Business tax issue in spotlight

The (Champaign, Ill.) News-Gazette: Illinois will trail neighboring states in economic development until it puts its financial house in order.

State Democratic legislative leaders Michael Madigan and John Cullerton put a special emphasis over the last year on big issues, including substantive changes in workers’ compensation, education and Medicaid.

The result was a series of bills to address problems in all three areas. There’s no guarantee the reforms that were implemented will make a significant difference, but legislative leaders clearly are trying to solve problems.

Madigan and Cullerton recently teamed up again, this time orchestrating a series of special hearings on the business tax issue. The first was held recently in Chicago while others are scheduled in Springfield, Rockford and Marion.

This is another big problem. Excessive taxation encourages some businesses to leave Illinois while discouraging others from moving to Illinois. This state needs jobs for its citizens, but high business taxes make that goal hard to achieve.

Further, they encourage Gov. Pat Quinn to award special tax breaks to big businesses who threaten to leave, Motorola most recently, while leaving businesses without Motorola’s size and political clout at a disadvantage.

It is ironic that the Legislature, which in January increased personal and corporate income taxes, is now exploring the issue of creating a more competitive state business environment. Given the state’s precarious budget situation, it’s impossible to predict what the outcome will be.