“Too Close to Call” seemed to the be mantra throughout election night and for the days following. One thing that was consistent among many of the local, state and federal races is the small margins between the party candidates. Democrats are expected to keep majority control of the U.S. House, although they will have a smaller majority after losing seven seats to the GOP. At this writing, there is a tie for U.S. Senate seats with a run-off scheduled in Georgia. Also, locally the U.S. House District 14 race between Lauren Underwood and Jim Oberweis has yet to be officially called.
Other Election News
Outside the candidate races, below are some notable outcomes of the election impacting our business community:
The Graduated Income Tax Referendum Defeated
Illinois voters rejected the Graduated Income Tax referendum by a vote 55 – 44%. As you recall, the NACC stood opposed to this referendum. We see this result as a win for the business community. Had the referendum passed, it would have left businesses vulnerable to being double taxed (on certain industries) and would expose businesses to potentially higher corporate tax rates. This would have been worrisome since Illinois now has the 4th highest corporate tax rate in the country. In case you missed it, the NACC offered a Graduated Income Tax Forum program on Oct.9 that you can watch here.
California Voted to Allow Gig Workers to be Classified as Independent Contractors and Not Employees
Another election result on our radar is California voters approved Prop 22 – a ballot measure that allows gig workers to be classified as independent contractors and not employees.
In past Government Affairs blog posts, I had discussed initiatives underway in California to tighten the definition of an independent contractor to require companies to classify rideshare drivers as employees – thus granting protections like minimum wage, overtime, and other benefits. This push was mainly directed at rideshare companies like Lyft and Uber, as well has food delivery services such as DoorDash. However, it would also impact other industries whose business models rely heavily on independent contract status workers. Some key examples are real estate agents and financial advisers. One reason this vote result impacts Naperville Area businesses is because there are proposed bills that limit independent contractors starting to be filed in Springfield. While the NACC has not taken a position in this matter, implications for certain industries could be major. We will continue to track the policy landscape of this and other initiatives impacting your business.