase.
Business groups should also pay income taxes which apply to retirement income, which will eliminate some of the tax exemptions for people who make more money, the right said the amount is more than $50,000 on a yearly income. The strategies that we must use are the ones who will bring progress to our society, not the ones that will withhold the progress and improvement.