Taxes

  • Sen. Toi HutchinsonSPRINGFIELD – Illinois non-profits will be spared a tax hike thanks to legislation passed by State Senator Toi Hutchinson (D-Chicago Heights) that was signed into law on Friday by Gov. Pritzker.

    Hutchinson’s new law – passed under Senate Bill 1257 – decouples Illinois from a new tax on nonprofits that was included in President Trump’s 2017 Tax Cuts and Jobs Act.

    “Across Illinois, nonprofits take care of our seniors, ensure children are safe in the community and support individuals with disabilities,” Hutchinson said. “Imposing a new tax on these organizations would only risk disrupting vital services that Illinoisans rely upon every day.”

  • biss 031517 2SPRINGFIELD – A measure that would bring fairness to Illinois’ income tax system, close the wealth divide and help to resolve the state’s budget crisis passed in the Senate this week.

    Senate Bill 1719, sponsored by Senator Daniel Biss (D-Evanston), would close the carried interest loophole that enables ultra-wealthy hedge fund and private equity managers to avoid paying millions of dollars in Illinois taxes.

    “Wealthy hedge fund managers are exploiting an archaic tax loophole and profiting off the backs of Illinois taxpayers,” Biss said. “We have a corrupt tax system in which ordinary people aren’t receiving the government services they help to pay for because the state is broke, in part because of a tax loophole that helps the rich get richer.”

    The legislation would establish a 20 percent privilege tax on a former of compensation known as carried interest beginning July 1, 2017. The tax is on the fees earned from the investment strategy of the investment manager, not on the investment itself.

    Estimates are that the legislation annually could generate between $473 million and $1.7 billion for the state.

    Amisha Patel, executive director of Grassroots Collaborative, a Chicago-based organization, commended Biss and the Illinois Senate for passing the legislation.

    “This is great news for Illinois residents who have been languishing under an extended budget impasse,” Patel said. “Illinois needs new revenue. Senate Bill 1719 generates significant revenue, raising it from those who have profited for years off a rigged tax system, instead of asking for more sacrifices from our most vulnerable residents.”

    Biss said this is just another step toward correcting inequities that are baked into Illinois’ tax system.

    “There is no reason for the State of Illinois to aid billionaires in finding ways to shelter their income,” he said. “Everyone should have to pay their fair share of income taxes. And if lawmakers in Congress won’t help us right this wrong, we’ll have to do it ourselves.”

  • Tax on tampons repealed in Illinois