Lowering Illinois Corporate Tax Rate

Illinois has one of the highest corproate tax rates at 9.5%.  The Illinois State’s House Majority Leader is floating the idea of lowering the tax this summer. 

The rate changed form 7.3% to 9.5% in 2011.  It is a temporary increase is supposed to last until 2015.  The increase in corporate tax rate has been blamed for the exodus of businesses from Illinois to surrounding states such as Wisconsin and Indiana where the rates are lower.  Wisconsin has a 7.9% corporate tax rate and Indiana has a 8% corproate tax rate.

Lowering the corporate tax rate will reduce revenue to the state treasury that will have to be made up in other ways.  Governor Pat Quin has not stated whether or not he would support the lower tax rate.

By Owen Daniels